Re Agreement

Persian Gold PLC
26 May 2006

         Option to Acquire the Chah-e-Zard Gold Discovery in Yazd, Iran



Highlights

•                    Option to acquire 70% of Chah-e-Zard gold project.

•                    Preliminary sampling results on territory illustrates
                     potential.

•                    Initial results range between +21.0 g/t  - 1.0 g/t over an
                     area of  1.2km / 0.75km.

•                    Full exploration programme has commenced.



Persian Gold (AIM: PNG), the Irish based AIM listed Iranian gold explorer, is
pleased to announce that it has entered into an option agreement on the
Chah-e-Zard gold project, located in Yazd, some 350 miles southeast of Tehran.
If exercised, the option has an initial period of nine months and will allow
Persian Gold to acquire a 70% interest in a new company to be established to
hold the licence on the property.



The Chah-e-Zard gold deposit is located within a major mineral belt that extends
from Turkey through Iran into Pakistan.  Published geological information has
noted gold occurrences within the project area.  Historic mining activity is
also evident.  As with many of the world's largest gold mines the gold bearing
rocks at Chah-e-Zard are breccias.  The area is well suited to exploration
activity with a climate which permits year round operations.



On the basis of a Memorandum of Understanding with the property owner, Persian
Gold geologists have sampled the area which contains a large zone of intense
rock alteration containing quartz, K-feldspar, indicative clay minerals, and
alunite.  Chip samples containing gold values up to +21.0 g/t. were found in
rock outcrop.  In addition, 1.0 g/t + values are recorded over an area that
exceeds 1,200 metres by 750 metres. These results are significantly more
positive than initially projected.  There is also the possibility of low-grade
gold bulk tonnage over a larger area.



Gold results for rock chip samples collected by Persian Gold geologists from the
property combined with a data set provided by the property owner to form the
basis for the current more detailed exploration programme involving trenching,
systematic rock and soil sampling and reconnaissance drilling.  Persian Gold
geologists are in the field and have already identified priority targets that
require immediate follow up.  Drilling is expected to begin within the next
three months.



John Teeling, Chairman, said,



'This is a significant addition to our Iranian exploration portfolio.  The size
and intensity of the gold anomaly indicates the possibility of a substantial
deposit. The high gold values in the rock outcrop indicate a strong gold system
but it is important to note that exploration is at an early stage.



Detailed surface exploration is ongoing and is expected to lead to a drilling
programme over the summer months. We look forward to updating the market before
the end of June '.



This announcement has been approved by SJ Meldrum BSc (Hons) AIG



For further information please contact:


Contacts:


John Teeling, Chairman
www.persiangoldplc.com                                + 353 1 833 2833

College Hill
Paddy Blewer / Nick Elwes                             + 44 (0) 207 457 2020

Rowan Dartington
Ian Rice                                              [phone]




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