Drilling Report

Conroy Diamonds & Gold PLC
17 January 2001



                        Conroy Diamonds & Gold P.l.c.

                               ('the Company')



                     CONROY DISCOVERS GOLD IN CO. ARMAGH



  * New Find Located Some 6.5km Along Strike From Tullybuck/Lisglassan Gold
    Deposit
  * Results Confirm Concept And Potential Of Armagh-Monaghan Gold Belt


Gold has been discovered by 'AIM' listed explorer Conroy Diamonds and Gold
P.l.c. in County Armagh where the first two holes of a drilling programme have
yielded significant results. This discovery is located some 6.5km north-east
along strike of the Tullybuck/Lisglassan deposit in County Monaghan where
previously Conroy encountered significant gold grades and widths.

The Armagh discovery provides firm evidence that Tullybuck/Lisglassan is not
an isolated deposit but is part of the much larger Armagh-Monaghan Gold Belt.
It also points to the very real possibility that a number of economic gold
deposits could be located within the 1,300km(2) area over which Conroy holds
exploration licences. Within this licence area, the Company has identified
numerous other geochemical anomalies which may indicate mineralised zones of
similar potential.

The new find not only confirms the presence of gold mineralisation some
distance from Tullybuck/Lisglassan but also provides strong support for
Conroy's geological model for the Armagh-Monaghan Gold Belt - the
interpretation of geological factors and events which have controlled the
emplacement of mineralisation within the belt. Both Tullybuck/Lisglassan and
the new Armagh discovery are spatially related to the very important Orlock
Bridge Fault, which Conroy believes is the geological structure which most
influenced the creation of the gold belt.

The target area for the Armagh drilling programme was identified by
geochemical prospecting followed by bedrock analysis of two surface trenches.
The first borehole was drilled to intersect the underground extension of a
broad gold anomaly identified in one of the trenches. Between 16.50m and
23.44m down-hole, it intersected an interval of 6.94m grading 4.41g/t gold.
This included a section of 1.87m between 17.97m and 19.84m which averaged
8.84g/t.

The second hole was drilled to intersect the underground extension of a
diffuse, low grade anomaly on a separate structure which had been identified
in the trenches. This returned an intersection of 9.27m grading 1.88g/t gold
between 14.73m and 24.00m down-hole.

Commenting, Chairman Professor Richard Conroy said: 'This is a new and very
exciting discovery which strongly supports the Company's geological model for
gold mineralisation in the Armagh-Monaghan Gold Belt.'

'The Conroy team has systematically worked to understand the structural and
geological controls of mineralisation in Monaghan and Armagh, initially using
the data of the Tullybuck/Lisglassan deposit and adjacent area. These new
results have demonstrated the existence of a substantial area of high gold
mineralisation potential in the Armagh-Monaghan Gold Belt with many targets
still to be tested. The future is both interesting and exciting.'

Further Information:

Professor Richard Conroy,

Chairman,

Conroy Diamonds and Gold P.l.c.

Tel: [phone]