3 February 2015

Orogen Gold plc

("Orogen" or the "Company")

Mutsk gold project update and Issue of Equity

Orogen Gold plc (AIM: ORE), the AIM quoted gold exploration company, provides the following update on the Company's exploration programme at the Mutsk gold project in southern Armenia ("Mutsk project") and the issuing of shares to Orogen's Armenian partners.

Highlights

·     Independent geological review report concludes:

-     Gold mineralisation at Mutsk overlies a large hydrothermal system of which only a small portion has been explored to date 

-     The gold mineralising system is preserved from erosion - gold zones intact

-     Broad, low-grade mineralized zones appear to be stacked into multiple layers

-     Further exploration recommended off-trend from the mineralized zone discovered thus far

-     Banded veining logged in 2014 drilling indicates potential for higher grade mineralized zones

-     Analogies can be drawn with other large scale epithermal gold occurrences

·     Continuation notice issued to Georaid CJSC and 110,886,804 new ordinary shares issued in line with JV agreement

Ed Slowey, Chief Executive of Orogen, commented: "The independent geological overview report of the Mutsk project confirms our optimism regarding the potential scale of the discovery and points towards some additional drill targets, related to structural junctions and possible high grade gold zones at deeper levels. Analogies with other large-scale low-sulphidation epithermal deposits also help to highlight the potential of the project.

"The Company has also announced that is has forwarded a continuation notice and issued shares to our Armenian partners as required by our joint venture agreement, demonstrating our belief in the future of the project and further aligning both parties interests.

"Orogen is working towards finalising of data compilation and geological modelling following the 2013 and 2014 Mutsk drilling programmes and will report on conclusions and future plans arising from this work in the coming weeks." 

1.            Mutsk Project Update

An independent geological overview report on the Mutsk gold property was commissioned by the Company late in 2014 to assist with understanding of the project and to help with future exploration targeting. The report was written by Dr. Jim Oliver, a North American geologist with extensive experience in epithermal and porphyry mineral deposits. His main conclusions are summarised below: 

-     The Mutsk low-sulphidation epithermal gold occurrence represents a "very interesting" geological and mineralising environment. The gold mineralisation overlies a very large hydrothermal system of which only a small portion has been explored to date.

-     Study of data for Mutsk suggests that gold mineralized zones have been formed relatively close to the paleo-topographic surface and that the bulk of the mineralized interval will therefore be intact.

-     Detailed study of drill core strongly indicates a positive correlation between gold and sulphide phases.

-     The assay data suggests that broad, low-grade mineralized zones are stacked, with some level of lithological control on these bodies. Mineralized panels of rock may have a strike length of a few hundred metres and may be up to, and potentially exceed, 80 metres in thickness.

-     Drilling indicates that magmatic breccias exist off-trend from the main Mutsk mineralized zone and that focused exploration efforts within these new trends could produce positive results. The points of convergence of structural trends may localize gold mineralization and warrant additional drill testing.

-     Many low-sulphidation epithermal gold occurrences have productive vertical thicknesses in the 300 to 600 metre range. Higher grade core zones are found in several of these deposits. Colliform banded quartz veins most commonly occur within the upper levels such systems. Well-formed colliform banded quartz-sulphide-carbonate veins are documented at Mutsk. If boiling zones exist below these veins at Mutsk, then higher grade mineralized core zones may be located.

-     The presence of high level diatremes at Mutsk may be suggestive of low sulphidation gold occurrences which are analogous to Montana Tunnels (Montana - USA, approximately 44 million tonnes of 0.55 g/t Au), Rosia Montana (Romania, 214.9 million tonnes @ 1.46 g/t Au) and Kelian (Indonesia, 55 million tonnes of 2.0 g/t Au). However, exploration at Mutsk is at a relatively early stage and there can be no certainty as yet that a similar deposit exists there.

2.            Continuation Notice and Issue of Shares

Under the terms of its joint venture agreement (the "Agreement") with Georaid CJSC ("Georaid") in relation to the Mutsk project the Company is required to allot Ordinary shares in the Company to the value of US$100,000 if it wishes to continue exploration on the Mutsk property beyond 31 December 2014. Orogen has exercised its continuation rights and has issued a total of 110,886,804 new ordinary shares of 0.01p each in the Company (the "New Shares"), in accordance with the Agreement.

Admission

Application has been made for the New Shares to be admitted to trading on AIM, which is expected to take place on 6 February 2015.  Following admission, the enlarged issued share capital of the Company will constitute 3,671,318,987 Ordinary Shares.

Total Voting Rights

For the purposes of the Disclosure and Transparency Rules, the Company's total issued share capital following the issue of the New Shares will comprise 3,671,318,987 ordinary shares of 0.01p each with one voting right per share.  There are no shares held in treasury.

The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company, under the Disclosure and Transparency Rules.

About the Mutsk Project

The Mutsk Project is located in southern Armenia at about 2,000m elevation and is three and a half hours' drive southeast of the capital Yerevan.  The site is accessible most of the year other than during the core winter months.

Limited historic exploration had been carried out until drilling by Georaid CJSC in 2011, which intersected low sulphidation epithermal-type pyrite-gold mineralisation in altered and brecciated tuffs, similar in age and gold grade to those that host the Lydian International high sulphidation Amulsar gold deposit (4.1 million ounces in Measured, Indicated and Inferred Resources at an average grade of 1g/t Au) located 30km to the northwest, also in Armenia.

Orogen has an exclusive agreement with Georaid CJSC to earn an 80% interest in the property by spending a total of US$2.5m by the end of August 2016.

-ENDS-

Approval

Ed Slowey, CEO of Orogen, is a Competent Person as defined by various international instruments and takes responsibility for the release of this information.

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About Orogen Gold

Orogen Gold plc is a UK public company quoted on the London Stock Exchange AIM market (ticker: ORE).  The Company is focused on mineral exploration and development in Europe and is currently operating two gold exploration projects: a) at Mutsk in Armenia and b) at Deli Jovan in Serbia. The Mutsk gold project in Armenia was optioned by Orogen early in 2013 to follow-up reports of a new epithermal discovery within an established gold district.  At Deli Jovan the historic high-grade gold mining camp was last in production prior to World War II and has been significantly under-explored in modern times. The Mutsk project has been prioritised by the Company due to the clear potential evident on the property.