Sirius Exploration

October 23, 2009 02:00 ET

Acquisition of Derby Salt Pty Ltd

For immediate release: 23 October 2009, 7AM

                                            SIRIUS EXPLORATION Plc
                                    ("Sirius Exploration" or "the Company")
                                       Acquisition of Derby Salt Pty Ltd

Sirius  Exploration Plc ("Sirius" or "the Company") announces that it has acquired 100% of the ordinary  shares
in  Derby Salt Pty Ltd ("Derby Salt") for a consideration of £13,000,000. This consideration has been satisfied
by  Derby Salt's shareholders accepting 100,000,000 new Ordinary Shares of 0.25p ("Ordinary Shares") in  Sirius
at a price of 13p per share.  Following completion of the transaction, Sirius will have an issued share capital
of 600,730,150 Ordinary Shares.

Application  has  been made for the 100,000,000 new Ordinary Shares, representing 16.65% of  Sirius's  enlarged
issued share capital which will rank pari passu with the existing ordinary shares, to be admitted to trading on
AIM and trading is expected to commence on 28 October 2009.

As  a  result  of  the acquisition and issue of the consideration shares The Catlow Family Trust  will  have  a
beneficial interest in 100,000,000 Ordinary Shares representing 16.65% of the Company's issued share capital.

Information on Derby Salt

Derby  Salt  Pty  Ltd, a privately held Company incorporated in Western Australia and based in  Perth,  Western
Australia,  holds  mineral leases in excess of 125,000 hectares in the Kimberley region of  Western  Australia,
allowing  for the exploration and extraction of salt and potash and the creation of caverns for the storage  of
natural gas or potentially carbon dioxide.

Derby  Salt  has  not traded and has published no Accounts.  A valuation or competent person's  report  is  not
required for this transaction.  Following the acquisition of the controlling interest by Sirius, the Company is
to commission a report on the storage cavern and mineral potential.

The  Kimberley  region  of Western Australia overlies The Canning Basin which based on  existing  seismic  data
gathered  over several decades is considered to contain vast evaporative salt accumulations.   After  a  recent
detailed review of all available data Derby Salt has identified and secured ground that it believes to have the
most  prospective potential to host economic potash deposits. If successfully delineated, it is  proposed  that
these  deposits will be solution mined. The potash is targeted in the Mallowa Salt unit of the Carribuddy Group
within  the  Ordovician sediments in the Canning Basin. In Derby Salt's tenements the Mallowa Salts are  around
450  metres  thick  with the top at a depth of approximately 550 metres below the surface.  The  tenements  are
approximately 200km south-east of Broome and between 100 and 150km south of Derby.

Separately,  there are advanced plans to pipe natural gas to shore close to both Broome and Derby and  a  large
coal  deposit is being developed immediately north of Derby Salt's tenements. Sirius believes that in  addition
to  extracting  salt  and potash from the tenements, there is considerable potential in using  the  Derby  Salt
acreage to create salt caverns to store natural gas and potentially carbon dioxide.
In  addition  to  the  placings  undertaken  earlier this year, the acquisition  of  AusPotash,  as  previously
announced,  has provided the Company with additional funding of $2m which, together, provides the Company  with
sufficient cash resources for its current programme.

Reasons for the Acquisition

The  transaction  provides Sirius with another wholly owned subsidiary company which the  Directors  of  Sirius
believe  has  major  potential  to establish a conventional salt and potash mining  operation  with  additional
opportunity to further the Group's related initiatives in Australia and North America.  This purchase completes
Sirius'  current round of land acquisition. The Company now has well positioned acreage in Queensland,  Western
Australia  and  North Dakota, all of which is suitable for the Company's delineated areas of  business:  potash
extraction, salt extraction and energy storage.

Background on Sirius

Sirius  is  quoted on the AIM market of the London Stock Exchange in London and its shares are also  traded  in
North  America through the use of an ADR facility.  Sirius currently has interests in potash and  salt  caverns
through  its  subsidiaries Dakota Salts LLC and Auspotash Limited. It also has copper  and  gold  interests  in
Macedonia and a royalty interest in a tungsten mine in China.

Richard Poulden, the Chairman of Sirius, commented:

"The  acquisition of Derby Salt is another step on our journey to create an international    company  investing
in  areas of the world where the directors believe there are significant growth opportunities. We believe  that
the  demand  for potash, salt and energy storage will increase worldwide and the acquisition of Derby  Salt  in
Western Australia will complement our similar activities in North Dakota and Queensland."


Enquiries welcomed, for further information please contact the Company:

Sirius Exploration Plc
Richard Poulden (Chairman)
 +971 556 232 672

Jonathan Harrison (Financial Director)
+44 78 7988 7755

Beaumont Cornish
Roland Cornish (Chairman)
Tel: 020 7628 3396

GTH Communications Limited
Toby Hall/Christian Pickel
+44 (0)20 7153 8039/8036


Contact Information

  • Sirius Exploration