Sirius Exploration
LSE : SXX

November 11, 2008 02:00 ET

Corporate Update

FOR RELEASE:
7.00 AM
11 November 2008 London:
                                                   

                                        SIRIUS EXPLORATION PLC
                                ("Sirius Exploration" or "The Company")

                                                   
                                           CORPORATE UPDATE


    *       New Agreement reached with CIC Mining Resources Limited ("CIC") a leading China based royalty
            company listed on Canadian stock exchange to replace the original agreement announced in June;

    *       Sirius takes 3% NPI royalty for Bobai Bishop Tungsten Mine China;

    *       Future joint project cooperation between Sirius and CIC


On  30  September 2008 Sirius Exploration announced that the option to acquire an initial  10%  equity
stake  in the Bobai Bishop Tungsten operation in China had lapsed but that discussions were continuing
with  the  partners  in  China  and that the Company was confident of a successful  outcome  to  these
discussions.

Following  detailed  discussions, Sirius Exploration is pleased announce that it  has  reached  a  new
agreement with CIC whereby:

    *   Sirius will have a 3% NPI (Net Profits Interest) in the Bobai Bishop Tungsten mining operation
        in exchange for 6,000,000 Ordinary Shares of 0.25p each in Sirius Exploration. 1,200,000 of these
        shares  have already been issued as part of the original option agreement. A NPI is a  royalty
        calculated as a percentage of the gross cash income from a mine-mill complex less all expenses
        incurred to produce the income.  The holder is not liable for any share of capital, operating and
        environmental costs.

    *   CIC's Chinese shareholders will be offered the opportunity to provide capital and invest in
        the development of new acquisitions by Sirius Exploration; and

    *   Sirius Exploration and CIC will make available to each other their in-house resources and
        expertise to the mutual benefit of each party. This should minimise operational expenditure and reduce
        development costs in any new mining project in which either party is involved.

    *   At the mid-market price at the close of business on 10 November 2008 of 1.625p, the aggregate
        consideration is £97,500. Application will made for the additional 4,800,000 new Ordinary Shares of
        0.25p, which when issued will rank pari passu with the existing Ordinary Shares in issue, to be
        admitted to trading on AIM.

Background

It  was  concluded  that  through the past months during the due diligence  studies  that  the  Sirius
Exploration  and  CIC relationship had become very strong. Further that Sirius Exploration  had  other
projects  that  would  be  of interest to CIC and its Chinese partners. It  was  decided  that  Sirius
Exploration should continue its broader expansion into world markets, of which China would be one.

Future revenues under the 3% NPI will depend on the build up to production, the price of tungsten  and
any exchange rate movements.

This agreement will provide Sirius Exploration's shareholders with an investment in one of the fastest
growing  economies in the world that is underpinned by a holding in a strategic natural resource.   It
will  also  provide  an  ongoing  path to utilise the resources of the  Chinese  mine  owners  in  the
development of Sirius Exploration's future projects.

Richard Poulden, the Chairman, commented:

"This  is  an ideal outcome to our discussions which not only provides a potential revenue stream  but
also provides a source of new funding as we continue our expansion into new territories."

On Behalf of the Board of Directors
SIRIUS EXPLORATION LIMITED.

Richard Poulden
Chairman

Enquiries welcomed, for further information please contact the Company:

Sirius Exploration Plc                                                
Richard Poulden (Chairman)                                            +971 556 232 672
richard.poulden@siriusexploration.com                                 
Jonathan Harrison (Financial Director)                                +44 78 7988 7755
Stuart J. Bromley (Beijing, PR China)                                 +86 136 0113 1912

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

Cubitt Consulting                                                     
Brian Coleman-Smith / James Verstringhe / Nicola Krafft               Tel: 020 7367 5100

Website: www.siriusexploration.com   Sirius Exploration Share Price

Background note

Sirius  Exploration PLC (AIM: SXX) is quoted on the Alternative Investment Market of the London  Stock
Exchange  Ltd  in  London.   The  Company acquires and explores mineral properties  and  is  currently
exploring for copper and gold on its porphyry copper mineral properties located in Macedonia.

The  Company  has an agreement with Phelps Dodge (now a subsidiary of Freeport McMoRan Copper  &  Gold
Inc)  and  has completed a drilling program at their exploration sites in Macedonia. It  also  has  an
agreement  with  Rio  Tinto  to  utilise their Macedonian database  to  identify  further  exploration
opportunities.

Contact Information

  • Sirius Exploration