Sirius Exploration
LSE : SXX

August 27, 2009 02:00 ET

Final Results for the Year Ended 31 March 2009

                     Under strict embargo:  Thursday, 27 August 2009, 7AM

                                          Sirius Exploration Plc
                                        ("Sirius" or the "Company")
                                                     
                              Final Results for the Year Ended 31 March 2009

Sirius Exploration Plc, (AIM: SXX, OTC: SRUXY), the diversified mining and exploration holding company
focused on North America and Australia, today announces its final results for the year ended 31 March 2009.

Operational and Financial Highlights:

    -   acquisition of a 51% controlling interest in Dakota Salts LLP ("Dakota Salts"), giving an interest
        in potash and salt acreage in North Dakota; and

Post-period Operational and Financial Highlights:

    -   raised £2.8m from mainly institutional investors thus broadening and substantially strengthening
        the shareholder base;
    -   signed option to acquire the remaining 49% of Dakota Salts;
    -   acquisition of options for a 51% interest in AusPotash Ltd ("AusPotash"), a company with a
        significant salt and potash tenements in Queensland, Australia; and
    -   launch of share trading in New York through an ADR facility.

The Company intends to publish and post the audited accounts for the year ended 31 March 2009 to
shareholders on 27 August 2009. The accounts can additionally be downloaded from the Company's website
www.siriusexploration.com.

--End--

Further information:

Sirius Exploration Plc
Richard Poulden (Chairman)                        Mobile: +971 556 232 672
                                                  Richard.poulden@siriusexploration.com

Jonathan Harrison (Financial Director)            Mobile: + 44 78 7988 7755
                                                  Jonathan.harrison@siriusexploration.com

Beaumont Cornish Limited
Roland Cornish                                    Tel: + 44 (0)20 7628 3396

gth communications
Toby Hall                                         Tel: +44 (0)20 7153 8039
Christian Pickel                                  Tel: +44 (0)20 7153 8036


CHAIRMAN'S STATEMENT

Dear Shareholders

This has been a year of transformation for your Company from a small mineral exploration company into a
diversified group with additional interests now in potash, salt, Compressed Air Energy Storage ("CAES") and
hydrocarbon storage.

The highlights have been as follows:

    -   Purchased 51% controlling interest in Dakota Salts LLP ("Dakota Salts") giving an interest in
        potash and salt acreage in North Dakota
    -   Expanded the brief in North Dakota to include energy storage in salt caverns
    -   Acquired options to take a 51% interest in AusPotash Ltd ("AusPotash"), a company with significant
        salt and potash tenements in Queensland, Australia (post year end)
    -   Launched the trading of our shares in New York through an ADR facility (post year end)
    -   Raised £2.8m from mainly institutional investors thus broadening and substantially strengthening
        the shareholder base (post year end)
    -   Option to acquire the remaining 49% of Dakota Salts signed (post year end)

In June 2009 we announced that we had taken an option to acquire the remaining 49% of Dakota Salts and in
July 2009 we announced that we had taken an option to acquire 51% of AusPotash which controls substantial
salt and potash assets in Queensland Australia. One of the distinctions of both Dakota and Queensland is
that historic data shows the existence of potash and salt reserves. This does not mean that we have
reserves to Joint Ore Reserves Committee ("JORC") or other standards but we expect to produce them in due
course.

In addition, most mines, when they are exhausted, pose simply an environmental problem. However, once the
properties have been mined for salt and potash the resulting caverns then have further uses.  With salt
caverns being equally suitable to storing gas, oil or compressed air, we intend to generate income not only
from the mining of minerals, but also from the resulting caverns. This dual income opportunity is an
exciting prospect for any developing company and Sirius has moved quickly to secure its position.

Dakota Salts

Dakota Salts has been amalgamating salt mining leases and the associated storage rights, with a view to
capturing the value of North Dakota's large bedded salt and potash deposits and now holds mineral leases in
excess of 5,000 acres in North Dakota, USA. The objectives are to use these for the purpose of (1)
Exploitation of the potash deposits, which are an extension of the Canadian potash deposits across the
border, (2) Utilisation of the mined out caverns for CAES to complement renewable energy in the nation's
windiest state and (3) Natural Gas Storage at the third largest intake point into the USA (and at the
proposed intake point of the Alaska Denali Pipeline) with immediate access and infrastructure between the
Rockies Gas and the Chicago Market.

Potash Exploitation
Dakota Salts properties are in the Williston Basin. The Dakota Salts deposits are a direct extension of
those across the border in Saskatchewan. Williston's potash ore is notable for its high grade, the
thickness of its deposits, its uniformity of mineralisation, and the absence of structural deformation in
the deposits.  An average Williston ore may have 40% KCl, 50% NaCl and 10% clay, making it by far the
world's highest grade potash ore currently being mined. (Source: Potash and Phosphate Institute of Canada
2002).

Dakota Salts currently holds acreage in the portion of the Williston Basin where halite deposits are over
165 meters in thickness and gross potash thickness exceeds 10 meters with confirmed potash ore quality. The
properties are approximately 180km south of some of the holdings of the world's largest potash concerns
including Potash Corp of Saskatchewan, Acron Group of Russia, and BHP Billiton.

The company's immediate priority is to delineate appropriate resources and reserves, undertake detailed
feasibility studies and accelerate development to reach cash flow at the earliest opportunity.

Compressed Air Energy Storage ("CAES")
North Dakota's potential for wind power is well known. The State consistently ranks at the top of the
rankings in the ability to produce electricity from wind turbines. It is the windiest state in the USA and
is the selected location for one of the world's largest wind farm investments (Up to 2500 MW).

It is not widely understood that once electricity is generated, if it is not used or stored it is lost.
Because of the intermittent nature of renewable electricity generation, and wind power in particular, this
has lead in the past to mere lip service being paid to the use of renewable generating capacity.  Put
bluntly, nuclear and coal power generation are not necessarily scaled back when the wind is blowing and
wind farms are supplying electricity.

All that is now over, as in the more enlightened countries of the world policies have changed.  President
Obama has announced that this is one of the areas of focus for his administration and it is going to be
done correctly.  In Australia a carbon emissions reduction scheme (with associated tax and trading) is
likely to be introduced amidst much protesting; but only one year late.

For these plans to work it is essential to have storage for the electricity: in other words use the wind to
compress air when the wind is blowing, store it in a salt cavern, and then bleed it off to generate
electricity when power is needed.  There are then various different methods of using the air once it is
compressed either to generate electricity directly or to enhance other generating methods.

CAES has been recognised by the US Department of Energy, Electric Power Research Institute, US Senate
Committee on Energy, US House Committee on Science, New Jersey Board of Public Utilities, New York State
Energy Research Development Association, California Energy Commission, and various State Legislatures as an
integral piece of the solution in providing a comprehensive renewable energy solution.

President Obama also singled out North Dakota, and how the lack of transmission in the state affects the
nation, saying  "It also means that places like North Dakota can produce a lot of wind energy, but can't
deliver it to communities that want it, leading to a gap between how much clean energy we are using and how
much we could be using."

The Queensland Properties

In July 2009 we took an option with a number of shareholders in AusPotash Corporation.  AusPotash is
scheduled to float on the TSX venture exchange in Canada via a reverse into Greenwich Global within the
next few months.

The structure of the options means that as the AusPotash transaction progresses Sirius can acquire a 51%
controlling interest in the company. Our relations with AusPotash are extremely good and we look forward to
working with them to exploit the assets in Queensland.

The assets they control through their subsidiary, Queensland Potash, constitute one of the largest
potential potash deposits in Australia. The exploration permits cover 300 sq km over the Boree Salt Member,
which lies within the Adavale Basin, approximately 50 kilometres south of Blackall in Queensland (840 km NW
of Brisbane).   Like the Dakota deposits, there is a wealth of historic data indicating that the area
contains substantial potash and salt deposits.

There is a wealth of information on the companies' websites which can be found from links on the Sirius
site.

Financial

American Depositary Receipt Facility
Following the acquisition of our stake in Dakota Salts, we launched an American Depositary Receipt  ("ADR")
program with Deutsche Bank in April whereby each ADR represents 500 Sirius ordinary shares.  This enables
investors in North America to trade directly on their own market in Sirius and we have seen a good build up
of trading activity since the launch. For full details of this facility you can look at the ADR section of
our website.

Fund Raising
In difficult market conditions we have raised £2.8m in July and August 2009 mainly from institutional
investors. In particular I would like to welcome Global Opportunities Breakaway Limited on to the register
which is now our largest shareholder. This broadening of our shareholder base considerably strengthens your
Company for the future.

Other Investments

We still hold our net working interest in the Bobai Bishop Tungsten Mine in China and we have recently
applied to restructure our Macedonian licences to bring them under the new Macedonian mining law. We have
taken a provision this year against Osogovo as we feel that the main future potential lies  with other
properties. As with all our investments they are constantly under review but going forward our main focus
will be the investments in North Dakota and Queensland.

The Future

In order to bring our projects to fruition we are in the process of building a strong management team
within Sirius and plan to work with a broader range of advisers and joint venture partners. Those plans are
well advanced and we intend to remunerate executives primarily with options so that their interests are
aligned fully with those of our shareholders.

In closing, I would like to thank our shareholders old and new for your support and I look forward to an
exciting future for your Company.

Richard Poulden
Chairman



DIRECTORS' REPORT

The directors submit their report and the audited consolidated accounts for the year ended 31 March 2009.

Activities and review of business

The Group's principal activity is a diversified holding company with interests in mineral properties in North
America, China and Macedonia.

The directors' comments concerning the results and future prospects are included in the Chairman's Statement.

Given the current stage of the Group's business key performance indicators (KPIs) have not been developed.

Results for the year and dividends

The Group's loss for the year on ordinary activities after taxation and minority interests was £532,748 (2008:
£676,358), which is after a write back of £52,232 (2008: expense of £374,627) relating to the costs associated
with the abortive reverse acquisition of Njahili Resources Limited, £27,271 (2008: £nil) being due diligence
costs expensed relating to the 3% net profit interest in the Bobai Bishop tungsten mine in China and £220,572
impairment charge in respect of exploration expenditure incurred on its Osogovo prospect as it is considered
that the amount and grade of copper could not be profitably mined.

The Company's loss for the year on ordinary activities after taxation was £524,608 (2008: £676,807), which is
after a write back of £52,232 (2008: expense of £374,627) relating to the costs associated with the abortive
reverse acquisition of Njahili Resources Limited, £27,271 (2008: £nil) being due diligence costs expensed
relating to the 3% net profit interest in the Bobai Bishop tungsten mine in China and £220,572 impairment
charge in respect of exploration expenditure incurred on its Osogovo prospect as it is considered that the
amount and grade of copper could not be profitably mined.

The directors do not recommend a payment of a dividend for the year (2008: £nil).

Directors

The following are the directors who all served on the board for the years ended 31 March 2008 and 31 March
2009:

RO'D Poulden
Dr JPN Badham
JC Harrison
DCW Stonley
Prof MR Mainelli

Financial risk management

Details of the Group's financial instruments and its policies with regard to financial risk management are
given in note 21 to the financial statements.

Principal risks and uncertainties

The principal risk and uncertainty facing the Group is whether potential mineral reserves can be exploited
economically.  Further information on this can be found in the Chairman's Statement.

Creditor payment policy

The Group does not follow a code or standard on payment practice.  Payment terms are normally agreed with
individual suppliers at the time of order placement and are honoured, provided that goods and services are
supplied in accordance with the contractual conditions.

At the year end, the Group had creditor days of 92 (2008: 74).

Corporate governance

The Directors intend, in so far is practicable given the Group's size and the constitution of the board, to
comply with the main provisions of the Combined Code: Principles of Corporate Governance and Code of Best
Practice which is consistent with the recommendations on Corporate Governance Guidelines of the Quoted
Companies Alliance for AIM companies.

The Directors are and intend to comply with Rule 21 of the AIM Rules relating to the Directors' dealings as
applicable to AIM companies and will also take all reasonable steps to ensure compliance with Rule 21 by
the Group's relevant employees.

Post balance sheet events

Share issues
On 18 May 2009 the Company issued 1,250,000 new ordinary shares at 2.25p per share for a total
consideration of £28,125 and 625,000 options exercisable at 4.5p within 2 years.

On 10 June 2009 the Company issued 775,455 new ordinary shares at 2.25p per share for a total consideration
of £17,448.

On 13 July 2009 the Company issued 257,732 new ordinary shares at 3.88p per share for a total consideration
of £10,000.

On 13 July 2009 the Company issued 133,949,889 new ordinary shares at 2p per share for a total
consideration of £2,678,998.

On 24 July 2009 the Company issued 500,000 new ordinary shares at 4p per share for a total consideration of
£20,000.

On 28 July 2009 the Company issued 2,500,000 new ordinary shares at 4p per share for a total consideration
of £100,000.

Option to acquire remaining shares in Dakota Salts LLC
On 20 June 2009 the Company signed option agreements to acquire 25 shares from Sojourn Energy LLC and 24
shares from Transparent Holdings Limited being the remaining 49% of Dakota Salts LLC not previously held by
the Company.  The cost of these option agreements were £1 and £2 respectively.  The options may be
exercised at any time on or after the date of the Option Agreements but by or before the nearest business
day following the day six months from the date of these agreements. The exercise price per share is £10,000
or 400,000 shares in the Company for an aggregate purchase price of £490,000 or 19,600,000 shares in the
Company.

Option to acquire 51% of the equity of AusPotash Corporation
On 7 July 2009 the company signed an option agreement with Transparent Holdings Limited, Circle Resource
Holdings Limited, Circle Resources Plc, St Cloud Capital S.A., Odaka Enterprises Inc. and Ashton Nominees
Inc. to acquire up to 51% of the equity of AusPotash Corporation. The Company has until 30 September 2009,
or such other date the parties agree in writing, to purchase all the option shares owned by the sellers in
AusPotash Corporation. The consideration paid for the grant of the option was £1 to each of the sellers.


The completion of the option is conditional on, inter alia, the Company being satisfied in its absolute
discretion with its due diligence investigation of the AusPotash Corporation and subject to compliance with
the relevant AIM Rules at the time.

American Depositary Receipt (ADR) facility
On 6 April 2009 the Company's shares started trading as ADR's in the Company's ordinary shares on the Pink
Sheets OTC Markets Inc. Each ADR represents 500 ordinary shares in the Company and the Company can issue
ADR's in respect of up to 25% of its issued share capital at any given time.

Statement regarding disclosure of information to the auditor

Each director of the Group has confirmed that, in fulfilling their duties as a director, they are aware of
no relevant audit information of which the Group's auditors are not aware and that they have taken all the
steps that they ought to have taken as a director to make themselves aware of any relevant audit
information and to establish that the Group's auditors are aware of that information.

Auditors

A resolution for the re-appointment of Nexia Smith & Williamson will be proposed at the next Annual General
Meeting.

Approved by the Board of Directors
and signed on behalf of the Board


J.C. Harrison
Director

Date: 20 August 2009




CONSOLIDATED INCOME STATEMENT for the year ended 31 MARCH 2009
                                                                         2009              2008
                                                      Notes                 £                 £
Continuing operations:                                                                 
                                                                                       
Revenue                                                                     -                 -
                                                                                       
Administrative expenses                                              (534,199)         (677,285)

-------------------------------------------------------------------------------------------------
Exceptional administrative expenses                                                    
                                                                                       
  Abandoned reverse acquisition                         4              52,232          (374,627)
                                                   
  Due diligence                                         4             (27,271)                -
                                                                                       
  Impairment charge                                     4            (220,572)                -
                                                                                       
Other administrative costs                                           (338,588)         (302,658)
-------------------------------------------------------------------------------------------------
                                                                 -------------      -------------

                                                                                       
Operating loss                                          5            (534,199)         (677,285)
                                                                                       
Finance income                                          6                   -                927
Finance costs                                           6              (4,727)                 -
                                                                 -------------      -------------
                                                                                       
                                                                                       
Loss before taxation                                                 (538,926)         (676,358)
                                                                                       
Taxation                                                8                   -                 -
                                                                 -------------      -------------
                                                                                       
                                                                                       
Loss for the financial year                                          (538,926)         (676,358)
                                                                 -------------      -------------
                                                                 -------------      -------------
                                                                                       
                                                                                       
Attributable to:                                                                       
Equity holders of the Company                                        (532,748)         (676,358)
Minority interest                                                      (6,178)                -
                                                                 -------------      -------------
                                                                                       
                                                                                       
                                                                     (538,926)         (676,358)
                                                                 -------------      -------------
                                                                 -------------      -------------
                                                                    
                                                                                       
Loss per share:                                                                        
Basic and diluted                                       9               (0.5p)            (1.0p)
                                                                 -------------      -------------
                                                                 -------------      -------------
                                                                                     
                                                                                       


CONSOLIDATED BALANCE SHEET as at 31 MARCH 2009
                                                                                                       
                                                                                 2009                2008
ASSETS                                                    Notes                     £                   £
Non-current assets                                                                                      
Property, plant and equipment                               10                  3,125                 679
Intangible assets                                           11              1,220,845             567,994
                                                                         -------------       -------------
                                                                                                         
                                                                                                         
                                                                            1,223,970             568,673
                                                                         -------------       -------------
                                                                                                         
Current assets                                                                                           
Trade and other receivables                                 13                108,333              10,462
Cash and cash equivalents                                   14                  8,553               3,685
                                                                         -------------       -------------
                                                                                                        
                                                                                                         
                                                                              116,886              14,147
                                                                         -------------       -------------
                                                                                                         
                                                                                            
TOTAL ASSETS                                                                1,340,856             582,820
                                                                         -------------       -------------
                                                                         -------------       -------------
                                                                                            
                                                                                            
EQUITY AND LIABILITIES                                                                      
Capital and reserves                                                                        
Share capital                                               15                328,930            172,199
Share premium account                                                       2,122,001          1,241,334
Share based payment reserve                                                     1,205              1,205
Retained earnings                                                          (2,059,537)        (1,526,789)
Foreign exchange reserve                                                       (2,532)                 -
                                                                         -------------       -------------
                                                                                            
                                                                                            
Equity attributable to shareholders of the                                                  
Company                                                                       390,067           (112,051)
Minority interest                                                             340,515                  -
                                                                         -------------       -------------
                                                                                                         
                                                                                                         
Total equity                                                                  730,582           (112,051)
                                                                         -------------       -------------
                                                                                                         
                                                                                                         
Current liabilities                                                                                      
Borrowings                                                  17                 67,765                  -
Trade and other payables                                    18                542,509            694,871
                                                                         -------------       -------------
                                                                                            
                                                                                            
Total liabilities                                                             610,274            694,871
                                                                         -------------       -------------
                                                                                            
                                                                                            
TOTAL EQUITY AND LIABILITIES                                                1,340,856            582,820
                                                                         -------------       -------------
                                                                         -------------       -------------
                                                                                           

The accounts were approved by the Board of Directors on 20 August 2009 and were signed on its behalf by:

J Harrison
Director


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the year ended 31 MARCH 2009

                                           Share                              Equity
                                Share      based                  Foreign     share-                        
                    Share     premium   payments     Profit and  exchange   holders'   Minority     Total 
                  capital     account    reserve   loss account   reserve      funds  interests    equity
                        £           £          £              £         £          £          £         £

At 31 March 2007  149,199   1,019,364      1,205       (850,431)        -    319,337          -   319,337
Loss for the year       -           -          -       (676,358)        -   (676,358)         -  (676,358)
Share capital
 issued in the
 year              23,000     228,000          -              -         -    251,000          -   251,000


Share issue costs       -      (6,030)         -              -         -    (6,030)          -    (6,030)    
                 -------- ------------ ---------- -------------- -------- ----------- --------- ----------

At 31 March 2008  172,199   1,241,334      1,205     (1,526,789)        -  (112,051)          -  (112,051)
                                                                                                          
Loss for the year       -           -          -       (532,748)        -  (532,748)     (6,178) (538,926)
Foreign exchange
 differences on 
 translation of
 foreign operations     -           -          -              -    (2,532)   (2,532)          -    (2,532)
                 -------- ------------ ---------- -------------- -------- ----------- --------- ----------
                                                                                                          
Total recognised
 income and 
 expenses for 
 the year              -            -          -       (532,748)   (2,532) (535,280)     (6,178) (541,458)
On acquisition         -            -          -              -         -         -     346,693   346,693
Share capital
 issued in
 the year        156,731      915,667          -              -         - 1,072,398           - 1,072,398
Share issue
 costs                 -      (35,000)         -              -         -   (35,000)          -   (35,000)
                                                                                                              
                 -------- ------------ ---------- -------------- -------- ----------- --------- ----------
                                      
At 31 March 2009 328,930    2,122,001      1,205     (2,059,537)   (2,532)  390,067     340,515   730,582

                 -------- ------------ ---------- -------------- -------- ----------- --------- ----------
                 -------- ------------ ---------- -------------- -------- ----------- --------- ----------

The share premium account is used to record the excess proceeds over nominal value on the issue of shares.
The share-based payment reserve is used to record the share based payments made by the Group.
Foreign exchange reserve records exchanges differences which arise on translation of foreign operations with a
functional currency other than Sterling.


CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 MARCH 2009
                                                                                                     
                                                                                                     
                                                                          2009              2008
                                                        Notes                £                 £
                                                                                        
Cash outflow from operating activities                    19          (524,867)         (199,318)
                                                                   -------------       -----------
                                                                                        
                                                                                        
Cash flow from investing activities                                                     
Purchase of intangible assets                                          (82,677)         (103,972)
Purchase of property, plant and equipment                               (2,857)             (743)
Acquisition of subsidiary, net of cash acquired                                         
                                                                           373                 -
                                                                   -------------       -----------
                                                                                        
                                                                                        
Net cash used in investing activities                                  (85,161)         (104,715)
                                                                   -------------       -----------
                                                                                        
                                                                                        
Cash flow from financing activities                                                     
Net proceeds from issue of shares                                      619,623           244,970
Finance (costs)/income                                                  (4,727)              927
                                                                   -------------       -----------
                                                                                        
                                                                                        
Net cash generated from financing activities                                            
                                                                       614,896           245,897
                                                                   -------------       -----------
                                                                                        
                                                                                        
Net increase/(decrease) in cash and cash                                                
 equivalents                                                             4,868           (58,136)
                                                                                        
Cash and cash equivalents at beginning of the                                           
 year                                                                    3,685            61,821
                                                                   -------------       -----------
                                                                                        
                                                                                        
Cash and cash equivalents at end of the 
 year                                                                    8,553             3,685
                                                                   -------------       -----------
                                                                   -------------       -----------
                                                                               
  

     COMPANY BALANCE SHEET as at 31 MARCH 2009

                                                                            2009              2008
     ASSETS                                          Notes                     £                 £
     Non-current assets                                                                           
     Property, plant and equipment                     10                  3,125               679
     Intangible assets                                 11                478,786           564,776
     Investments                                       12                370,230             3,427
                                                                   -------------       ------------

                                                                                                  
                                                                                                  
                                                                         852,141           568,882
                                                                   -------------       ------------
                                                                                                  
     Current assets                                                                               
     Trade and other receivables                       13                108,333            10,462
     Cash and cash equivalents                         14                  6,831             3,026
                                                                   -------------       ------------
                                                                                                  
                                                                                                  
                                                                         115,164            13,488
                                                                   -------------       ------------
                                                                                                  
                                                                                          
     TOTAL ASSETS                                                        967,305           582,370
                                                                   -------------       ------------
                                                                   -------------       ------------
                                                                                          
                                                                                          
     EQUITY AND LIABILITIES                                                               
     Equity attributable to equity                                                        
     holders of the Company
     Share capital                                     15               328,930            172,199
     Share premium account                                            2,122,001          1,241,334
     Share based payment reserve                                          1,205              1,205
     Retained earnings                                               (2,051,813)        (1,527,205)
                                                                   -------------       ------------
                                                                                                 
                                                                                                  
     Total equity                                                       400,323           (112,467)
                                                                   -------------       ------------
                                                                                                  
                                                                                                  
     Current liabilities                                                                          
     Borrowings                                        17                32,935                  -
     Trade and other payables                          18               534,047            694,837
                                                                   -------------       ------------
                                                                                          
                                                                                          
     Total liabilities                                                  566,982            694,837
                                                                   -------------       ------------
                                                                                          
                                                                                          
     TOTAL EQUITY AND LIABILITIES                                       967,305            582,370
                                                                   -------------       ------------
                                                                   -------------       ------------

                                                                                        
    The accounts were approved by the Board of Directors on 20 August 2009 and were signed on its behalf
    by:
    J Harrison
    Director


COMPANY STATEMENT OF CHANGES IN EQUITY for the year ended 31 MARCH 2009

                                      Share            Share             Share         Profit and           Equity
                                    capital          premium            -based       loss account           share-
                                                     account          payments                            holders'
                                                                       reserve                               funds
                                          £                £                 £                  £                £
                                                                                                      
      At 31 March 2007              149,199        1,019,364             1,205           (850,398)         319,370
      Loss for the year                   -                -                 -           (676,807)        (676,807)
      Share capital issued in                                                                         
       the year                      23,000          228,000                 -                  -          251,000
      Share issue costs                   -           (6,030)                -                  -           (6,030)
                              -------------- ----------------- ---------------- ------------------- ----------------
                                                                                                      
                                                                                                      
      At 31 March 2008              172,199        1,241,334             1,205         (1,527,205)        (112,467)
      Loss for the year and                                                                           
       total recognised income                                                                         
       and expenses                       -                -                 -           (524,608)        (524,608)
      Share capital issued in                                                                         
       the year                     156,731          915,667                 -                  -        1,072,398
      Share issue costs                   -          (35,000)                -                  -          (35,000)
                              -------------- ----------------- ---------------- ------------------- ----------------
                                                                                                                 
      At 31 March 2009              328,930        2,122,001             1,205         (2,051,813)         400,323
                              -------------- ----------------- ---------------- ------------------- ----------------
                              -------------- ----------------- ---------------- ------------------- ----------------

      The share premium account is used to record the excess proceeds over nominal value on the issue of
      shares. The share-based payment reserve is used to record the share based payments made by the Group.
   

   
COMPANY CASH FLOW STATEMENT for the year ended 31 March 2009

                                                                                                   
                                                                                                   
                                                                       2009               2008
                                                    Notes                 £                  £
                                                                                      
                                               
Cash outflow from operating activities                19           (524,624)          (199,801)
                                                                 ------------       ------------
                                                                                      
                                                                                      
Cash flow from investing activities                                                   
Purchase of intangible assets                                       (80,582)          (100,754)
Purchase of property, plant and equipment                            (2,857)              (743)
Investment in subsidiary                                             (3,028)                 -
                                                                 ------------       ------------
                                                                                      
                                                                                      
Net cash used in investing activities                               (86,467)          (101,497)
                                                                 ------------       ------------
                                                                                      
                                                                                      
Cash flow from financing activities                                                   
Net proceeds from issue of shares                                   619,623            244,970
Finance (expense)/income                                             (4,727)               927
                                                                 ------------       ------------
                                                                                      
Net cash generated from financing                                                     
 activities                                                         614,896            245,897
                                                                 ------------       ------------
                                                                                     
                                                                                      
Net increase/(decrease) in cash and cash                                              
 equivalents                                                          3,805            (55,401)
                                                                                      
Cash and cash equivalents at beginning of                                             
 year                                                                 3,026             58,427
                                                                 ------------       ------------
                                                                                        
Cash and cash equivalents at end of the                               6,831              3,026
                                                                 ------------       ------------
                                                                 ------------       ------------
                                                                                      

NOTES TO THE ACCOUNTS for the year ended 31 MARCH 2009

1.    Accounting policies

      The financial information included in the preliminary announcement does not constitute
      the Group's statutory accounts for the years ended 31 March 2009 or 2008 within the
      meaning of section 240 of the Companies Act 1985. Statutory accounts for 2008 have been
      delivered to the registrar of companies, and those for 2009 will be delivered in due course.
      The auditors have reported on those accounts; their reports were unqualified and did not contain
      statements under section 237 of the Companies Act 1985.
      
      Basis of preparation
      The annual accounts of Sirius Exploration plc ("the Company") and its subsidiary ("the Group")
      have been prepared in accordance with International Financial Reporting Standards as adopted by
      the European  Union ("EU") ("IFRS") applied in accordance with the provisions of the Companies
      Act 1985.
      
      IFRS is subject to amendment and interpretation by the International Accounting Standards Board
      ("IASB") and the International Financial Reporting Interpretations Committee ("IFRIC") and there
      is an ongoing process of review and endorsement by the European Commission. The accounts have
      been prepared on the basis of the recognition and measurement principles of IFRS that are
      applicable at 31 March 2009.
      
      The accounts have been prepared under the historical cost convention. The principal accounting
      policies set out below have been consistently applied to all periods presented.
      
      Going concern
      The Group has incurred trading losses during the year ended 31 March 2009.  At the date of
      approval of these accounts, taking into account funds raised through shares issued post year end
      as disclosed in the Directors' report and forecasts for a period of at least 12 months from the
      date of approval of these accounts, the Directors consider it appropriate to prepare these Group
      accounts on a going concern basis and hence the accounts do not include any adjustments that
      would result if the going concern assumption was no longer appropriate.

      International Financial Reporting Standards in "issue" but not yet effective
      At the date of authorisation of these consolidated accounts, the IASB and IFRIC have issued the
      following standards and interpretations which are effective for annual accounting periods
      beginning on or after the stated effective date. These standards and interpretations are not
      effective for and have not been applied in the preparation of these consolidated accounts:
      
        -   IFRS 1: First time adoption of IFRS (amended) (effective for periods beginning on or after 1
            July 2009 - not yet endorsed by the EU)

        -   IFRS 1 and IAS 27 (amended) (effective for periods beginning on or after 1 January 2009)

        -   IFRS 2: Share based payment (amended) (effective for periods beginning on or after 1 January
            2009)

        -   IFRS 8: Operating Segments (effective for periods beginning on or after 1 January 2009)

        -   IAS 1: Presentation of Financial Statements (revised) (effective for periods beginning on or
            after 1 January 2009)
 
        -   IFRS 3: Business Combinations (revised) (effective for periods beginning on or after 1 July
            2009)

        -   IFRS 7: Financial Instruments: Disclosures (amended) (effective for periods beginning on or
            after 1 January 2009)

        -   IAS 27: Consolidated and Separate Financial Statements (amended) (effective for periods
            beginning on or after 1 July 2009)

        -   IAS 23: Borrowing Costs (amended) (effective for periods beginning on or after 1 January 2009)

        -   IAS 32: Financial Instruments: Presentation (amended) (effective for periods beginning on or
            after 1 January 2009)

        -   IAS 39: Financial Instruments: Recognition and Measurement (amended) (effective for periods
            beginning on or after 1 July 2009 - not yet endorsed by the EU)

        -   IFRIC Interpretation 9 and IAS 39: Embedded Derivatives (effective for periods ending on or
            after 30 June 2009 - not yet endorsed by the EU)

        -   IFRIC Interpretation 12: Service Concession Arrangements (effective as of 1 January 2008 - not
            yet endorsed by the EU)

        -   IFRIC Interpretation 13: Customer Loyalty Programmes (effective as of 1 July 2008 - not yet
            endorsed by the EU)
        
        -   IFRIC Interpretation 14: IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding
            Requirements and their Interaction (effective as of 1 January 2008)

        -   IFRC Interpretation 15: Agreements for the Construction of Real Estate (effective as of 1
            January 2009 - not yet endorsed by the EU)

        -   IFRIC Interpretation 16: Hedges of a Net Investment in a Foreign Operation (effective 1
            October 2008 - not yet endorsed by the EU).

        -   IFRIC Interpretation 17: Distributions of Non Cash Assets to Owners (effective 1 July 2009 -
            not yet endorsed by the EU).

        -   IFRIC Interpretation 18: Transfers of Assets from Customers (effective 1 July 2009 - not yet
            endorsed by the EU).

      The directors anticipate that the adoption of these standards and interpretations will not have
      a material impact on the Group's accounts in the period of initial adoption with the exception
      of IFRS 3: Business Combinations (Revised), which will require transaction costs arising on
      business combinations to be expensed to the income statement as opposed to the existing
      treatment of capitalisation, in the event that acquisitions are undertaken.
      
      Basis of consolidation
      The consolidated accounts incorporate the accounts of the Company and its subsidiary
      undertakings.  As a consolidated income statement is published, a separate income statement for
      the parent Company is omitted from the Group accounts by virtue of section 230 of the Companies
      Act 1985.
      
      Property, plant and equipment
      Property, plant and equipment are stated at cost less depreciation less any recognised
      impairment losses. Cost includes expenditure that is directly attributable to the acquisition or
      construction of these items. Subsequent costs are included in the asset's carrying amount only
      when it is probable that future economic benefits associated with the item will flow to the
      Group and the costs can be measured reliably. All other costs, including repairs and maintenance
      costs are charged to the income statement in the period in which they are incurred.
      Depreciation is provided on all tangible fixed assets and is calculated on a straight-line basis
      to allocate  cost, other than assets in the course of construction, over the estimated useful
      lives, as follows:
      
      Computer and diagnostic equipment                                -           33.3% per annum

      Exploration and evaluation assets
      Costs arising from exploration and evaluation activities are accumulated separately for each
      area of interest and only capitalised where such costs are expected to be recouped through
      successful development, or through sale, or where exploration and evaluation activities have
      not, at the reporting date, reached a stage to allow a reasonable assessment regarding the
      existence of economically recoverable reserves.
      
      Expenditure capitalised comprises direct costs and an appropriate portion of expenditure not
      having a specific connection with a particular area of interest.
      
      Capitalised expenditure in respect of areas of interest is written off in the income statement
      when the above criteria do not apply or when the directors assess that the carrying value may
      exceed the recoverable amount.
      
      Capitalised costs in respect of an area of interest that is abandoned are written off in the
      period in which the decision to abandon is made.
      
      Once production commences, capitalised expenditure in respect of an area of interest is
      amortised on a unit of production basis by reference to the reserves of that area of interest.

      Impairment
      At each balance sheet date,  the Group reviews the carrying amounts of its tangible and
      intangible  assets to determine whether there is any indication that those assets have suffered
      an impairment loss.  If any such indication exists, the recoverable amount of the asset is
      estimated in order to determine the extent of the impairment loss (if any). Where the asset does
      not generate cash flows that are independent from other assets, the Group estimates the
      recoverable amount of the cash-generating unit to which the asset belongs.
      
      Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing
      value in use, the estimated future cash flows are discounted to their present value using a pre-
      tax discount rate that reflects current market assessments of the time value of money and the
      risks specific to the asset, for which the estimates of future cash flow have not been adjusted.
      
      If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its
      carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its
      recoverable amount. An impairment loss is recognised as an expense immediately, unless the
      relevant asset is carried at a revalued amount, in which case the impairment loss is treated as
      a revaluation decrease.
      
      Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-
      generating unit) is increased to the revised estimate of its recoverable amount, but so that the
      increased carrying amount does not exceed the carrying amount that would have been determined
      had no impairment loss been recognised for the asset (cash-generating unit) in prior periods.  A
      reversal of the impairment loss is recognised in the income statement immediately.
      
      Foreign currencies
      The reporting and functional currency of the Group is Sterling. Transactions denominated in a
      foreign currency are translated into sterling at the rate of exchange ruling at the date of the
      transaction. At the balance sheet date, monetary assets and liabilities denominated in foreign
      currency are translated at the rate ruling at that date. All exchange differences are dealt with
      in the profit and loss account.
      
      On consolidation, the  assets and liabilities of foreign operations which have a functional
      currency other than Sterling are translated into Sterling at foreign exchange rates ruling at
      the balance sheet date. The revenues and expenses of these subsidiary undertakings are
      translated at average rates applicable in the period. All resulting exchange differences are
      recognised as a separate component of equity.
      
      Investments
      Investments in the Company are in respect of its subsidiaries and are held at cost less any
      provision for impairment when required.
      
      Trade and other receivables
      Trade and other receivables are recognised initially at fair value and subsequently measured at
      initial fair value less provision for impairment. Provision for impairment is established when
      there is objective evidence that the Group will not be able to collect all amounts due according
      to the original terms of the receivable. The amount of the impairment is the difference between
      the asset's carrying amount and the present value of the estimated future cash flows, discounted
      at the effective interest rate.
      
      Cash and cash equivalents
      Cash and cash equivalents comprise cash in hand and on demand deposits held with banks.

      Trade and other payables
      Trade payables are initially measured at fair value, and subsequently measured at amortised
      cost, using the effective interest rate method.
      
      Taxation
      Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and
      laws that have been enacted or substantially enacted by the balance sheet date.
      
      Deferred taxation is provided in full, using the liability method, on temporary differences
      arising between the tax bases of assets and liabilities and their carrying amounts in the
      consolidated accounts. However, if the deferred tax arises from the initial recognition of an
      asset or liability in a transaction other than a business combination that at the time of the
      transaction affects neither accounting, nor taxable profit or loss, it is not accounted for.
      Deferred tax is determined using tax rates and laws that have been enacted (or substantially
      enacted) by the balance sheet date and are expected to apply when the related deferred tax asset
      is realised or the deferred tax liability is settled.
      
      Deferred tax assets are recognised to the extent that it is probable that future taxable profit
      will be available against which the temporary differences can be utilised.

      Equity instruments
      An equity instrument is any contract that evidences a residual interest in the assets of the
      Group after deducting all of its liabilities. Equity instruments issued by the Group are
      recorded at the proceeds received, net of any direct issue costs.
      
      Share-based payments
      The Group has applied the requirements of IFRS 2 Share-based Payment.
      
      The Group issues equity-settled share-based payments to certain directors and sales agents.
      Equity-settled share-based payments are measured at fair value (excluding the effect of non
      market-based vesting conditions) at the date of grant. The fair value determined at the grant
      date of the equity-settled share-based payments is expensed on a straight-line basis over the
      vesting period, based on the Group's estimate of shares that will eventually vest and adjusted
      for the effect of non market-based vesting conditions.

2.    Critical accounting estimates and judgements

      The critical accounting estimates and judgements made by the Group regarding the future or
      other key sources of estimation, uncertainty and judgement that may have a significant risk of
      giving rise to a material adjustment to the carrying values of assets and liabilities within the
      next financial year are:

      Impairment of exploration and evaluation assets
      At each reporting date, the Group assesses whether there is any indication that an asset may
      be impaired.  Where an indication of impairment exists, the Group makes a formal estimate of
      recoverable amount.  Where the carrying amount of an asset exceeds its recoverable amount the
      asset is considered impaired and is written down to its recoverable amount.

      Recoverable amount is the greater of fair value less costs to sell and value in use. It is
      determined for an individual asset unless the asset does not generate cash inflows that are
      largely independent of those from other assets or groups of  assets, in which case, the
      recoverable amount is determined for the cash-generating unit to which the asset belongs.

      Estimates and judgements are continually evaluated and are based on historical experience
      and other factors, including expectations of future events that are believed to be reasonable
      under the circumstances.
      
3.    Segmental analysis

      Primary reporting format - business segment
      No primary segmental analysis has been presented since the Group operates within a single
      business segment: resource evaluation and exploitation.
      
      Secondary reporting format - geographic segments
      The Group operates within three geographic segments: Macedonia, China and USA.  These geographic
      segments  are  the  basis  on  which  the Group reports its secondary segment information, as
      presented below:
      
      Segmental information for the year ended 31 March 2009

                                                                                         
                           Macedonia              China               USA        Un-allocated             Total
                                   £                  £                 £                   £                 £
                                                                                                          
Segmental revenue                  -                  -                 -                   -                 -
                        -----------------------------------------------------------------------------------------
                        -----------------------------------------------------------------------------------------
                                                                                                 
Total capital                                                                                             
 expenditure                  82,617             54,000           736,746               2,857           876,220
                        -----------------------------------------------------------------------------------------
                        -----------------------------------------------------------------------------------------
                                                                                                          
Total segmental assets       430,347             54,000           738,220             118,289         1,340,856
                        -----------------------------------------------------------------------------------------
                        -----------------------------------------------------------------------------------------

      Segmental information for the year ended 31 March 2008


                           Macedonia              China               USA        Un-allocated             Total
                                   £                  £                 £                   £                 £
                                                                                                          
Segmental revenue                  -                  -                 -                   -                 -
                        -----------------------------------------------------------------------------------------
                        -----------------------------------------------------------------------------------------
                                                                                                          
Total capital                                                                         
  expenditure                103,972                 -                  -                 743           104,715

                        -----------------------------------------------------------------------------------------
                        -----------------------------------------------------------------------------------------
                                                                                                          
Total segmental assets       568,653                 -                  -              14,167           582,820
                        -----------------------------------------------------------------------------------------
                        -----------------------------------------------------------------------------------------


4.    Exceptional administrative expenses
      
      The Group and Company wrote back £52,232 (2008: incurred £374,627) of expenditure in due
      diligence costs on the proposed reverse acquisition of Njahili Resources Limited. These costs
      were written off in the year ended 31 March 2008 and the balance in the year ended 31 March 2009
      as the acquisition was not completed.
      
      The Group and Company incurred £27,271 (2008: £nil) of expenditure in due diligence costs on the
      acquisition of a 3% net profit interest in the Bobai Bishop tungsten mine in China. These costs
      were written off.
      
      The Group and Company made an impairment charge of £220,572 (2008: £nil) against exploration
      expenditure incurred on its Osogovo prospect as it is considered that the amount and grade of
      copper could not be profitably mined.

5.     Operating loss is stated after charging/(crediting):                       2009               2008
                                                                                     £                  £
                                                                                            
       Auditors' remuneration                                                               
       - audit of the parent Company and consolidated accounts                  16,000             16,500
       - taxation services (paid to related companies of the auditors)           3,150              9,300
       - Services relating to corporate finance transactions proposed                       
          to be entered into by the Company                                    (23,500)           120,000
       Depreciation                                                                411                544
                                                                             -----------------------------
                                                                             -----------------------------


6.     Finance income and costs                                                   2009              2008
                                                                                     £                 £
                                                                                            
       Bank interest payable                                                    (4,727)                -
                                                                                            
       Bank interest received                                                        -               927
                                                                             -----------------------------
                                                                             -----------------------------
                                                                                   
       
7.     Staff costs (including directors)
       
       There were no staff costs, excluding directors' emoluments (2008: £nil).  There were no employees,
       including directors, during the year (2008: £nil).

                                                                                   2009               2008
                                                                                      £                  £
                                                                                                          
        Directors emoluments                                                     45,000             20,000
                                                                             -----------------------------
                                                                             -----------------------------



8.                                                                               2009               2008
        Taxation on loss on ordinary activities
                                                                                    £                  £
        
                                                                                                
        Corporation tax payable based on the loss for the year at 21%                           
         (2008: 20%)                                                                -                  -
                                                                           -------------     --------------
                                                                           -------------     --------------
                                                                                                
        Taxation reconciliation                                                                             
                                                                                                            
        Loss on ordinary activities before taxation                          (538,926)          (676,358)
                                                                           -------------     --------------
                                                                           -------------     --------------
                                                                                                            
                                                                                                            
        Loss on ordinary activities multiplied by the standard rate          (113,174)          (135,272)
        of corporation taxation in the UK of 21% (2008: 20%)
                                                                                                            
        Taxation effects of:                                                                                
        Expenses not deductible for tax purposes                               41,409             75,256
        Capital allowances in excess of depreciation                             (661)                 -
        Depreciation in excess of capital allowances                                -                 12
        Trading losses not utilised                                            72,426             60,004
                                                                           -------------     --------------
                                                                                    -                  -
                                                                           -------------     --------------
                                                                           -------------     --------------

        The Group has unused tax losses of £1,480,484 (2008: £1,135,600). The related deferred tax asset
        has not been recognised in the accounts due to the uncertainty surrounding its recoverability. The
        deferred tax asset can be recovered against suitable future trading profits.

9.      Loss per share
        
        Given the loss for both years the share warrants are anti-dilutive and have therefore not been
        taken into consideration for the purposes of calculating earnings per share.
                                                                                                          
        The calculation of the basic and diluted earnings per share is based on the following data:
                                                                                                          
        Loss                                                                         2009             2008
                                                                                        £                £
                                                                                                          
        Loss for the purposes of basic earnings per                                                       
        share being net loss attributable to equity                                                       
        shareholders of the parent                                               (532,748)        (676,358)
                                                                               ------------     ------------
                                                                               ------------     ------------
                                                                                                          
        Loss for the purpose of diluted earnings per                                                      
         share                                                                   (532,748)        (676,358)
                                                                               ------------     ------------
                                                                               ------------     ------------
    
                                                   
        Number of shares                                                                                  
                                                                                                          
        Weighted average number of ordinary shares for                                                    
         the purpose of basic and diluted earnings per                                                     
         share                                                                 98,737,762       68,299,784
                                                                               ------------     ------------
                                                                               ------------     ------------
                                                                                                          
        Earnings per share                                                                                
                                                                                                          
        Basic and diluted loss per share - pence                                    (0.5p)           (1.0p)


10.     Property, plant and equipment - Group and Company                                     Computer and
                                                                                                diagnostic
                                                                                                 equipment
                                                                                                         £
        Cost                                                                                              
        At 1 April 2007                                                                                980
        Additions                                                                                      743
                                                                                           ----------------
                                                                                                          
                                                                                                          
        At 1 April 2008                                                                              1,723
        Additions                                                                                    2,857
                                                                                           ----------------
                                                                                                          
        At 31 March 2009                                                                             4,580
                                                                                           ----------------

        Depreciation                                                                                      
        At 1 April 2007                                                                                500
        Charge for the year                                                                            544
                                                                                           ----------------
                                                                                                          
        At 1 April 2008                                                                              1,044
        Charge for year                                                                                411
                                                                                           ----------------
                                                                                                          
                                                                                                          
        At 31 March 2009                                                                             1,455
                                                                                           ----------------
                                                                                                          
                                                                                                          
        Net book value                                                                                    
        At 31 March 2009                                                                             3,125
                                                                                           ----------------
                                                                                           ----------------
                                                                                          
                                                                                          
        At 31 March 2008                                                                               679
                                                                                           ----------------
                                                                                           ----------------



11.     Intangible fixed assets                                           Company                    Group
                                                                      Exploration              Exploration
                                                                            costs                    costs
                                                                                £                        £
                                                                                                          
        At 1 April 2007                                                   464,022                  464,022
        Additions                                                         100,754                  103,972
                                                                    ---------------           -------------
                                                                                                          
                                                                                                          
        At 31 March 2008                                                  564,776                  567,994
        Additions                                                         134,582                  873,423
        Impairment (see note 4)                                          (220,572)                (220,572)
                                                                    --------------            -------------
                                                                                                          
                                                                                                          
        At 31 March 2009                                                  478,786                1,220,845
                                                                    --------------            -------------
                                                                    --------------            -------------
                                                                                                          
        


12.     Fixed asset investments - Company                                             2009                 2008
                                                                                         £                    £
                                                                                                               
        At 1 April                                                                   3,427                3,427
        Additions                                                                  366,803                    -
                                                                                 ----------           ----------
                                                                                                               
                                                                                                               
        At 31 March                                                                370,230                3,427
                                                                                 ----------           ----------
                                                                                 ----------           ----------
                                                                                                               
                                                                                                               
        The Company formed a subsidiary, Sirius Exploration - Balkan DOOEL Strumica, a company incorporated in
        Macedonia.  The company's principal activity is exploration of mineral properties in Macedonia.  The
        fixed asset investment is held at cost.  As at 31 March 2008 and 2009, the Directors consider the
        fixed asset investment is not impaired.
        
        On 15 January 2009, the Company acquired 51% of the equity in Dakota Salts LLC, a company incorporated
        in the USA. The fixed asset investment is held at cost. As at 31 March 2009, the Directors consider
        the fixed asset investment is not impaired.
        
        The investment in Dakota Salts LLC was accounted for as an asset purchase and not a business
        combination within the Group's consolidated accounts and accordingly no goodwill has been recognised.
        Though the Company controls 51% of Dakota Salts LLC, 100% of the asset has been accounted for within
        additions to exploration costs while 49% has been accounted for within minority interests.


13.     Trade and other receivables - Group and Company                               2009                 2008
                                                                                         £                    £
                                                                                                               
        Other debtors                                                                7,895                7,445
        Prepayments                                                                100,438                3,107
                                                                                 ----------            ---------
                                                                                                               
                                                                                   108,333               10,462
                                                                                 ----------            ---------
                                                                                 ----------            ---------
                                                                                                               

      The directors consider that the carrying amount of trade and other receivables approximates to their
      fair value.
      
      No bad and doubtful debt charges have been recognised by the Group in the income statement during the
      year (2008: £nil).

14.     Cash and cash equivalents - Group                                             2009                 2008
                                                                                         £                    £
                                                                                                               
        Cash at bank and on hand                                                     8,553                3,685
                                                                                 ----------            ---------
                                                                                 ----------            ---------
                                                                                                               
                                                                                                               
        Cash and cash equivalents - Company                                           2009                 2008
                                                                                         £                    £
                                                                                                               
        Cash at bank and on hand                                                     6,831                3,026
                                                                                 ----------            ---------
                                                                                 ----------            ---------
                                                                                                       
                                                                                                               
        The directors consider that the carrying amount of these assets approximates to their fair value.  The
        credit risk on liquid funds is limited because the counter-party is a bank with a high credit rating.
        
        The majority of the Group and Company's cash at bank and on hand is held in Sterling.  No further
        analysis is provided on the grounds that it is not material.
                                                                                                               


15.     Share capital                                                               2009                 2008
                                                                                       £                    £
                                                                                                      
        Authorised                                                                                    
        500,000,000 (2008: 240,000,000) ordinary shares of 0.25p each          1,250,000              600,000
                                                                              ----------            ---------
                                                                              ----------            ---------
                                                                                                      
                                                                                                      
        Allotted and called up                                                                        
        131,572,084  (2008: 68,879,511) ordinary shares of 0.25p each            328,930              172,199
                                                                              ----------            ---------
                                                                              ----------            ---------

                                                                                                      


        On 29 April 2008, the Company issued 14,800,907 new ordinary shares of 0.25p nominal value per ordinary
        share at 2.5p per share, giving total consideration of £363,682.

        On 30 April 2008, the Company issued 3,075,292 new ordinary shares of 0.25p nominal value per ordinary
        shares at 1.6259p per share, giving total consideration of £50,000.

        On 12 June 2008 the share capital was increased from 240,000,000 to 500,000,000 shares of 0.25p.

        On 19 June 2008, the Company issued 258,041 new ordinary shares of 0.25p nominal value per share at 2.5p
        per share, giving a total consideration of £6,341.

        On 25 June 2008, the Company issued 2,222,222 new ordinary shares of 0.25p nominal value per share at
        2.25p per share, giving a total consideration of £50,000.

        On 27 June 2008, the Company issued 1,200,000 new ordinary shares of 0.25p nominal value per share at
        1.5p per share, giving a total consideration of £18,000.

        On 15 September 2008, the Company issued 7,000,000 new ordinary shares of 0.25p nominal value per
        ordinary share at 1p per share, giving a total consideration of £70,000.

        On 16 December 2008, the Company issued 4,800,000 new ordinary shares of 0.25p nominal value per ordinary
        share at 0.75p per share, giving a total consideration of £36,000.

        On 13 January 2009, the Company issued 24,225,000 new ordinary shares of 0.25p nominal value per ordinary
        share at 1.5p per share, giving a total consideration of £363,375.

        On 30 January 2009 the Company issued 5,111,111 new ordinary shares of 0.25p nominal value per ordinary
        share at 2.25p per share, giving a total consideration of £115,000.

16.     Share-based payments
                                                                                                                  
        The Company issued warrants in connection with its flotation on AIM in August 2005. Each warrant was
        convertible into one ordinary share at an exercise price of 5p per share. 2,293,375 warrants expired on 1
        August 2006. The remaining 200,000 warrants expire on 1 August 2010.
        
        Details of the warrants in issue during the years ended  31 March 2008 and 31 March 2009 are as follows:

                                                                                                          Weighted
                                                                                                           Average
                                                                                                    Exercise Price
                                                                                   Number of                     £
                                                                                    warrants
                                                                                                                  
       Outstanding at 1 April 2008 and 31 March 2009                                                              
                                                                                     200,000                  0.05
                                                                                  -----------
                                                                                                                  
       Exercisable at 31 March 2009                                                  200,000                  0.05
                                                                                  -----------


        Fair value is measured by use of the Black Scholes model. The expected life used in the model has been
        adjusted, based on management's best estimate, for the effects of non-transferability and exercise
        restrictions.
        
        The fair value of warrants granted as at 31 March 2009 is £1,205. The warrants were fully vested on date
        of issue.


17.    Borrowings - Group                                                       2009                 2008
                                                                                   £                    £
                                                                                                   
       Directors' and shareholders' loans                                     67,765                    -
                                                                            ----------            --------
                                                                            ----------            --------

17.    Borrowings - Company                                                     2009                 2008
                                                                                   £                    £
                                                                                                   
       Directors' and shareholders' loans                                     32,935                    -
                                                                            ----------            --------
                                                                            ----------            --------
                                                                                                   

       All loans are interest free and repayable on demand.




18.    Trade and other payables -                                                2009                 2008
       Group                                                                        £                    £
                                                                                                   
       Trade payables                                                         331,514              368,336
       Accruals                                                               210,995              326,535
                                                                           -----------          -----------
                                                                                                   
                                                                                                   
                                                                              542,509              694,871
                                                                           -----------          -----------
                                                                           -----------          -----------
                                                                                                   

       Trade and other payables -                                                2009                 2008
       Company                                                                      £                    £
                                                                                                   
       Trade payables                                                         320,958              368,336
       Accruals                                                               213,089              326,501
                                                                           -----------          -----------
                                                                                   
                                                                              534,047              694,837
                                                                           -----------          -----------
                                                                           -----------          -----------
                                                                                                   

19.    Cash outflow from operating activities - Group                             2009                 2008
                                                                                     £                    £
                                                                                                   
       Loss before tax                                                        (538,926)            (676,358)
       Depreciation                                                                411                  544
       Finance expense/(income)                                                  4,727                 (927)
       Impairment                                                              220,572                    -
                                                                           ------------          ------------
                                                                                                   
                                                                                                   
       Operating cash flow before changes in working capital                  (313,216)            (676,741)
                                                                                                   
       (Increase)/decrease in receivables                                      (97,871)               7,249
       (Decrease)/increase in payables                                        (113,780)             470,174
                                                                           ------------          ------------
                                                                                                   
       Net cash outflow from operating activities                             (524,867)            (199,318)
                                                                           ------------          ------------
                                                                           ------------          ------------
                                                                                                   
     


       Cash outflow from operating activities - Company                           2009                 2008
                                                                                     £                    £
                                                                                                   
       Loss before tax                                                        (524,608)            (676,807)
       Depreciation                                                                411                  544
       Finance expense/(income)                                                  4,727                 (927)
       Impairment                                                              220,572                    -
                                                                             -----------          -----------
                                                                                                   
                                                                                                   
       Operating cash flow before changes in working capital                  (298,898)            (677,190)
                                                                                                   
       (Increase)/decrease  in receivables                                     (97,871)               7,249
       (Decrease)/increase in payables                                        (127,855)             470,140
                                                                             ----------           ----------
                                                                                                   
       Net cash outflow from operating activities                             (524,624)            (199,801)
                                                                             ----------           ----------
                                                                             ----------           ----------
20. Related party transactions

During the year ended 31 March 2009, the Company was charged £nil (2008: £60,000) by Nicholas Badham, a director of the Company,
for consulting services. As at the year end £nil (2008: £50,000) was due to Nicholas Badham.

During the year ended 31 March 2009, the Company was charged £34,375 (2008: £nil) by Nibex Limited, in which Nicholas Badham,
a director of the Company, has an interest, for consultancy services. At the year end £29,375 (2008: £nil) was due to Nibex Limited.

During the year ended 31 March 2009 the Company was charged £30,000 (2008: £30,000) by Easy Business Consulting Limited,
in which Jonathan Harrison, a director of the Company, has an interest, for consultancy services. At the year end £27,500
(2008: £27,500) was due to Easy Business Consulting Limited.

During the year ended 31 March 2009 the Company was charged £60,000 (2008: £60,000) by Pacific Corporate Management Limited for
management services.  Richard Poulden, a director of the Company, is an employee of Pacific Corporate Management Limited. At the
year end £50,000 (2008: £50,000) was due to Pacific Corporate Management Limited.

During the year ended 31 March 2009, the Company was charged £10,000 (2008: £10,000) by Derek Stonley, a director of the Company,
for consulting services. At the year end £10,000 (2008: £8,333) was due to Derek Stonley.

During the year ended 31 March 2009, the Company was charged £10,000 (2008: £10,000) by Z/Yen Group Limited, in which Michael Mainelli,
a director of the Company, has an interest, for consulting services. At the year end £1,667 (2008: £1,667) was due to Z/Yen Group Limited.

Ashton Nominees Inc, a shareholder of the Company, loaned the Company £13,976  (2008: £nil). Nicholas Badham and  Jonathan Harrison,
both Directors of the Company, loaned the Company £5,000 (2008: £nil) and £13,959  (2008: £nil) respectively. All these loans were
outstanding at the year end and have been repaid by the Company post year end.

Transparent Holdings Ltd, a shareholder of the Company, loaned the Group £34,830 (2008: £nil). At the year end £34,830 (2008: £nil)
was due to Transparent Holdings Ltd.


21. Financial instruments

The Group's financial instruments comprise cash and cash equivalents, bank borrowings and items such as trade  payables and trade
receivables which arise directly from its operations. The main purpose of these financial instruments is to provide finance for
the Group's operations.

The Group's operations expose it to a variety of financial risks including credit risk, liquidity risk, interest rate risk, equity
price risk and foreign currency exchange rate risk. Given the size of the Group, the directors have not delegated the responsibility
of monitoring financial risk management to a sub  committee of the board. The policies set by the board of directors are implemented
by the Company's finance department.

       Classification of financial instruments
       With the exception of investments held by the Company of £370,230 (2008: £3,427), which are held at cost,
       all other Company and Group financial assets are classified as loans and receivables and the carrying
       value of all financial assets approximates to its fair value. All of the Company and Group financial
       liabilities are held at amortised cost.
       
       Capital management
       The Group and Company's objectives when managing capital are to safeguard the Group and Company's ability
       to continue as a going concern, to provide returns for shareholders and to maintain an optimal capital
       structure to reduce the cost of capital. The Group and Company defines capital as being share capital plus
       reserves. The Board of Directors monitor the level of capital as compared to the Group and Company's
       commitments and adjusts the level capital as is determined to be necessary, by issuing new shares. The
       Group and Company is not subject to any externally imposed capital requirements.

       Credit risk
       The Group's credit risk is primarily attributable to its other receivables and cash and cash equivalents.
       The Group has implemented policies that require appropriate credit checks.  The amount of exposure to any
       individual counterparty is subject to a limit, which is reassessed annually by the board.
       
       The carrying amount of financial assets represents the maximum credit exposure. The maximum credit exposure
       to credit risk at the reporting date was:
                                                                               2009                 2008
                                                                                  £                    £
                                                                                                   
       Other receivables                                                      7,895                7,445
       Cash and cash equivalents                                              8,553                3,685
                                                                            --------              --------
                                                                                                   
                                                                             16,448               11,130
                                                                            --------              --------
                                                                            --------              --------

       Interest rate risk
       
       The Group only has interest bearing assets which comprise only cash and cash equivalents and earn interest
       at a variable rate. The Group has a policy of maintaining debt at fixed rates which are agreed at the time
       of acquiring debt to ensure certainty of future interest cash flows. The directors will revisit the
       appropriateness of the policy should the Group's operations change in size or nature.
       
       The only debt at year end was the director and shareholder loans which are non interest bearing.
       
       The Group has not entered into any derivative transactions during the period under review.
       
       The Group's cash and cash equivalents earned interest at a variable rate based on a daily cleared credit
       balances at 2.5% (2008: 2.5%) below the base rate and zero percent where the base rate was 2.5% or below.
       

       Liquidity risk
       The  Group actively maintains cash balances that are designed to ensure that sufficient available funds for
       operations and planned expansions. The Group monitors its levels of working capital to ensure that it can
       meet its  debt repayments as they fall due. The following table shows the contractual maturities of the
       Group's financial liabilities, all of which are measured at amortised cost:

                                                   Trade                       
                                                payables          Accruals       Total
                                                       £                 £           £
                                                                               
       At 31 March 2008                                                        
       6 months or less                           35,334           185,058     220,392
       6-12 months                               333,002           141,477     474,479
                                               ---------        ----------   ----------
                                                                                           
                                                                               
       Total contractual cash flows              368,336           326,535     694,871
                                               ---------        ----------   ----------
                                               ---------        ----------   ----------
                                                                               
       Carrying amount of financial                                                  
        liabilities measured at amortised                                             
        cost                                     368,336           326,535     694,871
                                               ---------        ----------   ----------
                                               ---------        ----------   ----------


      Liquidity risk
                                                                                         
                                                                                 Directors'
                                                  Trade                      and sharehold-            
                                               payables         Accruals         ers' loans      Total
                                                      £                £                  £          £
                                                                                               
      At 31 March 2009                                                                         
      6 months or less                           62,005          105,260             32,935    200,200
      6-12 months                               304,339          105,735                  -    410,074
                                             ----------      ------------   ----------------  ---------
                                                                                                           
                                                                                               
      Total contractual cash flows              366,344          210,995             32,935    610,274
                                             ----------      ------------   ---------------   ---------
                                             ----------      ------------   ---------------   ---------
                                                                                               
      Carrying amount of financial                                                                   
       liabilities measured at amortised                                                              
       cost                                     366,344          210,995             32,935    610,274
                                             ----------      ------------   ---------------   ---------
                                             ----------      ------------   ---------------   ---------
                                                                                               

      No separate analysis of liquidity risk has been provided for the Company as it is not materially
      different to that of the Group.

      Market risk and sensitivity analysis
      
      Foreign currency risk
      The reporting currency of the Group is Sterling. Transactions denominated in a foreign currency are
      translated into sterling, the functional currency of the Company, at the rate of exchange ruling at the
      date of the transaction. At the balance sheet date, monetary assets and liabilities denominated in foreign
      currency are translated at the rate ruling at that date. All exchange differences are charged or credited
      to the income statement as appropriate. The Group and Company has no material financial assets held in a
      foreign currency. Therefore the Group and Company considers this to be a manageable risk to the extent
      that further sensitivity analysis is not required.
      
      Interest rate risk
      The Group and Company is exposed to interest rate risk as the result of positive cash balances,
      denominated in Sterling, which earn interest at a variable rate. As these cash balances are not material,
      the Group and Company considers this to be a manageable risk to the extent that further sensitivity
      analysis is not required.
      

22.      Post balance sheet events
         
         Share issues
         On 8 May 2009 the Company issued 1,250,000 new ordinary shares at 2.25p for a total consideration of
         £28,125 and 625,000 options exercisable at 4.5p within 2 years.

         On 10 June 2009 the Company issued 775,455 new ordinary shares at 2.25p for a total consideration of
         £17,448.

         On 13 July 2009 the Company issued 257,732 new ordinary shares at 3.88p for a total consideration of
         £10,000.

         On 13 July 2009 the Company issued 133,949,889 new ordinary shares at 2p for a total consideration of
         £2,678,998.

         On 24 July 2009 the Company issued 500,000 new ordinary shares at 4p for a total consideration of
         £20,000.

         On 28 July 2009 the Company issued 2,500,000 new ordinary shares at 4p for a total consideration of
         £100,000.
         
         Option to acquire remaining shares in Dakota Salts LLC
         On 20 June 2009 the Company signed option agreements to acquire 25 shares from Sojourn Energy LLC and
         24 shares from Transparent Holdings Limited being the remaining 49% of Dakota Salts LLC not previously
         held by the Company. The cost of these option agreements were £1 and £2 respectively. The options
         may be exercised at any time on or after the date of the Option Agreements but by or before the
         nearest business day following the day six months from the date of these agreements. The exercise
         price per share is £10,000 or 400,000 shares in the Company for an aggregate purchase price of
         £490,000 or 19,600,000 shares in the Company.
         
         Option to acquire 51% of the equity of AusPotash Corporation
         On 7 July 2009 the company signed an option agreement with Transparent Holdings Limited, Circle
         Resource Holdings Limited, Circle Resources Plc, St Cloud Capital S.A., Odaka Enterprises Inc. And
         Ashton Nominees Inc. to acquire up to 51% of the equity of AusPotash Corporation. The Company has
         until 30 September 2009, or such other date the parties agree in writing, to purchase all the option
         shares owned by the sellers in AusPotash Corporation. The consideration paid for the grant of the
         option was £1 to each of the sellers.

         The completion of the option is conditional on, inter alia, the Company being satisfied in its
         absolute discretion with its due diligence investigation of the AusPotash Corporation and subject to
         compliance with the relevant AIM Rules at the time.
         
         American Depositary Receipt (ADR) facility
         On 6 April 2009 the Company's shares started trading as ADR's in the Company's ordinary shares on the
         Pink OTC Markets Inc. Each ADR represents 500 ordinary shares in the Company and the Company can issue
         ADR's in respect of up to 25% of its issued share capital at any given time.

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