Sirius Exploration PLC

August 26, 2010 02:00 ET

Queensland update: Sino-Agri MOU

For immediate release: 0700hrs 26 August 2010

                                          Sirius Exploration Plc
                                        ("Sirius" or the "Company")

                                     Queensland update: Sino-Agri MOU

The  Directors  of Sirius Exploration Plc (AIM: SXX, OTC: SRUXY), the potash mining group, are  pleased  to
announce  that  the  Company has entered into a Memorandum of Understanding ("MOU") with  Sino-Agri  Mining
Industry  Co.  Ltd ("Sino-Agri"), a division of China's second largest fertilizer distributor,  to  develop
Sirius's property overlying the Adavale Basin in Queensland, Australia.

Under the terms of the MOU, the Parties will explore whether to enter into further agreements to establish:
firstly,  the  feasibility  of commercial potash production on Sirius's Adavale properties;  and  secondly,
commercially  reasonable and profitable terms for the scope of services to be provided by Sino-Agri  on  an
exclusive basis for the Adavale project ("Project").

In particular,  Sirius and Sino-Agri will endeavour to negotiate mutually acceptable  agreements  covering
firstly  an  off-take agreement and, secondly, a joint development and funding agreement.  Under  any  such
agreements Sino-Agri will be the sole provider of services to bring the Project to commercial production in
exchange for 50% of the equity in the Project.

As announced on 20 August 2010, based on an interpretation of existing seismic and petroleum drilling data
by  Boyd  PetroSearch  ("Boyd"), Sirius has interpreted a site within its Queensland properties considered
very prospective for potash.

An initial  exclusivity period between the Parties exists for 180 days after which date  the  Parties  can
select to extend or terminate the MOU. CIC Group China provided advisory services to Sirius on the

Chris Catlow, Chairman of Sirius Exploration, commented:
        "Sirius  is  pleased to have taken this important first step in developing a long term relationship
        with  Sino-Agri,  a  group  that  is  establishing itself as one  of  the  world's  largest  potash
        distributors.  Signing this MOU demonstrates that major fertilizer consumers  are  concerned  about
        the  current concentration of world's potash supply and wish to fast track the development  of  new
        large  potash  resources. It also confirms the market's recognition of the  massive  potential  our
        Adavale  tenements  offer, and potentially provides Sirius with off-take,  finance  and  surety  of
        commercial  production whilst retaining 50% equity in the project. Sirius will now continue  moving
        forward  with  a  range  of  initiatives across its portfolio to  fast-track  the  company  into  a
        significant  global  potash  supplier.  To that end, we look  forward  to  further  developing  our
        relationship with Sino-Agri."

- ENDS -

For further information, please contact:

Sirius Exploration Plc                                             
Richard Poulden                                                    Tel: +971 504 524 994

Beaumont Cornish Limited (Nomad)                                   
Roland Cornish                                                     Tel: +44 (0) 207 628 3396
Daniel Stewart & Company plc (Broker)                              
Christopher Theis / Emma Earl                                      Tel: + 44 (0) 20 7776 6550
Gth Media Relations                                                
Toby Hall/Christian Pickel                                         Tel: + 44 (0) 20 3103 3903/

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