Sheba Exploration (UK) plc

November 28, 2008 10:27 ET

Statement re Sheba Exploration (UK) Plc - Interim Results For The 6 Months Ended 31 August 2008

                                      Sheba Exploration (UK) Plc
                         Interim Results For The 6 Months Ended 31 August 2008

The Directors of Sheba Exploration (UK) Plc are pleased to announce the un-audited interim results for
the 6 month period to 31 August 2008.


During  the  period under review, percussion drilling was completed at the Shehagne EEL, with  initial
results  indicating significant gold intersections.  At the Mereto EEL, further soil and rock sampling
extended  the  anomalous gold areas to over 2 sq km, with gold reaching peak values of  1730ppb.  Rock
sampling  at the Adi Gefa prospect returned 5 samples out of 20, with gold values in excess  of  1g/t.
Early  stage  exploration was completed on the three new prospecting licences, at Winibo, Finarwa  and
Una Deriam EPLs, with some positive showings for gold and copper mineralisation.


In  May,  172 metres of percussion drilling was carried out over the north part of a large  gold  soil
anomaly  at  Shehagne  EEL. Four percussion holes, ranging in depth between 40  and  52  metres,  were
drilled  into  gold geochemical targets and all holes penetrated disseminated sulphide mineralization.
The  holes were drilled at the north end of the 2.7 km long Tsemetti gold anomaly, and were  aimed  to
intersect  fresh rock below the oxidation level at 10-30 metres below surface. The average of  all  27
quartz veinlets sampled in the area was 5.5 g/t gold (no cut-off applied). Initial results of drilling
show significant gold intercepts in the oxide zone, associated with quartz stockwork and sulphides  in
felsic  tuffs. Shehagne is a "grassroots" discovery with high gold values turning up in  rock  samples
under  the soil anomaly. There are signs of associated copper mineralisation. Detailed exploration  is
now continuing along strike in order to delineate further drilling targets.


Further  detailed soil sampling has extended the anomalous gold area and redefined the  mineralization
model.  Using  the 100ppb soil threshold, the known gold anomalies now cover approximately  2  sq  km,
peaking  at 1730ppb gold. A further 4 sq km of the 11 sq km licence requires detail sampling and  many
more gold anomalies are expected.

Follow-up  rock sampling was carried out at the Adi Gefa artisanal mining site in the  centre  of  the
Mereto  gold trend. Five rock samples out of 20 produced the following grades of between 1.0  and  7.5
g/t gold (cut-off 1 g/t).

Detailed mapping and sampling at Adi Gefa indicates a stockwork style of gold mineralization with most
of the gold present in the phyllite host rocks to quartz veins. Mineralised outcrop at this site alone
(2.2  ha)  appears  to  cover  a cumulative strike length of 370m across a  nominal  width  of  5-10m.
Previously  reported trenching from this zone produced best intersections of 3.7 g/t over 6m  and  2.3
g/t over 8m.


In  October results from early stage prospecting at Winibo, Finarwa and Una Deriam EPLs were  compiled
and interpreted. New gold and copper prospects were discovered during the programme, several with very
significant  strike  extent,  in  particular at Winibo with the  discovery  of  copper  mineralization
trending for upwards of 2.8km along strike.

At  Winibo,  infill  sampling  and  mapping continued along strike  of  a  copper-bearing  grey  shale
formation.  Copper  oxides have now been encountered at 34 points along the 2.8 km outcrop  mapped  to
date, comprising about one third of the potential length of outcrop. 14 new in-situ rock samples  have
been  analysed, returning values in the range 0.9% to 4.27% copper. The average of all 34 rock samples
taken to date is 0.7% copper and 4 g/t silver.

The  target  zone at Finarwa is a 7km long shear hosted by greenschist metavolcanics with gold-copper-
zinc  potential. A float rock sample containing quartz and bornite assayed 3.35% copper. This  is  the
first confirmation of copper mineralisation at this EPL. The style of mineralization and its potential
as an economic target remains to be investigated.

The target zone at Una Deriam is a continuation to the south of the gold-bearing Mereto alteration and
shear  zone,  over a length of at least 3km. During the sample collection programme,  a  total  of  30
alluvial  gold  panning sites and 16 primary gold (outcrop-related) digging sites  were  mapped,  thus
showing  there is a high potential for gold mineralization in this new EPL. Geochemical  results  from
regional sediment and soil sampling are pending.


In  May  2008  Sheba Exploration Plc undertook a private placement of 5 million Ordinary shares  at  a
price  of  1.25p per share for a total consideration of £62,500. There were no conditions or  warrants
attached  to  the private placing. The funds are being used for ongoing operational and administrative
expenses in relation to our exclusive exploration licences in Ethiopia.

The  total  number  of  shares in issue following the private placement was 86,260,000  of  which  the
directors hold 31.6%


The  Company  continues to break new ground in Ethiopia with a view to attracting venture capital  for
early stage drilling programmes with high potential for company-making discovery intercepts. With  its
low  operating  costs  the Company will concentrate on fundamental prospecting  and  continue  seeking
alliances with entities having a long-term strategy in the minerals sector.

Henry Atkinson, Director, 28 November, 2008.

The directors of Sheba Exploration (UK)plc accept responsibility for this announcement.

                                      Sheba Exploration (UK) Plc
                              Interim Consolidated Profit And Loss Account
                                For The 6 Months Ended 31st August 2008

                                                    6 Months ended       6 Months ended
                                                       31.08.08             31.08.07
                                                          £                    £
TURNOVER                                                  -                    -

Operating Costs                                       (15825)                (15264)
Administrative Expenses                               (39991)                (38627)
                                                      _______                _______

Loss On Ordinary Activities
Before Taxation                                       (55816)                (53891)

Taxation                                                 -                      -

                                                      _______                _______
Retained Loss
For The Period                                        (55816)                (53891)
                                                      _______                _______

(Loss) Per .75p Ordinary Share                       (0.0661p)              (0.0663p)

(Loss) Per .75p Ordinary Share                        (0.052p)               (0.052p)

The Company made no recognised gains or losses other than those shown above.  All results relate to
continuing operations.

These figures have not been reviewed by an auditor.

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