Sirius Exploration

October 15, 2009 02:33 ET

Acquisition of Adavale Holdings Pty Ltd

For immediate release: 15 October 2009
                                            SIRIUS EXPLORATION Plc
                                    ("Sirius Exploration" or "the Company")
                                    Acquisition of Adavale Holdings Pty Ltd

Sirius  Exploration Plc (AIM: SXX, OTC: SRUXY), the diversified mining and exploration holding company  focused
on  North America and Australia, announces that it has agreed to acquire 100% of the ordinary shares in Adavale
Holdings  Pty  Ltd  ("Adavale")  for  150,000,000 Sirius Ordinary Shares of  0.25p  ("Ordinary  Shares").  This
consideration has been satisfied by Adavale's shareholders accepting 150,000,000 new Ordinary Shares in  Sirius
at  a  price  of  13p per share. However, the acquisition of 19,691,667 shares in which Jonathan  Harrison  and
Richard Poulden (the "Related Party Shares") are interested is subject to the passing of a resolution by Sirius
in general meeting as further set out below. Therefore, Sirius has today issued 135,150,000 new Ordinary Shares
to  acquire 90.1% of Adavale and expects to complete the acquisition of the remainder in due course.  Following
completion of the transaction, Sirius will have an issued share capital of 498,655,150 Ordinary Shares.

Application  has  been  made for the 135,150,000 new ordinary shares, representing 27.1% of  Sirius's  enlarged
issued  share capital, which will rank pari passu with the existing ordinary shares, to be admitted to  trading
on AIM and trading is expected to commence on 21 October 2009.

Information on Adavale Holdings

Adavale,  is  a  privately  held Company incorporated in Queensland, Australia. It  holds  mineral  exploration
permits  covering  nearly  400  sqkm  in the Adavale Basin in Queensland,  allowing  for  the  exploration  and
extraction of salt and potash and the creation of caverns for the storage of natural gas or potentially  carbon

The  two  permit  areas  controlled  by Adavale are the Listowel and the Alva.  These  were  formerly  held  by
Queensland Potash and were to be transferred to AusPotash Corporation ("AusPotash") in exchange for  the  issue
of AusPotash shares, in the event that AusPotash met certain conditions. These conditions have not been met and
accordingly it is open to Sirius to acquire the properties directly.

Of  the  four Adavale permits which were originally controlled by Queensland Potash the Listowel and  the  Alva
represent  over sixty percent of the land area. This is important not only from the potential mineral  deposits
but also from the point of view of the size of the available storage area for Co2.

Adavale has not traded and has published no Accounts. A 43-101 report which includes these properties and those
held by AusPotash has been prepared and is available on the Company's website.

Reasons for the Acquisition

This  completes Sirius acquisition of an area providing approximately 640sqkm of permits in the Adavale  Basin.
The permits are contiguous and cover the majority of the Boree salt deposit.

Related Party Transaction

Two  directors of Sirius (Mr Richard Poulden and Mr Jonathan Harrison) have minority interests in  Adavale  and
the  acquisition  of  shares held by these interests will be subject to compliance  with  Section  190  of  the
Companies Act 2006 and with AIM Rule 13 concerning related party transactions. Therefore, Sirius will take  the
necessary  steps to proceed with the acquisition of 19,691,667 Adavale shares in which respectively Mr  Poulden
and Mr Harrison have an interest which will include inter alia convening a general meeting of Sirius to approve
the purchase of such shares. If and when that matter is taken forward, a further announcement will be made. For
the  moment  Sirius will not proceed with these steps and the acquisition of Adavale will exclude  the  Related
Party Shares.

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

Richard Poulden, the Chairman of Sirius, commented:
"The Boree Salt member is currently recognised as  Australia's largest recognised potash and salt deposit. To
now control permits overlying some 640sqkm of the Boree Salt member provides significant commercial
opportunities for the Group - not only from the perspective of straight salt mining but also from the
perspective of using the land for Co2 sequestration or Co2 storage now that we own technologies in both of
these areas."


Further Information:

Richard Poulden
Chairman, Sirius Exploration Plc.                Tel: +971 556 232 672

Jonathan Harrison (Financial Director)           Mobile: + 44 78 7988 7755

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

Gth media relations
Toby Hall                                        Tel: +44 (0)20 7153 8039
Christian Pickel                                 Tel: +44 (0)20 7153 8036

Contact Information

  • Sirius Exploration