Sheba Exploration (UK) plc

July 27, 2011 09:57 ET

Amendment Results for the year ended 28 February 2011

                                                                                                   27 July 2011

Amendment from the release made at 12:00pm today

Please note that the basic loss per ordinary share is 0.130p instead of 0.111p as previously stated.

                                          SHEBA EXPLORATION (UK) PLC
                                          ("Sheba" or the "Company")
                                  RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2011

The Chairman presents his statement for the period.

Sheba  Exploration  (UK)  Plc  is an established gold and base metal exploration  company  with  operations  in
Northern  Ethiopia.  It has been an excellent year for the Company in terms of capital growth,  acquisition  of
licences  and  gold  discoveries. Despite the low level of funding the Company's operations  were  nevertheless
maintained and ultimately accelerated.

On  19th  March  2010  the  Company was issued with the 100 square kilometre Una Deriam  Exclusive  Exploration
Licence  covering  the  Werii  Goldfield in northern Ethiopia. The licence area  is  a  consolidation  of  four
pre-existing licences which contain extensive gold soil anomalies.

On  29th  November 2010 the Company was issued with the 71 square kilometre Finarwa and the 39 square kilometre
Winibo Exclusive Exploration Licences. The former contains a number of gold soil and rock anomalies, while  the
latter contains a 4.5 km long copper belt.

During  the  early part of the year under review, option holder Stratex International Plc carried  out  channel
rock  sampling  on  the Company's Shehagne Exclusive Exploration Licence and encountered broad  zones  of  gold
mineralization in bedrock which they will shortly drill.

Sheba  announced to the market the terms of Centamin Egypt Limited's ("Centamin") recommended  cash  and  share
offer  for  the entire issued and to be issued share capital of Sheba (the "Offer") on 11 July 2011 and  as  at
that date, the offer valued Sheba at approximately ?7.48 million (on a fully diluted basis), or 6.15 pence  per
Sheba Share. The terms of the offer include a cash payment of 3p per share and one Centamin share for every  40
Sheba  shares.  Centamin owns and operates a large gold mine in southern Egypt, not far to the north  of  Sheba
Exploration's licence areas in northern Ethiopia.

The  Directors have recommended the Offer and they and certain major shareholders have endorsed the  offer  and
have signed irrevocable undertakings to accept the offer in respect of their entire share holdings.


Una Deriam:
The  acquisition  of  the  Una  Deriam  Exclusive  Exploration Licence  was  a  very  significant  achievement,
representing  the  consolidation of twelve years of gold exploration by the Company  in  the  Werii  Goldfield.
Several  exploration companies visited the area during the year and made proposals to Sheba for  joint  venture
operations  on an earn-in arrangement. While some of these proposals appeared to be attractive, experience  has
shown  that the 'lead time' with a joint venture arrangement can be long, thus delaying a financial  return  to
our  shareholders,  and therefore no further joint venture proposals were taken up. Detail  soil  sampling  and
trenching  were  carried out at the Datalian prospect, revealing a one kilometre long by 350  metre  wide  gold
anomaly underlain by cross-cutting quartz vein swarms. These veins assayed at between 2 and 13 g/t gold,  while
the  average grade of a vein swarm at one locality was 1.5 g/t gold over 12 metres. Extensive soil sampling  in
the south and east parts of the licence area uncovered more gold soil anomalies, increasing the overall area of
gold anomalism (>100ppb soil) to four square kilometres.

Finarwa and Winibo:
Following  a  year  of  gold and copper prospecting at Finarwa and Winibo, the Company acquired  a  three  year
exploration  licence  covering  the old prospecting concessions. Recent rock and  soil  sampling  has  shown  a
northward  extension to the gold belt at Finarwa, which is now known to trend along a length of 10  kilometres.
Soil anomalies in the licence area exceed 50 ppb gold and peak at 770ppb gold at one point. Continuous zones of
mineralization will be demarcated once infill soil sampling is initiated. Meanwhile, regional soil sampling  is
continuing  over  the entire licence area to investigate stream sediment anomalies and artisanal  gold  panning
sites.  At Winibo the Company has already traced a 4.5 kilometre long copper zone in bedrock. Channel  sampling
is  planned across the copper zone as well as soil sampling over the entire licence area to locate new areas of
gold and base metals mineralization.

Stratex  International  Plc  is  currently earning in to the Company's Shehagne Exclusive  Exploration  Licence
under  the terms of a letter of intent dated August 2009, by expenditure on exploration over a 24 month  period
ending  August, 2011. The exploration programme will culminate in a 1000m diamond drilling programme. In  2010,
Stratex reported several new gold intercepts in weathered bedrock from the Tsemetti Prospect, including one  of
36 metres at 0.92 g/t gold. The style of mineralization is similar to that encountered at Datalian, with medium
to high grade cross-cutting quartz veins, giving rise to wide zones of stockwork mineralization at lower grade.
The value of the project is enhanced by its close location to infrastructure and electric power.

As  referred  to above, the Company has received an offer from Centamin Egypt Limited. The Directors  of  Sheba
believe  that the terms of the Offer are generous in the present circumstances. Should the Offer become  or  be
declared  unconditional in accordance with its terms, Centamin intends to procure the making of an  application
by  the Company as soon as it is appropriate to withdraw the Company's shares from, and to cancel the admission
of  the Company's shares to, the PLUS-quoted Market and, following such withdrawal and cancellation, to procure
that the Company re-registers as a private company in accordance with the provisions of the Companies Act 2006.

If  the  Offer does not become unconditional or is withdrawn, the outlook is less certain. However,  given  the
high  gold  price and the quality of the Company's gold concession areas I am confident that the  Company  will
continue to be successful in either event.

Company expenditure was ?128,259 pounds for the year under review, up from ?97,149 spent in the previous  year.
The Company continues to run a very lean operation, with the directors again taking shares in lieu of salary to
help  conserve working capital.  A number of small private placements of shares were undertaken during the year
to  raise  working  capital amounting to 8.42 million shares, including those issued to directors  in  lieu  of

The Directors do not recommend the payment of a dividend for this period.

In conclusion, I would like to thank the shareholders, employees, directors, corporate advisers and contractors
of  the  company, not forgetting the Ethiopian Government, for their support over the past seven years. Despite
some  rough passages, the company has come through successfully to this point in time. The groundwork  we  have
done  in  Ethiopia  will no doubt contribute significantly to the development of the mining  industry  in  that
country in the future.

H. Atkinson Esq.
Date 22 July 2011

                                          SHEBA EXPLORATION (UK) PLC
                                          REGISTERED NUMBER: 05179896
                                     CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                      FOR THE YEAR ENDED 28 FEBRUARY 2011
                                                                                           2011                2010
                                                                                           ?                    ?
                                                                                        (17,939)             (11,889)
Cost of sales
                                                                                        (17,939)             (11,889)

                                                                                       (109,872)             (85,241)
Administrative expenses
                                                                                       (127,811)             (97,130)

                                                                                              34                 (18)
Interest receivable and similar income
                                                                                           (482)                    -
Interest payable and similar charges
                                                                                       (128,259)             (97,148)

                                                                                               -                    -
Tax on loss on ordinary activities
                                                                                       (128,259)             (97,148)

LOSS PER ORDINARY SHARE (BASIC)                                                          0.130p                0.106p

LOSS PER ORDINARY SHARE (FULLY DILUTED)                                                  0.118p                0.089p

All amounts relate to continuing operations.

There  were  no recognised gains and losses for 2011 or 2010 other than those included in the Profit  and  loss

                                          CONSOLIDATED BALANCE SHEET
                                            AS AT 28 FEBRUARY 2011
                                                                      2011                           2010
                                                                 ?               ?              ?              ?
                                                                                 323,164                         323,164
Intangible assets
                                                                                     166                             188
Tangible assets
                                                                                 323,330                         323,352
                                                                 14,727                          26,706 
                                                                  9,792                          10,567 
Cash at bank and in hand
                                                                 24,519                          37,273 
                                                              (198,016)                       (167,033) 
CREDITORS: amounts falling due within one year
                                                                              (173,497)                       (129,760)
                                                                               149,833                         193,592
                                                                                779,075                         715,950
Called up share capital
                                                                                 86,562                          65,187
Share premium account
                                                                              (715,804)                       (587,545)
Profit and loss account
SHAREHOLDERS' FUNDS                                                            149,833                        193,592

The  financial statements were approved and authorised for issue by the board and were signed on its behalf  on
22 July 2011.

H. Atkinson Esq.

                                             COMPANY BALANCE SHEET
                                            AS AT 28 FEBRUARY 2011
                                                                      2011                           2010
                                                                 ?               ?              ?              ?
                                                                                 520,006                        502,003
                                                                 14,727                          26,706 
                                                              (185,235)                       (161,583) 
CREDITORS: amounts falling due within one
                                                                              (170,508)                       (134,877)
                                                                               349,498                         367,126
                                                                                779,075                         715,950
Called up share capital
                                                                                 86,562                          65,187
Share premium account
                                                                              (516,139)                       (414,011)
Profit and loss account
                                                                                 349,498                         367,126
SHAREHOLDERS' FUNDS                                 

The  financial statements were approved and authorised for issue by the board and were signed on its behalf  on
22 July 2011.

The statement and figures above are extracted from the Company's full audited accounts.

H. Atkinson Esq.

The Directors of the Company are responsible for the contents of this announcement.


Sheba Exploration (UK) Plc
Richard Brooker
Tel: 00 353 87699 8401

St Helens Capital Partners LLP
Duncan Vasey/Mark Anwyl
Tel: 020 7368 6959

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