Sirius Exploration

July 09, 2009 02:00 ET

AusPotash Corporation - Option Agreement

For Immediate Release: 0700hrs Thursday 9th July 2009

                                       Sirius Exploration Plc
                                     ("Sirius" or the "Company")
                              AusPotash Corporation - Option Agreement

Sirius  Exploration Plc, the UK-based diversified mining and exploration holding company, is pleased
to  announce  that it has signed an option agreement with Transparent Holdings Ltd, Circle  Resource
Holdings  Ltd,  Circle  Resources  Plc, St Cloud Capital S.A., Odaka  Enterprises  Inc.  and  Ashton
Nominees, Inc. (collectively the "Sellers") to acquire a stake in AusPotash Corporation (AusPotash).

Under  the terms of the option agreement, Sirius has until 30 September 2009, or such other date  as
the  parties may agree in writing, to purchase all option shares owned by the sellers in  AusPotash.
The consideration paid for the grant of the option was £1 to each of the Sellers.

The  consideration payable on completion of the agreement will be satisfied through  the  issue  and
allotment  of Sirius ordinary shares of 0.25pence each. Alternatively, at the discretion of  Sirius,
the  consideration may be satisfied by a cash payment to the Sellers at a price of 2.5p in  lieu  of
each Sirius ordinary share that would otherwise be issued to the Sellers.

Following  the  completion of AusPotash's agreement with the optionees,  then  if  and  when  Sirius
exercises its option, Sirius will hold a minimum of 52 per cent of AusPotash's existing issued share
capital as at today's date.

The  completion by Sirius of the option is conditional on, inter alia, Sirius being satisfied in its
absolute  discretion with its due diligence investigation of AusPotash.  There is no guarantee  that
the conditions will be satisfied or that Sirius will complete the transaction. In addition, exercise
of the option would be subject to compliance with the relevant AIM Rules at the time.

AusPotash is a private Canadian company, which plans to go public on the TSX Venture Exchange  whose
wholly-owned subsidiary, Queensland Potash Pty Limited, holds exploration permits covering  an  area
of approximately 150 square kilometres in a region of Queensland, Australia, recognised for its salt
and potash deposits.

Richard Poulden, Chairman of Sirius, commented:
        "We  are  naturally delighted to have secured this agreement - it being highly complementary
        to  our  Dakota Salts deal. Combined, the two projects have the potential to position Sirius
        as a major holder of salt and potash reserves at a time when worldwide demand for potash and
        salt  derivatives is anticipated to increase steadily over the coming decades. In  addition,
        both  projects  offer the potential for underground storage facilities for  the  storage  of
        hydrocarbons or electricity through CAES and associated technologies."

This  agreement follows on from the recent announcement made by the Company on 24 June 2009 that  it
has  been granted two options to acquire the remaining 49% of Dakota Salts, in which Sirius  already
holds a 51% stake.  Dakota Salts holds large mineral leases in North Dakota, where it is looking  to
extract  salt  and potash and then create underground caverns for storing natural gas or  compressed
air from wind farms that can then be used to generate electricity at times of peak need.

- Ends -

Further Information:

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

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