Sirius Exploration

August 26, 2009 02:00 ET

Dakota Salts ? Exercise of Options

For Immediate Release: 26 August 2009, 7AM

                                       Sirius Exploration Plc
                                     ("Sirius" or the "Company")
                                 Dakota Salts - Exercise of Options

Further to the announcement of the 24 June 2009, Sirius Exploration Plc (AIM: SXX, OTC: SRUXY),  the
UK-based  diversified mining and exploration holding company focused on North America and Australia,
is  pleased to announce that it has exercised its two options to acquire the remaining 49% of Dakota
Salts  LLP  ("Dakota Salts") from Transparent Holdings Ltd. ("Transparent") and Sojourn  Energy  LLC

Under  the  terms  of the option agreements, Sirius has acquired Transparent's 24% stake  in  Dakota
Salts  for  9,600,000  new  ordinary shares of 0.25p in Sirius (new  Sirius  ordinary  shares")  and
Sojourn's  25%  of Dakota Salts for 10,000,000 new Sirius ordinary shares. In aggregate,  the  total
consideration  for  the  exercise of the options, being 19,600,000 new Sirius  ordinary  shares,  is
£1,323,000 based upon the closing mid-market price per Sirius ordinary share on AIM of 6.75p at  the
close of business on 24 August 2009.

Application will be made for the new ordinary shares, which will rank, pari passu, with all existing
ordinary shares, to be admitted to trading on AIM and trading in such shares is expected to commence
on or around 2 September 2009.

Following the issue of the new ordinary shares, the total number of shares in issue will be
290,405,150. The new Sirius ordinary shares being issued will represent 6.75 per cent. of the
enlarged issued share capital.

Dakota  Salts holds mineral leases in excess of 5,000 acres in North Dakota, USA, allowing  for  the
exploration  and  extraction  of salt and potash and the creation of  caverns  for  the  storage  of
compressed  air for electricity generation or the storage of natural gas and other hydrocarbons.  As
per  the latest unaudited management accounts for Dakota Salts, in the 10 month period ended 31 July
2009  Dakota  Salts  reported a Loss for the period of $220,230 and, as at 31  July  2009,  had  Net
Liabilities of $220,230.

North  Dakota is the base of one of the largest wind farm, electricity generation projects in  North
America with capital investment expected to exceed $4 billion. Dakota Salts' properties are likewise
well  placed in relation to the US's third largest natural gas intake pipe-line, The Portal-Sherwood

The  development  budget for the next phase of the Dakota Salts project will be covered  within  the
Group's  existing cash resources. Following the completion of the assessment period, the Board  will
decide on the most appropriate route to take to maximise the value for shareholders.

Richard Poulden, Chairman of Sirius, commented:
        "Completing the Dakota acquisition is a significant development for the Company and  follows
        our  recent  £2.8 million placing exercise.  The Board not only views the long term  outlook
        for  the  commodities of potash and salt as exceptionally positive, but Dakota Salt's  lease
        area  is ideally positioned to allow us to continue discussions regarding the future use  of
        the salt caverns left by solution mining as major energy storage facilities."

- ends -

Further Information:

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

Beaumont Cornish
Roland Cornish                              Tel:  +44 (0)207628 3396

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

Contact Information

  • Sirius Exploration