Sheba Exploration (UK) plc
LSE : SHE

July 31, 2009 10:26 ET

Final Results for Year Ended 28 February 2009

                                                                                                                    

                                                                                                         31/07/2009
                                                                                          GB00B02WHQ80/GBP/PLUS-exn
                                                          
                                             Sheba Exploration (UK) Plc
                                                          
                                    Final Results for Year Ended 28 February 2009

The  Directors of Sheba Exploration (UK) Plc ("Sheba" or "the Company") are pleased to announce the audited  results
for the Year Ended 28 February 2009.

The Chairman presents his statement for the period.

INTRODUCTION:

During  the year under review, the company explored for gold and base metals in Ethiopia over a surface area of  203
square kilometres at its exclusive licences Shehagne, Mereto, Una Deriam, Winibo and Finarwa.

HIGHLIGHTS:

Shehagne EEL:

Percussion  drilling  was  carried  out for the first time to a maximum depth of  52  metres  and  intersected  gold
mineralisation  in all holes, with grades in the range 0.6 to 2.6 g/t over 1-5 metres. The entire gold  anomaly  has
been outlined and bedrock gold source rocks established along strike for three kilometres.

Mereto and Una Deriam EEL/EPL:

The  strong  gold anomaly that extends for three kilometres across Mereto EEL has been picked up at Una  Deriam  and
appears  to  continue for a further one kilometre southwards. A further three kilometres to the south of the  Mereto
border,  a  strong gold soil anomaly has been outlined in some detail in association with colonial  era  prospecting
works.

Winibo EPL:

Bedded  copper  mineralisation  has  been traced for 4.5 kilometres along strike,  of  which  two  kilometres  looks
promising for follow-up drilling to ascertain if secondary enrichment is present. The average grade of all  34  rock
samples  taken  is 0.6% copper, with maximum value 4.3% copper, all in oxidised samples. Traces of gold  and  silver
have also been encountered.

OPERATIONS:

Shehagne Exclusive Exploration Licence (50 sq km):

The  project  passed  another milestone when drilling took place for the first time in April  2008.  It  has  to  be
remembered  that  the area was selected as a virgin target back in 2004, based on gold showings in  river  sediments
many  kilometres downstream and that the most basic prospecting works had to be carried out first, followed by  more
detailed  surface  exploration in 2006 to 2007. The results from the three drill holes  analysed,  showed  gold  and
sulphide  mineralisation over a vertical range of 45 metres and a horizontal direction of 340 metres,  open  in  all
directions. Among other intersections, hole SAP1 intersected 5 metres at 1.7 g/t from surface, Hole SAP3 intersected
4  metres  at  1.6  g/t  from surface and hole SAP4 intersected 3 metres at 2.6 g/t from 16  metres  below  surface.
Drilling  showed  that disseminated pyrite in bedrock is associated with gold, suggesting an impregnation  style  of
mineralisation. A large number of surface bedrock samples were also taken, spread out along the 3km long, 300m+ wide
gold soil anomaly. These rock samples showed some high gold grades in quartz veins, and in alteration haloes in  the
surrounding bedrock - the average grade from 99 samples was 3.2 g/t gold, with no cut-off applied. A trench was  dug
at  the  south  end  of the anomaly (Hadush Adi) and returned 2 metres at 5.1 g/t and 1 metre  at  1.1  g/t,   while
trenches  dug at the north end (Tsemetti) were previously reported (best intersection of 4.3 g/t over 14 metres)  in
2007. Collating all these results, a clearer picture has emerged of the mineralisation style, which appears to be  a
stockwork gold target associated with multiple fine quartz veins in a conjugated fracture zone, with the NE trending
vein  set  predominating. The soil anomaly is large and well matched to bedrock gold, thus  demonstrating  that  the
underlying  conceptual  gold resource may be large, with oxidation depth varying to a  depth  of  around  25m  below
surface and fresh mineralisation extending below that level.

Mereto Exclusive Exploration Licence (11.25 sq km):

Results  from  a  rock  geochemical survey carried out on close spaced grid lines  at  Adi  Gefa  showed  that  gold
mineralisation  intersected in trenches there (8m at 2.3 g/t and 6m at 3.7 g/t) results from a  stockwork  style  of
mineralisation, similar to Shehagne, with most of the gold in bedrock  associated with multi-aged, quartz vein sets.
The style of mineralisation is far more complex but the soil anomaly is considerably larger and continues,
with several breaks, as far south as Una Deriam.

Una Deriam Prospecting Licences (32 sq km):

At Una Deriam, extensions to the Mereto gold trend are being followed for a distance of six kilometres to the south.
A  strong  gold anomaly has been outlined on a 100 x 100m grid at the south end, and coincides with old  prospecting
works  and  adits  mined by Italian pioneers in 1903. Gold in quartz is now turning up regularly, especially  in  EW
tension  veins, cutting across the NS bedding and foliation. Conversion of the EPL to an EEL is planned as  soon  as
funding permits.

Winibo Prospecting Licences (39 sq km):

At  Winibo,  shale-hosted,  bedded copper mineralisation has been encountered at an  average  grade  of  0.6%,  with
accessory  silver  (3.5  g/t) and has been mapped intermittently for a strike length of 4.5 km.  The  mineralisation
ranges in thickness from 0.2m to 2m and may be repeated by folding. The southern portion of the mineralised zone  is
higher  grade, with some oxidised samples ranging up to 4.3% copper. Road and electrical infrastructure is good,  so
that  early  stage  drilling is needed to test for secondary enrichment zones, based on which results  a  conceptual
resource  can be developed and further exploration on surface can be justified. If present, an orebody is likely  to
be  modestly  sized  but  with with well defined higher grade zones. The mineralised beds are  steeply  dipping  and
stratiform, therefore underground mining would seem likely.

Finarwa Prospecting Licences (70 sq km):

At  Finarwa, our most southerly and largest licence area, we have encountered significant gold in rock samples,  the
best grading 3.7 g/t. Nearly all the gold is associated with stockwork veins in carbonate rocks but to date the gold
in soil anomaly is weaker and more erratic than those we have encountered in the northern licence areas. Fortunately
the host rocks are easily mapped and followed along strike. No further work is planned until the exploration funding
situation eases.

OUTLOOK:

Sheba's  exploration  results continue to be very promising and ongoing development of our licences  is  planned  to
continue  in  2009-2010  given the availability of sufficient funding.  The global recession has  severely  depleted
exploration  funding worldwide, and Sheba, like most junior exploration companies, has been affected.   Nevertheless
we  are making efforts to secure the necessary funding, and to share exploration costs, through alliances with other
companies. We remain confident that the company will pull through the current exploration downturn.

FINANCIAL STATEMENTS:

Group expenditure was £112,325 for the year under review, with expenditure on Ethiopian operations of £39,665.  Both
figures  were  marginally up on the corresponding figures from last year, most likely the result of  inflation.  The
Company  continues to run a lean operation, with the directors taking shares in lieu of salary for  the  year  under
review. The managing director purchased 2.4 million shares in October at the then trading price of 1.25p per  share.
Cash  in  hand was £27,833 on 28th February, 2009. The share price at the end of the financial year was 1.25p,  down
from 2.0p at the corresponding time in 2008, giving a market capitalisation of £1.06 million.


Name:   H. Atkinson Esq.
Chairman

Date    31 July 2009

                                                          
                                             SHEBA EXPLORATION (UK) PLC
                                                          
                                        CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                         FOR THE YEAR ENDED 28 FEBRUARY 2009
                                                          
                                                                                           2009                2008
                                                                                            £                    £
                                                                                                  
                                                                                        (29,447)             (28,420)
Cost of sales
                                                                                        (29,447)             (28,420)

GROSS LOSS
                                                                                        (82,884)             (80,226)
Administrative expenses
                                                                                       (112,331)            (108,646)

OPERATING LOSS
                                                                                               -                 (12)
Interest payable
                                                                                       (112,331)            (108,658)

LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION
                                                                                               -                    -
Tax on loss on ordinary activities
                                                                                        (112,331)            (108,658)

LOSS FOR THE FINANCIAL YEAR

                                                                                                    

LOSS PER 0.75P ORDINARY SHARE (BASIC)                                                      0.130p               0.134p
     
LOSS PER 0.75P ORDINARY SHARE (FULLY DILUTED)                                              0.102p               0.104p

All amounts relate to continuing operations.

There were no recognised gains and losses for 2009 or 2008 other than those included in the Profit and loss Account.

The Directors do not recommend payment of a dividend.

                                             SHEBA EXPLORATION (UK) PLC
                                                          
                                                          
                                             CONSOLIDATED BALANCE SHEET
                                               AS AT 28 FEBRUARY 2009
                                                          
                                                                   28 February                    29 February
                                                                      2009                           2008
                                                                 £               £              £              £
                                                                                                           
FIXED ASSETS
                                                                                 323,164                       323,164
Intangible fixed assets
                                                                                     213                           244
Tangible fixed assets
                                                                                                            
                                                                                 323,377                       323,408
                                                                                                          
CURRENT ASSETS
                                                                  9,142                           8,686 
Debtors
                                                                 27,833                          66,927 
Cash at bank and in hand
                                                                                                           
                                                                 36,975                          75,613 
                                                                                       
CREDITORS: amounts falling due within one year                 (120,610)                       (133,198)

                                                                                                       
NET CURRENT LIABILITIES                                                        (83,635)                        (57,585)
                                                                               
TOTAL ASSETS LESS CURRENT LIABILITIES                                          239,742                         265,823
                                                                                                          
CAPITAL AND RESERVES
                                                                                
Called up share capital                                                        664,950                         609,450
                                                                                 
Share premium account                                                           65,187                          34,437
                                                                              
Profit and loss account                                                       (490,395)                       (378,064)
                                                                                                          
SHAREHOLDERS' FUNDS                                                            239,742                         265,823


The  financial statements were approved and authorised for issue by the board and were signed on its  behalf  on  31
July 2009.


H. Atkinson Esq.
Director


                                             SHEBA EXPLORATION (UK) PLC
                                                          
                                                          
                                                COMPANY BALANCE SHEET
                                               AS AT 28 FEBRUARY 2009
                                                          
                                                                   28 February                    29 February
                                                                      2009                           2008
                                                                 £               £              £              £
                                                                                                           
FIXED ASSETS
                                                                                 502,207                       495,925
Fixed asset investments
                                                                                                          
CURRENT ASSETS
                                                                  
Debtors                                                          9,142                           7,717 
                                                               
CREDITORS: amounts falling due within one year                (118,460)                       (124,337) 
                                                                                
NET CURRENT LIABILITIES                                                         (109,318)                     (116,620)
                                                                                 
TOTAL ASSETS LESS CURRENT LIABILITIES                                            392,889                       379,305
                                                                                                          
CAPITAL AND RESERVES
                                                                                 
Called up share capital                                                          664,950                       609,450
                                                                                  
Share premium account                                                             65,187                        34,437
                                                                               
Profit and loss account                                                         (337,248)                     (264,582)
                                                                              

       
SHAREHOLDERS' FUNDS                                                              392,889                       379,305

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31
July 2009.


H. Atkinson Esq.
Director

The  above  figures  are  an abridged version of the Company's audited accounts that carried  an  unqualified  audit
report.  The financial information included in this document does not comprise statutory accounts within the meaning
of Section 235 of the Companies Act 1985. The above information has been extracted from audited information.

The audit report has been modified in respect of Going concern and contained the following statement:

"In  forming  our  opinion, we have considered the adequacy of the disclosures made in note  1.8  of  the  financial
statements  concerning  the  uncertainty as to the availability of finance. In view  of  the  significance  of  this
uncertainty,  we  consider  that  it should be drawn to your attention but our opinion  is  not  qualified  in  this
respect."

Note 1.8 contained the following:

"The  Directors  have prepared the financial statements on a going concern basis. However, this  basis  may  not  be
appropriate because the group made a loss after taxation of £112,331 (2008 - £108,658) and at 28 February  2009  its
current liabilities exceeded its current assets by £83,634 (2008 - £57,586).

The  Directors are taking steps to ensure the financial future of the group but at the date of signing the financial
statements these had not yet been finalised."

The Directors of Sheba Exploration (UK) Plc accept responsibility for this announcement.

Contact Details:
Sheba Exploration (UK) Plc
Richard Brooker
Tet: 00 353 87699 8401

Corporate Adviser:
St Helen's Capital Plc
Duncan Vasey/Mark Anwyl
Tel: 020 7628 5582

Contact Information

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