Sheba Exploration (UK) plc

May 10, 2011 02:01 ET

Gold exploration progress in northern Ethiopia

                                                                                      10 May 2011

                                    SHEBA EXPLORATION (UK) PLC
                                    ("Sheba" or the "Company")
                          Gold exploration progress in northern Ethiopia

Operational Report 40

    -       further extensions to gold soil anomalies at Una Deriam
    -       area of strong gold soil anomalism encloses over 4 square kilometres
    -       new channel sample assayed approximately 1.5 g/t gold over 12m

Una Deriam EEL

During January to April 2011 a further 827 soil samples and 216 rock samples were collected at Una
Deriam Exclusive Exploration Licence. Preliminary results show a number of new gold soil anomalies
as soil sampling proceeds southwards. The area of strong gold anomalism (+100ppb Au) now covers  a
cumulative  area  in  excess of four square kilometres extending over  a  strike  distance  of  12
kilometres. At Datalian prospect, where the soil anomaly is over one kilometre long and 300 metres
wide,  a  channel  sample assayed approximately 1.5 g/t gold over 12m in association  with  quartz
veins cutting obliquely across felsic volcanics.

At Tsasarat prospect, several kilometres to the north of Datalian, a porphyritic granite intrusion
associated with a strong gold soil anomaly has been mapped for 1400m along the surface.  In  2005,
channel  sampling  on the granite contact gave an intercept of approximately 4  g/t  gold  over  4
metres.  Further channel sampling within the granite in April revealed a 130 metre  wide  internal
alteration  zone, and these samples are being analysed at present. The whole intrusion,  with  its
2300 x 600 metre metamorphic aureole, is considered to be a gold target.

Finarwa EEL

155  new  soil samples have been collected as sampling continues over the licence area.  Artisanal
gold diggings have been observed as well as panning sites. Previously reported soil samples in the
licence  area  are commonly above 50ppb gold and peak at 320 ppb gold. A new rock  sample  assayed
approximately  2 g/t of gold from sheared metasediments some nine kilometres along strike  from  a
similar rock type grading approximately 3.6 g/t gold, indicating the widespread occurrence of gold
in the licence area.

The Company will update shareholders further with updates as progress continues.

The Directors of Sheba Exploration (UK) Plc are responsible for the contents of this announcement.

For further information please contact our Public Relations advisers:

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

Corporate Adviser:
St Helens Capital Partners LLP
Duncan Vasey/Mark Anwyl
Tel: +44 (0) 20 7368 6959

 Farm Street Communications Limited
Contact: Simon Robinson
Tel: +44 (0) 7593 340107

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