Sirius Exploration
LSE : SXX

December 22, 2008 02:00 ET

Interim Management Statement

FOR RELEASE
7.00AM
22 DECEMBER 2008




                                          SIRIUS EXPLORATION PLC
                                  ("Sirius Exploration" or "The Company")
                                                     
                        Sirius Exploration acquires and explores mineral properties


                   INTERIM UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2008

CONSOLIDATED INCOME STATEMENT

                                                            Unaudited      Unaudited               
                                                           Six months     Six months       Audited
                                                                ended          ended    year ended
                                                         30 September             30            31
                                                                           September         March
                                                         2008           2007           2008
                                             Notes       £              £              £
Continuing operations:                                                                 
                                                                                       
Revenue                                                  -              -              -
                                                                                       
Administrative expenses                                  (214,691)      (553,711)      (677,285)
                                                                                       
Exceptional administrative expenses                                                    
      - abortive reverse acquisition                     -              (391,056)      (374,627)
      - option cost and due diligence                    (53,271)       -              -
Other administrative costs                               (161,420)      (162,655)      (302,658)
                                                                                       
                                                                                       
Total administrative expenses                            (214,691)      (553,711)      (677,285)
                                                                                       
                                                                                       
Operating loss                                           (214,691)      (553,711)      (677,285)
                                                                                       
Finance (expense)/income                                 (488)          738            927
                                                                                       
                                                                                       
Loss before taxation                                     (215,179)      (552,793)      (676,358)
                                                                                       
Taxation                                       2         -              -              -
                                                                                       
                                                                                       
Loss after taxation                                      (215,179)      (552,973)      (676,358)
                                                                                       
                                                                                       
Attributable to:                                                                       
Equity holders of the Company                            (215,179)      (552,973)      (676,358)
                                                                                       
                                                                                       
Earnings per share:                                                                    
Basic and diluted loss per share - pence       3             (0.2)          (0.8)         (1.0)
                                                                                       
                                                                                       


INTERIM UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2008

CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE

                                                            Unaudited      Unaudited              
                                                           Six months     Six months       Audited
                                                                ended          ended    Year ended
                                                         30 September             30            31
                                                                           September         March
                                                         2008           2007           2008
                                                         £              £              £
                                                                                       
Income and expense recognised directly                                                 
in equity                                                -              -              -
                                                                                       
Loss for the period                                      (215,179)      (552,973)      (676,358)
                                                                                       
                                                                                       
Total income and expense recognised in                                                 
the period                                               (215,179)      (552,973)      (676,358)
                                                                                       
                                                                                       
Attributable to:                                                                       
Equity holders of the Company                            (215,179)      (552,973)      (676,358)
                                                                                       


INTERIM UNAUDITED RESULTS AS AT 30 SEPTEMBER 2008

CONSOLIDATED BALANCE SHEETS

                                                             Unaudited     Unaudited        Audited
                                                          30 September            30             31
                                                                           September          March
                                                                  2008           2007          2008
ASSETS                                        Notes                  £              £             £
Non-current assets                                                                                 
Property, plant and equipment                                      391            967            679
Intangible assets                               4              595,782        493,755        567,994
                                                                                                    
                                                                                                    
                                                               596,173        494,722        568,673
                                                                                                    
Current assets                                                                                      
Trade and other receivables                                     63,194         32,816         10,462
Cash and cash equivalents                                       65,561         18,347          3,685
                                                                                                    
                                                                                                    
                                                               128,755         51,163         14,147
                                                                                                    
                                                                                       
TOTAL ASSETS                                                   724,928        545,885        582,820
                                                                                       
                                                                                       
EQUITY AND LIABILITIES                                                                 
Equity attributable to equity holders of                                               
the Company
Share capital                                   5            243,590        172,199       172,199
Share premium account                           6          1,692,965      1,241,334     1,241,334
Share based payment reserve                     7              1,205          1,205         1,205
Retained earnings                               8         (1,741,968)    (1,403,404)   (1,526,789)
                                                                                                    
                                                                                                    
Total equity                                                 195,792         11,334      (112,051)
                                                                                                    
                                                                                                    
Current liabilities                                                                                 
Trade and other payables                                     529,136        534,551       694,871
                                                                                       
                                                                                       
Total liabilities                                            529,136        534,551       694,871
                                                                                       
                                                                                       
TOTAL EQUITY AND LIABILITIES                                 724,928        545,885       582,820
                                                                                       


INTERIM UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2008

CONSOLIDATED CASH FLOW STATEMENTS

                                                           Unaudited           Unaudited               
                                                           Six months         Six months        Audited
                                                           ended                   ended     Year ended
                                                           30               30 September             31
                                                           September                              March
                                                                2008                2007           2008
                                               Notes               £                   £              £
                                                                                           
Cash flow from operating activities              9          (432,870)          (258,706)       (199,318)
                                                                                           
                                                                                           
Cash flow used in investing activities                                                     
Purchase of intangible assets                                (27,788)           (29,733)       (103,972)
Purchase of property, plant and equipment                           -              (743)           (743)
                                                                                           
                                                                                           
Net cash flow from investing activities                      (27,788)           (30,476)        (104,715)
                                                                                           
                                                                                           
Cash flow from financing activities                                                        
Net proceeds from issue of shares                             523,022         244,970         244,970
Other finance cash flows - net                                  (488)            738             927
                                                                                           
                                                                                           
Net cash flows from financing activities                      522,534         245,708         245,897
                                                                                           
                                                                                           
Net increase/(decrease) in cash and cash                                                   
equivalents                                                    61,876          (43,474)        (58,136)
                                                                                           
Cash and cash equivalents at beginning of                                                  
the period                                                      3,685           61,821          61,821
                                                                                           
                                                                                           
Cash and cash equivalents at end of the                                                    
period                                                         65,561           18,347           3,685
                                                                                           
                                                                                           
NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION

1     Basis of preparation

      The  unaudited interim financial information contained in this report has been prepared using  accounting
      policies  consistent with those used in the preparation of the annual report and accounts  for  the  year
      ended 31 March 2008, under the historical cost convention and on the going concern basis.
      
      Non-statutory accounts

      The  financial information for the six months ended 30 September 2008 set out in this interim report does
      not comprise the Group's statutory accounts as defined in section 240 of the Companies Act 1985.
      
      The  statutory  accounts  for  the  year ended 31 March 2008, which  were  prepared  under  International
      Financial  Reporting Standards ("IFRS"), have been delivered to the Registrar of Companies. The  auditors
      reported  on  those accounts; their report did not contain a statement under either Section  237  (2)  or
      Section  237  (3)  of  the Companies Act 1985.  The auditors' report did include an  emphasis  of  matter
      paragraph in relation to going concern but their opinion was not qualified in this respect.
      
      The financial information for the six months ended 30 September 2008 and 30 September 2007 is unaudited.
      
      Going concern
      
      The  Company  has  incurred trading losses during the period ended 30 September 2008.   At  the  date  of
      approval  of  this interim financial information, the Directors have made certain arrangements  to  allow
      the Group to continue to trade as a going concern.  These arrangements are as follows:
      
      (i)   Equity credit facilities:
      
      On  31  March 2008 the Company signed a 24 month equity credit facility agreement with an investor  which
      provides  a  funding  line  of  £300,000, subject to certain terms and conditions,  for  working  capital
      purposes. The £300,000 will be available in share subscriptions of no less than £50,000 each and will  be
      based  on  no  less  than  65% of the average bid price of the shares traded during  a  five  consecutive
      trading day draw down period. As at 30 September 2008 £100,000 of this facility has been drawn down.
      
      On  25 September 2008 the Company signed an additional 24 month equity credit facility agreement with  an
      investor which provides a further funding line of £500,000, subject to certain terms and conditions,  for
      working  capital purposes. The £500,000 will be available in share subscriptions of no less than  £25,000
      each  and  will be made based on no less than 70% of the average bid price of the shares traded during  a
      five consecutive trading day draw down period. As at 30 September 2008 no draw downs have been made.
      
      (ii)  Third party creditors:
      
      All  significant  creditors  have  agreed to settle the amounts due to  them  mainly  in  shares  with  a
      proportion  in  deferred  cash settlement after 1 May 2009.  The only exception is  the  auditors,  Nexia
      Smith and Williamson, who are precluded from taking shares so as to maintain their independence.
      
      (iii) Directors and consulting fees:
      
      All  outstanding  fees  as at 30 September 2008 and all future fees up to the 30 September  2009  due  to
      directors  and  related consulting fees are to be settled in shares in lieu of fees if  required  by  the
      Company.
      
      Accordingly, the Directors believe that, having made these arrangements, the Group will be able  to  meet
      its  third  party liabilities as and when they fall due for a period of at least twelve months  from  the
      date on which this interim financial information is approved.
      
      Therefore,  the  Directors  consider it appropriate to prepare this interim financial  information  on  a
      going  concern  basis and hence this interim financial information does not include any adjustments  that
      would result from the Group failing to secure necessary funding.

NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION

  2   Taxation                                                     Unaudited      Unaudited               
                                                                  Six months     Six months        Audited
                                                                       ended          ended     Year ended
                                                                 30 September            30             31
                                                                                  September          March
                                                                         2008          2007           2008
                                                                            £             £              £
                                                                                                           
      Current tax                                                           -             -              -
                                                                                                           

      There was no tax charge in either period due to the loss incurred.
      
      The Group's unrecognised deferred tax asset can be analysed as follows:
                                                                                              
                                                                            £              £             £
                                                                                              
      Tax losses                                                      272,461        192,752       238,476
                                                                                              
                                                                                              
      A  deferred  tax  asset has not been recognised in respect of tax losses available to  carry  forward
      against  suitable  future  trading profits as the directors consider there is  insufficient  evidence
      that  the  assets will be recovered.  These assets can be recovered against suitable  future  trading
      profits.


  3   Loss per share                                                                              
                                                                                                  
      Given the loss for the six months ended 30 September 2008 and 2007 and the year ended 31 March  2008
      the  share warrants are anti-dilutive and have therefore not been taken into consideration  for  the
      purpose of calculating earnings per share.
      
      The calculation of the basic and diluted earnings per share is based on the following data:
                                                                    Unaudited     Unaudited               
                                                                  Six months     Six months        Audited
                                                                       ended          ended     Year ended
                                                                 30 September            30             31
                                                                                  September          March
                                                                         2008          2007           2008
                                                                                              
      
                                                                                                           
      Loss                                                                  £              £              £
                                                                                                           
      Loss for the purposes of basic earnings                                                               
      per share being net loss attributable to                                                              
      equity shareholders of the parent                              (215,179)      (552,973)      (676,358)
                                                                                                           
                                                                                                           
      Loss for the purpose of diluted earnings per share             (215,179)      (552,973)      (676,358)
                                                                                                           
                                                                                                           
      Number of shares                                                 Number         Number         Number
                                                                                                           
      Weighted average number of ordinary                                                                  
      shares                                                       86,581,968     67,580,057     68,299,784
                                                                                                           
      Loss  per share                                                                                      
      Basic and diluted loss per share - pence                           (0.2)          (0.8)         (1.0)
                                                                                                           

NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION (continued)

4  Intangible fixed assets                                         Unaudited      Unaudited                
                                                                  Six months     Six months        Audited
                                                                       ended          ended     Year ended
                                                                30 September   30 September             31
                                                                                                     March
                                                                        2008           2007           2008
                                                                           £              £              £
   Cost                                                                                       
   At the start of the financial period                              567,994        464,022         464,022
   Additions                                                          27,788         29,733         103,972
                                                                                              
                                                                                              
   At end of the financial period                                    595,782        493,755         567,994
                                                                                              
                                                                                              

5  Share capital                                                   Unaudited     Unaudited                
                                                                  Six months     Six months         Audited
                                                                       ended          ended      Year ended
                                                                          30             30              31
                                                                   September      September           March
                                                                        2008           2007            2008
                                                                           £              £               £
   Authorised                                                                                              
   500,000,000 (30 September 2007 and 31                                                                   
   March 2008: 240,000,000) ordinary shares                                                                
   at 0.25p each                                                   1,250,000         600,000        600,000
                                                                                                           
   Allotted called up and fully paid                                                                       
   97,435,973 (30 September 2007 and 31                                                                    
   March 2008: 68,879,511) ordinary shares                                                                 
   at 0.25p each                                                     243,590         172,199        172,199
                                                                                                           

On  29 April 2008, the Company issued 14,800,907 new ordinary shares of 0.25p nominal value per ordinary share
at 2.5p per share, giving total consideration of £370,022.

On  30  April 2008, the Company issued 3,075,292 new ordinary shares of 0.25p nominal value per ordinary share
at 1.6259p per share, giving total consideration of £50,000.

On  19 June 2008, the Company issued 258,041 new ordinary shares of 0.25p nominal value per ordinary share  at
2.5p per share, giving a total consideration of £6,451.

On  25  June 2008, the Company issued 2,222,222 new ordinary shares of 0.25p nominal value per ordinary  share
at 2.25p per share, giving a total consideration of £50,000.

On  27  June 2008, the Company issued 1,200,000 new ordinary shares of 0.25p nominal value per ordinary  share
at 1.5p per share, giving a total consideration of £18,000.

On  15  September 2008, the Company issued 7,000,000 new ordinary shares of 0.25p nominal value  per  ordinary
share at 1p per share, giving a total consideration of £70,000.



NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION (continued)

6  Share premium                                                Unaudited      Unaudited                
                                                               Six months     Six months        Audited
                                                                    ended          ended     Year ended
                                                              30 September            30             31
                                                                               September          March
                                                                      2008          2007           2008
                                                                         £             £              £
                                                                                                       
   At the start of the financial period                          1,241,334     1,019,364       1,109,364
   Premium arising on share issue, net of issue costs              451,631       221,970         221,970
                                                                                                       
                                                                                                        
   At the end of the financial period                            1,692,965     1,241,334       1,241,334
                                                                                                       


7  Share based payment reserve                                  Unaudited      Unaudited                
                                                               Six months     Six months        Audited
                                                                    ended          ended     Year ended
                                                              30 September            30             31
                                                                               September          March
                                                                      2008          2007           2008
                                                                         £             £              £
                                                                                                       
   At  the  start  and end of the  financial                         1,205         1,205          1,205
   period
                                                                                                       

8  Retained earnings                                            Unaudited      Unaudited                
                                                               Six months     Six months        Audited
                                                                    ended          ended     Year ended
                                                              30 September            30             31
                                                                               September          March
                                                                     2008           2007           2008
                                                                        £              £              £
                                                                                                        
   At the start of the financial period                         (1,526,789)      (850,431)     (850,431)
   Loss for the financial period                                  (215,179)      (552,973)     (676,358)
                                                                                                        
                                                                                                        
                                                                                                        
   At the end of the financial period                           (1,741,968)    (1,403,404)   (1,526,789)
                                                                                                        

NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION (continued)

  9   Cash outflows from operating activities                      Unaudited      Unaudited                
                                                                  Six months     Six months        Audited
                                                                       ended          ended     Year ended
                                                                          30             30             31
                                                                   September      September          March
                                                                        2008           2007           2008
                                                                           £              £              £
                                                                                              
      Loss before tax                                               (215,179)      (552,973)      (676,358)
      Depreciation                                                       288            256            544
      Finance (expense)/income                                           488           (738)          (927)
                                                                                              
                                                                                              
      Operating cash flow before changes in                                                   
      working capital                                               (214,403)     (553,455)      (676,741)
                                                                                              
      (Increase)/decrease in trade and other                                                       
      receivables                                                (52,732)          (15,105)          7,249
      (Decrease)/increase in trade and other                                                        
      payables                                                   (165,735)          309,854        470,174
                                                                                              
                                                                                              
      Cash flow from operations                                  (432,870)         (258,706)      (199,318)
                                                                                              


  10   Related party transactions
  
      
      During  the six months ended 30 September 2008, the Company was charged £30,000 (30 September  2007:
      £30,000  and  year  ended  31  March  2008: £60,000) by Pacific  Corporate  Management  Limited  for
      management  services.   Richard  Poulden, a director of the  Company,  is  an  employee  of  Pacific
      Corporate  Management Limited. At the period end £20,000 (30 September 2007: £20,000 and year  ended
      31 March 2008: £50,000) was due to Pacific Corporate Management Limited.
      
      During  the six months ended 30 September 2008, the Company was charged £30,000 (30 September  2007:
      £30,000  and  year  ended 31 March 2008: £60,000) by Nick Badham, a director  of  the  Company,  for
      consulting services. At the period end £25,000 (30 September 2007: £20,000 and year ended  31  March
      2008: £30,500) was due to Nick Badham.
      
      During  the six months ended 30 September 2008, the Company was charged £15,000 (30 September  2007:
      £15,000  and  year  ended  31  March 2008: £30,000) by Easy Business Consulting  Limited,  in  which
      Jonathan  Harrison,  a director of the Company, has an interest, for consultancy  services.  At  the
      period  end  £12,500 (30 September 2007: £12,500 and year ended 31 March 2008: £27,500) was  due  to
      Easy Business Consulting Limited.
      
      During  the  six months ended 30 September 2008, the Company was charged £5,000 (30 September  2007:
      £5,000  and  year  ended 31 March 2008: £10,000) by Derek Stonley, a director of  the  Company,  for
      consulting  services. At the period end £5,000 (30 September 2007: £3,333 and year  ended  31  March
      2008: £8,333) was due to Derek Stonley.
      
      During  the  six months ended 30 September 2008, the Company was charged £5,000 (30 September  2007:
      £5,000  and  year  ended  31  March 2008: £10,000) by Z/Yen Limited, in which  Michael  Mainelli,  a
      director  of  the Company, has an interest, for consulting services. At the period  end  £1,667  (30
      September 2007: £1,667 and year ended 31 March 2008: £1,667) was due to Z/Yen Limited.

NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION (continued)

11    Post balance sheet events
      
      On  27  October  2008  the  Company signed a Royalty Agreement with CIC  Mining  Resources  Limited
      granting  the  Company a 3% Net Profits Interest in the Bobai Bishop Tungsten mining  operation  in
      exchange  for  6,000,000 ordinary shares of 0.25p each in the Company. 1,200,000  of  these  shares
      were  already issued as part of the original option agreement and the other 4,800,000  shares  were
      issued on 10 December 2008.

For further information:


Sirius Exploration Plc                                                                            
Richard Poulden (Chairman)                                                   Mobile: 07879 447 601
richard.poulden@siriusexploration.com                                                             
Jonathan Harrison (Financial Director)                                       Mobile: 078 7988 7755
                                                                                                  
Beaumont Cornish                                                                                  
Roland Cornish, (Chairman)                                                      Tel: 020 7628 3396
                                                                                                  
Cubitt Consulting                                                                                 
Brian Coleman-Smith                                                             Tel: 020 7367 5100
James Verstringhe                                                                                 
Nicola Krafft

Website: www.siriusexploration.com                                                Sirius Share Price


Notes to editor:

Sirius Exploration

Sirius  Exploration PLC (AIM: SXX) is quoted on the Alternative Investment Market of the London Stock  Exchange
Ltd  in London.  The Company acquires and explores mineral properties.  The Company is exploring for copper and
gold on its porphyry copper mineral properties located in Macedonia.

The Company has an agreement with Phelps Dodge (now a subsidiary of Freeport McMoRan Copper & Gold Inc) and has
completed a drilling program at their exploration sites in Macedonia.

The  Company also has an agreement with CIC Mining Resources, a leading China based royalty company  listed  on
the  Canadian stock exchange, for a 3% NPI (Net Profit Interest) in the Bobai Bishop Tungsten mining  operation
in China.

Contact Information

  • Sirius Exploration