Sheba Exploration (UK) plc

November 30, 2010 03:51 ET

Interim Results for the 6 months ended 31 August 2010

                                       SHEBA EXPLORATION (UK) PLC
                                       ("Sheba" or the "Company")
                         INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 AUGUST, 2010

Date:  30 November 2010

The  Directors of Sheba Exploration (UK) Plc are pleased to announce the un-audited interim  results  for
the 6 month period ended 31 August 2010.

Operational Highlights

The  main  event  of  the  half-year under review was the issue of the Una Deriam  Exclusive  Exploration
Licence on the 19th March, 2010. Covering approximately 100 square kilometres, the concession encompasses
the  Werii River gold belt, which the Company has traced for at least 12 kilometres from north to  south.
Exploration re-commenced in April, with soil sampling and trenching.

On the Shehagne Exclusive Exploration Licence, option holders Stratex International Plc continued channel
sampling  the  Tsemetti primary gold zone and announced further encouraging gold intersections  including
one  of  9  metres at 2.49 g/t gold. Stratex announced a primary gold target extending for at least  1340
metres and is reviewing its option to drill this target in 2011.

Applications were submitted for exploration licences at Finarwa and Winibo Exclusive Prospecting Licences
in  March as the Company intends to follow up gold and copper mineralization encountered on both  licence
areas. Licence approval has been obtained and issue of the licence is expected imminently.

Una Deriam Exclusive Exploration Licence

Exploration  re-commenced  in April. The licence is a consolidation of previously  held  prospecting  and
exploration  licences and the work programme consists of infill soil sampling to link previously  defined
gold  soil  anomalies. Soil sample results from the south end of the concession area (Inda  Shetan)  were
announced late April, which included a gold soil anomaly peaking at 560 ppb gold, associated with  quartz
veins  in  fine-grained intermediate intrusive rocks. A sample of quartz assayed 5.3  g/t  gold  at  this
locality.  These results demonstrate that the gold belt extends for a distance of at least 12  kilometres
from  north to south. During May soil sampling continued northwards to link the Inda Shetan gold  anomaly
with  the Inda Talian gold anomaly. During May and June trenching commenced at Inda Talian, an old mining
camp  dating to 1903. Three trenches were completed, each appromixately 100 metres long. Detailed  infill
soil sampling was also done at the site to define a strong gold soil anomaly which exceeds 1000 ppb gold.

Shehagne Exclusive Exploration Licence

Further channel sampling was carried out by the Stratex exploration team at Tsemetti, a gold soil anomaly
discovered  by  Sheba  Exploration in 2006 and subsequently drilled in  2008.  The  strong  soil  anomaly
(exceeding  1000ppb in places) extends almost three kilometres in length, the northern end  of  which  is
currently  under  investigation by Stratex. In addition to other impressive intercepts reported  by  both
companies  in  the  past,  a further excellent intercept of 9 metres grading 2.49  g/t  was  reported  by
Stratex. Follow-up drilling and a geophysical survey is planned for the prospect in 2011.

Finarwa and Winibo Exclusive Prospecting Licences

An  application  has  been  submitted for an exploration licence covering  these  two  concession  areas,
following encouraging early prospecting results by the Company. Alluvial gold is now being recovered from
streams and rivers at Finarwa by local panners and the primary source has yet to be located - judging  by
the  amount  of panning going on in the area, the primary gold source must be significant.  Meanwhile  at
Winibo, more detailed work is planned on the 4.5 kilometre long bedded copper trend, particularly at  the
south end, where a grab sample assayed 4.3% copper.

Financial Results

The Group reported an un-audited loss of £61,982 for the six months ended 31 August 2010 an increase from
£46,315  for the six months to 31 August 2009 mainly due to an increase in marketing expenses.  The  loss
per share for the period was 0.065p.

Subsequent  to  the  period under review the Company has made two small private placements  amounting  to
GBP28,750 to assist with short term working capital requirements.  Before year end the Company  hopes  to
complete  further financing to enable the Company to explore its very promising gold and copper  projects
in a more aggressive fashion.


During  the  half  year under review the Company has made a come-back operationally  despite  very  tight
financial constraints. Una Deriam is set to become an important gold project that may soon feature  among
the  leading  gold  projects  in the country and within the Arabian-Nubian Shield.  New  gold  mines  are
currently  being  developed  in  Eritrea and Egypt in analogous terrains to  northern  Ethiopia  and  the
exploration industry has at last woken up to the fact.

The  Directors  are  currently talking to various parties interested in the long term  potential  of  our
licences and are confident of acquiring the funding necessary to bring these to fruition.

Henry Atkinson, Director, 30 November, 2010.

                                       SHEBA EXPLORATION (UK) PLC
                                 FOR THE 6 MONTHS ENDED 31ST AUGUST 2010

                                                             6 Months ended     6 Months ended
                                                             31.08.10           31.08.09
                                                                   £                   £

TURNOVER                                                            -                   -

Operating Costs                                                (6414)             (6123)
Administrative Expenses                                       (55568)            (40192)
                                                              ______             ______
BEFORE TAXATION                                               (61982)            (46315)

Taxation                                                            -                 -

                                                              ______             ______
RETAINED LOSS FOR THE PERIOD                                  (61982)            (46315)
                                                              ______             ______

(LOSS) PER .75p ORDINARY SHARE                                (0.065p)           (0.052p)

(LOSS) PER .75p ORDINARY SHARE                                (0.052p)           (0.041p)

The Company made no recognised gains or losses other than those shown above.  All results relate to
continuing operations.
                                       SHEBA EXPLORATION (UK) PLC
                                    INTERIM CONSOLIDATED BALANCE SHEET
                                         AS AT 31ST AUGUST 2010

                                                              31.08.10           31.08.09
                                                               £                      £
Tangible Assets                                                177                     201
Goodwill                                                    323164                  323164
                                                            ______                  ______

                                                            323341                  323365
                                                            ______                  ______
Cash at Bank and In Hand                                      3428                    5491
Debtors                                                       4275                    3750
                                                            ______                  ______

                                                              7703                    9241
                                                            ______                  ______
CREDITORS: - Amounts Falling
Due within One Year                                       (173435)                (128180)
                                                            ______                  ______

NET CURRENT LIABILITIES                                   (165732)                (118939)
                                                            ______                  ______

NET ASSETS                                                  157609                  204426
                                                            ______                  ______

Called Up Share Capital                                     741950                  675950
Share Premium Capital                                        65187                   65187
Profit and Loss Account                                   (649528)                (536711)
                                                            ______                  ______

SHAREHOLDERS' FUNDS                                         157609                  204426
                                                            ______                  ______

                                     6 MONTHS ENDED 31ST AUGUST 2010


        Basis of Accounting
        These accounts have been prepared on the historical cost basis, using generally
        recognised   accounting principles.

    2.      LOSS PER SHARE
        The  calculation  of  loss per ordinary share is based on the following  losses  and  numbers  of
                                                        6 Months ended          6 Months ended
                                                        31.08.10                31.08.09
        Loss for the period                                £61982                  £46315
        Weighted average number of shares in issue:
       Basic                                            95.72 million           88.76 million
       Fully diluted                                   118.72 million          111.76 million
    3.      FUNDRAISING
        The Company made two small private placements amounting to £28,750 in the period subsequent to
        these accounts:-
        -       In October 2010 it issued 2,500,000 shares at 0.75p per share to raise £18,750.
-       In November 2010 it issued 1,000,000 shares at 1.00p per share to raise £10,000.
        The  financial  information  in this statement is un-audited and does  not  constitute  statutory
        accounts. The financial information has not been reviewed by the Company's auditor.
The Directors of Sheba Exploration (UK) Plc are responsible for the contents of this announcement.


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

St Helens Capital Partners LLP                                   Tel: 020 7368 6959
Mark Anwyl or Duncan Vasey


Contact Information

  • Sheba Exploration (UK) plc