Sirius Minerals Plc
LSE : SXX

December 15, 2010 02:00 ET

Interim Results

For immediate release: 15 December 2010
                                                     
                                                     
                                            SIRIUS MINERALS PLC
                                 ("Sirius", the "Group", or the "Company")
                                                     
                                              Interim Results

Sirius  Minerals  Plc (AIM: SXX, OTC: SRUXY), the potash mining group, today announces its interim  results
for the six months ended 30 September 2010.

Financial Highlights:
    *   Intangible assets increased to £54,069,389 from £15,649,427 at 30 September 2009;
    *   £3 million of new funding raised from institutional investors;
    *   Cash assets at period end of £3,121,268 compared to £2,941,033 at 30 September 2009;
    *   Losses narrowed to £985,313 compared to £3,838,749 at 31 March 2010.

Operational Highlights:
    *   Additional 1,000 net mineral acres of land acquired adjacent to the existing properties in North
        Dakota;
    *   Exploration application licences secured on two additional tenements covering approximately 1,000
        square kilometres overlying the Canning Basin in Western Australia;
    *   US$225,000 grant received from the Industrial Commission of North Dakota to carry out feasibility
        studies on using salt caverns for compressed air energy storage (CAES) from wind energy in North Dakota;
    *   Memorandum of Understanding signed with Sino-Agri Mining Industry Company Limited to develop a
        potash project on Sirius's property overlying the Adavale Basin in Queensland, Australia; and
    *   Exploration Permit granted to drill one hole within Sirius's permit area in North Dakota.

Post-period Operational Highlights:
    *   A further 2,645 net mineral acres acquired adjacent to the existing properties in North Dakota
        taking the land bank under Sirius's control to 8,645 net mineral acres in that region;
    *   Agreements signed with North Rim Exploration Limited ("NREL") and Schlumberger Water Services USA
        Inc. to drill first hole to a total depth of 2,740 metres in North Dakota; and
    *   Drilling commenced in Burke County, North Dakota, on 9 November 2010.

Chris Catlow, Chairman of Sirius, commented:
        "I am delighted by the rapid progress made by the Company during the period under review. This
        momentum has continued post period and coincides with a time when the broader markets have begun to
        better understand the long term global potash demand/supply issues and the opportunities this
        creates for Sirius to become a major potash powerhouse within that environment."
        
The interim results will be made available on the Company's website, www.siriusminerals.com.

- ENDS -

For further information, please contact:

Sirius Minerals Plc                                        
Richard Poulden (Deputy Chairman)                          Tel: +971 504 524 994
                                                           
Beaumont Cornish Limited (Nomad)                           
Roland Cornish                                             Tel: +44 (0) 207 628 3396
                                                           
XCAP Securities Plc (Joint Broker)                         
John Grant, Karen Kelly, David Newton                      Tel: +44 (0) 20 7101 7070
                                                           
Daniel Stewart & Company Plc (Joint Broker)                
Christopher Theis / Emma Earl                              Tel: + 44 (0) 20 7776 6550
                                                           
Gth Media Relations                                        
Toby Hall/Christian Pickel                                 Tel: + 44 (0) 20 3103 3903/ 3902



CHAIRMAN'S STATEMENT

Dear Fellow Shareholder,

Recent corporate activity has increased international awareness of the importance of potash and the role it
will  play  in helping to feed the world. PotashCorp, the world's largest potash company, in  its  Q4  2010
Market  Analysis, predicted that probable global potash production between now and 2015 will only  just  be
able  to  keep pace with demand if it increases at only 3.5% compound average growth rate. They also  state
that  "as  economies grow and incomes rise in emerging nations, the first priority for most  people  is  to
improve  their  diets. According to the October 2010 International Monetary Fund forecast,  over  the  next
several years China's GDP is expected to grow by more than 9 percent per year, while India and other  Asian
countries  are expected to grow at more than 8 percent annually. This is a powerful development,  as  these
countries  represent  almost  60 percent of the world's population. For the  first  time  in  history,  the
majority of that population is attaining greater ability to purchase higher-quality food."

The  six months ended 30 September 2010 was a period of continuing development for your Company as we  move
towards  our  goal of becoming a potash powerhouse. We changed the company name to Sirius Minerals  Plc  to
reflect the change in strategy, and raised £3 million of new funding from institutional investors.

During this time we also:

    o   Acquired an additional 1,000 acres adjacent to the existing properties in North Dakota;
    o   Secured exploration application licences on two additional tenements located in the northwest area
        of the Willara Sub basin of the Canning Basin in Western Australia covering, approximately 1,000 square
        kilometres;
    o   Received a grant of US$225,000 by the Industrial Commission of North Dakota under its renewable
        Energy Program to carry out feasibility studies on using salt caverns for compressed air energy storage
        (CAES) from wind energy in North Dakota;
    o   Signed a Memorandum of Understanding with Sino-Agri Mining Industry Company Limited to develop a
        potash project in the Adavale Basin in Queensland, Australia; and
    o   Were granted an Exploration Permit to drill one hole within our permit area in North Dakota.

Post period, this momentum was continued, the Company announcing:

    o   The  acquisition of a further 2,645 net mineral acres of lease areas adjacent to our  existing
        properties in North Dakota so we now control 8,645 net mineral acres;
    o   The signing of agreements with North Rim Exploration Limited ("NREL") and Schlumberger Water
        Services USA Inc. to drill a hole to a total depth of 2,740 metres; and
    o   The commencement of drilling on 9 November 2010.

We look forward to further accelerating the evolution of Sirius through organic growth and acquisition.

FINANCIAL RESULTS

During  the  period under review, the balance sheet was strengthened with an equity injection of  cash  and
cash  and  cash equivalents held as at 30 September 2010 was £3,121,268. Administrative expenses  during
the  period  increased  to  £1,008,167 of which £416,920 related to non cash  share  based  expenses.  Cash
administrative costs of £590,849 in the period compare favourably with £654,930 in the first half  of  last
year  despite the increased size of the business and increased activity - leading to a loss before  tax  in
the period of £985,313.



Christopher Catlow
Chairman
Date: 15 December 2010




INTERIM UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2010

CONSOLIDATED INCOME STATEMENT

                                                                 Unaudited         Unaudited      
                                                                Six months        Six months           Audited    
                                                                     ended             ended        year ended
                                                                        30                30                31
                                                                 September         September             March
                                                                      2010              2009              2010
                                                     Notes               £                 £                 £
Continuing operations:                                                                            
                                                                                                  
Revenue                                                                  -                 -                 -
                                                                                                  
Administrative expenses                                         (1,008,167)         (655,759)       (3,839,165)

---------------------------------------------------------------------------------------------------------------
Exceptional administrative expenses                                                               
      Impairment charge                                                  -                 -          (461,531)
      Acquisition costs                                            (15,519)         (137,069)         (174,016)
      Share based payments - option charge                        (334,460)             (705)       (1,658,932)
      Exploration costs expensed                                         -                 -          (397,563)
                                                                                                  
Other administrative costs                                        (658,188)         (517,985)       (1,147,123)
---------------------------------------------------------------------------------------------------------------
                                                              -------------     -------------     -------------
                                                                                                  
Total administrative expenses                                   (1,008,167)         (655,759)       (3,839,165)
                                                                                                  
                                                              -------------     -------------     -------------
                                                                                                  
Operating loss                                                  (1,008,167)         (655,759)       (3,839,165)
                                                                                                  
Finance income                                                      22,854                 -               521
Finance costs                                                            -              (149)             (105)
                                                                                                  
                                                              -------------     -------------     -------------
                                                                                                  
Loss before taxation                                              (985,313)         (655,908)       (3,838,749)
                                                                                                  
Taxation                                                 2               -                 -                 -
                                                                                                  
                                                              -------------     -------------     -------------
                                                                                                  
Loss for the period                                               (985,313)         (215,179)       (3,838,749)
                                                                                                  
                                                              -------------     -------------     -------------
                                                                                                  
Loss attributable to:                                                                             
Equity holders of the Company                                     (985,313)         (655,327)       (3,838,749)
Minority interest                                                        -              (581)                -
                                                                                                  
                                                              -------------     -------------     -------------
                                                                                                  
                                                                  (985,313)         (655,908)       (3,838,749)

                                                              -------------     -------------     -------------
                                                              -------------     -------------     -------------
                                                                                                  
                                                                                                  
Loss per share:                                                                                   
Basic and diluted loss                                   3           (0.1p)            (0.4p)            (1.0p)
                                                                                                  
                                                              -------------     -------------     -------------
                                                              -------------     -------------     -------------
                                                                                                  


INTERIM UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2010

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                                                 Unaudited         Unaudited      
                                                                Six months        Six months           Audited    
                                                                     ended             ended        year ended
                                                                        30                30                31
                                                                 September         September             March
                                                                      2010              2009              2010
                                                                         £                 £                 £
                                                                                                    
Loss for the period                                               (985,313)         (655,908)       (3,838,749)

                                                              -------------     -------------     -------------
                                                                                                                       
Other comprehensive income/(loss)                                                                   
Exchange differences on translating foreign                                                         
operations                                                        (882,689)           15,136         5,575,025
                                                                                                    
                                                                                                    
                                                              -------------     -------------     -------------
                                                                                                    
Other comprehensive income/(loss) for the                                                           
period, net of tax                                                (882,689)           15,136         5,575,025
                                                                                                    
                                                              -------------     -------------     -------------
                                                                                                    
Total comprehensive income/(loss) for the                                                           
period                                                          (1,868,002)         (640,772)        1,736,276

                                                              -------------     -------------     -------------
                                                              -------------     -------------     -------------
                                                                                                    
                                                                                                                       
Total comprehensive income/(loss)                                                                   
attributable to:
Equity holders of the Company                                   (1,868,002)         (640,191)        1,736,276
Minority interest                                                        -              (581)                -
                                                                                                    
                                                              -------------     -------------     -------------
                                                                                                    
                                                                (1,868,002)         (640,772)        1,736,276
                                                                                                    
                                                              -------------     -------------     -------------
                                                              -------------     -------------     -------------
                                                                                                    



INTERIM UNAUDITED RESULTS AS AT 30 SEPTEMBER 2010

CONSOLIDATED STATEMENT OF FINANCIAL POSITION


                                                                 Unaudited         Unaudited           Audited
                                                                        30                30                31
                                                                 September         September             March
                                                                      2010              2009              2010
ASSETS                                               Notes               £                 £                 £
Non-current assets
Property, plant and equipment                                          501             3,001               859
Intangible assets                                        4      54,069,389        15,649,427        54,292,178
                                                                                                              
                                                              -------------     -------------     -------------
 
                                                                54,069,890        15,652,428        54,293,037
                                                                                                              
                                                              -------------     -------------     -------------
 
Current assets
Trade and other receivables                                        269,053           114,902            55,407
Cash and cash equivalents                                        3,121,268         2,941,033         1,782,063
Available-for-sale financial assets                                729,000                 -           729,000
                                                                                                              
                                                              -------------     -------------     -------------
 
                                                                 4,119,321         3,055,935         2,566,470
                                                                                                              
                                                              -------------     -------------     -------------
 
                                                                                                            
TOTAL ASSETS                                                    58,189,211        18,708,363        56,859,507
                                                                                                            
                                                              -------------     -------------     -------------
                                                              -------------     -------------     -------------
                                                                                                            
EQUITY AND LIABILITIES                                                                                      
Equity attributable to equity holders of the Company                                                        
Share capital                                             5      1,789,016           908,764         1,658,250
Share premium account                                           50,833,438        13,825,199        47,958,734
Share based payment reserve                                      1,873,991             1,910         1,575,403
Retained earnings                                               (4,559,854)       (2,714,864)       (3,610,413)
Foreign exchange reserve                                         4,689,804            12,604         5,572,493
                                                                                                              
                                                              -------------     -------------     -------------
 
Equity attributable to shareholders of the Company              54,626,395        12,033,613        53,154,467
Minority interest                                                        -         3,659,414                 -

                                                              -------------     -------------     -------------
                                                                                                                        
Total equity                                                    54,626,395        15,693,027        53,514,467
                                                                                                              
                                                              -------------     -------------     -------------
 
                                                                                                                      
Non-current liabilities
Deferred tax liability                                    2      3,233,449         2,746,239         3,233,449
                                                                                                              
                                                              -------------     -------------     -------------
 
Current liabilities
                                                                                                                      
Trade and other payables                                           329,367           269,097           471,591
                                                                                                            
                                                              -------------     -------------     -------------
                                                                                                            
Total liabilities                                                3,562,816         3,015,336         3,705,040
                                                                                                            
                                                              -------------     -------------     -------------
                                                                                                            
TOTAL EQUITY AND LIABILITIES                                    58,189,211        18,708,363        56,859,507

                                                              -------------     -------------     -------------
                                                              -------------     -------------     -------------


                                                                                                           

INTERIM UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2010

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


                                                                                      Equity
                                        Share  Share based                Foreign      share-
                            Share     premium     payments    Retained   exchange    holders'    Minority       Total
                          capital     account      reserve    earnings    reserve       funds   interests      equity
                                £           £            £           £          £           £           £           £
At 1 April 2009           328,930   2,122,001        1,205  (2,059,537)    (2,532)    390,067     340,515     730,582
Loss for the period             -           -            -    (655,327)         -    (655,327)          -    (655,327)
Foreign exchange
differences on
translation of foreign
operations                      -           -            -           -     15,136      15,136           -      15,136

                        --------- ----------- ------------ ----------- ---------- ----------- ----------- -----------
                          
Total comprehensive
income for the period           -           -            -    (655,327)    15,136    (640,191)          -    (640,191)
Share capital issued
in the period             579,834  11,826,833            -           -          -  12,400,667   3,318,899  15,725,566
Share issue costs               -    (123,635)           -           -          -    (123,635)          -    (123,635)
Share based payments            -           -          705           -          -           -           -           -

                        --------- ----------- ------------ ----------- ---------- ----------- ----------- -----------

At 30 September 2009      908,764  13,825,199        1,910  (2,714,864)    12,604  12,033,613   3,659,414  15,693,027
                                                                                                                     
                                                
Loss for the period             -           -            -  (3,183,422)         -  (3,183,422)          -  (3,183,422)
Foreign exchange
differences on
translation of foreign
operations                      -           -            -           -  5,559,889   5,559,889           -   5,559,889

                        --------- ----------- ------------ ----------- ---------- ----------- ----------- -----------
                                              
Total comprehensive
income for the period           -           -            -  (3,183,422) 5,559,889   2,376,467           -   2,376,467
On acquisition                  -           -            -   2,020,653          -   2,020,653  (3,659,414) (1,638,761)
Share capital issued
in the period             749,486  34,133,535            -           -          -  34,883,021           -  34,883,021
Share based payments            -           -    1,840,713           -          -   1,840,713           -   1,840,713
Exercised options               -           -     (267,220)    267,220          -           -           -           -

                        --------- ----------- ------------ ----------- ---------- ----------- ----------- -----------
                                              
At 31 March 2010        1,658,250  47,958,734    1,575,403  (3,610,413) 5,572,493  53,154,467           -  53,154,467

                        --------- ----------- ------------ ----------- ---------- ----------- ----------- -----------
                        --------- ----------- ------------ ----------- ---------- ----------- ----------- -----------



INTERIM UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2010

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                                                                      Equity
                                        Share  Share based                Foreign      share-
                            Share     premium     payments    Retained   exchange    holders'    Minority       Total
                          capital     account      reserve    earnings    reserve       funds   interests      equity
                                £           £            £           £          £           £           £           £
At 31 March 2010        1,658,250  47,958,734    1,575,403  (3,610,413) 5,572,493  53,154,467           -  53,154,467
Loss for the period             -           -            -    (985,313)         -    (985,313)          -    (985,313)
Foreign exchange
differences on
translation of foreign
operations                      -           -            -           -   (882,689)   (882,689)          -    (882,689)

                        --------- ----------- ------------ ----------- ---------- ----------- ----------- -----------

Total comprehensive
income for the period           -           -            -    (985,313)  (882,689) (1,868,002)          -  (1,868,002)
Share capital issued
in the period             130,766   2,965,524            -           -          -   3,096,290           -   3,096,290
Share issue costs               -     (90,820)           -           -          -     (90,820)          -     (90,820)
Share based payments            -           -      334,460           -          -     334,460           -     334,460
Exercised options               -           -      (35,872)     35,872          -           -           -           -

                        --------- ----------- ------------ ----------- ---------- ----------- ----------- -----------

At 30 September 2010    1,789,016  50,833,438    1,873,991  (4,559,854) 4,689,804  54,626,395           -  54,626,395

                        --------- ----------- ------------ ----------- ---------- ----------- ----------- -----------
                        --------- ----------- ------------ ----------- ---------- ----------- ----------- -----------

The share premium account is used to record the excess proceeds over nominal value on the issue of shares.
The share based payment reserve is used to record the share based payments made by the Group.
Foreign  exchange  reserve  records  exchanges differences which arise on  translation  of  foreign  operations  with
a functional currency other than Sterling.



INTERIM UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2010

CONSOLIDATED STATEMENT OF CASH FLOWS

                                                                 Unaudited         Unaudited      
                                                                Six months        Six months           Audited    
                                                                     ended             ended        year ended
                                                                        30                30                31
                                                                 September         September             March
                                                                      2010              2009              2010
                                                     Notes               £                 £                 £
                                                                                                        
Cash outflow from operating activities                   6        (763,119)         (986,731)       (1,978,658)

                                                              -------------     -------------     -------------
                                                                                                                       
Cash flow from investing activities                                                                     
Purchase of intangible assets                                     (634,355)          (99,642)         (315,396)
Purchase of plant and equipment                                          -                 -            (2,735)
Cash acquired on acquisition of subsidiary                               -         1,174,431         1,174,556
                                                                                                        
                                                              -------------     -------------     -------------
                                                                                                        
Net cash generated from/(used in) investing                                                             
activities                                                        (634,355)        1,074,789           856,425
                                                                                                        
                                                              -------------     -------------     -------------
                                                                                                        
Cash flow from financing activities                                                                     
Net proceeds from issue of shares                                2,739,370         2,844,571         2,763,541
Finance income/(costs)                                              22,854              (149)              416
                                                                                                        
                                                              -------------     -------------     -------------
                                                                                                        
Net cash generated from financing activities                     2,762,224         2,844,422         2,763,957
                                                                                                        
                                                              -------------     -------------     -------------
                                                                                                        
Net increase in cash and cash equivalents                        1,364,750         2,932,480         1,641,724
                                                                                                        
Cash and cash equivalents at beginning of the                                                           
period                                                           1,782,063             8,553             8,553
                                                                                                        
Effect of foreign exchange rate changes                            (25,545)                -           131,786
                                                                                                        
                                                              -------------     -------------     -------------
                                                                                                        
Cash and cash equivalents at end of the                                                                 
period                                                           3,121,268         2,941,033         1,782,063
                                                                                                        
                                                              -------------     -------------     -------------
                                                              -------------     -------------     -------------
                                                                                                        

NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION

1     Basis of preparation

      The  interim  financial  information  in  this report has been  prepared  using  accounting  policies
      consistent  with  IFRS  as  adopted  by  the  European Union.   IFRS  is  subject  to  amendment  and
      interpretation by the International Accounting Standards Board (IASB) and the International Financial
      Reporting Interpretations Committee (IFRIC) and there is an ongoing process of review and endorsement
      by  the  European Commission.  The financial information has been prepared on the basis of IFRS  that
      the  Directors expect to be adopted by the European Union and applicable to the Group as at 31  March
      2011.
      
      The  accounting policies applied are consistent with those of the annual financial statements for the
      year ended 31 March 2010.
      
      
      Non-statutory accounts

      The  financial information for the six months ended 30 September 2010 set out in this interim  report
      does not comprise the Group's statutory accounts.
      
      The  statutory  accounts for the year ended 31 March 2010 have been delivered  to  the  Registrar  of
      Companies. The auditors reported on those accounts; their report was unqualified, did not  contain  a
      statement  under  either Section 498 (2) or Section 498 (3) of the Companies Act  2006  and  did  not
      include references to any matters to which the auditor drew attention by way of emphasis.
      
      The  financial  information  for the six months ended 30 September 2010  and  30  September  2009  is
      unaudited.
      

2     Taxation                                                   Unaudited         Unaudited           
                                                                Six months        Six months           Audited    
                                                                     ended             ended        Year ended
                                                                        30                30                31
                                                                 September         September             March
                                                                      2010              2009              2010
                                                                         £                 £                 £
                                                                                                                    
      Current tax                                                        -                 -                 -
                                                                                                                     
                                                              -------------     -------------     -------------
                                                              -------------     -------------     -------------

       There was no tax charge in any period due to the loss incurred.
       
       The Group's unused tax losses can be analysed as follows:
                                                                                                        
                                                                         £                 £                 £
                                                                                                        
       Tax losses                                                3,436,816         1,998,662         3,015,501
                                                                                                        
                                                              -------------     -------------     -------------
                                                              -------------     -------------     -------------
                                                                                                        
       A deferred tax liability of £3,233,449 (30 September 2009: £2,746,239 and 31 March 2010: £3,233,449) has been
       provided for on the acquisition of Auspotash Corporation.



3     Loss per share                                                                                                
                                                                                                                    
      Basic  loss  per  share is calculated by dividing the earnings attributable to ordinary shareholders by  the
      weighted average number of ordinary shares outstanding during the period.
      
      Given  the  loss  for the six months ended 30 September 2010 and 2009 and the year ended 31  March  2010,  the
      share  options are not taken into account when determining the weighted average number of ordinary  shares  in
      issue during the period and therefore the basic and diluted earnings per share are the same.
      
                                                                 Unaudited         Unaudited           
                                                                Six months        Six months           Audited    
                                                                     ended             ended        Year ended
                                                                        30                30                31
                                                                 September         September             March
                                                                      2010              2009              2010
      Loss                                                               £                 £                 £
                                                                                                                    
      Loss for the purposes of basic earnings                                                                       
      per share being net loss attributable to                                                                      
      equity shareholders of the parent                           (985,313)         (655,327)       (3,838,749)
                                                                                                                    
                                                              -------------     -------------     -------------
                                                                                                                    
      Loss for the purpose of diluted earnings per share          (985,313)         (655,327)       (3,838,749)
                                                                                                                    
                                                              -------------     -------------     -------------
                                                                                                                    
      Number of shares                                              Number            Number            Number
                                                                                                       

      Weighted average number of ordinary                                                                           
      shares for the purpose of basic and                                                                           
      diluted earnings per share                               667,524,556       164,095,388       393,381,017
                                                                                                                    
                                                              -------------     -------------     -------------
                                                              -------------     -------------     -------------
                                                                                                                    
      Earnings per share
      
      If  the  Company's  share options were taken into consideration in respect of the Company's  weighted  average
      number of ordinary shares for the purposes of diluted earnings per share, it would be as follows:
      
      Number of shares                                                                                              
      Weighted average number of ordinary                                                                           
      shares for the purposes of diluted                                                                            
      earnings per share                                       667,524,556       164,560,319       398,412,363
                                                                                                                    
                                                              -------------     -------------     -------------
                                                              -------------     -------------     -------------
                                                                                                                    
                                                                                                       
      Loss  per share                                                                                               
      Basic and diluted loss per share                               (0.1p)            (0.4p)            (1.0p)
                                                                                                                    
                                                              -------------     -------------     -------------
                                                              -------------     -------------     -------------



4     Intangible fixed assets                                  Exploration                                     
                                                                 costs and                                     
                                                                    rights          Goodwill             Total
                                                                         £                 £                 £
      Cost                                                                                              
      At 1 April 2009                                            1,441,417                 -         1,441,417
      Additions                                                 12,684,720         1,743,862        14,428,582

                                                              -------------     -------------     -------------
                                                                                                                    
                                                                                                                    
      At 30 September 2009                                      14,126,137         1,743,862        15,869,999
      Additions                                                    255,440                 -           255,440
      Additions acquired on acquisition of subsidiary           32,956,698           496,679        33,453,377
      Foreign exchange movement                                  5,161,846           287,619         5,449,465
      Transfer to available-for-sale financial assets              (54,000)                -           (54,000)
                                                                                                                    
                                                              -------------     -------------     -------------
                                                                                                                    
      At 31 March 2010                                          52,446,121         2,528,160        54,974,281
      Additions                                                    634,355                 -           634,355
      Foreign exchange movement                                   (715,612)         (141,532)         (857,144)
                                                                                                        
                                                              -------------     -------------     -------------
                                                                                                        
      At 30 September 2010                                      52,364,864         2,386,628        54,751,492
                                                                                                        
                                                              -------------     -------------     -------------
                                                                                                        
      Provision for permanent diminution in value                                                       
      At 1 April 2009 and 30 September 2009                       (220,572)                -          (220,572)
      Impairment                                                  (461,531)                -          (461,531)
                                                                                                                    
                                                              -------------     -------------     -------------
                                                                                                                    
      At 31 March 2010 and 30 September 2010                      (682,103)                -          (682,103)
                                                                                                        
                                                              -------------     -------------     -------------
                                                                                                        
      Net book value                                                                                    
                                                                                                                    
      30 September 2010                                          51,682,761        2,386,628        54,069,389
                                                                                                                    
                                                              -------------     -------------     -------------
                                                              -------------     -------------     -------------
                                                                                                                    
      31 March 2010                                              51,764,018        2,528,160        54,292,178
                                                                                                                    
                                                              -------------     -------------     -------------
                                                              -------------     -------------     -------------
                                                                                                                    
      30 September 2009                                          13,905,565        1,743,862        15,649,427

                                                              -------------     -------------     -------------
                                                              -------------     -------------     -------------
                                                                                                                    

     Goodwill
     The  goodwill  acquired  during  the  year ended 31 March 2010 as part of the business  combination  relating  to
     Auspotash  Corporation  has  been  allocated, at acquisition, to the  cash  generating  unit  (CGU)  of  resource
     evaluation and exploration.
     The  recoverable amount of the goodwill relating to Auspotash Corporation has been assessed by the  reference  to
     the  value in use. The valuation is based on cash flow projections that incorporate best estimates of recoverable
     reserves  and  resources,  forecast selling prices, production rates, future capital expenditure  and  production
     costs  over the life of the tenements. The projections therefore generally cover a period of 20 years,  which  is
     well  in  excess of five years. The valuations are particularly sensitive to changes in assumptions about selling
     prices, operating costs and discount rates. Long term selling prices are forecast taking into account market data
     in  respect  of  potash  and  management's  current expectations. Forecasts  of  operating  costs  are  based  on
     management's  current  expectations. Discount rates represent an estimate of the rate  that  would  apply  having
     regard  to the time value of money and the risks specific to the asset for which future cash flow estimates  have
     not  been  adjusted.  The Group's weighted average cost of capital is used as a start point for  determining  the
     discount  rate with appropriate adjustments for the risk profile of the individual cash generating unit. Goodwill
     relating to Auspotash Corporation has been reviewed applying a discount of 10 per cent to the pre-tax cash  flows
     expressed  in real terms. No reasonable possible change in the key assumptions on which Auspotash's Corporation's
     recoverable amount is based would cause its value to fall short of its carrying amount at 30 September 2010.
     
     
5     Share capital                                              Unaudited         Unaudited           
                                                                Six months        Six months           Audited    
                                                                     ended             ended        Year ended
                                                                        30                30                31
                                                                 September         September             March
                                                                      2010              2009              2010
                                                                         £                 £                 £
      Share capital                                                                                                 
      1,500,000,000 (30 September 2009:                                                                             
      1,000,000,000 and 31 March 2010:                                                                              
      1,000,000,000) ordinary shares at 0.25p each               3,750,000         2,500,000         2,500,000
                                                                                                                    
                                                              -------------     -------------     -------------
                                                              -------------     -------------     -------------
                                                                                                                    
      Allotted called up and fully paid                                                                             
      715,606,602 (30 September 2009: 363,505,160                                                                   
      and 31 March 2010: 663,300,160) ordinary                                                                      
      shares at 0.25p each                                       1,789,016           908,764         1,658,250
                                                                                                                    
                                                              -------------     -------------     -------------
                                                              -------------     -------------     -------------

      
      On  26 August 2010 the Company issued 8,500,000 share options to four of the Company's consultants exercisable
      at 4.5p to be exercised no later than 26 August 2015.

      On  27  August 2010 the Company issued 2,000,000 new ordinary shares at 4.125p in consideration of consultancy
      services received valued at £82,500.

      On  17  September  2010 the Company issued 50,000,000 new ordinary shares at 6p for a total  consideration  of
      £3,000,000.

      On  21  September  2010  Old Park Lane Capital Plc exercised 306,442 share options for  306,442  new  ordinary
      shares at 4.5p for a total consideration of £13,790.

      On  28  September  2010 at an AGM the Company's share capital increased from £2,500,000 to £3,750,000  by  the
      creation  of  an additional 500,000,000 ordinary shares of 0.25p each, such shares raking pari  passu  in  all
      respects with the existing ordinary shares of 0.25p
      
      
6     Cash outflows from operating activities                    Unaudited         Unaudited           
                                                                Six months        Six months           Audited    
                                                                     ended             ended        Year ended
                                                                        30                30                31
                                                                 September         September             March
                                                                      2010              2009              2010
                                                                         £                 £                 £
                                                                                                       
      Loss before tax                                             (985,313)         (655,908)       (3,838,749)
      Share based payments                                         334,460               705         1,658,932
      Depreciation                                                     358               124             5,001
      Finance (income)/expense                                     (22,854)              149              (416)
      Impairment                                                         -                 -           461,531
                                                                                                       
                                                              -------------     -------------     -------------
                                                                                                       
      Operating cash flow before changes in working capital       (673,349)         (654,930)       (1,713,701)
                                                                                                       
      (Increase)/decrease in receivables                           (30,046)           18,843            85,774
                                                                                                                    
      Decrease in payables                                         (59,724)         (350,644)         (257,677)
                                                                                                       
                                                              -------------     -------------     -------------
                                                                                                       
      Net cash outflow from operating activities                  (763,119)         (986,731)       (1,270,808)
                                                                                                       
                                                              -------------     -------------     -------------
                                                              -------------     -------------     -------------

7     Related party transactions
      
     During  the  six months ended 30 September 2010, the Company was charged £14,500 (30 September 2009:  £nil  and
     year  ended  31  March  2010: £nil) by Broadscope Pty Limited for management services.  Christopher  Catlow,  a
     Director of the Company, is an employee of Broadscope Pty Limited. At the period end £7,500 (30 September 2009:
     £nil and year ended 31 March 2010: £nil) was due to Broadscope Pty Limited.
     
     During the six months ended 30 September 2010, the Company was charged £30,000 (30 September 2009: £30,000  and
     year  ended 31 March 2010: £60,000) by Pacific Corporate Management Limited for management services. A  further
     bonus  payment  was  made of £nil (30 September 2009: £60,000 and year ended 31 March 2010:  £60,000).  Richard
     Poulden,  a director of the Company, is an employee of Pacific Corporate Management Limited. At the period  end
     £5,000  (30  September 2009: £8,951 and year ended 31 March 2010: £nil) was due to Pacific Corporate Management
     Limited.
     
     During  the six months ended 30 September 2010, the Company was charged £2,703 (30 September 2009: £21,431  and
     year  ended 31 March 2010: £24,687) by Nibex Limited, in which Nick Badham, a director of the Company until  19
     June  2010, has an interest for consulting services. At the period end £nil (30 September 2009: £4,423 and year
     ended 31 March 2010: £nil) was due to Nibex Limited.
     
     During the six months ended 30 September 2010, the Company was charged £15,000 (30 September 2009: £15,000  and
     year  ended 31 March 2010: £30,000) by Easy Business Consulting Limited, in which Jonathan Harrison, a director
     of  the  Company,  has  an interest, for consultancy services. A further bonus payment was  made  of  £nil  (30
     September  2009:  £30,000 and year ended 31 March 2010: £30,000. At the period end £2,500 (30  September  2009:
     £5,336 and year ended 31 March 2010: £nil) was due to Easy Business Consulting Limited.
     
     During  the  six months ended 30 September 2010, the Company was charged £5,000 (30 September 2009: £5,000  and
     year ended 31 March 2010: £10,000) by Derek Stonley, a director of the Company, for consulting services. At the
     period end £833 (30 September 2009: £833 and year ended 31 March 2010: £nil) was due to Derek Stonley.
     
     During  the  six months ended 30 September 20010 the Company was charged £5,000 (30 September 2009: £5,000  and
     year  ended  31  March  2010: £10,000) by Z/Yen Group Limited, in which Michael Mainelli,  a  director  of  the
     Company, has an interest, for consulting services. At the period end £1,667 (30 September 2009: £1,667 and year
     ended 31 March 2010: £1,667) was due to Z/Yen Group Limited.
     
      
      

8       Events after the reporting period
        
       On  12  October  2010,  the Company announced that its wholly owned subsidiary Dakota Salts  LLC  acquired  a
       further 1,425 net mineral acres of lease areas adjacent to its existing properties in North Dakota. 1,028 net
       mineral  acres were acquired from multiple unconnected owners for nominal initial cash payments  per  mineral
       acre  with royalty payments due on mining production. A further 397 net mineral acres were purchased under  a
       five  year  lease  from North Dakota's State University and School Board Lands for a total  consideration  of
       US$49,260. The Company now controls 7,425 net mineral acres of lease areas overlying the Williston Basin.
        
       On 19 October 2010 the Company announced that its wholly owned subsidiary, Dakota Salts LLC signed agreements
       with North Rim Exploration Limited and Schlumberger Water Services USA Inc. to enable a drilling programme to
       commence on its' Exploration Permit Area.
       
       On  9  November  2010 the Company announced that its wholly owned subsidiary, Dakota Salts LLC had  commenced
       drilling.
        


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  • Sirius Minerals Plc