Sheba Exploration (UK) plc

September 01, 2009 04:03 ET

Joint Venture with Stratex International Plc


                                            Sheba Exploration (UK) Plc
                                           Joint Venture with Stratex International Plc

Dated: 1 September, 2009

The  Directors of Sheba Exploration (UK) Plc ("Sheba"), a Plus-quoted Gold and Base metal explorer, are pleased  to
announce the signing of a binding letter of intent with AIM-quoted Stratex International Plc ("Stratex"), in  which
the general terms of a joint venture between the two companies in northern Ethiopia are laid out.

The main items in the agreement are:-

(1)  An  option  for  Stratex to earn a 60% share in Sheba's Shehagne Exclusive Exploration  Licence  Area  for  an
expenditure  of £350,000 over a period of 21 months, with a further option to take the project to the  stage  of  a
bankable feasibility study for an 80% share;

(2) An option for Sheba to earn a 50% share in a joint exploration project with Stratex;

(3) An undertaking by Stratex to purchase shares in Sheba to the value of 40,000 pounds at the current market price
of 0.75p, each share to carry a full share warrant valid for two years.

The exploration project will focus on gold and base metals, following Sheba's discovery of a 3km long, 120+ hectare
gold  soil  anomaly at Shehagne EEL. Early stage percussion drilling and trenching have returned  significant  gold
intercepts in weathered bedrock, including:

Trench SA1: 17m @ 0.70 g/t
Trench SA2:  8m @ 2.06 g/t
Trench SA3: 20m @ 3.15 g/t
Trench SA5: 18m @ 1.22 g/t
Trench SA8: 12m @ 0.62 g/t
Hole SAP1:  12m @ 1.14 g/t from surface
Hole SAP3:  23m @ 0.54 g/t from surface
Hole SAP4:  19m @ 0.62 g/t from surface

Stratex will be the operator of the joint venture, with Sheba providing logistical support. The two companies  will
continue to finance, explore and develop their own exploration projects in other areas located outside those  which
are designated in this agreement.

The  directors  of Sheba consider that the joint venture with Stratex will add new impetus to the Shehagne  Project
through  immediate  financial backing, the deployment of more geologists to the area, further regional  exploration
for  similar  deposits  and the introduction of additional exploration concepts and prospecting  techniques.  These
innovations  will  dove-tail with Sheba's practical experience on the ground, and help attract finance  for  future

Stratex International Plc is an AIM-quoted exploration and development company currently focusing on gold and  base
metal  opportunities  in Turkey. Its proven strategy is to discover and develop new projects  by  focused  low-cost
exploration,  thus  adding maximum value prior to optioning/joint venturing or selling on  to  a  dedicated  mining

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

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

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

Contact Information

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