Sheba Exploration (UK) plc
LSE : SHE

March 17, 2009 03:00 ET

OPERATIONAL REPORT 32

                                                                                                    17/03/2009
                                                                                     GB00B02WHQ80/GBP/PLUS-exn
                                                       
                                             OPERATIONAL REPORT 32
                            QUARTERLY REPORT ON EXPLORATION ACTIVITIES IN ETHIOPIA


Dated: 17 March, 2009.


SUMMARY

Exploration  for  gold  and  copper continues at the company's licence areas and  positive  progress  is  being
achieved:-

(1)   At  Shehagne EEL detail rock sampling has identified primary gold mineralization along the entire  strike
length of a 2.8 km gold soil anomaly. The Company was encouraged by results from the latest sample batch, where
gold was found in quartz veins and rhyolitic wall rocks grading up to 9.5 g/t.

(2)   At Una Deriam EPL, some 80km to the east of Shehagne, detail soil sampling has traced the north end of  a
strong gold anomaly associated with colonial period prospecting trenches and adits.

(3)  At Winibo EPL, situated midway between the two gold projects, bedded copper mineralization has been traced
for 4.5 km along strike, with traces of gold at the north end.

(3)   At  Finarwa EPL, gold prospecting has produced anomalous gold in rock and soil but, as yet,  no  cohesive
gold anomaly has been defined.



Shehagne EEL: Gold Sample Results

A  program  of mapping and rock grab sampling was completed this last quarter, over the southern  part  of  the
Tsemetti gold soil anomaly. The average grade of this batch of 34 samples, without applying a cut-off,  is  1.8
g/t  gold  (Table 2). Combining these results with previous rock samples collected at Tsemetti, means that  the
average  grade  of  all  99  rock samples from the anomalous area is 3.2g/t gold  (for  previous  results,  see
Operational  Report  28 dated 27 May, 2008 and Operation Report 30, dated 5 January, 2009). Field  observations
indicate that the gold mineralisation in the southern part of the soil anomaly is contained in quartz veins and
felsic  volcanic wall-rocks, which has a similar setting to gold in the northern parts. Trenching at the  south
end is underway and has produced the following results to date:

Table 1: rock panel samples from Shehagne EEL

Sample no.              panel width          panel grade Au g/t
-------------------------------------------------------------------
09012306S                    1                     1.07
SFT1/1-16                   16                     0.33
SFT2/56-57                   4                     0.63
SFT2/54                      2                     0.61
SFT2/40                      2                     5.08
-------------------------------------------------------------------

Trenching and drilling targets are now well established at Shehagne and these will be investigated to the
extent that future exploration funding permits.





Table 2: rock grab sample results from Shehagne EEL

sample no.   easting (m)   northing (m) gold grade(g/t)  rock type
-----------------------------------------------------------------------
08120401S     89218            6106        0.01         quartz
08120402S     89517            6048        0.18         rhyolite
08120403S     89514            6050        0.01         siliceous volcanic
08120404S     89509            6049        1.73         rhyolite
08120405S     89759            6156        0.02         felsic tuff
08120406S     89650            6169        2.72         quartz
08120407S     89664            6215        1.08         quartz
08120408S     89599            6210        2.25         quartz
08120409S     89553            6119        0.83         quartz
08120501S     89850            6243        0.03         felsic volcanic
08120502S     89850            6240        9.49         quartz
08120503S     89854            6240        0.03         quartz
08120504S     89946            6463        0.65         quartz
08120505S     89776            6416        2.23         quartz
08120701S     89249            5946        0.15         quartz
08120702S     89316            5948        0.12         quartz
08120703S     89484            5852        0.51         quartz
08120704S     89454            5747        0.20         felsic tuff
08120705S     89346            5667        5.33         rhyolite
08120706S     89355            5558        8.45         quartz
08120901S     89553            5157        2.03         quartz
08120902S     89560            5435        0.41         quartz
08120903S     89914            5343        0.41         quartz
08120904S     89954            5360        0.02         quartz
08120905S     89961            5447        0.19         quartz
08120906S     89955            5455        0.07         quartz
08120907S     89945            5453        1.99         quartz
08120908S     89763            5550        6.70         quartz
08120909S     89871            5540        1.00         quartz
08120910S     89947            5569        0.04         felsic volcanic
08120911S     89847            5631        1.66         quartz
09012301S     89791            5612        7.82         quartz
09012302S     89790            5611        0.59         felsic volcanic
09012401S     89858            5560        3.32         quartz
------------------------------------------------------------------------


Una Deriam EPL: Gold Sample Results

Detail soil sampling was carried out in the area north of the 1903 prospecting pits and adits. In this area,  9
out of 30 soil samples registered over 100ppb gold, with a maximum value of 670ppb. Soil sampling is planned to
continue southwards towards the old workings, as a cohesive gold anomaly is emerging in that direction.

Rock grab sampling was carried out at Una Deriam, with 27 samples out 61 registering above a cut-off of 0.1 g/t
(Table 3). Gold occurs mostly in samples of quartz in this area.



Table 3: rock grab sample results from Una Deriam EPL

sample no.   easting (m) northing (m)  gold grade(g/t) rock type
----------------------------------------------------------------------------
03042601DW   7563        46036            0.2        felsite & phyllite
03042602DW   7576        46035            0.5        felsic rock
03042603DW   7570        46028            5.3        quartz
03042605DW   7567        46025            0.2        kaolinite
03051001PR   7293        49216            0.56       felsic rock
03051002PR   7226        49057            0.54       sericite rock
03051003PR   7189        49055            0.38       quartz-chlorite schist
03051004PR   7284        48977            0.14       felsite
03051005PR   7271        48972            0.42       sericite schist
05092105     7619        46350            0.3        phyllite/quartz
05092106     7619        46342            0.2        phyllite/quartz
05092108     7607        46108            0.4        phyllite/quartz
05092109     7606        46094            0.4        phyllite
05092114     7617        45939            0.3        phyllite
08031602U    6813        49480            2.37       quartz
08050601U    6972        49992            0.19       phyllite
08070401U    8831        50427            0.10       quartz
08070402U    8827        50428            13.86      quartz
08070404U    6816        49480            6.12       quartz
08070405U    6821        49476            0.23       saprolite
08070406U    6882        49465            0.10       saprolite
08070407U    6919        50398            2.13       quartz
08070409U    7227        49039            1.20       quartz
08070410U    6701        49547            0.50       felsic rock
08070411U    6534        48495            0.23       quartz
08121701U    7096        49431            0.18       quartz
08121702U    7142        49463            1.39       quartz
---------------------------------------------------------------------



Winibo EPL : Copper Sample Results

Bedded  copper mineralisation discovered in 2007 has now been traced for a distance of 4.5 km. A further  seven
grab samples were taken at the north end of the trend (Table 4) and show traces of gold for the first time (see
Operational  Report  29, dated 12 August 2008 and Operational Report 30, dated 5 January, 2009  for  comparable
assays).  The  average grade of grab samples from the copper zone is 0.61% copper and 3.5  g/t  silver  for  41
samples  (no cut-off applied). The maximum apparent width of mineralisation is 7m and the maximum sample  grade
is  4.3%  copper. Fresh samples at surface contain 0.1- 0.3mm grains of chalcopyrite which are commonly altered
to  cuprite  and malachite. In general, the best copper grades occur in the south, where there is road  access.
Drilling here should indicate whether there is a secondary enrichment zone between the weathered and fresh rock
interface. The mineralised zone also requires soil sampling to ascertain metallic zoning.


Table 4: rock grab sample results from Winibo EPL

Sample number   Easting (m)   Northing (m) Cu (ppm)  Ag (ppm)  Au (ppm)
--------------------------------------------------------------------------
09012604W       3357          4808         829       0.8       0.08
09012603W       3317          4760         4080      1.0       0.13
09012602W       3292          4741         2152      1.5       0.05
09012605W       2989          4427         2108      0.8       0.12
09012606W       2647          4037         2513      2.2        -
09012607W       2643          4031         1217      2.1        -
09012608W       2637          4030         3691      1.2        -
-------------------------------------------------------------------------



Finarwa EPL Gold Sample Results

Soil  sampling at Finarwa turned up 14 samples (out of 136) with gold content over 100ppb and four rock samples
(out of 44) contained gold over 0.1 g/t (Table 5). The presence of gold in rock up to 3.65 g/t and gold in soil
up  to  320  ppb  is  significant of fairly strong mineralisation in the area. Most  gold  anomalies  are  also
anomalous in copper and the host rocks suggest lithological controls may be a factor to consider.

Table 5: rock grab sample results from Finarwa

sample no.   easting(m)   northing(m)  gold grade(g/t)  rock type
------------------------------------------------------------------------
08010301F    2537         1935         0.50             siliceous marble
09010103F    2315         0498         0.12             siliceous marble
08073101F    1471         1171         3.65             siliceous marble
08073104F    1434         1114         0.30             quartz/goethite

The directors accept responsibility for this announcement.

CONTACT DETAILS:
SHEBA EXPLORATION (UK) PLC
RICHARD BROOKER
TEL: 00 353 87699 8401

CORPORATE ADVISOR
ST HELEN'S CAPITAL PLC
DUNCAN VASEY
TEL: 020 7628 5582

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