Sheba Exploration (UK) plc

February 07, 2011 02:01 ET


                                                                                               7 February 2011

                                         SHEBA EXPLORATION (UK) PLC
                                         ("Sheba" or the "Company")

                           Soil Sampling Results From Una Deriam, Northern Ethiopia
                                            Operational Report 39
                                        EXTENSIVE GOLD TRENDS DEFINED
Sheba  Exploration (UK) Plc, the Ethiopian focused gold exploration company, is pleased to  announce  further
soil sampling results from its Una Deriam licence.


        -       400 new gold soil samples have been analysed from the Una Deriam licence.
        -       Two arc-shaped gold trends have been defined, one of 7 km and another of 3 km.

        -       A strong gold anomaly of dimensions 1000m x 400m was defined at Datalian.
Currently,  soil  samples  are  being  collected along the Una Deriam gold  trend  in  search  of  additional
extensions  to the gold mineralised system.  A further 400 soil samples have been already analysed  for  gold
and  more are being tested. The analytical results reveal two main gold trends with a combined strike  of  10
kilometres,  while infill soil sampling has defined a prominent gold target of dimensions  1000m  x  400m  at

Regional soil sampling 

Soil  sampling is being carried out at 200m x 100m spacing along the strike of the main north-south gold belt
in  the  licence area.  The 400 new soil results, taken together with 1610 samples previously analysed,  have
revealed  two continuous arc-shaped anomalous trends. The northern gold arc is about 7 kilometres  in  length
and  1.5  kilometres wide and is defined by a number of high gold values (over 1000ppb) in a mass of elevated
gold values (over 100ppb). The arc contains a number of gold prospects which have been trenched or drilled to
a  limited extent (e.g. Ndaba Shekena, 40m at 1.3 g/t trenched, 27m at 1.3 g/t drilled). The southern arc  is
continuous  for  about 3 kilometres and is about 0.5 kilometres wide and has discontinuous extensions  for  a
further  3  kilometres to the south. This arc contains a well defined gold soil anomaly at the  old  Datalian
gold camp.

Datalian infill soil sampling

Soil  sampling density over the Datalian prospect was increased with staggered sampling lines at 100m  x  50m
spacing.  A  continuous gold target has been defined in soil with a number of peak values ranging 500-5000ppb
gold  and margins defined by the 100ppb contour. The target is lenticular to oval in plan, about 1000  metres
long  and  up to 400 metres wide.  Gold workings are scattered throughout and are usually small surface  soil
scrapings  or  shallow  pits.  The  main  host units for the gold  mineralisation  are  dacite  and  rhyolite
metavolcanics.  Quartz veins carry gold and follow the bedding trend but cut across the  dip.  A  shear  zone
locally  re-directs  gold along its foliation. Three trenches were recently dug across  the  shear  zone  and
channel samples are currently being analysed. Rock grab samples from the area range up to 6.1 g/t gold.

Datalian is the fifth gold target of respectable size to be defined on the licence area. It is located only a
few  hundred  metres  south  of a regional trunk road and access to mainline power  and  perennial  water  is
assured.  Early Italian prospectors identified the prospect in 1903 and made several box-cuts and adits  into
the  shear zone. The current work has shown an extension along strike in both directions with continued  high
gold values persisting for three kilometres.

The Directors of Sheba Exploration (UK) Plc are responsible for the contents of this announcement.

For further information please contact our Public Relations advisers:

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

Corporate Adviser:
St Helens Capital Partners LLP
Duncan Vasey/Mark Anwyl
Tel: +44 (0) 20 7368 6959

Farm Street Communications Limited
Contact: Simon Robinson
Tel: +44 (0) 7593 340107

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