Sirius Exploration
LSE : SXX

August 19, 2008 02:00 ET

OPTION AGREEMENT UPDATE

FOR RELEASE 7.00 AM:
19 August 2008 London:
                                                   
                                                   
                        CORPORATE UPDATE OPTION AGREEMENT BISHOP TUNGSTEN MINE

    *       Sirius Exploration reports due diligence going well in China

    *       Option extended to 30th September 2008 due to Beijing Olympic delays

Richard Poulden and Derek Stonley, Directors of the Company, visited China at the end of June 2008  to
conduct  due  diligence  before  exercising the Option Agreement with  CIC  Mining  Resources  Limited
("CICR")  and Judian Group Shareholders (the "vendors") as announced on 19 June 2008.  In addition  to
the  work  with our prospective partners in Beijing they also visited the site of the Bishop  Tungsten
Mine near Nanning to examine the mine operations and processing and also take random ore samples which
have  been  examined  in England by Christopher Blake, an experienced specialist in  process  and  ore
mineralogy.  East Capital Law Firm in Beijing is conducting the legal due diligence on the transaction
which  is  progressing well. East Capital has a track record in this type of transaction  and  numbers
various international investment funds amongst its clients.

A  video  of  the  mine  site  visit is available as a download on the Sirius  Exploration  web  site:
www.siriusexploration.com

During  the visit to China extensive geological data was also reviewed and is in the process of  being
digitized using Micromine for future mine and processing planning.

The  Option Agreement has also been extended to 30 September 2008, upon a request by the Board of  the
Company due to due diligence studies being halted during the Olympic Games in Beijing, China.

Derek Stonley Director and former Rio Tinto Geologist comments after the mine visit in China:

"The  Bishop Tungsten Mine represents a rare opportunity for entry into mining in an attractive sector
in China."

Chairman Richard Poulden stated:

"The  work with our Chinese partners has progressed extremely well and we have been most impressed  by
the  quantity  and organization of the data available. Subject to the result of our due diligence,  we
look forward to concluding this transaction and expanding our presence in China."


On Behalf of the Board of Directors
SIRIUS EXPLORATION LIMITED.

Richard Poulden
Chairman


Enquiries welcomed, for further information please contact the Company:

Sirius Exploration Plc                                                                               
Richard Poulden (Chairman)                                                          +44 7879 447 601
richard.poulden@siriusexploration.com                                            or +61 406 647 976

Jonathan Harrison (Financial Director)                                              +44 78 7988 7755

Stuart J. Bromley (Beijing, PR China)                                               +86 136 0113 1912                
                                                                                    
Beaumont Cornish                                                                                     
Roland Cornish (Chairman)                                                           +44(0)20 7628 3396

Cubitt Consulting                                                                                    
Brian Coleman-Smith / James Verstringhe / Nicola Krafft                             +44(0)20 7367 5100

Website: www.siriusexploration.com   Sirius Exploration Share Price

Background note:

Sirius Exploration

Sirius  Exploration PLC (AIM: SXX) is quoted on the Alternative Investment Market of the London  Stock
Exchange  Ltd  in  London.   The  Company acquires and explores mineral  properties.and  is  currently
exploring for copper and gold on its porphyry copper mineral properties located in Macedonia.
The  Company  has an agreement with Phelps Dodge (now a subsidiary of Freeport McMoRan Copper  &  Gold
Inc)  and  has completed a drilling program at their exploration sites in Macedonia. It  also  has  an
agreement  with  Rio  Tinto  to  utilise their Macedonian database  to  identify  further  exploration
opportunities.

Option on world's leading Chinese tungsten producer Bishop Mine

On 19 June, 2008, Sirius Exploration announced that it had been granted an option to acquire tungsten
mining and production assets in Jiangxi Province and Guangxi Province in China.
Subject  to  due diligence, the initial interest of 10% is to be acquired for £6 million in  ordinary
shares  of Sirius Exploration, which have been valued at 22 pence per ordinary share, plus £2 million
in  cash.  The further 15% of equity to take the total purchased by Sirius Exploration to 25% will be
on the same cash pricing terms (six hundred thousand pounds for each percent) as the initial tranche.

Contact Information

  • Sirius Exploration