Sheba Exploration (UK) plc
LSE : SHE

July 27, 2011 07:00 ET

RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2011

                                                                                                   27 July 2011
                                                                                      GB00B02WHQ80/GBP/PLUS-exn


                                          SHEBA EXPLORATION (UK) PLC
                                          ("Sheba" or the "Company")
                                                       
                                  RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2011


The Chairman presents his statement for the period.

INTRODUCTION
Sheba  Exploration  (UK)  Plc  is an established gold and base metal exploration  company  with  operations  in
Northern  Ethiopia.  It has been an excellent year for the Company in terms of capital growth,  acquisition  of
licences  and  gold  discoveries. Despite the low level of funding the Company's operations  were  nevertheless
maintained and ultimately accelerated.


HIGHLIGHTS
On  19th  March  2010  the  Company was issued with the 100 square kilometre Una Deriam  Exclusive  Exploration
Licence  covering  the  Werii  Goldfield in northern Ethiopia. The licence area  is  a  consolidation  of  four
pre-existing licences which contain extensive gold soil anomalies.

On  29th  November 2010 the Company was issued with the 71 square kilometre Finarwa and the 39 square kilometre
Winibo Exclusive Exploration Licences. The former contains a number of gold soil and rock anomalies, while  the
latter contains a 4.5 km long copper belt.

During  the  early part of the year under review, option holder Stratex International Plc carried  out  channel
rock  sampling  on  the Company's Shehagne Exclusive Exploration Licence and encountered broad  zones  of  gold
mineralization in bedrock which they will shortly drill.


RECENT DEVELOPMENTS
Sheba  announced to the market the terms of Centamin Egypt Limited's ("Centamin") recommended  cash  and  share
offer  for  the entire issued and to be issued share capital of Sheba (the "Offer") on 11 July 2011 and  as  at
that date, the offer valued Sheba at approximately £7.48 million (on a fully diluted basis), or 6.15 pence  per
Sheba Share. The terms of the offer include a cash payment of 3p per share and one Centamin share for every  40
Sheba  shares.  Centamin owns and operates a large gold mine in southern Egypt, not far to the north  of  Sheba
Exploration's licence areas in northern Ethiopia.

The  Directors have recommended the Offer and they and certain major shareholders have endorsed the  offer  and
have signed irrevocable undertakings to accept the offer in respect of their entire share holdings.


OPERATIONS

Una Deriam:
The  acquisition  of  the  Una  Deriam  Exclusive  Exploration Licence  was  a  very  significant  achievement,
representing  the  consolidation of twelve years of gold exploration by the Company  in  the  Werii  Goldfield.
Several  exploration companies visited the area during the year and made proposals to Sheba for  joint  venture
operations  on an earn-in arrangement. While some of these proposals appeared to be attractive, experience  has
shown  that the 'lead time' with a joint venture arrangement can be long, thus delaying a financial  return  to
our  shareholders,  and therefore no further joint venture proposals were taken up. Detail  soil  sampling  and
trenching  were  carried out at the Datalian prospect, revealing a one kilometre long by 350  metre  wide  gold
anomaly underlain by cross-cutting quartz vein swarms. These veins assayed at between 2 and 13 g/t gold,  while
the  average grade of a vein swarm at one locality was 1.5 g/t gold over 12 metres. Extensive soil sampling  in
the south and east parts of the licence area uncovered more gold soil anomalies, increasing the overall area of
gold anomalism (>100ppb soil) to four square kilometres.

Finarwa and Winibo:
Following  a  year  of  gold and copper prospecting at Finarwa and Winibo, the Company acquired  a  three  year
exploration  licence  covering  the old prospecting concessions. Recent rock and  soil  sampling  has  shown  a
northward  extension to the gold belt at Finarwa, which is now known to trend along a length of 10  kilometres.
Soil anomalies in the licence area exceed 50 ppb gold and peak at 770ppb gold at one point. Continuous zones of
mineralization will be demarcated once infill soil sampling is initiated. Meanwhile, regional soil sampling  is
continuing  over  the entire licence area to investigate stream sediment anomalies and artisanal  gold  panning
sites.  At Winibo the Company has already traced a 4.5 kilometre long copper zone in bedrock. Channel  sampling
is  planned across the copper zone as well as soil sampling over the entire licence area to locate new areas of
gold and base metals mineralization.

Shehagne:
Stratex  International  Plc  is  currently earning in to the Company's Shehagne Exclusive  Exploration  Licence
under  the terms of a letter of intent dated August 2009, by expenditure on exploration over a 24 month  period
ending  August, 2011. The exploration programme will culminate in a 1000m diamond drilling programme. In  2010,
Stratex reported several new gold intercepts in weathered bedrock from the Tsemetti Prospect, including one  of
36 metres at 0.92 g/t gold. The style of mineralization is similar to that encountered at Datalian, with medium
to high grade cross-cutting quartz veins, giving rise to wide zones of stockwork mineralization at lower grade.
The value of the project is enhanced by its close location to infrastructure and electric power.

OUTLOOK
As  referred  to above, the Company has received an offer from Centamin Egypt Limited. The Directors  of  Sheba
believe  that the terms of the Offer are generous in the present circumstances. Should the Offer become  or  be
declared  unconditional in accordance with its terms, Centamin intends to procure the making of an  application
by  the Company as soon as it is appropriate to withdraw the Company's shares from, and to cancel the admission
of  the Company's shares to, the PLUS-quoted Market and, following such withdrawal and cancellation, to procure
that the Company re-registers as a private company in accordance with the provisions of the Companies Act 2006.

If  the  Offer does not become unconditional or is withdrawn, the outlook is less certain. However,  given  the
high  gold  price and the quality of the Company's gold concession areas I am confident that the  Company  will
continue to be successful in either event.

FINANCIAL STATEMENTS
Company expenditure was £128,259 pounds for the year under review, up from £97,149 spent in the previous  year.
The Company continues to run a very lean operation, with the directors again taking shares in lieu of salary to
help  conserve working capital.  A number of small private placements of shares were undertaken during the year
to  raise  working  capital amounting to 8.42 million shares, including those issued to directors  in  lieu  of
salary.

The Directors do not recommend the payment of a dividend for this period.

In conclusion, I would like to thank the shareholders, employees, directors, corporate advisers and contractors
of  the  company, not forgetting the Ethiopian Government, for their support over the past seven years. Despite
some  rough passages, the company has come through successfully to this point in time. The groundwork  we  have
done  in  Ethiopia  will no doubt contribute significantly to the development of the mining  industry  in  that
country in the future.

H. Atkinson Esq.
Chairman
Date 22 July 2011



                                          SHEBA EXPLORATION (UK) PLC
                                          REGISTERED NUMBER: 05179896
                                                       
                                     CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                      FOR THE YEAR ENDED 28 FEBRUARY 2011
                                                       
                                                                                           2011                2010
                                                                                           £                    £
                                                                                                  
Cost of sales                                                                           (17,939)             (11,889)

GROSS LOSS                                                                              (17,939)             (11,889)


Administrative expenses                                                                (109,872)             (85,241)

OPERATING LOSS                                                                         (127,811)             (97,130)


Interest receivable and similar income                                                       34                  (18)

Interest payable and similar charges                                                       (482)                   -

LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION                                             (128,259)             (97,148)


Tax on loss on ordinary activities                                                             -                    -

LOSS FOR THE FINANCIAL YEAR                                                             (128,259)             (97,148)
                                                                     
LOSS PER ORDINARY SHARE (BASIC)                                                           0.111p                0.106p

LOSS PER ORDINARY SHARE (FULLY DILUTED)                                                   0.118p                0.089p

All amounts relate to continuing operations.

There  were  no recognised gains and losses for 2011 or 2010 other than those included in the Profit  and  loss
Account.


                                                      
                                                       
                                                       
                                          CONSOLIDATED BALANCE SHEET
                                            AS AT 28 FEBRUARY 2011
                                                       
                                                                      2011                           2010
                                                                 £               £              £              £
                                                                                                           
FIXED ASSETS

Intangible assets                                                            323,164                         323,164

Tangible assets                                                                  166                             188
                                                                                                            
                                                                             323,330                         323,352
                                                                                                          
CURRENT ASSETS

Debtors                                                       14,727                          26,706 

Cash at bank and in hand                                       9,792                          10,567 
                                                                                                           
                                                              24,519                          37,273 

CREDITORS: amounts falling due within one year              (198,016)                       (167,033) 

NET CURRENT LIABILITIES                                                     (173,497)                       (129,760)

TOTAL ASSETS LESS CURRENT LIABILITIES                                        149,833                         193,592

                                                                                                          
CAPITAL AND RESERVES

Called up share capital                                                      779,075                         715,950

Share premium account                                                         86,562                          65,187

Profit and loss account                                                     (715,804)                       (587,545)

                                                                                                           
SHAREHOLDERS' FUNDS                                                          149,833                         193,592


The  financial statements were approved and authorised for issue by the board and were signed on its behalf  on
22 July 2011.

H. Atkinson Esq.
Director

                                                     
                                                       
                                                       
                                                       
                                                       
                                             COMPANY BALANCE SHEET
                                            AS AT 28 FEBRUARY 2011
                                                       
                                                                      2011                           2010
                                                                 £               £              £              £
                                                                                                           
FIXED ASSETS

Investments                                                                  520,006                        502,003

                                                                                                          
CURRENT ASSETS

Debtors                                                       14,727                            26,706 

CREDITORS: amounts falling due within one year              (185,235)                         (161,583) 

NET CURRENT LIABILITIES                                                     (170,508)                      (134,877)

TOTAL ASSETS LESS CURRENT LIABILITIES                                        349,498                        367,126

                                                                                                          
CAPITAL AND RESERVES

Called up share capital                                                      779,075                        715,950

Share premium account                                                         86,562                         65,187

Profit and loss account                                                     (516,139)                      (414,011)

SHAREHOLDERS' FUNDS                                                          349,498                        367,126
                                 


The  financial statements were approved and authorised for issue by the board and were signed on its behalf  on
22 July 2011.

The statement and figures above are extracted from the Company's full audited accounts.

H. Atkinson Esq.
Director


The Directors of the Company are responsible for the contents of this announcement.

Enquiries:

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

St Helens Capital Partners LLP
Duncan Vasey/Mark Anwyl
Tel: 020 7368 6959

Contact Information

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