SIRIUS MINERALS PLC - ADRs (bundles of 500 shares) (SRUXY)

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Queensland update: Sino-Agri MOU

Aug 26, 2010
Pink OTC Markets News Service

London, United Kingdom —

For immediate release:

Sirius Exploration Plc
(“Sirius” or the “Company”)

Queensland update:Sino-Agri MOU

The Directors of Sirius Exploration Plc (AIM: SXX, OTC: SRUXY), the potash mininggroup, are pleased to announce that the Company has entered into a Memorandumof Understanding (“MOU”) with Sino-Agri Mining Industry Co. Ltd (“Sino-Agri”),a division of China’s second largest fertilizer distributor, to developSirius’s property overlying the Adavale Basin in Queensland, Australia.

Under the terms of the MOU, the Parties will explore whether to enter into furtheragreements to establish: firstly, the feasibility of commercial potashproduction on Sirius’s Adavale properties; and secondly, commercially reasonable and profitable terms for the scope of services to be provided bySino-Agri on an exclusive basis for the Adavale project (“Project”).

Inparticular, Sirius and Sino-Agri will endeavour to negotiate mutually acceptable agreements covering firstly an off-take agreement and, secondly, a joint development and funding agreement. Under any such agreements Sino-Agri will be the sole provider of services to bring the Project to commercial production inexchange for 50% of the equity in the Project.

Asannounced on 20 August 2010, based on an interpretation of existing seismic and petroleum drilling data by Boyd PetroSearch (“Boyd”), Sirius has interpreted a site within its Queensland properties considered very prospective for potash.

Aninitial exclusivity period between the Parties exists for 180 days after which date the Parties can select to extend or terminate the MOU. CIC Group China provided advisory services to Sirius on the transaction.

ChrisCatlow, Chairman of Sirius Exploration, commented:

“Sirius is pleased to have taken this important first step in developing a long term relationship with Sino-Agri, a group that is establishing itself asone of the world’s largest potash distributors. Signing this MOU demonstrates that major fertilizer consumers are concerned about the current concentrationof world’s potash supply and wish to fast track the development of new large potash resources. It also confirms the market’s recognition of the massive potential our Adavale tenements offer, and potentially provides Sirius with off-take, finance and surety of commercial production whilst retaining 50% equity in the project. Sirius will now continue moving forward with a range of initiatives across itsportfolio to fast-track the company into a significant global potash supplier. Tothat end, we look forward to further developing our relationship with Sino-Agri.”

- ENDS –

For further information, pleasecontact:

Sirius Exploration Plc