Sunrise Res Regulatory News (SRES)

SUNRISE RESOURCES PLC

("Sunrise" or "the Group" or "the Company")

11 December 2014

Audited Results for the year to 30 September 2014

The Board of Sunrise Resources plc, the AIM-quoted diversified mineral exploration and development company is pleased to announce audited results for the year ended 30 September 2014. The Company has seen expansion of its project portfolio into Nevada, USA and positive developments at its Cue Diamond Project located in Western Australia.

Operational Highlights

· Continued exploration drilling at Cue Diamond Project with discovery of three new kimberlites - at least two have yielded diamonds

· Gold projects licences in Western Australia approved; soil sampling programmes completed in preparation for drill testing in early 2015

· Four new projects in Nevada, USA added to the portfolio - including County Line Project which focuses on the industrial mineral diatomite and Bay State Silver Project which has already reported high-grade sampling results

· 2015 will see further progress building on this expanded exploration portfolio

Commenting on today's results, Patrick Cheetham, Executive Chairman, said: "I am pleased to be reporting on a much higher level of activity in 2014 as well as the expansion of the Company's project portfolio in line with our established strategy and business plan. This is on track and our targets for 2015 include continuing evaluation of the newly discovered kimberlites on the Cue Diamond Project and in particular to advance the Bay State and County Line projects in Nevada. We will enter 2015 with continued optimism."

Further information:

About Sunrise Resources plc

Sunrise Resources plc is a diversified mineral exploration and development company.

The Company has diamond and gold exploration interests in Western Australia and has an active project programme to generate new exploration projects in Australia and Nevada, USA. It has staked claims over the Strike Copper Project, the County Line Diatomite Project and the Garfield Gold-Silver-Copper Project in Nevada, USA and most recently has acquired an interest in the Bay State Silver Project. 

The Company also holds diamond exploration interests in Finland and a white barite project in South-West Ireland.

Shares in the Company trade on AIM. EPIC: "SRES" www.sunriseresourcesplc.com

Chairman's Statement

I am pleased to be reporting on a much higher level of activity in 2014 as well as the expansion of the Company's project portfolio in line with the established strategy and business plan that was more formally described in last year's Annual Report.

Against a backdrop of a stronger diamond market, we have continued exploration drilling on our Cue Diamond Project in Western Australia and have been rewarded with the discovery of three new kimberlites, at least two of which have yielded diamonds from small samples. Whilst disappointed that sampling of the Soapy Bore kimberlite did not yield larger diamonds, each new discovery needs to be considered on its own merits and so we are looking forward to further testing these new discoveries in 2015 and feel confident that we will eventually find the source of the Target 5 diamondiferous float that has proved so interesting but, so far, elusive.

In the same region of Western Australia, licences for our two gold projects were this year granted by the Department of Mines and Petroleum, allowing us to carry out geochemical sampling programmes and prepare for drill testing of various targets in early 2015.

This year has also seen expansion of our exploration portfolio to include four new projects in Nevada, USA. Nevada is one of the world's great mining regions with a rich endowment of metals and industrial minerals and limited sovereign risk. The new projects include two priority projects, the County Line project, where the valuable industrial mineral diatomite is our target, and the Bay State Silver Project. All of our Nevada projects have been acquired with low entry costs.

Diatomite underlies most of the 8 sq. km. area of our County Line claims and we are moving quickly with our evaluation of this deposit as there is obvious potential for a large resource. Drilling is now justified to collect larger samples for further process testwork in order to evaluate the quality of the diatomite at different depths and its suitability for high value filter applications for which there is currently a shortage of supply.

Whilst it is early days for our Bay State Silver Project we are delighted to have already reported high-grade sampling results over a significant strike length as well as the discovery of a new occurrence of high grade silver mineralisation. It is an exciting start to the project.

In this Annual Report we highlight our progress against the strategy and business plan set out in last year's Annual Report. This is on track and our targets for 2015 include continuing evaluation of our newly discovered kimberlites on the Cue Diamond Project and in particular to advance the Bay State and County Line projects in Nevada. We will seek to partner where possible to reduce our outgoings, but it is important that we are able to control and maintain the pace of exploration on key projects.

2014 has seen a slightly improved market for junior companies although tempered by the weak gold price and subdued commodity prices. In this environment we continue to be cautious with shareholder funds and fundraising. Nevertheless, I expect the improvement seen in 2014 to continue in 2015 and we will enter 2015 with continuing optimism.

I would like to take this opportunity to thank my fellow directors who continue to take their fees in shares, and also Tertiary Minerals plc which accepted payment for at-cost management services partly in shares in 2014 demonstrating their commitment to the Company and also reducing our overhead costs.

I encourage you to attend our Annual General Meeting which this year is to be held at on 5th February 2015.

Patrick Cheetham

Executive Chairman

10 December 2014

Strategic Report

The Directors of the Company and its subsidiary undertakings (which together comprise "the Group") present their Strategic Report for the year ended 30 September 2014.

STRATEGIC PLAN ON TRACK

Our AIM is to develop profitable mining operations to sustain the Company's wider exploration efforts and create value for shareholders through the discovery of economic mineral deposits.

Our STRATEGY & BUSINESS PLAN were set out in detail in the 2013 Annual Report. The key points are summarised here against our progress in 2014 and our plans for 2015:

Principal Activities

The principal activity of the Group is the identification, acquisition, exploration and development of mineral projects. The main areas of activity are Australia and the USA. The Group also has projects in Ireland and Finland.

Organisation Overview

The Group's business is directed by the Board and is managed by the Executive Chairman. The Company has a management services agreement with Tertiary Minerals plc ("Tertiary") which is now a substantial shareholder in the Company (as defined under the AIM Rules). Under this cost sharing agreement Tertiary provides all of the Company's administration and technical services, including the services of the Executive Chairman, at cost. Day-to-day activities are managed from Tertiary's offices in Macclesfield in the United Kingdom, but the Group operates in four other countries. The corporate structure of the Group reflects the historical pattern of acquisition by the Group and the need, where appropriate, for fiscal and other reasons, to have incorporated entities in particular territories.

The Group's exploration activity in Finland is undertaken through a registered branch in Finland. In Australia the Company operates through an Australian subsidiary, Sunrise Minerals Australia Pty Ltd. In Nevada, USA, the Company operates through a local subsidiary, SR Minerals Inc.

The Board of Directors comprises two non-executive directors and the Executive Chairman. The Executive Chairman of the Company is also Chairman of Tertiary Minerals plc but otherwise the Board is independent from Tertiary.

Financial & Performance Review

The Group is not yet producing minerals and so has no income other than a small amount of bank interest. Consequently the Group is not expected to report profits until it disposes of or is able to profitably develop or otherwise turn to account its exploration and development projects.

The Group reports a loss of £700,295 for the year (2013: £924,447) after administration costs of £368,517 (2013: £322,961) and after crediting interest of £1,855 (2013: £3,624). The loss includes expensed pre-licence and reconnaissance exploration costs of £52,351 (2013: £48,090) and impairment of deferred exploration costs of £281,282 (2013:552,020). Administration costs include an amount of £128,725 (2013: £94,109) as non-cash costs for the value of certain options and warrants held by employees and others as required by IFRS 2.

The Financial Statements show that at 30 September 2014 the Group had net current assets of £260,019 (2013: £267,406). This represents the cash position after allowing for receivables and trade and other payables. These amounts are shown in the Consolidated and Company Statement of Financial Position and are also components of the Net Assets of the Group. Net assets also include various "intangible" assets of the Company. As the name suggests, these intangible assets are not cash assets but include some of this year's and previous years' expenditure on mineral projects where that expenditure meets the criteria in Note 1(d) of the accounting policies. The individual intangible assets total £513,431 (2013: £565,964) and a breakdown by project is shown in Note 2 to the Financial statements. Details of intangible assets, property, plant & equipment and investments are also set out in Notes 8, 9 and 10 of the financial statements.

Expenditures which do not meet the criteria in Note 1(d), such as pre-licence and reconnaissance costs are expensed and add to the Company's loss. The loss reported in any year can also include expenditure for specific projects carried forward in previous reporting periods as an intangible asset but which the Board determines is "impaired" in the reporting period.

It is a consequence of the Company's business model that there will be regular impairments of unsuccessful exploration projects. In the reporting period the Directors impaired £278,282 of historical expenditure costs relating to the Derryginagh Barite Project in Ireland where exploration has not been a priority for the Company and there is the possibility that the project will not be advanced further.

The intangible asset value of a project should not be confused with the realisable or market value of a particular project which will, in the Directors' opinion, be at least equal in value and often considerably higher. Hence the Company's market capitalisation on the AIM market is usually in excess of the net asset value of the Group.

The Company finances its activities through periodic capital raisings, as share placings and through other innovative equity based financial instruments.. As the Company's projects become more advanced there may be strategic opportunities to obtain funding for some projects from future customers via production sharing, royalty and other marketing arrangements.

Key Performance Indicators

The Financial Statements of a mineral exploration company can provide a moment in time snapshot of the financial health of the Company but do not provide a reliable guide to the performance of the Company or its Board.

The usual financial key performance indicators ("KPIs") cannot be applied to a company with no turnover and so the Directors consider that the detailed information in the Operating Review is the best guide to the Group's progress and performance during the year.

In addition the Directors highlight the following KPIs and expect that further KPIs will be reported as the Company progresses through development:

In exploring for world-class mineral deposits we accept that not all our exploration will be successful but also that the rewards for success can be high. We therefore expect that our shareholders will be invested for the potential for capital growth taking a long term view of management's good track record in mineral discovery and development.

Operating Review

During 2014 operations have been focused on the Company's projects in Australia and the USA and consequently no work was carried out on the Derryginagh project in Ireland or on the Company's diamond projects in Finland.

Sunrise Minerals Australia Pty ltd

Cue Diamond Project

The 100% owned Cue Diamond Project is located in the Murchison Mining District 80km northwest of the town of Cue in Western Australia. This year the Company has carried out various prospecting and geophysical exploration campaigns and a programme of drill testing at 6 separate target areas.

Target 5 is a large surface area of kimberlite float where two surface samples totalling 251kg yielded 280 high quality diamonds. Grade modelling of the stone size distribution has suggested commercial potential depending on size and geometry of the source kimberlite.

26 shallow holes were drilled in 2014 in three traverses within the weathered zone across the densest part of the surface float but no significant kimberlite was intersected. The source of the float remains elusive. However, the Company continues to believe that a significant source remains to be found in this area and plans to extend its geophysical coverage and continue drill testing.

Area 6 is located in the eastern half of the licence area and covers a northwest striking magnetic anomaly. A traverse of five drill holes intersected significant thicknesses of clay with geochemistry suggestive of a possible kimberlite source. One diamond was recovered from 14CURC50 in the centre of the traverse and further drill testing of this new discovery, below the level of weathering, is now warranted.

The Soapy Bore kimberlite dyke is sub-vertical, has a width of 2-3m, and a small sample tested by De Beers was reported as significantly diamondiferous.

Three holes were drilled by the Company in 2014 and a 272kg of kimberlite was processed at the diamond laboratory of the Saskatchewan Research Council. 227 diamonds were recovered. Generally the stones recovered were small and exhibited a high degree of breakage. On further investigation this breakage was attributed to natural causes rather than as a result of the drilling process.

It was concluded that the main dyke at Soapy Bore was unlikely to be of commercial grade.

The Soapy Bore Northwest prospect lies 300m northwest of the Soapy Bore kimberlite and was targeted on anomalous surface geochemistry. In 2014 seven drill holes tested the anomaly and a new kimberlite dyke was discovered between 8-14m down-hole in drill hole 14CUAC44. A 3.6kg sample was submitted for diamond extraction and two small diamonds were recovered including a yellow stone for the first time at Cue. Further drilling of this new discovery is warranted to recover a larger sample for testing.

The FW target is an area of multiple geophysical anomalies where an isolated piece of kimberlite float was found by the Company in a previous prospecting campaign. Only a very small part of this area was included in the last Aboriginal Heritage Survey and as a result only one of the anomalies could be tested from this area.

A single hole, 14CURC53, was completed as a partial and non-optimum test of this anomaly. Kimberlite was intersected from 92-93m down-hole (end of hole 100m). A 2.2kg sample of the FW kimberlite dyke was processed without diamond recovery but this does not rule out the possibility that diamonds can be recovered from a larger sample as diamonds tend to be unevenly distributed within any kimberlite body. The FW target area has potential to host multiple kimberlite dykes.

Area 1a was targeted by the Company to test a geophysical anomaly. Clay minerals with suspected kimberlite affinity and ambiguous geochemistry were intersected but processing of three samples totalling 38kg did not recover any diamonds.

The Company's exploration of the Cue Diamond Project has seen it develop significant proprietary knowledge and models which it is using with a high success rate in the discovery of new diamondiferous kimberlites in the area. We expect to build on this in 2015 with further drilling and prospecting campaigns.

Corona & Baker's Gold Projects

The Company's Corona & Baker's Gold Projects are located 150km east of the Cue Diamond Project within the Meekatharra Greenstone Belt. This belt has yielded over 5.5 million ounces of gold and hosts a number of currently producing gold mines including the Andy Well high grade gold deposit which provides an exploration model for the Company.

In 2014 the signing of a Native Title Agreement with the Yugunga-Nya Aboriginal Claimant Group cleared the way for the grant of the Company's exploration tenements and the start of exploration.

At the Corona Project the Company collected 523 soil samples on a 200m x 200m grid over an area of 20 sq. km. Analytical results show point anomalies up to 62 ppb (parts per billion) gold against a background of approximately 1ppb. Infill soil samples were collected on a 50m x 50m grid at three anomalous sites in order to better define drill targets.

At the Baker's Project 26km to the north of Corona, a review of historical exploration data has already defined drill targets. In order to supplement the drill targets a programme of soil geochemical sampling was carried out with 534 soil samples collected on 200m x 100m and 100m x 50m grids. Two anomalous areas were defined, one of which is coincident with an established target.

Drilling at the Baker's and Corona Project is provisionally scheduled for early in the New Year, once Aboriginal heritage clearance has been obtained.

SR MINERALS INC., NEVADA, USA

In February 2014 the Company announced the incorporation of a Nevada, USA subsidiary following extensive project generation and field reconnaissance work in 2013.

The State of Nevada is considered to be one of the most attractive mining jurisdictions in the world. It is the 4th largest gold producing area in the world, a large silver producer, a re-emerging copper producer and a significant producer of industrial minerals.

Four new projects were acquired in 2014 of which the County Line Diatomite and Bay State Silver projects are currently the highest priority.

County Line Diatomite Project

The Company holds 101 claims on the border of Mineral and Nye counties in Nevada, 200km southeast of the city of Reno. The claims cover an occurrence of the industrial mineral diatomite which underlies most of the 8 sq. km. area of the claims.

The Company has carried out two stages of testing on surface samples. In Stage 1 a composite surface sample made up from samples from two central localities was tested for a range of chemical and physical properties and comparison with commercial diatomite products. This included evaluation of raw, calcined and flux calcined samples. Promising results were obtained.

In Stage 2 further testwork was carried out on 8 samples taken from widely spaced outcrops and results demonstrate that the key characteristics of Stage 1 samples prevail over a wide area. Surface samples indicated a high degree of fragmentation of the diatoms and whilst a larger percentage of intact diatoms might be ideal for the filtration market, further testing is required for this application.

Diatomite deposits in Nevada usually show strong vertical variation and testing of the full thickness of the diatomite deposit is now required and will be a priority for 2015.

Whilst there is currently no code-compliant Mineral Resource defined for the project, the current exposures of the diatomite suggest that a large resource could be defined by shallow drilling.

Bay State Silver Project

In September 2014, the Company announced a lease agreement and option to acquire a group of patented mining claims covering the historic Bay State Silver Mine in the Newark Mining District of White Pine County, Nevada. The Company has also located 24 unpatented claims giving it exploration rights to areas surrounding the patents.

The Bay State Patents were originally located in 1863 and worked for silver in the 1870s and then again in the 1900s. Mining focused on two main NW-SE striking vein sets. The largest workings are on the Chihuahua and Buckeye State Patents which together cover a strike length of some 900m and extend north and south of Mining Canyon along the Chihuahua vein system.

The Lincoln Patent, 200m to the west, covers a 2.6m wide vein system comprising veins and stockwork mineralisation which has been worked and explored by three short adits and open workings.

Records of silver production from the Bay State Mine are poor but indicate a mined grade of over 20 ounces/ton of silver. Tungsten was also discovered in the mine workings and worked during World War II.

The Company has moved quickly to make an initial evaluation of the project and has recently completed two sampling campaigns. The objective has been to evaluate the condition of mine workings, collect samples of veins and wall rock material within existing mine workings and facilitate the planning of a more comprehensive sampling campaign.

The first sampling campaign was mainly limited to sampling on the adjoining Chihuahua and Buckeye Patents which lie north and south respectively of Mine Canyon. Eleven samples were taken on the main Chihuahua-Buckeye vein system over a strike length of 280m.

The vein sections available for sampling likely represents the lower grade material left behind by past mining activity. Nevertheless, the 11 samples returned silver values ranging from 1.2 to 29.2 ounces/ton silver and averaging 11.3 ounces/ton silver. Seven of the 11 samples assayed greater than 10 ounces/ton silver.

Whilst accessing the upper Chihuahua workings, a sulphide rich breccia was discovered in the canyon wall east of the Chihuahua vein. A sample of this breccia returned a very high silver assay - 26.3 ounces/ton silver. The outcrop is surrounded by scree and therefore the extent and significance of this new discovery is yet to be determined.

In the second sampling campaign further samples were taken, including samples from the Lincoln vein system and from other areas of geological interest within the Company's claim block. Results are awaited.

These initial sampling results are impressive and demonstrate continuity of silver mineralisation over significant strike lengths on the Chihuahua-Buckeye Patents. Mining did not extend deeper than 60m below the canyon floor and, as there is no reason to believe the mineralisation does not continue at depth, the entire vein system below 60m presents an exciting exploration target.

Other Nevada Projects

The Company has staked two copper projects in the prolific Walker Lane Mineral Belt known for its economic porphyry, skarn and IOCG type copper-gold deposits.

The Strike Copper Project lies approximately 225km southeast of Reno, Nevada and comprises six claims covering an area of outcropping oxide-copper mineralisation exposed in a number of prospector workings and bulldozer trenches over an area approximately 800m x 250m. Analytical results show an average copper content of 0.71% copper from grab samples containing up to 2.64% copper and chip samples of e.g. 1.8m grading 3.14% copper and 6.0m grading 0.70% copper in trenches approximately 300m apart. These results are consistent with the historical record which refers to a single drill hole which intersected 30m at 0.98% copper in the first 30m from surface.

The results justify drill testing and a programme of soil geochemistry is now planned to better define drill targets.

At the Garfield Gold, Silver & Copper Project twenty-four lode claims covering an area of 2 sq. km. have been staked 10km west of the town of Hawthorne in southern Nevada.

The claims centre on a small outcrop of gossan found by the Company during a reconnaissance sampling programme, a sample of which assayed 6% copper, 3.5 grams/tonne gold and 4 ounces/tonne silver. The extent and significance of this mineralisation is currently unknown due to the extensive cover of scree from surrounding hills but the mineralisation does not appear to have been drill tested and presents a target for follow up.

Risks & Uncertainties

The Board regularly reviews the risks to which the Group is exposed and ensures through its meetings and regular reporting that these risks are minimised as far as possible.

The principal risks and uncertainties facing the Group at this stage in its development and in the foreseeable future are detailed below together with risk mitigation strategies employed by the Board.

Forward Looking Statements

This Annual Report contains certain forward looking statements that have been made by the directors in good faith based on the information available at the time of the approval of the Annual Report. By their nature, such forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Actual results may differ from those expressed in such statements

Corporate Responsibility

The Board takes regular account of the significance of social, environmental and ethical matters affecting the business of the Group. At this stage in the Group's development the Board has not adopted a specific policy on Corporate Social Responsibility as it has a limited pool of stakeholders other than its shareholders. Rather, the Board seeks to protect the interests of the Group's stakeholders through individual policies and through ethical and transparent actions.

Shareholders

As set out above, the Board seeks to protect shareholders' interests by following, where appropriate, the guidelines in the UK Corporate Governance Code and the directors are always prepared, where practicable, to enter into a dialogue with shareholders to promote a mutual understanding of objectives. The Annual General Meeting provides the Board with an opportunity to informally meet and communicate directly with investors.

Environment

The Board recognises that its principal activity, mineral exploration, has potential to impact on the local environment and consequently has adopted an Environmental Policy to ensure that the Group's activities have minimal environmental impact. Where appropriate the Group's contracts with suppliers and contractors legally bind those suppliers and contractors to do the same.

The Group's activities carried out in accordance with Environmental Policy have had only minimal environmental impact and this policy is regularly reviewed. Where appropriate, all work is carried out after advance consultation with affected parties.

Employees

The Group engages its employees to understand all aspects of the Group's business and seeks to remunerate its employees fairly, being flexible where practicable. The Group gives full and fair consideration to applications for employment received regardless of age, gender, colour, ethnicity, disability, nationality, religious beliefs, transgender status or sexual orientation. The Board takes account of employees' interests when making decisions and suggestions from employees aimed at improving the Group's performance are welcomed.

The Company has adopted an Anti-corruption Policy and Code of Conduct.

Suppliers and Contractors

The Group recognises that the goodwill of its contractors, consultants and suppliers is important to its business success and seeks to build and maintain this goodwill through fair dealings. The Group has a prompt payment policy and seeks to settle all agreed liabilities within the terms agreed with suppliers. The amount shown in the Consolidated and Company Statement of Financial Position in respect of trade payables at the end of the financial year represents 8 days of average daily purchases (2013: 2 days).

Health and Safety

The Board recognises it has a responsibility to provide strategic leadership and direction in the development of the Group's health and safety strategy in order to protect all of its stakeholders. The Company has developed a health and safety policy to clearly define roles and responsibilities and in order to identify and manage risk.

This Strategic Report was approved by the Board of Directors on 10 December 2014 and signed on its behalf.

Patrick L Cheetham

Executive Chairman

Board of Directors

The Directors and Officers of the Company are:

Patrick Cheetham

Executive Chairman

Independent: No

Key Strengths

· Founding director

· Mining geologist with 33 years' experience in mineral exploration

· 28 years in public company management

Appointed: March 2005

Committee Memberships: Chairman of Nomination Committee

External Commitments: Executive Chairman Tertiary Minerals plc

Francis Johnstone

Senior Non-Executive Director

Independent: Not under UK Corporate Governance Code by virtue of long service and by virtue of his holding of warrants to subscribe for shares in Company

Key Strengths

· Founding director

· 20 years commercial experience in mining

· Past director of several public listed mining companies including Commercial Director of Ridge Mining plc

Appointed: March 2005

Committee Memberships: Chairman of the Remuneration Committee, Member Audit & Nomination Committees

External Commitments: Adviser to Baker Steel Resources Trust Limited. Director of Mysterybelle Ltd.

David Swan

Non-Executive Director

Independent: Not under UK Corporate Governance Code by virtue of his holding of warrants to subscribe for shares in Company

Key Strengths

· Chartered Accountant with career focus in natural resources industry

· Past executive director of several public listed mining companies including Oriel Resources plc

Appointed: May 2012

Committee Memberships: Chairman of the Audit Committee, Member Remuneration & Nomination Committees

External Commitments: Non-executive director of Central Asia Metals plc

Colin Fitch LLM, FCIS,

Company Secretary

Key Strengths

· Barrister-at-Law

· Previously Corporate Finance Director of Kleinwort Benson

· Previously held a number of non-executive directorships of public and private companies, including Merrydown Plc, African Lakes plc and Manders plc

Appointed: October 2006

External Commitments: Company Secretary for Tertiary Minerals plc

Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the Group and Company financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Company and of the profit or loss of the Group for that period. The directors are also required to prepare financial statements in accordance with the AIM rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market.

In preparing these financial statements, the directors are required to:

· select suitable accounting policies and then apply them consistently;

· make judgements and accounting estimates that are reasonable and prudent;

· state whether they have been prepared in accordance with IFRSs as adopted by the European Union, subject to any material departures disclosed and explained in the financial statements; and

· prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company and the Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Website publication

The directors are responsible for ensuring the Annual Report and the financial statements are made available on a website. Financial statements are published on the Company's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Company's website is the responsibility of the directors. The directors' responsibility also extends to the ongoing integrity of the financial statements contained therein.

Information From Directors' Report

The directors are pleased to submit their Annual Report and audited accounts for the year ended 30 September 2014.

The Strategic Report contains details of the principal activities of the Company and includes the Operating Review which provides detailed information on the development of the Group's business during the year and indications of likely future developments.

Going Concern

In common with many exploration companies, the Company raises finance for its exploration and appraisal activities in discrete tranches, as and when required. When any of the Company's projects move to the development stage, specific project financing will be required.

The directors prepare annual budgets and cash flow projections that extend beyond 12 months from the date of this report. These projections include the proceeds of future fundraising and planned discretionary project expenditures necessary to maintain the Group and Company as going concerns. Although the Company has been successful in raising finance in the past, there is no assurance that it will obtain adequate finance in the future. However, the directors have a reasonable expectation that they will secure additional funding when required to continue meeting corporate overheads and exploration costs for the foreseeable future and therefore believe that the "going concern" basis is appropriate for the preparation of the financial statements. For further information see Note 1(b).

Dividend

The directors are unable to recommend the payment of any ordinary dividend.

Financial Instruments and Other Risks

The business of mineral exploration and evaluation has inherent risks. Details of the Group's financial instruments and risk management objectives and of the Group's exposure to risk associated with its financial instruments is given in Note 19 to the financial statements.

Details of risks and uncertainties that affect the Group's business are given in the Strategic Report..

Directors

The directors holding office in the period were:

Mr P L CheethamMr F P H JohnstoneMr D J Swan

Shareholders

As at the date of this report the following interests of 3% or more in the issued share capital of the Company appeared in the register.

Accounting Policies

The financial statements have been prepared on the basis of the recognition and measurement requirements of International Financial Reporting Standards (IFRS), as adopted by the European Union, and their interpretations adopted by the International Accounting Standards Board (IASB). They have also been prepared in accordance with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. Further details of the Group's accounting policies can be found in Note 1 of the financial statements.

Disclosure of Audit Information

Each of the directors has confirmed that so far as he is aware, there is no relevant audit information of which the Company's Auditor is unaware, and that he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Company's Auditor is aware of that information.

Auditor

Following a competitive tender, the Company has appointed Crowe Clark Whitehill LLP as its Auditor and a resolution to reappoint them as Auditor of the Company and the Group will be proposed at the forthcoming Annual General Meeting.

Suppliers and Contractors

Details of the Group's policy and payment of creditors is disclosed in the Strategic Report under Corporate Responsibility. This policy will continue unchanged in the next financial year.

Charitable and Political Donations

During the year, the Group made no charitable or political donations.

Annual Report

Copies of the 2014 Sunrise Resources plc Annual Report will be published and sent to shareholders in due course and will be available from the Company's Registered Office and from the Company's Nominated Adviser, Northland Capital Partners Limited, 131 Finsbury Pavement, London EC2A 1NT and also on the Company's website: www.sunriseresourcesplc.com.

Annual General Meeting

Notice of the Company's Annual General Meeting will be sent to shareholders with the 2014 Annual Report.

Corporate Governance

The Company is committed to high standards of corporate governance and the Board seeks to comply with the principles of the UK Corporate Governance Code ("the Code"), insofar as they are appropriate to the Company at this stage in its development.

The Board of Directors currently comprises the combined role of chairman and chief executive and two non-executive directors. The Board considers that this structure is suitable for the Company having regard to the fact that it is not yet revenue-earning. However, it is the policy of the Board to separate these roles in future and to strengthen the executive Board as projects are developed and financial resources permit.

Mr F P H Johnstone has served the Company for more than nine years and under the terms of the Code cannot now be regarded as independent. Consequently it is proposed that he now seeks annual re-election rather than re-election every third year, as stated in the Articles of Association. The Company has been fortunate enough to secure the services of Mr Johnstone during that time and he continues to provide valuable advice based on his long experience of the mining industry.

The Board is aware of the need to refresh its membership from time to time and will consider appointing additional independent non-executive directors in the future.

Role of the Board

The Board's role is to agree the Group's long term direction and strategy and monitor achievement of its business objectives. The Board meets four times a year for these purposes and holds additional meetings when necessary to transact other business. The Board receives reports for consideration on all significant strategic and operational matters.

The non-executive directors are not considered under the terms of the Code to be independent directors by virtue of their long service or their holding of warrants to subscribe for shares in the Company. However they are considered by the board to be free from any other business or relationship, which could materially interfere with the exercise of their independent judgement. Directors have the facility to take external independent advice in furtherance of their duties at the Group's expense and have access to the services of the Company Secretary.

The Board delegates certain of its responsibilities to the Audit, Remuneration and Nomination Committees of the Board. These Committees operate within clearly defined terms of reference.

Audit Committee

The Audit Committee, composed entirely of non-executive directors, assists the Board in meeting responsibilities in respect of external financial reporting and internal controls. The Audit Committee also keeps under review the scope and results of the audit. It also considers the cost effectiveness, independence and objectivity of the auditor taking account of any non-audit services provided by them. Mr Swan is Chairman of the Audit Committee.

Remuneration Committee

The Remuneration Committee also comprises the non-executive directors. Mr Johnstone is Chairman of the Remuneration Committee. The Company does not currently remunerate any of the directors other than in a non-executive capacity. Whilst the Chairman of the Board, Patrick Cheetham, does have an executive role, his services are provided under a general service agreement with Tertiary Minerals plc.

The Company issues share warrants to directors and to the staff of Tertiary Minerals plc who are engaged in the management of the activities of the Company. The Company's policy on the issue of such warrants is that outstanding warrants should not in aggregate exceed 10% of the issued capital of the Company from time to time. Details of directors' warrants are disclosed in Note 16.

Nomination Committee

A Nomination Committee was formed in November 2011 and comprises the Chairman and the non-executive directors. Mr Cheetham is Chairman of the Nomination Committee. The Nomination Committee meets at least once per year to lead the formal process of rigorous and transparent procedures for board appointments and to make recommendations to the Board in accordance with the requirements of the Code and other applicable rules and regulations, insofar as they are appropriate to the Group at this stage in its development.

Conflicts of Interest

The Companies Act 2006 permits directors of public companies to authorise directors' conflicts and potential conflicts, where appropriate, where the Articles of Association contain a provision to this effect. The Company's Articles contain such a provision.

Procedures are in place in order to avoid any conflict of interest between the Company and Tertiary Minerals plc, which held 9.52% of the Company's issued share capital at 30 September 2014. Tertiary Minerals provides management services to Sunrise Resources in the search, evaluation and acquisition of new projects. 

Publication of Statutory Accounts

The financial information set out in this announcement does not constitute the Company's Statutory Accounts for the period ended 30 September 2014 or 2013. The financial information for 2013 is derived from the Statutory Accounts for 2013. Full audited accounts in respect of that financial period have been delivered to the Registrar of Companies. The Statutory Accounts for 2014 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. The auditors have reported on the 2014 and 2013 accounts. Neither set of accounts contain a statement under section 498(2) or (3) the Companies Act 2006 and both received an unqualified audit opinion. However there was an emphasis of matter in relation to a requirement that the Company raise funds in the future to continue as a going concern.

Consolidated Income Statement

for the year ended 30 September 2014

All amounts relate to continuing activities.

Consolidated Statement of Comprehensive Income

for the year ended 30 September 2014

Consolidated and Company Statements of Financial Position

at 30 September 2014

Company Registration Number: 05363956

These financial statements were approved and authorised for issue by the Board of Directors on 10 December 2014 and were signed on its behalf.

P L Cheetham D J Swan

Executive Chairman Director

Consolidated and Company Statements of Changes in Equity

Consolidated and Company Statements of Cash Flows

for the year ended 30 September 2014

Notes to the Financial Statements

for the year ended 30 September 2014

Background

Sunrise Resources plc is a public company incorporated and domiciled in England. It is traded on the AIM market of the London Stock Exchange - EPIC: SRES.

The Company is a holding company (together, "the Group") for one company incorporated in Australia, and one company incorporated in Nevada, in the United States of America. The Group's financial statements are presented in Pounds Sterling (£) which is also the functional currency of the Company.

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Group's financial statements.

1. Accounting policies

(a) Basis of preparation

The financial statements have been prepared on the basis of the recognition and measurement requirements of International Financial Reporting Standards (IFRS), as adopted by the European Union. They have also been prepared in accordance with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

(b) Going concern

In common with many exploration companies, the Company raises finance for its exploration and appraisal activities in discrete tranches. Further funding is raised as and when required. When any of the Group's projects move to the development stage, specific project financing will be required.

The directors prepare annual budgets and cash flow projections that extend beyond 12 months from the date of this report. These projections include the proceeds of future fundraising necessary within the next 12 months to meet the Company's and Group's overheads and planned discretionary project expenditures and to maintain the Company and Group as going concerns. Although the Company has been successful in raising finance in the past, there is no assurance that it will obtain adequate finance in the future. This represents a material uncertainty related to events or conditions which may cast significant doubt on the Group and Company's ability to continue as going concerns and, therefore, that they may be unable to realise their assets and discharge its liabilities in the normal course of business. However, the directors have a reasonable expectation that they will secure additional funding when required to continue meeting corporate overheads and exploration costs for the foreseeable future and therefore believe that the going concern basis is appropriate for the preparation of the financial statements.

(c) Basis of consolidation

Investments, including long term loans, in the subsidiary are valued at the lower of cost or recoverable amount, with an ongoing review for impairment.

The Group's financial statements consolidate the financial statements of Sunrise Resources plc and its subsidiary undertakings using the acquisition method and eliminate intercompany balances and transactions.

In accordance with section 408 of the Companies Act 2006, Sunrise Resources plc is exempt from the requirement to present its own statement of comprehensive income. The amount of the loss for the financial year recorded within the financial statements of Sunrise Resources plc is £655,532 (2013: £904,154).

 (d) Intangible assets

Exploration and evaluation

Accumulated exploration and evaluation costs incurred in relation to separate areas of interest (which may comprise more than one exploration licence or exploration licence applications) are capitalised and carried forward where:

(1) such costs are expected to be recouped through successful exploration and development of the area, or alternatively by its sale; or

(2) exploration and/or evaluation activities in the area have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to the areas are continuing.

A bi-annual review is carried out by the directors to consider whether any exploration and development costs have suffered impairment in value and, if necessary, provisions are made according to this criteria. The bi-annual impairment review was conducted in March 2014 and September 2014.

Accumulated costs where the Group does not yet have an exclusive exploration licence and in respect of areas of interest which have been abandoned, are written off to the income statement in the year in which the pre-licence expense was incurred or in which the area was abandoned.

Development

Exploration, evaluation and development costs are carried at the lower of cost and expected net recoverable amount. On reaching a mining development decision, exploration and evaluation costs are reclassified as development costs and all development costs on a specific area of interest will be amortised over the useful economic life of the projects, once they become income generating, and the costs can be recouped.

(e) Trade and other receivables and payables

Trade and other receivables and payables are measured at initial recognition at fair value and subsequently measured at amortised cost.

(f) Cash and cash equivalents

Cash and cash equivalents consist of cash at bank and in hand and short term bank deposits with a maturity of three months or less.

(g) Deferred taxation

Deferred taxation, if applicable, is provided in full in respect of taxation deferred by temporary differences between the treatment of certain items for taxation and accounting purposes.

Deferred tax assets are recognised to the extent that they are regarded as recoverable.

(h) Foreign currencies

The Group's consolidated financial statements are presented in Pounds Sterling (£), being the functional currency of the Company, and the currency of the primary economic environment in which the Company operates. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date.

For consolidation purposes, the net investment in foreign operations and the assets and liabilities of overseas subsidiaries, associated undertakings and joint arrangements, that have a functional currency different from the Group's presentation currency, are translated at the closing exchange rates. Income statements of overseas subsidiaries, that have a functional currency different from the Group's presentation currency, are translated at exchange rates at the date of transaction. Exchange differences arising on these transactions are taken to the foreign currency reserve.

(i) Share based payments

The Company issues warrants and options to employees (including directors) and third parties. For all options and warrants issued after 7 November 2002 the fair value of the services received is recognised as a charge on the date of grant and determined in accordance with IFRS 2, adopting the Black-Scholes-Merton model. The fair value is charged/(credited) to the following areas of the financial statements as appropriate:

a) administrative expenses;

b) intangible assets;

c) equity.

The charge is incurred on a straight line basis over the vesting period, based on the management's estimate of shares that will eventually vest. The expected life of the options and warrants is adjusted based on management's best estimates, for the effects of non-transferability, exercise restrictions and behavioural considerations. The details of the calculation are shown in Note 15.

The Company also issues shares in order to settle certain liabilities, including payment of fees to directors. The fair value of shares issued is based on the closing mid-market price of the shares on the AIM Market on the day prior to the date of settlement and it is expensed on the date of settlement with a corresponding increase in equity.

(j) Judgements and estimations in applying accounting policies

In the process of applying the Group's accounting policies above, management has identified the judgemental areas that have the most significant effect on the amounts recognised in the financial statements:

Intangible fixed assets - exploration and evaluation

Capitalisation of exploration and evaluation costs requires that costs be assessed against the likelihood that such costs will be recoverable against future exploitation or sale or alternatively, where activities have not reached a stage which permits a reasonable estimate of the existence of mineral reserves, a judgement that future exploration or evaluation should continue. This requires management to make estimates and judgements and to make certain assumptions, often of a geological nature, and most particularly in relation to whether or not an economically viable mining operation can be established in future. Such estimates, judgements and assumptions are likely to change as new information becomes available. When it becomes apparent that recovery of expenditure is unlikely the relevant capitalised amount is written off to the income statement.

Impairment

Impairment reviews for deferred exploration and evaluation costs are carried out on a project by project basis, with each project representing a potential single cash generating unit. The Group will look to evidence produced by its exploration activities to indicate whether the carrying value is impaired. Assessment of the impairment of assets is a judgement based on analysis of the future likely cash flows from the relevant project, including consideration of:

(a) the period for which the entity has the right to explore in the specific area has expired during the period or will expire in the near future, and is not expected to be renewed.

(b) substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned.

(c) exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area.

(d) sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale.

Impairment reviews for investments are carried out on an individual basis. The Group will look to performance indicators of the investment, such as market share price, to indicate whether the carrying value is impaired.

 Going concern

The preparation of financial statements requires an assessment of the validity of the going concern assumption. The validity of the going concern assumption is dependent on finance being available for the continuing working capital requirements of the Group. Based on the assumption that such finance will become available, the directors believe that the going concern basis is appropriate for these accounts.

Share based payments

The estimates of share based payments costs requires that management selects an appropriate valuation model and make decisions on various inputs into the model including the volatility of its own share price, the probable life of the options before exercise, and behavioural consideration of employees.

(k) Standards, amendments and interpretations not yet effective

The International Accounting Standards Board ("IASB") and IFRIC have issued the following amendments, none of which have been applied in the consolidated financial information on the basis that their effective dates fall in subsequent periods.

The directors do not anticipate that adoption of the above standards or interpretations will have a material impact on the financial statements in the year of initial adoption.

The directors do not anticipate that adoption of the above standards or interpretations will have a material impact on the financial statements in the year of initial adoption.

2. Segmental analysis

The Chief Operating Decision Maker is the Board of Directors. The Board considers the business has one reportable segment, the management of exploration projects, which is supported by a Head Office function. For the purpose of measuring segmental profits and losses the exploration segment bears only those direct costs incurred by or on behalf of those projects, no Head Office cost allocations are made to this segment. The Head Office function recognises all other costs.

3. Loss on ordinary activities before taxation

4. Directors' emoluments

The directors are also the key management personnel.

The above remuneration amounts do not include non-cash share based payments charged in these financial statements in respect of warrants issued to the directors amounting to £15,419 (2013: £22,364) or Employer's National Insurance Contributions of £3,671 (2013: £1,605)

Patrick Cheetham is also a director of Tertiary Minerals plc and under the terms of the management services agreement (see Note 5) a total of £82,918 was charged to the Company for his services during the year (2013: £49,742). These services are provided at cost.

5. Staff costs

The Company does not employ any staff directly apart from the directors, as shown in Note 4. The services of technical and administrative staff are provided by Tertiary Minerals plc as part of the Management Services Agreement between the two companies. The Company issues warrants to Tertiary Minerals plc staff from time to time and these non-cash share based payments resulted in a charge within the financial statements of £4,196 (2013: £7,898).

6. Loss per share

Loss per share has been calculated using the loss for the year attributable to equity holders of the parent and the weighted average number of shares in issue during the year.

The loss attributable to ordinary shareholders and weighted average number of ordinary shares for the purpose of calculating the diluted earnings per ordinary share are identical to those used for the basic earnings per ordinary share. This is because the exercise of share warrants would have the effect of reducing the loss per ordinary share and is therefore anti-dilutive.

7. Taxation on ordinary activities

No liability to corporation tax arises for the year due to the Group recording a taxable loss (2013: £nil).

The tax credit for the period is lower than the credit resulting from the loss before tax at the standard rate of corporation tax in the UK - 21% (2013: 23%). The differences are explained below.

Factors that may affect future tax charges

The Group has total losses carried forward of £3,494,141 (2013: £3,428,725). This amount would be charged to tax if sufficient profits were made in the future. The deferred tax asset has not been recognised as the future recovery is uncertain given the exploration status of the Group. The carried tax loss is adjusted each year for amounts that can no longer be carried forward.

8. Investments

Subsidiary undertakings

Sunrise Minerals Australia Pty. Ltd. was incorporated in Australia on 7 October 2009, to facilitate the application for exploration licences in Western Australia.

SR Minerals Inc. was incorporated in Nevada, USA on 12 January 2014 to facilitate the application for mining claims in the USA.

9. Intangible assets

As part of the annual impairment review of asset carrying values a charge of £278,122 was recorded in relation to the Derryginagh Barite project and £3,170 in relation to two Finland projects. During the year the Group carried out an impairment review which resulted in an impairment charge being recognised in the consolidated Income Statement as part of other operating expenses. Refer to accounting policy 1(j) for a description of the assumptions used in the impairment review.

10. Property, plant and equipment

The Group has the use of tangible assets held by Tertiary Minerals plc as part of the management services agreement between the two companies.

11. Receivables

12. Cash and cash equivalents

13. Trade and other payables

14. Share capital

During the year to 30 September 2014 the following share issues took place:

An issue of 7,254,266 0.1p ordinary shares at 0.5p per share to Tertiary Minerals plc, for a total consideration of £36,271 (6 November 2013), by way of settlement of an invoice issued to Sunrise Resources plc for management fees.

An issue of 1,699,640 0.1p ordinary shares at 0.55p per share to the three directors, for a total consideration of £9,348 (10 January 2014), in satisfaction of directors' fees.

An issue of 116,666,664 0.1p ordinary shares at 0.45p per share, by way of placing, for a total consideration of £487,716 net of expenses (28 March 2014).

An issue of 1,709,055 0.1p ordinary shares at 0.425p per share to the three directors, for a total consideration of £7,264 (19 August 2014), in satisfaction of directors' fees.

During the year to 30 September 2013 a total of 10,745,190 0.1p ordinary shares were issued, at an average price of 0.5pper share, for a total consideration of £56,650.

15. Warrants and options granted

Unexercised warrants

Warrants and Options are issued for nil consideration and are exercisable as disclosed above. They are exchangeable on a one for one basis for each ordinary share of 0.1p at the exercise price on the date of conversion.

On 22 September 2014 the Company extended the warrant expiry dates by three months of unexercised warrants issued in years 2008 to 2012 due to the proximity of a Close Period to the original expiry date. Certain of these warrants have an earlier expiry date due to employees' termination of employment.

15. Warrants and options granted

Share based payments

The Company issues warrants and options on varying terms and conditions.

Details of the share warrants and options outstanding during the year are as follows:

The warrants and options outstanding at 30 September 2014 had a weighted average exercise price of 0.83p and a weighted average remaining contractual life of 1.63 years.

In the year ended 30 September 2014 warrants were granted on 14 January 2014 to directors of the Company and employees of Tertiary Minerals plc with an estimated fair value of £16,014 and on 31 March 2014 in connection with a placing of shares with an estimated fair value of £111,981.

In the year to 30 September 2014, the Company recognised total expenses of £127,996 (2013: £94,109) related to equity-settled share based payment transactions, being the aggregate of the estimated fair values of the warrants granted.

In the year to 30 September 2014 the Company made a transfer from Share Option Reserve to Accumulated Losses of £101,852 (2013 : Nil) in recognition of a reversal of previous charges arising from expired unexercised warrants.

No options were granted in the year ended 30 September 2014 or the year ended 30 September 2013.

In the year ended 30 September 2014 no warrants were exercised.

The inputs into the Black-Scholes-Merton Option Pricing Model are as follows:

Expected volatility was determined by calculating the historical volatility of the Company's share price over the previous 4 years. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.

16. Related party transactions

Key management personnel

The directors holding office at the year end and their beneficial interests in the share capital of the Company are:

*Includes 5,500,000 shares held by K E Cheetham, wife of P L Cheetham.

Tertiary Minerals plc

Sunrise Resources plc is treated as an investment in the consolidated accounts of Tertiary Minerals plc, which held 9.52% of the issued share capital on 30 September 2014 (2013: 8.75%).

Tertiary Minerals plc provides management services to Sunrise Resources plc and consequently during the year the Group incurred costs of £163,136 (2013: £134,277) recharged from Tertiary Minerals being shared overheads of £23,671 (2013: £22,977), costs paid on behalf of the Group of £11,816 (2013: £5,802), Tertiary staff salary costs of £44,207 (2013: £52,583) and Tertiary directors' salary costs of £83,442 (2013: £52,915).

At the balance sheet date an amount of £50,050 (2013: £43,157) was due to Tertiary Minerals plc, which was repaid in November 2014.

Patrick Cheetham, the Chairman of the Company is also a director of Tertiary Minerals plc. Donald McAlister, a director of Tertiary Minerals plc, holds 550,000 shares in the Company at 30 September 2014 and at the date of this report.

17. Post Balance Sheet Event

On 6 November 2014 Sunrise Resources issued a further 5,011,388 new ordinary shares to Tertiary Minerals plc in settlement of management fees in the amount of £21,298. As a result, Tertiary Minerals' interest in the Share Capital of the Company increased to 10.41%.

18. Capital management

The Group's capital requirements are dictated by its project and overhead funding requirements from time to time. Capital requirements are reviewed by the Board on a regular basis.

The Group manages its capital to ensure that entities within the Group will be able to continue as going concerns, to increase the value of the assets of the business and to provide an adequate return to shareholders in the future when exploration assets are taken into production.

The Group manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of its assets. In order to maintain or adjust the capital structure the possibilities open to the Group in future include issuing new shares, consolidating shares, returning capital to shareholders, taking on debt, selling assets and adjusting the amount of dividends paid to the shareholders.

19. Financial instruments

At 30 September 2014, the Group and Company's financial assets consisted of receivables due within one year and cash at bank. At the same date, the Group and Company had no financial liabilities other than trade and other payables due within one year and had no agreed borrowing facilities as at this date. There is no material difference between the carrying and fair values of the Group and Company's financial assets and liabilities.

The carrying amounts for each category of financial instrument held at 30 September 2014, as defined in IAS 39, are as follows:

Risk management

The principal risks faced by the Group and Company resulting from financial instruments are liquidity risk, foreign currency risk and, to a lesser extent, interest rate risk and credit risk. The directors review and agree policies for managing each of these risks as summarised below. The policies have remained unchanged from previous periods as the risks are assessed not to have changed.

Liquidity risk

The Group currently holds cash balances in Sterling, US Dollars, Australian Dollars, Canadian Dollars and the Euro to provide funding for exploration and evaluation activity, whilst the Company holds cash balances in Sterling, US Dollars, Canadian Dollars and Euros. The Company is dependent on equity fundraising through private placings which the directors regard as the most cost effective method of fundraising. The directors monitor cash flow in the context of their expectations for the business to ensure sufficient liquidity is available to meet foreseeable needs.

Currency risk

The Group's financial risk management objective is broadly to seek to make neither profit nor loss from exposure to currency or interest rate risks. The Group is exposed to transactional foreign exchange risk and takes profits and losses as they arise, as in the opinion of the directors, the cost of hedging against fluctuations would be greater than the related benefit from doing so. Fluctuations in the exchange rate are not expected to have a material effect on reported loss or equity.

19. Financial instruments

Interest rate risk

The Company finances operations through equity fundraising and therefore does not carry borrowings.

Fluctuating interest rates have the potential to affect the loss and equity of the Group and the Company in-so-far as they affect the interest paid on financial instruments held for the benefit of the Group. The directors do not consider the effects to be material to the reported loss or equity of the Group or the Company presented in the financial statements.

Credit risk

The Company has exposure to credit risk through receivables such as VAT refunds, invoices issued to related parties and its joint arrangements for management charges. The amounts outstanding from time to time are not material other than for VAT refunds which are considered by the directors to be low risk.

The Company has exposure to credit risk in respect of its cash deposits with NatWest bank and this exposure is considered by the directors to be low risk.

Company Information

Sunrise Resources plc (AIM - EPIC: SRES)

Company No. 05363956