Sunrise Res Regulatory News (SRES)

HALF-YEARLY REPORT

Sunrise Resources plc ("the Company") announces its unaudited interim results for the six months ended 31 March 2017.

Operational Highlights (covering the period and up to date of this report)

CS Pozzolan-Perlite Project, Nevada, USA

· Successful independent certification testing of Main Zone pozzolan.

· Positive Concept Study completed by the Company for production of both pozzolan and perlite.

· Surface mining and simple production process envisaged.

· Preliminary modelling by the Company shows attractive financial returns based on low capital and operating cost estimates.

County Line Diatomite Project, Nevada, USA

· EP Minerals, LLC withdrew from lease agreement, without conducting permitted drill programme.

Board Strategic Review

· Board to focus current management and financial resources on development of CS Project into production and other natural pozzolan opportunities.

· Board to seek progressive valorisation of the Company's existing precious metal and other industrial mineral projects through joint venture, sale or other arrangements.

Results Summary

Loss

Group loss for the six month period of £162,869 (six months to 31 March 2016: £149,534) comprising:

· Interest income of £61; less

· Administration costs of £134,741; and

· Expensed exploration costs totalling £14,851; and

· Impairment of available for sale investment of £13,338.

Funding

· On 15 November 2016, 11,887,558 new Ordinary Shares were issued at a price of 0.19p per share to Tertiary Minerals plc, in partial settlement of invoices for management and services fees, totalling £22,586.

· On 24 January 2017, a total of £60,580 (before expenses) was raised through the issue of 60,580,000 new Ordinary Shares by way of a placing and subscription at a price of 0.1 pence per share.

· On 1 February 2017, 22,332,230 new Ordinary Shares were issued at a price of 0.135p per share to Tertiary Minerals plc, in partial settlement of invoices for management and services fees, totalling £30,149.

· On 7 March 2017, a total of £250,000 (before expenses) was raised through the issue of 250,000,000 new Ordinary Shares by way of a placing at a price of 0.1p per share.

· After the period end, on 3 April 2017, 14,305,500 new Ordinary Shares were issued at a price of 0.11p per share to the three directors in settlement of directors' fees totalling £15,736, net of tax.

Further information

Chairman's Statement

In the last six month reporting period, our attention has been largely dedicated to the Pozz Project and in particular the CS Project in Nevada. The Pozz Project is an umbrella project covering our search for deposits of natural pozzolan.

Pozzolans are cementitious materials that can be used in partial replacement for Portland cement in cement and concrete mixes. Pozzolans, and natural pozzolans in particular, have strong "green" credentials as the manufacture of Portland cement is responsible for 5% of global man-made CO2 emissions.

The Pozz Project is motivated by the market opportunity we see for natural pozzolan which is being driven by cement companies' imperative to reduce CO2 emissions and, in the western USA at least, by shortages of fly ash, an industrial by-product pozzolan produced by coal-fired power plants in the USA. With nearly half of US coal-fired power stations now scheduled to close due to competition from low-cost natural gas and more stringent environmental obligations, the supply of fly ash to the western USA is already precarious and predicted to become critical in the coming years, opening up an already expanding market for natural pozzolan. Our aim is to become part of the solution to this problem by seeking to develop the CS and other natural pozzolan projects.

The CS Project contains areas of both perlite and natural pozzolan and has advanced considerably this last six months. Testwork is progressing well and shows that the perlite samples are very high quality for various industrial applications and we have just received the first independent certification of the pozzolan. More significantly, we have recently completed a positive Concept Study for development of the CS Project which has identified a low capital cost development option with attractive returns on the production of both natural pozzolan and perlite.

We will now move quickly to initiate the necessary technical work, feasibility studies and start the permitting process. Various value adding marketing and technical milestones have been identified and we hope to move forward with bulk sampling and customer trials towards the end of this year.

We are excited by this focus on growth markets for natural pozzolan and perlite in the Western USA.

Turning to our other projects, much of the work undertaken on our precious metal portfolio took part in the first quarter and has been covered in some detail in the Operating Review in our 2016 Annual Report released in December 2016.

Our investment in Block Energy plc (formerly Goldcrest Resources Plc) was affected by its share consolidation and fundraisings during this reporting period but we are pleased to see that the Company is now looking to list on AIM following the acquisition of various oil and gas interests in Georgia and we look forward to benefiting from this investment in due course.

In February this year we were disappointed to receive notice from EP Minerals, LLC withdrawing from its lease on our County Line Diatomite Project. EP Minerals did not carry out all of the work that it planned and permitted and so was not, we believe, in any position to make an informed decision on the payment to us of the advance royalty that our agreement required.

Despite this, with our progress at the CS Project, we have taken further steps during this reporting period towards our objective to generate cash flow from our industrial mineral projects and, as a result, the Board has been able to refine the Company's strategy and bring its focus into sharper relief.

The Board has resolved to concentrate both management time and expenditure on the CS Project and to advance this towards production as soon as possible. As a result, we will look to unlock the value inherent in our other project interests through joint venture, sale or other arrangements, with any funds released being applied to progress our pozzolan and perlite strategy.

In closing, I would like to thank my fellow directors who continue to demonstrate their faith in the Company by taking their rather modest fees in shares and to thank those shareholders who continue to support the Company. I look forward to reporting further progress.

Patrick Cheetham

Executive Chairman

22 May 2017

Consolidated Income Statement

for the six months to 31 March 2017

Consolidated Statement of Comprehensive Income

for the six months to 31 March 2017

Consolidated Statement of Financial Position

as at 31 March 2017

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

for the six months to 31 March 2017

Notes to the Interim Statement

1. Basis of preparation

The consolidated interim financial information has been prepared in accordance with the accounting policies that are expected to be adopted in the Group's full financial statements for the year ending 30 September 2017 which are not expected to be significantly different to those set out in Note 1 of the Group's audited financial statements for the year ended 30 September 2016. These are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU) or that are expected to be adopted and effective at 30 September 2017. The financial information has not been prepared (and is not required to be prepared) in accordance with IAS 34. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of this financial information.

The financial information in this statement relating to the six months ended 31 March 2017 and the six months ended 31 March 2016 has neither been audited nor reviewed by the Auditors pursuant to guidance issued by the Auditing Practices Board. The financial information presented for the year ended 30 September 2016 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for the year ended 30 September 2016 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for the year ended 30 September 2016 was unqualified, although did draw attention to matters by way of emphasis in relation to going concern, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

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 planned discretionary project expenditures and to maintain the Company and Group as a going concern. 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 entity's ability to continue as a going concern and, therefore, that it may be unable to realise its 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.

2. Loss per share

Loss per share has been calculated on the attributable loss for the period and the weighted average number of shares in issue during the period.

The loss attributable to ordinary shareholders and weighted average number of shares for the purpose of calculating the diluted earnings per share are identical to those used for the basic earnings per share. This is because the exercise of share warrants would have the effect of reducing the loss per share and is therefore not dilutive under the terms of IAS33.

3. Share capital

During the six months to 31 March 2017 the following share issues took place:

An issue of 11,887,558 Ordinary Shares at 0.190p per share to Tertiary Minerals plc (a Related Party), for a total consideration of £22,586, by way of partial settlement of invoices issued to Sunrise Resources plc for management and services fees (15 November 2016).

An issue of 60,580,000 Ordinary Shares at 0.100p per share, by way of placing and subscription, for a total consideration of £60,580 before expenses (24 January 2017).

An issue of 22,332,230 Ordinary Shares at 0.135p per share to Tertiary Minerals plc (a Related Party), for a total consideration of £30,149, by way of partial settlement of invoices issued to Sunrise Resources plc for management and services fees (1 February 2017).

An issue of 250,000,000 Ordinary Shares at 0.100p per share, by way of placing, for a total consideration of £250,000 before expenses (7 March 2017).

4. Event after the balance sheet date

An issue of 14,305,500 Ordinary Shares at 0.110p per share to the three directors, for a total consideration of £15,736, in satisfaction of directors' fees (3 April 2017).

5. Interim report

Copies of this interim report are available from Sunrise Resources plc, Silk Point, Queens Avenue, Macclesfield, Cheshire SK10 2BB, United Kingdom. It is also available on the Company's website at www.sunriseresourcesplc.com.