Sunrise Res Regulatory News (SRES)

(the "Company")

HALF-YEARLY REPORT

Sunrise Resources plc, the AIM-traded company focusing on the development of its CS Pozzolan-Perlite Project in Nevada, USA, announces its unaudited interim results for the six months ended 31 March 2020.

Operational Highlights

CS Pozzolan-Perlite Project, Nevada, USA

Permitting:

· Plan of Operations/Reclamation Permit Application accepted as complete by lead regulator, the Bureau of Land Management (BLM).

· Environmental Assessment and 14 Supplemental Environmental Reports released by the BLM for public comment.

· Public comment period to end on 15 June 2020 after which permitting decision will be made.

· Environmental effects of the Project are considered negligible or minor.

· Project brings substantial environmental benefits from the replacement of Portland cement with CS natural pozzolan with an annual CO2 reduction equivalent to the average annual CO2 emissions from over 10,400 US households.

· Company anticipates a BLM Finding of No Significant Impact (FONSI), which will permit mining to proceed subject to the issue of the State Reclamation Permit and the lodgement of the appropriate reclamation bond.

· Agreements reached to acquire water rights and water permits applied for.

· Air quality operating permit applied for and deemed administratively complete.

Other Projects

· Drill programmes being considered for Company's gold and silver projects.

Results Summary

Group loss for the six-months' period of £151,378 (six months to 31 March 2019: £157,139) comprising:

· Interest income of £171; less Administration costs of £149,642.

· Expensed exploration costs totalling £1,907.

Project expenditure of £93,669 was capitalised.

Funding during the period

· On 1 November 2019, a total of £350,000 (before expenses) was raised through the issue of 350,000,000 new ordinary shares by way of a placing at a price of 0.1p.

· On 22 November 2019, 14,551,565 new ordinary shares were issued at a price of 0.115p to the three directors in settlement of a portion of outstanding directors' fees totalling £16,734.

· On 14 February 2020, a total of £200,000 (before expenses) was raised through the issue of 181,818,182 new ordinary shares by way of a placing at a price of 0.11p.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Further information

Chairman's Statement

I am pleased to present the Company's unaudited financial results for the six-month period ended 31 March 2020.

At a time when so many businesses are so badly affected by the global Coronavirus pandemic it seems paradoxical to say that the reporting period has been uneventful for the Company. All our efforts in this period have been focused on the permitting of our CS Pozzolan-Perlite Project in Nevada, USA and so news has understandably been limited to periodic updates.

However, on 15 May 2020, we were able to deliver the much-anticipated news that the lead regulator, the Bureau of Land Management (BLM), has now released the CS Project Environmental Assessment (EA) for public comment. This document and the extensive Supplemental Environmental Reports are based on the Company's Plan of Operations and are the culmination of two-years' near full-time endeavour by our small team and marks the final stage of permitting.

The environmental impacts set out in the EA are considered to be largely minor, or negligible. The public comment period will end on June 15, 2020 after which the BLM will address any substantive comments and amend the EA if necessary and issue its permitting decision. We anticipate a "Finding of No Significant Impact" (FONSI) which will permit mining to proceed subject to the issue of the State Reclamation Permit and the lodgement of the appropriate reclamation bond and other routine permits.

Our next objective is to initiate first production of perlite and natural pozzolan for larger scale customer trials as soon as possible with the expectation that this will transition to commercial production in due course on the commitment of potential customers to sales contracts and appropriate funding.

To date the Covid-19 pandemic has not affected our progress. Mining is considered an essential industry in Nevada and existing operations are progressing largely as normal, as is mineral exploration. Our permitting process has been unaffected by the Covid-19 pandemic as most Nevada State Agencies are working, albeit from home.

In taking the CS Project forward I believe we need to keep in mind that although the financial markets in which we operate have been more buoyant than might be expected, the financial consequences of massive global quantitative easing have yet to play out. In this environment it is difficult to make too many predictions on progress. The construction and horticultural industries that we propose to sell into have no doubt been affected by reduced demand and their appetite for new arrangements may be tempered for now. These are unpredictable factors and beyond our control.

In the 12 months leading up to the date of this report the US dollar gold price has seen a 29% increase. In the coming weeks we will look at the best way for shareholders to benefit from this. We already hold a portfolio of highly prospective gold and silver projects which, we believe, have been overlooked by the market and we will consider some limited drill testing of selected projects in order to unlock the value they represent for the Company and its shareholders. 

Our commitment to bringing the CS Project into profitable production remains our priority and this will be the focus of our efforts over the coming months.

Patrick Cheetham

Executive Chairman

29 May 2020

CAUTIONARY NOTICE

The news release may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to the Company's proposed strategy, plans and objectives or to the expectations or intentions of the Company's directors. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and save as required by the AIM Rules for Companies or by law, the Company does not accept any obligation to disseminate any updates or revisions to such forward-looking statements.

Consolidated Income Statement

for the six months to 31 March 2020

Consolidated Statement of Comprehensive Income

for the six months to 31 March 2020

Consolidated Statement of Financial Position

as at 31 March 2020

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

for the six months to 31 March 2020

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 2020 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 2019. 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 2020. The implementation of new standards and interpretations has not led to any changes in the Group's accounting policies (other than presentation and disclosure) or had any other material impact on its financial position. 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 2020 and the six months ended 31 March 2019 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 2019 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for the year ended 30 September 2019 have been filed with the Registrar of Companies. The Independent Auditor's Report on the Annual Report and Financial Statements for the year ended 30 September 2019 was unqualified, although it did draw attention to matters by way of emphasis in relation to going concern.

The directors prepare annual budgets and cash flow projections for a 15 months' period. These projections include the proceeds of future fundraising necessary within the period 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. There is also an, as yet unknown, impact that the COVID-19 pandemic may have on the capital markets. These factors represent 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 2020 the following share issues took place:

An issue of 350,000,000 0.1p Ordinary Shares at 0.1p per share, by way of placing, for a total consideration of £350,000 before expenses (1 November 2019).

An issue of 14,551,565 0.1p Ordinary Shares at 0.115p per share to three directors, for a total consideration of £16,734, in satisfaction of a portion of outstanding directors' fees (22 November 2019).

An issue of 181,818,182 0.1p Ordinary Shares at 0.11p per share, by way of placing, for a total consideration of £200,000 before expenses (14 February 2020).

4. Event after the balance sheet date

On 14 April 2020, the Company issued 17,550,000 new Ordinary Shares to Peterhouse Capital Limited, in settlement of their fees as joint broker.