Sirius Pet Regulatory News (SRSP)

3 May 2013

Sirius Petroleum plc

("Sirius" or the "Company")

Sirius Signs Exclusivity Off-take Agreement with Glencore

Sirius (AIM: SRSP) is pleased to announce that it has entered into an Exclusivity Off-take Agreement ("the Agreement") with Glencore Energy UK Limited ("Glencore") which includes provision for a conditional pre-financing facility of up to $65 million, which will be netted against the initial sales of crude oil production, for the development of the Company's near term production assets located off-shore Nigeria.

Under the terms of the agreement, Sirius has the right to deliver up to 60,000 barrels of crude oil per day (bopd) to Glencore and Glencore has exclusivity to market the crude oil on behalf of the Company for a period of 3 years. Sirius will be entitled to draw-down funds for the development of its oil assets after satisfactory approval from the technical team of Glencore, who will work together with Sirius to bring the fields into production in the near term.

Glencore was introduced to Sirius by Amazoil (Nig) Limited ("Amazoil") which has an impressive on-the-ground presence in Nigeria and itself works closely with a number of international oil companies and trading houses to help achieve their strategic objectives in West Africa. Amazoil, together with Strand Hanson Limited, will continue to advise the Company on its on-going operational programme and strategic objectives in Nigeria.

Well Re-entry Program - Ororo-1

The Company intends to focus its initial drilling activities on the re-entry of the Ororo-1 well located in the Ororo field (OML 95). The well produced circa 2,895 bbls/day of light crude oil (43 API) when originally tested by Chevron in 1986.

Ororo Field (OML 95) Highlights

·; Sirius acquired 40% of Ororo field and is entitled to a preferential cash flow of 88% while it is net invested in the project 

·; Situated in shallow water offshore in depths ranging between 23 ft and 27 ft

·; Discovered in 1986 with the drilling of the Ororo-1 well by Chevron

·; Tested at approximately 2,200 bopd from a single zone, and 600 bopd from another oil-producing sand.

Issue of Warrants

Further to the announcement dated 1 February 2013 and subsequently approved by shareholders on the 26 February 2013, the Company confirms it will issue 900 million warrants in respect of the provision of the above funding agreement. When exercised in full, the warrants will provide an additional £60m of funding to the Company.

The Company anticipates that full exercise of the warrants, together with the opportunity to drawdown the pre-financing facility, will provide sufficient funding to maximise production of its existing assets and to acquire further assets with near-term production opportunities.

Toby Hayward of Sirius Petroleum said: "Our partnership with a major multinational oil trading company is transformational for Sirius, and Glencore's invaluable expertise marks a fundamental step in our strategy to put our initial assets into production and to build a portfolio of highly valuable oil assets."

Enquiries:

About Glencore Energy UK Limited

Glencore is an integrated oil producer and supplier and handles the physical supply of some 3% of the world's daily oil consumption. Glencore and its subsidiaries market crude oil and oil products globally and its supplies are acquired in part through long-term contracts from key-producing countries, as well as by traditional short and medium-term purchase agreements. Glencore have existing interests in West African oil assets and have a successful track record of bringing upstream assets into production.