Sirius Minerals Regulatory News (SXX)

23 December 2014

Sirius Minerals Plc

Approvals status update

§ Key statutory consultees have now responded to the two local authorities on the main application for the York Potash Project;

§ There are relatively few but nonetheless important issues that remain outstanding from statutory consultee responses - all of which the Company believes can be resolved positively;

§ Supplementary Environmental Information to be provided in January 2015 and which the Company expects to resolve remaining issues;

§ High level of support confirmed from wide range of public correspondence;

§ Strong support from government, cross-party MPs, economic bodies and parish councils; and

§ Development Consent Order application submitted to the Planning Inspectorate for the York Potash Harbour Facilities.

The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY) ("Sirius" or the "Company") provide an update on the approvals process and a summary of consultation responses on the key planning application for the York Potash Project ("the Project"). Confirmation is also provided that the application for a Development Consent Order ("DCO") has been submitted to the Planning Inspectorate ("PINS") for the York Potash Harbour Facilities at Teesside.

Chris Fraser, Managing Director and CEO of Sirius, commented:

"The submission of responses from the statutory consultation process is an important milestone for the applications. The local authority consultation process has identified a number of focussed issues that the Company wishes to clarify and provide additional information on.

"The Company is working with its various consultants to provide all of this information in January 2015. We would like to thank everyone that has participated so far in the process. The ongoing support for the Project from the community and so many other stakeholders is very much welcomed."

Background to statutory consultation process

The mine and mineral transport system ("MTS") planning application was submitted to the local authorities by York Potash Limited ("YPL") on 30 September 2014. The local authorities, which are the North York Moors National Park Authority ("NYMNPA") and Redcar and Cleveland Borough Council ("RCBC"), subsequently began their own statutory consultation processes, seeking feedback from a list of statutory consultees and from the public.

Most of the key statutory consultees have now submitted responses to the authorities for their consideration. These are required in order for the planning officers of each authority to be able to prepare their recommendation reports, prior to the determination of the applications by their planning committees. Given the large amount of information and detail involved in this process, the Company is providing a summary and status update on the main responses received and any actions the Company is taking to respond to these submissions, where appropriate. All of the full statutory consultation responses are available on the local authority websites, as detailed in the approvals update announcement on 15 December 2014.

Ministry of Defence

The Ministry of Defence has confirmed it has no objection to the development on the basis of certain conditions being adopted. Planning conditions are an ordinary part of the planning process and the proposed conditions are acceptable to the Company.

Highways

Two local highways authorities have been consulted on the applications. RCBC's Highways Department has stated it has no objection to the application and has suggested standard planning conditions, which are acceptable to the Company.

Discussions have been ongoing with the Highways Department at North Yorkshire County Council. It has identified that further clarification is to be provided relating to the Transport Assessment. This is expected to be provided with the Supplementary Environmental Information ("SEI") that will be submitted in January 2015.

The Highways Agency, which manages the strategic highway network, has confirmed no objection to the applications.

Environment Agency

The Environment Agency ("the EA") has submitted a detailed letter to the authorities on the application. This contains one objection, based on the proposed means of foul water disposal during the operation of the mine. The EA is seeking additional mitigation or an alternative disposal proposal to the treatment system outlined in the application. The Company's consultants had already been working on this issue and, based on discussions with the EA, believe that the simple solution proposed will lead to this objection being withdrawn.

The rest of the EA response contains a number of detailed conditions that are normal for a development of this nature and are acceptable to the Company.

Natural England

Natural England ("NE") has submitted a response that focuses on three issues:

· An objection on landscape grounds, including visual, cumulative landscape and cumulative visual impacts during the construction period;

· Requirement for additional information on the air quality effects of proposed mitigation options; and

· A requirement for additional information on the port and the enhancement proposals for Bran Sands Lagoon within the Company's Teesside Harbour Facilities proposals.

The objection from NE relates to the visual impact of construction phase only. This observation accords with the acknowledged impacts identified within the Landscape and Visual Impact Assessment submitted by YPL in the planning applications. This is an issue for the local authorities to balance against the benefits of the Project and also to consider in the context of the Section 106 mitigation proposals. It should be noted that NE recognises the "considerable efforts that York Potash and their consultants have made to design a scheme with high quality landscape mitigation (earth works and planting) that might be accommodated in the National Park."

The additional information being sought by NE on air quality, showing the moderating effects of mitigation options, is to be provided in the SEI submission in January 2015. The Company believes this will provide the necessary information required by NE in relation to this issue.

The application for the harbour facilities has now been submitted to PINS, which includes information on the proposals relevant to Habitats Regulation Assessment issues. A copy of this has been provided to NE and the local authorities and the Company believes that this will provide the additional information that NE is seeking in relation to the enhancement proposals at Bran Sands Lagoon and detailed bird data.

Local Enterprise Partnerships

Local Enterprise Partnerships are partnerships between local councils and the private sector set up by the Department for Business, Innovation and Skills to identify local economic priorities and lead economic growth within the local area. The York, North Yorkshire and East Riding Local Enterprise Partnership ("the LEP") and Tees Valley Unlimited ("TVU") are the Local Enterprise Partnership's for the Project area and are key economic statutory consultees for the planning authorities.

The LEP covers the area within which the mine and part of the MTS route would be located and has submitted a detailed analysis of the economic benefits of the development. This has concluded that: "The LEP considers that the economic benefits of this proposal, taken in the context of both UK national policy and requirements and the local economic challenges and needs, represent exceptional circumstances that mean the application is in the public interest and should be approved."

TVU covers the local authority areas of Redcar & Cleveland, where the materials handling and harbour facilities will be located, as well as the other local authority areas of Darlington, Hartlepool, Middlesbrough, and Stockton-on-Tees. It has written in support of the application and has welcomed the "significant investment in the production of a material that will reinforce our position as one of the last remaining substantial areas of industrial activity in the UK".

English Heritage

English Heritage recommends that the application can be determined with a condition to ensure the production of an agreed suite of Written Schemes of Investigation for the purposes of archaeological mitigation. It also recommends that the application can be approved following the submission of an assessment of the impact of the proposals on the Whitby Abbey headland, along with details of appropriate landscaping. This information is included in the current application material and English Heritage will be provided guidance as to its location.

Government and Town or Parish Councils

A letter received by the Company from the Secretary of State for the Department for Business, Innovation and Skills has been forwarded to the authorities. It is supportive of this type of investment in principle, with its "potential for job and wealth creation and its importance in helping to develop the minerals sector as a whole in the UK". It also points out that it is for the local planning authorities to consider all aspects of the application and determine accordingly.

Letters of support from MPs across the three main political parties have been submitted on the application. This includes two with constituencies that cover significant parts of the National Park.

To date a total of 16 parish or town councils have sent representations to the local authorities. Each one of these submissions is either supportive of the application or specifies no objection. These local councils cover areas within the Project's mineral rights area or those along or close to the MTS route.

Community and general

To date in excess of 550 representations from members of the public or other interested parties have been published on the NYMNPA website. The Company's review of these letters continues to show a very strong support for the Project. Over 96% of those published are supportive of the Project. This level of support aligns with the Company's pre-application consultation process where 97% of responses were supportive of the Project.

Leading business organisations including the Confederation of British Industry, Chamber of Commerce and the Federation of Small Businesses, which together represent thousands of businesses, have each written supporting letters. In addition educational institutions across the Project area including schools, training providers and all the main colleges have submitted letters of support, which focus on job creation and an increase in opportunities for young people.

Other consultees

Other responses from notable consultees are:

· The Ramblers Association have no objections;

· The North Yorkshire Moors Railway, which is one of the major tourism organisations in the National Park, is satisfied that their previous concerns have been addressed and is supportive of the application subject to points raised around the Section 106 proposals;

· The Esk Valley Railway Development Company, the Community Rail Partnership for the Esk Valley line that runs through the North York Moors, has written in support of the Company's proposals to fund an increase in train services from Whitby;

· Cleveland Potash Limited, which operates the Boulby potash mine has objected on the basis of potential impact on its workforce and has requested physical separation between the two operations;

· The Yorkshire Wildlife Trust has maintained its objection to the application on the grounds of potential impact on the wildlife, habitats and landscape of the North York Moors;

· The Royal Society for the Protection of Birds maintains its objection to the application, which primarily focuses on the potential for noise disturbance at the mine site and at one of the intermediate MTS sites;

· The Campaign for National Parks and the North Yorkshire Moors Association have not yet submitted representations, although objections are expected from both; and

· The Campaign to Protect Rural England (Coastal Branch) objects because it believes the application is contrary to local and national policies.

Supplementary Environmental Information ("SEI") and clarifications

In January 2015 the Company will be providing SEI to the local authorities. This will provide information regarding the project description that would be designed to address a range of technical points raised by the NYMNPA. Accordingly further information regarding the excavated quantities of material will be provided, together with the implications for handling this material at the surface. Further details will also be provided regarding the handling of polyhalite, especially during the initial period of its working, together with the construction programme. The Company is also proposing to optimise the mine ventilation scheme which has facilitated the removal of the northern ventilation shaft from the mine head site design. Information on additional bunds and water management ponds at the mine site, air quality mitigation proposals and details of the improved foul water discharge strategy will also be provided. A revised Transport Assessment will also be submitted.

Process and timing moving forward

Once the SEI submission is made it is expected that both local authorities will run a re-consultation process on that information. This is normally for a period of 21 days where consultees will have the opportunity to submit their views or modify existing representations to the local authorities.

Once the local authorities have received responses from that process and afforded them due consideration, the officers of each authority will prepare a detailed report to their respective planning committees. These reports will each contain a recommendation from the planning officer for the authority. It is usual for these reports to be published a week prior to the committee date.

At this time dates for both the committee meetings and when the officer's recommendations will be published have not been confirmed. Once timelines are clarified the Company will update the market accordingly.

For further information, please contact:

About Sirius Minerals Plc

Sirius Minerals is a potash development company with properties in the United Kingdom (North Yorkshire) and the United States (North Dakota). Its primary focus is the development of the York Potash Project which has the world's largest and highest grade deposit of polyhalite, a multi-nutrient form of potash containing potassium, sulphur, magnesium and calcium. Incorporated in 2003, Sirius Minerals' shares are traded on the London Stock Exchange's AIM market. Its shares are also traded in the United States on the OTCQX through a sponsored ADR facility. Further information on the Company can be found at www.siriusminerals.com.