Sirius Minerals Regulatory News (SXX)

28 November 2012

Sirius Minerals Plc

Results for the Six Months to 30 September 2012

The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY) ("Sirius" or the "Company"), the globally diversified potash development group, are pleased to announce the Interim Unaudited Results for Sirius and its subsidiaries ("the Group") for the six month period to 30 September 2012.

Highlights:

• Announcement of the proposed mine location for the York Potash Project with initial mine designs and submission of the Environmental Impact Assessment ("EIA") Screening and Scoping Request to formally launch the planning process

• Updated Inferred Mineral Resource Estimate of 2.2 billion tonnes of 82.4% Polyhalite (24% K2SO4)

• Project Study Update for the initial production of granulated Polyhalite, and Concept Study for the production of NPK planned for early December 2012

• Appointment of Luke Jarvis as Commercial Director

Financials

The increased level of development activity during the six months period led to a loss after taxation of £6.1 million. The Group's cash and cash equivalents position at 30 September 2012 was £36.8 million which will be used to continue the drilling program and feasibility studies for the York Potash Project.

Russell Scrimshaw, Chairman of Sirius Minerals said:

"Sirius continues to rapidly advance the York Potash Project. We are focussed on the delivery of the key foundations for a long term, environmentally sustainable, safe and economically attractive fertilizer business. This is an exciting and ground breaking time for Sirius and we thank you for your ongoing support."

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About Sirius Minerals Plc

Sirius Minerals is a globally diversified potash development company. Its primary focus is to bring on stream major potash mining facilities through the acquisition and development of projects overlying recognised potash deposits. Today it holds properties in the United Kingdom (North Yorkshire), the United States (North Dakota), and Australia (Queensland). 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.

Qualified Persons

The information in this press release that relates to Mineral Resources is based on information compiled under the direction of Dr Mike Armitage C Eng, who is a Member of the Institute of Materials, Minerals and Mining which is a 'Recognised Overseas Professional Organisation' (ROPO) included in a list promulgated by ASX from time to time.

Dr Armitage is a full time employee of SRK and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (the JORC Code) and for the purposes of the AIM Rules. Dr Armitage has reviewed this press release and consents to the inclusion in the press release of the matters based on his information in the form and context in which this appears.

CHAIRMAN'S STATEMENT

It seems only a short while since I wrote my inaugural Chairman's statement for the 2012 Annual Report. I would like to take this opportunity to offer my sincere apologies for not being in a position to chair the Annual General Meeting in September as I was unable to travel to Scarborough following an injury. I would like to thank our Deputy Chairman Chris Catlow for chairing the meeting in my absence with the successful outcome of all resolutions being passed.

It is my pleasure to provide fellow shareholders with an update of the rapid development of the York Potash Project since the Annual Report.

Drilling results

As we progress through the final stages of our drilling program, Sirius continues to record good results and we were pleased to announce an updated Inferred Mineral Resource Estimate of 2.2 billion tonnes of 82.4% Polyhalite (24% K2SO4). This 70% increase to the previous estimated Resource, from only 5% of our project area, further demonstrates the scale and significance of the world-class asset we have with the deposit at York Potash.

Drilling at SM11 will commence in December 2012 at the already announced mine location to provide additional geological information and geotechnical data for the shaft design and mine plan. Subject to results from this drilling, Sirius is targeting an upgrade to a significant percentage of this Inferred Resource to Indicated Resource, which would then underpin financing of the Project.

Mine location

In early September we announced the proposed mine location for the York Potash Project. This location was selected following an extensive consideration of visual, social, environmental and, of course, geological data from the drilling programme as well as a 12-month comprehensive review of a number of potential sites.

Our initial mine designs provide for concealed mine surface facilities. These designs delivered on our longstanding commitment to the local community of a low impact and world-leading mine facility for the York Potash Project. Our extensive public consultation on these plans has resulted in wide ranging and broad support for the proposals. We received over 1,000 feedback forms and these showed an almost unprecedented level of positive support at 91%, with just 1% against. We also continue to receive a positive response from a range of important stakeholders, including business groups, the regional tourism agency, local councils and members of parliament, who all recognise the local and national significance of the York Potash Project for employment and economic prosperity. I would like to take this opportunity to thank all who have supported us through this extensive consultation process as we move towards completing a formal planning application.

In conjunction with the announcement of the mine location, we submitted the Environmental Impact Assessment (EIA) Screening and Scoping Request to formally launch the planning process and pave the way for a submission of a full planning application. We have also volunteered an EIA for the pipeline element of the proposals as part of our commitment to adhere to the highest environmental standards. A screening and scoping request has therefore also been submitted to the Planning Inspectorate who will deal with this application.  

Project study update

Following the initial development concepts published in the Detailed Scoping Study in April 2012, the team continues to make exceptional progress as we refine both the detailed engineering design and strategy for the York Potash Project to create the simplest, lowest risk and most sustainable long term development model.

With an increased technical and market-place understanding of the potential of Polyhalite as a multi-nutrient fertilizer and also as a source of potassium, sulphur, magnesium and calcium for NPK blending, Sirius expects to release the findings of a Project Study Update for the initial production of granulated Polyhalite and a Concept Study for the production of NPK using Polyhalite as the main blending component in early December 2012. This simplified approach will allow for value added and capital intensive expansions of development, such as processing to create Sulphate of Potash ("SOP"), once the project is into cashflow.

Expanding management team

The Company continues to further strengthen its executive management team under the leadership of CEO Chris Fraser with the appointment of Luke Jarvis as Commercial Director. Luke is responsible for the commercial aspects of the Company's projects focussing initially on sales, marketing and distribution for the York Potash Project. Luke was previously Managing Director at Agrium in the UK and Ireland for almost five years and has over 20 years' experience in the marketing of fertilizer products. The addition of Luke to the team comes at an important stage for Sirius as we move to secure offtake agreements with global fertilizer distributors to support financing of the York Potash Project.

Our project development team, led by York Potash Managing Director, Alan Watling, has also been adding considerable depth and breadth of skills to their key personnel with senior roles added in Construction, Services, Processing, Ore Transport, Mine Shafts and Port.

Financial results

During the six month period to 30 September 2012, the Company made a consolidated loss of £6.1 million, compared with a loss of £2.3 million in the same period in 2011 reflecting our accelerating project development program. Cash resources at the end of September 2012 were £36.8 million and the Company's net assets were £89.9 million.

The finance team are focussed on progressing multiple potential pathways for financing the Project. We believe we have a strong and experienced team confident of obtaining the funding needed to build the York Potash Project.

The condensed interim unaudited consolidated financial statements have been prepared under the going concern assumption. However, the Directors recognise that there are a number of material uncertainties inherent in the York Potash Project. The impact of these on the Directors' consideration of the going concern assumption are set out in Note 1 to these financial statements.

Looking Ahead

Sirius will continue to rapidly advance the York Potash Project as we work towards our vision of becoming a leading global producer and distributor of potassium based fertilizers. We believe we have successfully laid the foundations to create a long term, environmentally sustainable, safe, economically attractive and internationally significant fertilizer business - as a Company we get closer to achieving this objective every single day.

This is an exciting and ground-breaking time for Sirius and we thank you for your ongoing support as we advance through this next important development stage of our evolution to becoming a significant global fertilizer player.

Yours sincerely,

Russell Scrimshaw

Chairman

27 November 2012

INDEPENDENT REVIEW REPORT TO SIRIUS MINERALS PLC

Introduction

We have been engaged by the Company to review the condensed interim consolidated financial statements in the half-yearly financial report for the six months ended 30 September 2012, which comprises the Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Consolidated Statement of Changes in Equity and Consolidated Statement of Cash Flows and related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the AIM Rules for Companies which require that the financial information must be presented and prepared in a form consistent with that which will be adopted in the Company's annual financial statements.

As disclosed in Note 1, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of the AIM Rules for Companies and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2012 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the AIM Rules for Companies.

Emphasis of matter

In forming our conclusion on the condensed set of financial statements, which is not modified, wehave considered the adequacy of the disclosure made in Note 1 to the financial statements concerning the Group's ability to continue as a going concern. The Group is involved in efforts to complete feasibility studies, obtain appropriate planning permissions and secure long term project finance, the outcome of each of which is uncertain. These circumstances indicate a material uncertainty which may cast significant doubt about the Group's ability to continue as a going concern. The financial statements do not include the adjustments which would result if the Group were unable to continue as a going concern.

PricewaterhouseCoopers LLP

Chartered Accountants

Leeds

27 November 2012

INTERIM UNAUDITED RESULTS FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2012

NOTES TO THE INTERIM UNAUDITED CONSOLIDATED RESULTS

Sirius Minerals Plc (the 'Company') is a limited liability company incorporated and domiciled in the UK. The address of its registered office is 3rd Floor, Greener House, 66-68 Haymarket, London SW1Y 4RF.

The Company's ordinary shares are traded on the AIM market of the London Stock Exchange.

The condensed interim unaudited consolidated financial statements for the six months ended 30 September 2012 comprise the Company and its subsidiaries (together referred to as the 'Group').

The condensed interim unaudited consolidated financial statements for the six months ended 30 September 2012 have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with IAS 34 'Interim Financial Reporting' as adopted by the European Union ('EU'). The condensed interim unaudited consolidated financial statements should be read in conjunction with the Group financial statements for the year ended 31 March 2012 which have been prepared in accordance with IFRSs as adopted by the EU.

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 March 2012.

Management has determined the operating segments by considering the business from both a geographic and product perspective. For management purposes, the Group is currently organised into two operating divisions; resource evaluation and exploitation and environmental solutions. These divisions are the business segments for which the Group reports its segment information internally to the Board of Directors. The Group's operations are predominantly in the United Kingdom, the United States of America and Australia.