Sirius Minerals Regulatory News (SXX)

3 September 2012

Sirius Minerals Plc

Launch of York Potash Mine Head Location and Planning Process

§ Mine head location selected at a site with minimal visual impact, in an ideal position for construction and access to the Polyhalite Resource

§ Initial designs demonstrate concealed mine surface facilities, delivering on the commitment of a low impact and exemplar mine facility

§ Twin vertical shafts selected for mine design to minimise technical risk, revised time and cost of construction estimates to be detailed in the Pre-Feasibility Study due in November 2012

§ The submission of the Environmental Impact Assessment ("EIA") Screening and Scoping Request to formally launch the planning process and pave the way for a full planning application before the end of 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 proposed location of the mine head, related surface infrastructure, initial designs for these facilities and the formal launch of the onshore planning process for the mine. 

Chris Fraser, Managing Director and CEO of Sirius said:

"From the outset, Sirius has said we would develop a state-of-the-art potash mine at York Potash in an unobtrusive manner. Our proposed location and initial designs show what would be a relatively simple concept to construct, but with one of the world's most innovative approaches to low impact mine design.

"This is a nationally significant project that will bring extensive benefits to North Yorkshire and the wider British economy at a time of great need and for generations to come. The effort in our design work demonstrates that we will deliver on our commitment to the local community and we look forward to feedback on these plans through the public consultation process over the coming weeks."

Mine head location

The mine access and related surface infrastructure will be located approximately four kilometres south from the outskirts of Whitby on the B1416 within the boundary of the North York Moors National Park (the "National Park"). The site's current use comprises farming and commercial forestry, and already benefits from extensive woodland screening and access to the main A171 road.

The location of the facilities has been selected after a comprehensive review of a number of sites both within and outside the National Park. A detailed review of each potential location has been part of an on-going study conducted by Sirius and its technical advisors for over 12 months. The detailed review considered each location based on technical constraints as well as operational, economic, ecological, environmental, social and transport factors. The location has been chosen to minimise the impact on the local community and the environment and represents the optimum site for the mine surface facilities.

Twin vertical shafts selected for Pre-Feasibility Study ("PFS")

The selection of the site has allowed Sirius to further minimise the visual impact of the mine, as part of a long standing commitment to the local community and investors. On-going engineering design work has resulted in the Company replacing the twin drift tunnel design considered in the Detailed Scoping Study ("DSS") released 30 April 2012, with more traditional twin vertical shafts sunk from surface. This has resulted in greatly reduced volumes of excavated material during mine construction and has further reduced the surface area footprint. Importantly, it has also reduced the project's technical risk being a more conventional proven system.

Initial designs show how the constructed mine would be concealed within the landscape. Shaft headframes and pipeline loading areas will be below ground and covered by agricultural style buildings to integrate with the surrounding rural environment. The mine support buildings which will house required facilities such as staff welfare, control rooms, first aid, mines rescue and survey offices, have a reduced visual impact due to their location within an existing commercial forestry block. Material excavated from the vertical shafts will be used as part of the landscaping across the whole site. Once constructed the entire site infrastructure will occupy less than 4.5 hectares of the 100 hectare site controlled by York Potash.

Revised time and cost of construction estimates for the twin vertical shafts will be detailed in the PFS due in November 2012. The detailed work done on this system shows that both the construction time and capital costs are currently expected to be in-line with the drift tunnel design analysed in the DSS.

Formal commencement of onshore planning process for the mine

The selection of the proposed location of the mine's surface facilities coincides with the submission of an EIA Screening and Scoping Request to the North York Moors National Park Authority ("NYMNPA"). This is an important step in the planning process and paves the way for the completion of an EIA and submission of the onshore planning application for the mine.

Sirius will now conduct a detailed six week local consultation on its plans in conjunction with the preparation of a full planning application. The Company remains on target to submit the onshore planning application for the mine before the end of 2012 and expects to receive a decision from the NYMNPA within 16 weeks of submission.

A preferred route for the ore transport pipeline has been identified, extensively surveyed and all landowners along that route have now been approached and are in discussions with the Company.

Investor presentation and audio webcast

There will be an audio webcast for analysts on Monday 3 September 2012 at 10:30 (BST). The webcast will be accessible via www.siriusminerals.com following which there will be a replay facility available. There is a conference call available for participants to access the webcast (in listen only mode) at 10:30 (BST): +44 (0)20 7136 2054 (participant code: 894 4546).

For further information, please contact:

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 and Western Australia). 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.

Forward Looking Statements

This announcement contains certain "forward-looking statements". These statements, which sometimes use words such as "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning, reflect the Company's intention, beliefs and current expectations and involve a number of risks, uncertainties and assumptions that could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statement. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, amongst others, the interpretation and actual results of the specific studies undertaken by expert consultants, changes in project parameters as plans continue to be refined, future costs estimates, possible variations in grade or recovery rates, failure of equipment or processes to operate as anticipated, the failure of contracted parties to perform, labour disputes and other risks of the mining industry, delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company's publicly filed documents.  Sirius does not undertake to update any forward-looking statements that are included herein, except in accordance with applicable securities regulations.

Qualified Person

Graham Clarke, Operations Director for Sirius Minerals Plc, who has reviewed this update, has over 26 years' experience in the potash mining industry. He has a Degree in Mining Engineering from the University of Nottingham and extensive operational experience gained at Cleveland Potash Limited in the mining of the Boulby Potash seam and the exploration and development of the upper Fordon Polyhalite seam.