Analyst: Stelios Stylianou

stelios.stylianou@t1ps.com
8th April 2008 020 7562 375

Shares recommence trading Exploration continues in

Macedonia Company remains committed to expansion
by acquisition
Shares in Sirius Exploration resumed Key Data
trading on AIM today, following the
EPIC SXX
companys recent announcement of the
termination of the proposed acquisition Share 3p
Price
of Njahili Resources. When the
announcement went out on March 3rd Spread 2.5p 3.5p
the Company had been assured that the NMS 2,000
minimum funding needed for the deal
(2 million) was available. This, together Total no 68.88 million
of
with a committed equity facility of 3m, shares
would have been ample to complete
the deal. In the event the minimum was Cash 0.3 million
not forthcoming as a result of the current Market 2.06 million
turbulence of the financial markets. The Cap
company was then faced with a 12 3p 9.25p
deadline of the end of March to Month
conclude the Njahili transaction and find Range
new funding. Failing to do that would Market AIM
have meant Sirius was in danger of losing
its AIM listing. Website www.siriusexploration.com
Sector Mining Exploration
The companys Board therefore decided
Contact Richard Poulton
to re-list Sirius on AIM in order to maintain 0787 9447 601
its AIM status and in the process raised
300,000 for working capital purposes. In conjunction with the resumption
of share trading in Sirius, the company released a set of final and interim
year results for the year ended 31st March 2007 and period ended 31st
September 2007 respectively.

We understand that even though the Njahili proposed acquisition in its

current form is off the cards, Sirius is still in discussions with the target
company over some form of future co-operation or joint venture deal.
Whilst this is a major disappointment for Sirius Exploration and its
management, the company is looking forward to channeling its energy
and resources in new and existing project ventures and opportunities.

Exploration continued in Macedonia

As reflected in the managing director's report in the report and accounts

the company has continued exploration on its two prospects in
Macedonia. Kadiica in particular is showing great promise not only with its
supergene copper blanket but also clear evidence is emerging that the
mineralised system is a copper-gold one so that one should expect
satellite gold deposits around the copper core. Further to this the
company not only has impressively high gold assays from two small areas
sampled by Rio Tinto but also new data that a third area was mined by the
Romans for precious metals. An ASTER satellite study trained on these
known sub-areas has identified further targets for field testing. The current
strongly supported prices of gold and copper make this prospect
particularly interesting.

Still focused on expansion

In parallel, the company is looking to expand its operations following the

failed attempt to acquire Njahili Resources, using its strong management
team, expertise and knowledge of the resource sector. The company
intends to continue its exploration work programme on its Macedonian
porphyry copper mineral properties, namely Kadiica and Osogovo. Phelps
Dodge's remaining interest from the joint venture over Kadiica and
Osogovo is a 1% Net Smelter Return. In addition, Sirius has use of Rio Tintos
Macedonian database in order to identify further exploration
opportunities.

Undeterred by the failure to grab Njahili the company is still in discussions

with various third parties over other possible acquisitions.

Summary of announced financial results

The final results for the year ended 31st March 2007 were prepared under
UK GAAP, reporting a loss for the financial year of 278,703, down from
319,064, and a basic and loss per share of 0.5p, down from 0.7p. The loss
for the year is attributable to administrative expenses of 280,829, down
from 322,813 the year before. The interim results were prepared under
IFRS, reporting a loss for the period ended 30th September 2007 of
552,973, up from 146,033, and a loss per share of 0.8p, up from 0.3p in
the previous comparative period. The loss was attributable to 162,655
administrative expenses and 391,056 exceptional costs in relation to the
abortive reverse acquisition.

On the balance sheet date of 30th September 2007, the company

reported net assets of 11,334, down from 452,007, principally due to the
net impact of an increased loss for the period, resulting in a carried
forward retained negative earnings figure of 1.4 million, as compared to
a comparative negative earnings figure of 717,761. Cash in hand was a
mere 18,347, down from 117,027. This was reflected in the companys
cash flow statement where an outflow of 258,706 from operations was
met by 244,970 proceeds from the issue of shares. Post the balance sheet
period, the company agreed an equity credit facility agreement with an
investor, which provides 300,000 in working capital funding to accelerate
the progress of its Macedonian interests.

The Companys current properties

The Kadiica property is a copper/gold project in Macedonia with an

outlined supergene copper blanket target, currently estimated at 30,000-
50,000 tonnes of copper. This has been identified in the centre area of the
claim and beneath the greater part of the Bukovic Ridge. The ground
magnetic survey shows a continuation of mineralization to this blanket of
enriched copper, and preliminary leach tests of the blanket core indicate
that mineralization is leach-able with a minimum copper recovery of 65%.
Using Rio Tintos data under their sharing agreement, the company has
identified traces of gold within the lease area, which will be investigated in
more detail during the current exploration season. One of the immediate
targets of the company is to continue the exploration success
encountered at Kadiica by undertaking more drilling and assessing the
area in and around the centre claim.

The Osogovo copper project is within the Osogovo district of Macedonia,

which lies close to the border with Bulgaria, known for its lead/zinc/silver
deposits at Sasa, Toranitza and Golema Reka. Phelps Dodge initially
recognized that these deposits could be the outer margins of a copper
porphyry system mineralization and its work along with that of Sirius
subsequently demonstrated the presence of a large low grade
mineralized copper system into the Red Ridge area of Osogovo.
Exploration has therefore focused on the potentially copper rich zone
between the porphyry and lead/zinc/silver mineralization.

Following Sirius news of terminating its proposed Njahili Resources

acquisition, we have downgraded our recommendation from speculative
buy to a hold, reflecting the uncertainty of the next step forward and
concerns about the funding position of Sirius. However, its underlying asset
portfolio retains investment appeal. Hold.

Forecast Table

Sales Pre-Tax Profit Earnings Per Share

Year to 31st March
(million pounds) (million pounds) (p)
2005A 0 (0.27) (14.8)
2006A 0 (0.32) (0.7)
2007A 0 (0.28) (0.5)
2008E 0 (0.72) (1.0)
This Research Note Cannot be Regarded as Impartial as GE&CR has been commissioned to produce it
by Sirius Exploration.

The information in this document has been obtained from sources believed to be reliable, but cannot be
guaranteed. Growth Equities & Company Research is owned by t1ps.com Ltd which is commissioned by
companies to produce research material under the Growth Equities & Company Research label. However the
estimates and content of the reports are, in all cases, those of t1ps.com Ltd not of the companies concerned.

t1ps.com Limited is regulated by the Financial Services Authority .This research report is for general guidance
only and t1ps.com Ltd cannot assume legal liability for any errors or omissions it might contain. The value of
investmsents can go down as well as up and you may not get back the full amount you invested. The past is not
necessarily a guide to future performance. The difference between the buy price and the sell price for smaller
company shares can be significant. Before investing, readers should seek professional advice from a Financial
Services Authority authorised Stockbroker or Financial Adviser.

t1ps.com limited can be contacted at 5-11, Worship Street EC2A 2BH - email stelios.stylianou@t1ps.com - fax
020 7628 3815 - tel 020 7562 3375