Sirius Minerals Plc

("Sirius" or the "Company")

Completion of York Potash Detailed Scoping Study

§ Detailed Scoping Study confirms technical and economic viability of the York Potash Project

§ Phased approach to development with three year initial construction period, targeting first production in early 2017

§ Estimated Phase 1 start-up capital cost of US$2.7 billion1 for mining and processing of 5mtpa of Polyhalite ore to produce 1.4mtpa of Sulphate of Potash ("SOP")

§ Phase 2 expansion to produce 4.1mtpa of SOP by 2024 or earlier

§ Robust cash FOB operating cost estimate of US$225/t1 of SOP and US$65/t1 of SOP after by-product credits

§ Low impact sustainable development potentially becoming one of North Yorkshire's largest employers


Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY), the globally diversified potash development group, is pleased to announce the completion of the Detailed Scoping Study (the "Study", "DSS") for the Company's 100% owned York Potash Project (the "Project", "York Potash").

Chris Fraser, Managing Director and CEO of Sirius commented:

"The completion of the York Potash Detailed Scoping Study is a significant achievement for Sirius and the results confirm the strength and quality of the Project. York Potash has the potential to be the largest low cost SOP mine in the world and towards the bottom of the global potash cost curve after accounting for the potential value of the by-products produced by the Project.

The estimated US$2.7 billion Phase 1 capital that is required to become a significant global producer is competitive and we believe financeable. The successful completion of the Detailed Scoping Study allows us to quickly progress onto the feasibility studies which will further define and de-risk the Project in preparation for financing. Our next milestone for the Project is to deliver the maiden JORC resource statement at the end of May 2012."

Assay Results for SM3

Assay Results for SM3

§ Preliminary visual interpretation of intersected Shelf Seam confirmed

§ 25.2 metres of 87.5% polyhalite (25.3% K2SO4) including 16.2 metres of high grade 95.9% polyhalite (27.7% K2SO4)

§ SM3 deflection drilling completed showing a consistent overall seam thickness compared to the "mother" hole with approximately 50m total polyhalite mineralisation

§ SM6 drilling progressing well with new rig, preliminary results expected in the next few weeks

All good news, so I reckon the pull back is all about the time it takes to start producing the goods, 2017. Also, the £2.7 Billion cost.

Down again today - just out of auction.

The real potential is going to be as a takeover target by one of the big boys, I think

Looks like this could fall to fill the gap around 12p. Any thoughts? H

That's where my alert is set :-)

Launch of the York Potash Foundation


§ York Potash Foundation (the "Foundation") established to provide funding for the local community in North Yorkshire

§ Sirius to pay an annual royalty of 0.5% of revenues from the York Potash Project (the "Project") to the Foundation, estimated to be £3 million at Phase 1 production and up to £9 million at Phase 2

Maiden Resource Estimate.

York Potash Inferred Resource - 1.35 billion tonnes of 88.7% Polyhalite

§ World-class nature of York Potash confirmed from just the initial three drill holes, delivering the largest and highest grade Polyhalite resource globally

§ Inferred Resource of 1.35 billion tonnes of 88.7% Polyhalite (25.6% K2SO4) within an area representing only 2% of the revised project area

§ High grade mineralisation within Inferred Resource of 0.94 billion tonnes of 94.0% Polyhalite (27.2% K2SO4)

Senior Management Appointment.

Senior Management Appointment - Alan Watling

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 appointment of Mr Alan Watling as Managing Director York Potash. Alan will be responsible for leading the project through feasibility studies to construction and delivery of the York Potash Project into production. He will commence on 2 July 2012, and will be based at the new York Potash offices in Scarborough, North Yorkshire.

Alan has nearly 30 years' experience in mining and has been responsible for leading some of the most successful project developments in the global mining industry. In recent years his focus has been to deliver complex multi-faceted bulk minerals projects in record timeframes, creating low-cost operations and significant wealth for shareholders.

StockMarketWire.com
The Directors of Sirius Minerals have announced the mineralogical assay results of the deflection of the third borehole (SM3A) and provided an update of drilling at the York Potash Project.

Assay results of SM3A, the SM3 deflection, confirm similar thickness and grade of polyhalite as SM3 with 23.02m (true thickness) of 93.0% polyhalite in the Shelf Seam

SM4 and SM4A deflection completed with preliminary results confirming the presence of high grade polyhalite in the Shelf Seam approximately 4 miles from SM3

Chris Fraser, Managing Director and CEO of Sirius said: "The results of deflection drilling at SM3A and SM4A help to confirm the lateral consistency of the deposit which is an important step to achieve sufficient defined resource to underpin financing of the Project.

"These results provide further confidence of the world-class nature of the York Potash Project following the release of our maiden Resource delivering the world's largest and highest grade resource of polyhalite."

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mnamreh - 18 Jul 2012 13:04 - 336 of 336
Looks like some large buys going through SXX today.

Nevertheless, sp still drifting down!

Still waiting for 12p :-)

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mnamreh - 18 Jul 2012 13:33 - 339 of 339
Harry

I was just bringing attention to it.
It was not a reflection on direction.
Not a lot I can do about the sp direction.
You would need to ask Frau Merkel to get her finger out!

Duly noted mn. The point I was trying to make was that it is a little early to be buying into this yet, imo, though I concede some buyers disagree!

.

Having reached its support level, the big question is what kind of a rebound are we going to get?

It is going to be a few years yet before the " Sirius " little pig gets to market. However,with all the drought and flooding that is going on all over the world, decimating crops everywhere, we are certainly going to see big increases in many crop prices . Ways of maximizing production levels have to be found .

Myself, in my own back garden I have several fruit trees ; apple,pear cherry and plum.
The only one this year that is bearing fruit is the apple.

Preliminary Results

Key highlights

· Commencement of York Potash drilling programme. Drilling completed at three boreholes, SM1, SM2 and SM3.

· £55 million of equity capital raisedthrough a placement to new and existing institutional investors.

· Appointment of Russell Scrimshaw as Chairman and Chris Catlow as Deputy Chairman.

· Board strengthened further with the appointments of former UK Cabinet Minister, Lord Hutton, the CEO of Network Rail, Sir David Higgins and former Chief Geologist of Boulby Potash Mine, Peter Woods as non-executive directors.

· Appointment of Graham Clarke former Managing Director of Cleveland Potash Limited, the UK's only potash mine, as Operations Director.
Post balance sheet events

· Completion of the Detailed Scoping Study confirming the technical and economic viability of the York Potash Project.

· Release of the Maiden Inferred Resource of 1.35 billion tonnes of 88.7% polyhaliteconfirming the York Potash deposit as the largest and highest grade resource of polyhalite in the world, based on 2% of the project area.

· Completion of deflection drilling at SM3A and preliminary results for SM4 and SM4A deflection.

· Appointment of Jason Murray as Finance Director and Chief Financial Officer.

· Appointment of Alan Watling as Managing Director York Potash, responsible for leading the project through feasibility studies to construction and delivery of the York Potash Project into production.

· Launch of the York Potash Foundation.

Financials

The Group's year-end cash and cash equivalents position was £54.3 million which will be used to fund completion of the drilling program and feasibility studies for the York Potash Project. The increased level of development activity during the year and impairment charges to the Group's tenements in Adavale and Canning, Australia and Dakota, USA lead to a loss after taxation for the year ended 31 March 2012 of £60.1m (2011: £7.1m). The impairment charges reflect the Group's focus on its flagship York Potash Project, which we believe will deliver the greatest value for shareholders.

Drilling Update


§ SM7 achieved the thickest intersection of high grade polyhalite in the York Potash Project to date with an estimated 85 m intersection of 88% polyhalite. Interpretation of true-thickness is awaiting completion of the first deflection from this hole (SM7A), due to localised faulting

§ SM4, SM4A and SM6 drilling results have proved continuity of high grade polyhalite (>80%) for a further 6.3 km to the south east and nearly 4 km to the south west of SM3

§ Discovery of a new sylvite seam (the Gough Seam) at the top of the Fordon evaporites in SM4, with gamma log analysis showing 8.7 m thickness at approximately 23% potassium chloride