Capitalisation of Loan and Fees & Issue of Equity

5th August 2014

Sirius Petroleum Plc.

("Sirius" or the "Company")

Capitalisation of Loans and Fees and Issue of Equity 

Sirius Petroleum (SRSP:LN) announces that it has issued 79,006,547 new ordinary shares at an average price of approximately 3.02 pence per share, to capitalise the balance of loans and other outstanding fees dating back to August 2012 to a total value of £2,384,500. The Company has used loans to fund its general working capital requirements with the intention of repaying the loans in cash once its marginal oil field was re-entered and producing. However, the Company has agreed with its lenders to settle such loans in shares at a share price which was pre-agreed on drawdown of such loans, whilst the funding for its developments is concluded. 

The Board continues to work towards concluding its further funding requirements which will allow the development of the Company's assets and sufficient cash flow to settle its working capital requirements without the need to issue further shares. The Company looks forward to concluding the further funding and will update shareholders accordingly when the necessary commitments are in place.

Application for the admission of the new ordinary shares to trading on AIM has been made and is expected to occur on 8 August 2014. The new ordinary shares will represent 7.19 per cent. of the Company's enlarged share capital and will rank equally in all respects with the existing ordinary shares. Following this issue the total number of shares in issue will be 1,098,737,213. This number may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company.

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