Real Options Valuation + Issue of Equity

5 July 2013

Sirius Petroleum plc

("Sirius" or "the Company")

Real Options Valuation

Issue of Fee Shares

Real Options Valuation

Sirius has commissioned Professor Nicos Christofides and sw7reseαrch to complete a Real Options Valuation on two oil assets over which the Company has confidential pre-farm-in agreements, the Oil Block and the Second Oil Block (as described in the RNS dated 21 June 2012), in order to assist in determining whether to proceed with entering into a binding farm-in agreement on both assets, a decision which is at the Company's sole discretion. Professor Nicos Christofides and sw7reseαrch are, in aggregate, due a fee of £150,000 for these services.

Professor Nicos Christofides and sw7reseαrch have completed a number of Real Options Valuation for FTSE100 and other listed and private oil & gas companies.

These fees, together with other fees amounting to £25,000 due to unconnected third parties, are to be satisfied through the issue, in aggregate, of 4,375,000 new Ordinary Shares. Application for the admission of the new Ordinary Shares to trading on AIM has been made and is expected to occur on 10 July 2013. The Shares will represent 0.53 per cent. of the 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 822,137,044. 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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www.siriuspetroleum.com

Notes to Editors

About Nicos Christofides

Nicos was Co-founder and Director of the (CQF - in full) at Imperial College and headed the unit for 18 years (1990-2007), was Co-founder and remains a Director since 2008 of the Institute of Financial Systems Engineering (IFSE) at Imperial College. He has published over 150 papers and 4 books, in mathematical modelling, optimization and finance.

Nicos has been active in financial research for 20 years and his current focus is on the development and implementation of new proprietary algorithms for forecasting, asset/liability management, optimization for fund and risk management and real-options valuation of projects & companies. His work is sponsored by a number of American, European and Japanese banks and the finance departments of large corporates. Nicos is currently Professor Emeritus of Quantitative Finance at Imperial College, London. [include relevent experience in valuing oil and gas assets, and for which companies]

About sw7reseαrch

sw7reseαrch was set up by Simon Christofides and Alexander Christofides in 2008. The company evolved out of Network Models R&D, a mathematical research firm established in 1984 by a group of academics headed by Professor Nicos Christofides. In 1989, Nicos Christofides, co-founded the Centre for Quantitative Finance (CQF) at Imperial College London. Theoretical research at CQF involved over 200 PhD projects and was fully funded by a group of American, Japanese and European banks and the finance departments of large corporates in the City of London.

As a result, the main participants in sw7reseαrch continue to enjoy long working relationships with these institutions. Since 2007, sw7reseαrch has completed Real Option Valuation methodology for company valuations, successfully applied to oil [can we include any specific projects or clients?] , pharmaceutical and telecoms industries. Real Option Valuation values contingencies in project outcomes.

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