The Company was incorporated on 30 October 2003 as a private company. It subsequently re-registered as a public company under the name of Sirius Exploration Plc on 22 March 2005. Sirius intends to create value for its shareholders initially through the exploration of two recently recognised porphyry copper mineral properties located in Macedonia and subsequently by acquiring other properties with exploration potential. Sirius has contracted to acquire the exploration rights to these properties in Macedonia, namely Osogovo and Kadiica from Phelps Dodge. Phelps Dodge has already undertaken exploration on these properties and the results of this together with historic data from neighboring mines provides a clearly defined exploration programme for the future.

MINING AND EXPLORATION OVERVIEW

Macedonia – Political Background

Modern Macedonia came into existence as a result of the break up of the former Yugoslavia. It declared independence from Yugoslavia in 1991 and adopted a constitution guaranteeing civil rights and the right to vote. It is now a multi-party State and has now applied to join the EU, with a current target entry date of 2010. In recent years, the value of mining and quarrying as a percentage of GDP fell to extremely low levels. Macedonia now actively encourages foreign investment in mining and it is expected that exploration and mining will now increase substantially. With this in mind, Macedonia has introduced both workable mining law and security of tenure of exploration and mining claims.

Macedonia – Geological background

The country is well endowed with nonferrous metals of which lead, zinc, copper and silver are currently being produced. Geologically, Macedonia is well-placed because the Balkan Mountains in the northeast lie within the well known Banat-Srednegorie mineralised belt which extends into Turkish Thrace. Existing mined deposits in the former include Assarel, Elatsite, Medet and Chelopech (which is still in operation). Deposits under active exploration in the latter include Ikiztepe, Derekoy and Sukrupasa. The Osogovo district lead-zinc-silver deposits at Sasa, Toranitza and Golema Reka lie only just across the border from Bulgaria and have only recently been recognised by Phelps Dodge as being the fringes of porphyry copper systems.