conductors 2,3 and 4, page-13

Ref company announcement 31st October 2010!
The acquisition of the Tenement interests, capital raising and capital consolidation (Transaction) are all
subject to approval by Sirius shareholders and other relevant regulatory approvals. It is anticipated that
Sirius will convene a shareholder meeting to consider the various resolutions relating to the Transaction,
which by the terms of the Acquisition Agreement will be interdependent upon each other, in mid-December
2010.
Sirius’ Managing Director Mark Bennett said the proposed transaction was a unique exploration opportunity
available to the Company through its major shareholder Mark Creasy.
“The acquisition of the Fraser Range gold project fits well with our stated objective of acquiring embryonic
assets with growth potential within two years. It is a quality exploration play with the potential to yield a
multi-million ounce gold deposit.
“Opportunities to acquire 120 km of strike of an emerging gold province with significant pre-defined and
undrilled gold anomalies do not come around very often. While there is exploration risk, this asset is at a
stage where it is still affordable and has the potential to be a company-maker” he said.
The Asset
The creation of a new gold-focussed exploration joint venture with Creasy will be achieved through the
purchase of a 70% interest in the Tenements comprising four large Exploration Licences currently owned by
Creasy and the restructuring of the current Sirius-Creasy Fraser Range Base Metals Joint Venture (FRBMJV)
to an all commodities joint venture in which Sirius has a 70% interest and Creasy has a 30% interest free
carried to the completion of any bankable feasibility study.
The up-front consideration for the asset of A$2.76 million is to compensate Creasy for prior expenditure on
the project and will comprise 276 million 1 cent shares, on a pre-consolidation basis. Creasy will also be
entitled to a further 44 million ordinary shares (on a pre-consolidation basis) should Sirius achieve the
Sirius Resources ASX/Media Announcement 3
milestone of defining a JORC compliant Inferred Resource of 500,000oz gold or greater on the Tenements
within five years from the date the Acquisition Agreement completes.
Creasy’s preference to accept the entire consideration in Sirius stock is a testament to his confidence in the
prospectivity of the project and in Sirius’ ability to realise its value.
The new Tenements cover an area of 2,300 km2 and 120 km of strike of an unexplored part of the Fraser
Range Province – host to the 5 million ounce Tropicana gold deposit (see Figure 1). This belt is considered by
some to be Australia’s last and potentially richest unexplored gold province.