14 September 2018

Sirius Minerals Plc

Royalty financing investment update

§ US$250 million royalty investment proceeds to be received no later than 19 September 2018

§ US$50 million equity component to align with Stage 2 financing commitments

§ Royalty drawdown provides sufficient liquidity to fund ongoing project progress in advance of stage 2 financing

Sirius Minerals Plc ('Sirius' or the 'Company') announces that it has agreed an amendment to the Minerals Royalty Deed entered into with Hancock British Holdings Ltd ('Hancock') in October 2016 (the 'MRD'). Pursuant to the amendment, Hancock has agreed to a drawdown in relation to the US$250 millionroyalty component of the MRD, with the proceeds provided no later than 19 September 2018. The US$50 million equity component of the MRD will be provided once stage 2 financing commitments are obtained to fully fund the initial 10 Mtpa development of the North Yorkshire polyhalite project (the 'Project'). The royalty drawdown provides sufficient liquidity to fund the project into Q2 2019 when the proceeds of the stage 2 financing will be required.

The royalty component of the MRD entitles Hancock to a five per cent royalty on gross revenues from the Project payable on the first 13 Mtpa of production and one per cent on revenue from volumes thereafter ('Royalty'). The Royalty is secured over the assets of the Project, with such security to be fully subordinated to the stage 2 financing senior debt security once established.

Pursuant to the amendment, Hancock will have the right to observe the board meetings of Sirius upon funding the royalty component. Upon funding of the equity component, Hancock will have the right to appoint a Director to the board of Sirius. At such time Hancock will be the holder of approximately 200 million ordinary shares, equivalent to four per cent of the Company's existing issued share capital. Should Hancock dispose of any of these shares they will no longer have the right to appoint a Director to the board.

Chris Fraser, Managing Director and CEO of Sirius, comments:

'The drawdown of the Hancock Royalty is another important milestone as we develop into a leading fertilizer business. We are delighted to have an experienced partner in the mining industry aligned to Sirius and one that has a growing, long term agricultural interest. The long-term nature of the royalty investment is well aligned to the underlying characteristics of this world-class, long-life asset.'

For further information, please contact:

Sirius Minerals Plc

Investor Relations

Jennifer Wyllie, Tristan Pottas

Email:ir@siriusminerals.com

Tel: +44 845 524 0247

Media enquiries

Edelman

Alex Simmons, Ed Brown

Email:Siriusminerals@edelman.com

Tel: +44 7970 174 353

Tel: +44 7540 412 298

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations. The person responsible for making this announcement on behalf of the Company is Nick King (Company Secretary).

About Sirius Minerals Plc

Sirius Minerals Plc is focused on the development of the Woodsmith Mine, which will access the world's largest and highest grade polyhalite deposit located in North Yorkshire, United Kingdom. Polyhalite is a unique multi-nutrient fertilizer, which can be used to increase balanced fertilization around the world. Sirius Minerals' shares are traded on the Premium List of the London Stock Exchange. Its shares are also traded in the United States on the OTCQX through a sponsored ADR facility. Further information on the Company can be found at: www.siriusminerals.com.

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Sirius Minerals plc published this content on 14 September 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 14 September 2018 06:12:02 UTC