Interim Results

Sunrise Diamonds PLC
18 May 2006



SUNRISE DIAMONDS PLC


Interim Statement
for the six months ended 31 March 2006

Chairman's Statement


I am pleased to report the Company's progress and interim results for the
six-month period to 31st March 2006.


Review of Activities

The Company is exploring for diamonds in Finland in the Karelian Craton, a
prospective geological block which, over the border in Russia, hosts world-class
diamond deposits in the Arkhangelsk region including the rich Grib pipe and the
multi-pipe Lomonosov complex currently being developed by Alrosa.


Since the publication of our first annual report in December 2005, we have
reported considerable further progress and success including the discovery of
two additional kimberlites in the new Kuusamo cluster, bringing the total so far
discovered to seven, and the recovery of micro-diamonds from the Anomaly 45 and
Kattaisenvaara kimberlites. The results of micro-diamond analysis for samples
from the latest kimberlite discovery, the 'Lampi' kimberlite, are still awaited.
The Company is now undertaking a rigorous technical evaluation of the Kuusamo
kimberlites to determine their potential for commercial diamond content which,
if indicated, would need to be confirmed with larger scale sampling programmes.


Whilst drilling and other field activities have focused in Kuusamo in northern
Finland, new targets have been acquired throughout Finland. In particular, this
has capitalised on the data contained in BHP Billiton's Finland diamond
exploration database where exclusive rights were secured by the Company last
December. The database has an estimated replacement value of over $10 million
and includes results from over 18,000 geochemical samples as well as a large
archive of geophysical data.


So far, over 20 target areas have been selected from the BHP Billiton database
and are now secured with over 600 sq. km. of claims and claim reservation
applications. These targets are defined by probable kimberlite dispersion trains
having no obvious relationship to known kimberlites. The majority of new targets
are in the more established Kaavi-Kuopio kimberlite region of south-central
Finland where 20 kimberlite pipes are already known from previous exploration,
the majority of which are diamondiferous. One of these, the Lahtojoki pipe, is
currently being bulk sampled by European Diamonds plc which has predicted a
grade in excess of 40 carats per hundred tonnes.


The Company is considering further project acquisition opportunities in Finland
and throughout the reporting period has continued to evaluate diamond
exploration opportunities worldwide.


I am also pleased to be able to announce today the appointment of Ruegg & Co
Limited as broker to the Company. Ruegg & Co, which is already our Nominated
Advisor, is an independent corporate finance house established in 1992 and has
advised on a wide range of both domestic and international corporate finance
transactions.


Results

The loss for the six-month period was £97,053. This loss comprises
administration costs of £93,880, exploration costs (written-off) amounting to
£9,535 and interest income of £6,362.


Patrick L Cheetham 18 May 2006

Executive Chairman


For further information contact :

Sunrise Diamonds plc            Tel: + 44 (0)1625 505947
Sunrise House                   Fax: + 44 (0)1625 626204
Hulley Road
Macclesfield                    Website: www.sunrisediamonds.com
Cheshire SK10 2LP

Profit and Loss Account

for the six months to 31 March 2006



                                      Six months to   Period ended 30 September
                                      31 March 2006                        2005
                                          Unaudited
                                                  £                          £
                                           ----------                  ---------
Exploration costs written off                 9,535                     39,942

Administrative expenses                      93,880                    206,825
                                           ----------                  ---------
Operating loss                             (103,415)                  (246,767)

Interest receivable                           6,362                      7,675
                                           ----------                  ---------
Loss on ordinary activities before
taxation                                    (97,053)                  (239,092)

Tax on profit on ordinary activities              -                          -
                                           ----------                  ---------

Loss for the period                         (97,053)                  (239,092)
                                           ----------                  ---------

Loss per share - basic (pence)
(note 2)                                      (0.12)                     (0.45)
                                           ----------                  ---------

All amounts relate to continuing activities.


Balance Sheet

as at 31 March 2006



                                                   As at 31 March          As at
                                                             2006   30 September
                                                        Unaudited           2005
                                                              £            £
                                                         ----------    ---------


Fixed assets

Intangible Assets                                         465,721      241,276

Current assets
Debtors                                                    62,207       50,008
Cash at bank and in hand                                  492,541      389,825
                                                         ----------    ---------
                                                          554,748      439,833
                                                         ----------    ---------

Creditors: amounts falling due within one year            125,724       87,311
                                                         ----------    ---------

Net current assets                                        429,024      352,522
                                                         ----------    ---------

Creditors: amounts falling due after more than one              -            -
year                                                     ----------    ---------


Total assets less current liabilities                     894,745      593,798
                                                         ----------    ---------

Capital and reserves

Called up share capital                                    93,153       75,375

Share premium account                                   1,137,737      757,515

Profit and loss account                                  (336,145)    (239,092)
                                                         ----------    ---------

Shareholders' funds                                       894,745      593,798
                                                         ----------    ---------



Cash Flow Statement

for the six months to 31 March 2006

               Six months to 31 March 2006 Unaudited  Period ended 30 September
                                                                          2005
                                                  £                          £
                                           ----------                  ---------

Net cash
outflow from
operating
activities
(note 3)                                    (77,201)                  (209,464)

Returns on
investments
and servicing
of finance                                    6,362                      7,675

Capital
expenditure
and financial
investment                                 (224,445)                  (241,276)
                                           ----------                  ---------

Net cash
outflow before
financing                                  (295,284)                  (443,065)

Financing -
issue of share
capital (net
of expenses)                                398,000                    832,890
                                           ----------                  ---------

Increase in
cash in the
period (note
4)                                          102,716                    389,825
                                           ----------                  ---------



Notes to the Interim Statement


1.       Basis of preparation

The interim statement has been prepared on the basis of the accounting policies
set out in the Company's financial statements for the period ended 30 September
2005. The financial information set out in this statement relating to the period
ended 30 September 2005 does not constitute statutory accounts for that period.
Full audited accounts in respect of that financial period (which received an
unqualified audit opinion and did not contain a statement under Section 237(2)
or (3) of the Companies Act 1985) have been delivered to the Registrar of
Companies.


The Directors are satisfied that the Company has adequate resources to continue
to operate for the foreseeable future. For this reason they continue to adopt
the 'going concern' basis for preparing the accounts. The interim report has
been approved by the Directors and is unaudited.


Comparative figures for the six months ended 31 March 2005 are not included as
the Company was only formed in February 2006.



2. Loss per share

Loss per share has been calculated on the attributable loss for the period and
the weighted average number of shares in issue during the period.

                       Six months to 31 March 2006    Period ended 30 September
                                Unaudited                                  2005
                                ----------                             ---------

Loss (£)                                  (97,053)                    (239,092)

Weighted average
shares in issue
(No.)                                  79,672,924                   52,658,844

Basic loss per share
(pence)                                     (0.12)                       (0.45)
                                         ----------                    ---------

The loss attributable to ordinary shareholders and weighted average number of
ordinary shares for the purpose of calculating the diluted earnings per share
are identical to those used for the basic earnings per ordinary share. This is
because the exercise of share warrants would have the effect of reducing the
loss per ordinary share and is therefore not dilutive under the terms of FRS 14.


3.       Reconciliation of operating loss to net cash outflow from operating
activities

                         Six months to 31 March       Period ended 30 September
                                 2006 Unaudited                            2005
                                            £                              £
                                       ----------                      ---------

Operating loss                         (103,415)                      (246,767)

Depreciation                                  -                              -
Increase in debtors                     (12,199)                       (50,008)
Increase in creditors                    38,413                         87,311
                                       ----------                      ---------

Net cash outflow from
operating activities                    (77,201)                      (209,464)
                                       ----------                      ---------


4.       Reconciliation of cash flow to movement in net funds

             Six months to 31 March 2006 Unaudited   Period ended 30 September
                                                                          2005
                                                £                            £
                                         ----------                    ---------
Increase in
cash in the
period                                    102,716                      389,825
Opening net funds                         389,825                            -
                                         ----------                    ---------

Closing net funds                         492,541                      389,825
                                         ----------                    ---------

5.       Related party transactions


The Company is an associated undertaking of Tertiary Minerals plc which holds
24.58% of the issued ordinary share capital at the balance sheet date.



6.       Interim report


Copies of this interim report will be sent to all shareholders and are available
from Sunrise Diamonds plc, Sunrise House, Hulley Road, Macclesfield, Cheshire,
SK10 2LP, United Kingdom.




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