Interim Results

Sunrise Diamonds PLC
21 May 2007


                                Interim Statement

                   For the six month period to 31 March 2007

Chairman's Statement


I am pleased to report the Company's progress and interim results for the six
month period ended 31 March 2007.


Review of Activities


The Company is continuing its vigorous exploration activity in Finland's
Karelian Craton, where its objective is the discovery of world class diamond
deposits comparable to those now being mined in the same geological setting on
the other side of the Russian border at Arkhangelsk.


Our interests in Finland span the three main areas where kimberlites, the host
rock for diamonds, are found. We are currently focused on two of these areas,
Kaavi-Kuopio and Kuusamo.


In the Kaavi-Kuopio area of south central Finland we have completed a technical
review of the numerous kimberlites held by Nordic Diamonds Inc. where we are
earning up to a 75% joint venture interest. Kimberlites 10, 14, 17 and 22 have
been selected for drilling for further micro-diamond extraction and diamond
grade evaluation.


Previous exploration suggests Kimberlite Pipe 10 is currently the largest of
these bodies with a surface area of approximately 2 hectares. Kimberlite 17 also
has a surface area of approximately 2 hectares and indicator mineral chemistry
suggesting good diamond prospectivity but records indicate only minimal sampling
suggesting that the diamond content has not been systematically evaluated. The
other targeted kimberlites appear smaller although they have not all been closed
off by previous drill holes.


Other pipes of future interest covered by the Nordic JV claims include
Kimberlites 12 (1.6 hectares) and 21 (1.3 hectares). A 16.6 tonne mini-bulk
sample of the latter, taken in 1995, returned a reported grade of 26.7 carats
per hundred tonnes including a stone of 1.13 carats. Individually, Pipes 12 and
21 are currently considered too small for development but could provide feed for
a central processing plant in the Kaavi-Kuopio area if this can be justified by
future developments.


Work is advanced at Targets 295 and 298 near Kuopio where we are narrowing the
search for the source of diamonds and diamondiferous kimberlite found in the
surface sediments and where we are hoping to make new kimberlite discoveries.


At Kuusamo, in northern Finland, our past exploration has discovered a new
kimberlite cluster with three of the seven kimberlites found so far being
diamondiferous. Work continues here and a new target, Target 32 will be tested
shortly.


Elsewhere in Finland we are continuing our generative work with the aid of the
BHP Billiton diamond exploration database. A number of intriguing targets are
emerging that will no doubt become more prominent in future as work progresses.


During the period £545,000 was raised before expenses through a placing of
27,250,000 new ordinary shares and I would like to take this opportunity to
thank shareholders for their continuing support for work on the Company's
exciting diamond exploration projects.



Results


The loss for the six month period was £97,598. (Six months to 31 March 2006
£97,759 restated on adoption of FRS 20 'Share Based Payments'). This loss
comprises administration costs of £97,578 exploration costs (written-off)
amounting to £7,371 and interest income of £7,351.


The Company recently commissioned Hardman & Co. to produce a research note on
the Company. This is available on our website and I encourage you to read it at
http://www.sunrisediamonds.com/research.html.


As the research report points out, the Company has a high kimberlite discovery
rate compared to its competitors as well as new projects that could 'sparkle'
and we look forward to bringing these to account in the future.





Patrick Cheetham 21 May 2007

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

John Greenhalgh/Ron Marshman, City of London PR Ltd.
Tel: +44 ( 0)20 7628-5518

Brett Miller, Ruegg & Co Limited
Tel: [phone]




Profit and Loss Account
for the six months to 31 March 2007

                                Six months     Six months to          Twelve
                                    to          31 March 2006      months to 30
                                  31 March      Unaudited            September
                                   2007                                 2006
                                Unaudited       As restated        As restated
                                   £                £                  £

Exploration costs written off    7,371          9,535              22,213


Administrative expenses          97,578         94,586             173,195

Operating loss                   (104,949)      (104,121)          (195,408)

Interest receivable              7,351          6,362              14,254

Loss on ordinary activities      (97,598)       (97,759)           (181,154)
before taxation

Tax on loss on ordinary          -              -                  -
activities

Loss for the period              (97,598)       (97,759)           (181,154)

Loss per share - basic (pence)   (0.09)           (0.12)             (0.21)
(note 2)



Balance Sheet
as at 31 March 2007

                               As at 31 March     As at 31          As at
                                    2007          March 2006     30 September
                                  Unaudited       Unaudited        2006       
                                                 As restated      As restated
                                     £                £               £


Fixed assets

Intangible Assets                788,989          482,454         632,806

Current assets
Debtors                          23,131           62,207          47,691
Cash at bank and in hand         664,195          492,541         384,190
                                 687,326          554,748         431,881

Creditors: amounts falling due  (79,529)         (125,724)       (100,315)
within one year

Net current assets               607,797          429,024         331,566


Net Assets                      1,396,786        911,478         964,372


Capital and reserves

Called up share capital          124,905          93,153          97,655

Share premium account          1,707,939        1,087,014       1,217,562

Share option reserve              81,785           68,162          69,401

Profit and loss account         (517,843)        (336,851)       (420,246)


Shareholders' funds             1,396,786        911,478         964,372




Cash Flow Statement
for the six months to 31 March 2007

                                Six months to        Six months     Twelve
                                   31 March             to          months to
                                                      31 March      30 September
                                     2007               2006          2006 
                                  Unaudited          Unaudited           
                                                     As restated    As restated
                                     £                  £                 £

Net cash outflow from operating  (88,791)             (77,201)        (178,142)
activities

Returns on investments and
servicing of finance
Interest received                 7,351                6,362            14,254

Net cash outflow from operating
activities after returns on
investments and servicing of     (81,440)             (70,839)        (163,888)
finance

Capital expenditure and
financial investment
Purchase of intangible fixed    (156,183)            (224,445)        (374,797)
assets
Net cash outflow from capital
expenditure and financial
investment                      (156,183)            (224,445)        (374,797)

Financing

Issue of share capital (net of   517,628              398,000          533,050
expenses)
Net cash inflow from financing   517,628              398,000          533,050

Increase/(Decrease) in cash      280,005              102,716          (5,635)





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
2006 as amended by the adoption of FRS 20 and the application of FRS 25. The
financial information set out in this statement relating to the period ended 30
September 2006 does not constitute statutory accounts for that period. Full
audited accounts in respect of that financial period have been delivered to the
Registrar of Companies. They did not contain a statement under Section 237(2) or
(3) of the Companies Act 1985 and received an unqualified audit opinion, however
there was an emphasis of matter in relation to the availability of project
finance.


In common with many exploration companies, the Company raises finance for its
exploration and appraisal activities in discrete tranches. Further funding is
raised as and when required. When any of the Group's projects move to the
development stage, specific financing will be required.


During the period the Company raised £517,628 by way of a private placing. In
light of the foregoing 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.

FRS 20 - Share based Payments
The Company has applied the requirements of FRS 20 (share based payments) in 
accordance with the transitional provisions to all relevant equity instruments 
granted after 7 November 2002 and unvested at 1 October 2005.

The Company issues share based payments to directors and to employees of the 
company providing its management services (Tertiary Minerals plc). All share 
based payments are measured at fair value at the date of grant and expensed on a 
straight line basis over any vesting period, based on the Group's estimate of 
shares that will eventually vest. Fair value is measured by use of a model based 
on the Black-Scholes-Merton valuation method. The expected life of the 
instrument used in the model is adjusted, based on the Company's best estimate, 
for the effects of any exercise restrictions and behavioural considerations.

The adoption of FRS 20 has resulted in a charge to the Profit & Loss Account of 
£12,384. A prior year adjustment has been made to the financial information set 
out for the six month period ended 31 March  2006 ( £706) and the year ended 
30 September 2006 (£1,945) to apply charges to the Profit and Loss Account for 
share options granted or becoming vested in these periods. This has no impact 
on the net assets of the Company.

In December 2005 the Company issued options as a minor part of the consideration 
for the acquisition of rights to the BHP Billiton diamond exploration database 
for Finland. As the main consideration comprised various reciprocal rights it 
is difficult to isolate and reliably estimate the value of the option 
part-consideration other than by assessing the fair value of these options. 
Consequently the intangible assets have been increased during the 6 month period 
ended 31 March 2006 and subsequent accounting periods by  £16,733.

FRS 20 has not been applied to share based payments which had vested prior to 
1 October 2005 which comprised warrants to subscribe for 1,500,000 shares issued 
to the directors of the Company and warrants to subscribe for 1,500,000 shares 
issued to each of W.H. Ireland (the Company's broker at the time of AIM 
admission and the Company's Nomad, Ruegg & Co, all exercisable at 2p per share.

FRS 25 - Financial Instruments
In January 2006 the Company issued 17,777,778 free warrants exercisable at 3.5p 
as part of a share placing. The fair value of these warrants is estimated at 
£50,723 and this amount has been re-assigned from the Share Premium Reserve to 
the Option Reserve and a prior year adjustment has been made accordingly.



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     Six months to        Twelve
                             31 March 2007     31 March 2006     months to 30
                               Unaudited        Unaudited         September
                                               As restated          2006
                                                                 As restated
                                  £                 £                  £

Loss (£)                       (97,598)          (97,759)          (181,154)

Weighted average shares in                                       
issue (No.)                  105,291,267       79,672,924         87,750,156

Basic loss per share (pence)     (0.09)          (0.12)              (0.21)




The loss attributable to ordinary shareholders and weighted average number of
ordinary shares for the purpose of calculating the diluted earnings per ordinary
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     Six months          Twelve
                              31 March           to           months to 30
                                2007          31 March          September
                                                2006              2006
                             Unaudited        Unaudited        As restated
                                             As restated
                                 £                £                 £

Operating loss               (104,949)         (104,121)      (195,408)

Depreciation                 -                  -              -
Non-cash movement in         12,384             706           1,585
reserves
Decrease/(increase) in       24,560            (12,199)       2,317
debtors
(Decrease)/increase in       (20,786)          38,413         13,004
creditors

Net cash outflow from
operating activities         (88,791)          (77,201)       (178,142)





4. Reconciliation of cash flow to movement in net funds


Cash at bank
and in hand

                                              £
Increase in cash in the period             280,005

Cash outflow from decrease in funds and     -
lease financing
Cash inflow from decrease in liquid         -
resources

Change in net funds resulting from cash    280,005
flows

Net funds at 30 September 2006             384,190

Net funds at 31 March 2007                 664,195



5. Related party transactions

The Company was an associated undertaking of Tertiary Minerals plc which held
23.45% of the issued ordinary share capital until 9 February 2007 when a share
issue diluted this holding to 18.33%, at which point the Company ceased to be an
associate.



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, and is also available on its website at
www.sunrisediamonds.com








                      This information is provided by RNS
            The company news service from the London Stock Exchange