Firestone Diamonds plc (FDI) – Preliminary announcement of results for the year ended 30 June 2008

Firestone Diamonds plc (FDI) – Preliminary announcement of results for the year ended 30 June 2008


Turnover increased 102% to £3.3m (2007: £1.6m)
Loss of £0.2m (2007: Loss of £0.5m); diluted loss per share 0.4p (2007: Loss 1p)
Gain of £2.8 million on disposal of interest in African Diamonds plc
Bonte Koe toll treatment project with De Beers reached full production and positive cash flow
£5 million financing completed in July 2008

BK11, Botswana
Positive results from Phase 1 bulk sampling
- sample grade of 10 cpht and modelled grade of 15 cpht
- diamond value estimated at $200/carat in June 2008
Phase 2 bulk sampling under way
- first hole returned sample grade of 10 cpht
- full results expected in early 2009
Inferred resource statement expected Q1 2009
Possible production in 2010

BK16, Botswana
Agreement to acquire 87.5% interest in BK16
Good economic potential
-historical sampling recovered grades up to 15 cpht and high quality diamonds
Drilling commenced in November 2008

Tsabong, Botswana
Over 10,000 metres of percussion, core and LDD drilling completed
Independent data review concluded that Tsabong has the potential for economic large sized kimberlite deposits
LDD drilling completed on MK1 during the year and on five more kimberlites since year end
Bulk sampling results expected in early 2009

Company well funded and confident about prospects despite challenging market conditions
Increased focus on cash and cash flow
New toll treatment projects being pursued
BK11 and BK16 will be primary focus in Botswana
Considering joint venture partner for Tsabong

Speaking today, Philip Kenny, CEO of Firestone Diamonds, said “We have made good progress in Botswana and South Africa over the past year.  Bulk sampling results from BK11 have been very promising and we continue to believe that the prospects for identifying economic kimberlites at Tsabong are good.  Revenues at Bonte Koe in South Africa increased by over 100% during the year, and we are pursuing a number of similar new toll treatment projects.”

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