Stellar Diamonds plc NTERIM UNAUDITED SIX MONTH RESULTS

Stellar Diamonds plc NTERIM UNAUDITED SIX MONTH RESULTS

Stellar Diamonds plc, the London listed diamond development company focused on West Africa announces its interim unaudited six month results to 31st December 2011.

Operational Highlights

  • Resource drilling completed at Droujba kimberlite pipe in Guinea
  • Bulk sampling at Droujba underway to obtain diamond grade and value
  • Resource drilling and bulk sampling completed at Tongo Dyke 1 project in Sierra Leone
  • Tongo Dyke 1 diamond grade of 121cpht (+1mm in-situ) and diamond value of $185 per carat
  • On track for delivery of independently calculated resource statements at Tongo and Droujba in Q1-12

Financial Highlights

  • $4.2m invested in advancing Droujba and Tongo towards maiden resource statements for Q1-12
  • $1.0m of cash reserves and $0.6m diamonds in stock for sale
  • Loss per share reduced to $0.01 (2010 $0.03)
  • Net assets of $19.2m ($21.1m at 30 June 2011)

Karl Smithson, Chief Executive Officer, commented: "Stellar's focus during the past six months has been on the generation of maiden resource statements for our key kimberlite projects at Droujba and Tongo in Guinea and Sierra Leone respectively. I am pleased to report that excellent progress has been made during this report period. Resource drilling has been completed at both projects and at Tongo we have also completed the bulk sampling evaluation of the 2.5km long Dyke 1 kimberlite. This returned a highly encouraging +1mm in-situ grade of 121 carats per hundred tonnes ("cpht") and a diamond value of $185 per carat.  At Droujba the collection of four bulk samples weighing a total of 940 tonnes has been completed as has construction and commissioning of the processing plant to treat these samples.

"We have also been pleased to read of the planned IPO of the Koidu diamond mine on the Hong Kong stock exchange, as this is situated adjacent to our Kono project and will help raise awareness of the potential value within our Kono permits.

"We remain on track to achieve our stated objective of delivering the resource statements in the first quarter of 2012 and I look forward to updating shareholders as we progress to these key milestones for the Company."

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