December 14, 2010

Final Results to 30 June 2010


Stellar Diamonds plc (“Stellar” or the “Company”)

Stellar Diamonds plc, the London listed (AIM:STEL) diamond mining and exploration company focused on West Africa, announces its final results to 30 June 2010 (nine month period for consolidated accounts and 14 month period for Company accounts).

Corporate Highlights

  • Reverse takeover of AIM-listed West African Diamonds plc completed in February 2010
  • Acquired a 100% interest in the Kono kimberlite project in Sierra Leone in May 2010

Financial Highlights

  • £5 million of new funds raised in February 2010 to increase production and advance kimberlite portfolio
  • Cash position at 30 June 2010 of US$0.7 million, US$1.4 million as at 1 December 2010 (unaudited)
  • Net assets increased by US$10 million or 77% from US$13.1 to US$23.1 million
  • Loss per share reduced to US$0.09 from US$0.19
  • Raised £1.9 million post period to bulk sample Tongo kimberlite dyke and drill Droujba kimberlite pipe

Operational Highlights

  • Increased production and revenue at Mandala (48,052 carats vs 34,990 carats and US$1.8m vs US$0.5m)
  • Increased production and revenue at Bomboko (3,920 carats vs 620 carats and US$356k vs US$50k)
  • Bulk sampling at Tongo kimberlite project in progress in eastern Sierra Leone
  • 3,000m drilling programme at Droujba kimberlite commenced in southeastern Guinea

Karl Smithson, Chief Executive Officer, commented: “In a further challenging year for the diamond sector, Stellar has successfully evolved from a privately owned exploration and development company to a quoted diamond producer which is delivering cash flow while advancing a portfolio of high grade kimberlites at various stages of development in Guinea and Sierra Leone. I look forward to keeping shareholders advised of our progress and to the continued improvement in the diamond market, which should lead to wider recognition of the quality of Stellar’s projects and to the Company’s strong growth potential.”

For further information please contact the following or visit the Company’s website at

Stellar Diamonds plc
Karl Smithson, Chief Executive
Tel: +44 (0) 7783 707 971

Angus Ogilvie, Finance Director
Tel: +44 (0) 7885 201 903

RBC Capital Markets
Martin Eales / Daniel Conti
Tel: +44 (0) 20 7653 4000

Northland Capital Partners Ltd
Charles Vaughan / Gavin Burnell
Tel: +44 (0) 20 7492 4763

Pelham Bell Pottinger
Charles Vivian / James MacFarlane
Tel: +44 (0) 20 7861 3232

About Stellar Diamonds plc
Stellar is a London (AIM: STEL) listed diamond mining and exploration company that has a portfolio of projects in West Africa. Two projects in Guinea, Mandala and Bomboko, are undergoing mining and trial mining respectively, which provide cash flow to the Company.

Stellar also owns full rights over four high-grade kimberlites that are to be the focus of future development. In Sierra Leone at the Tongo project a bulk sampling programme is currently underway on one key kimberlite to assess the diamond grade and value, where previous results yielded grades of 100 carats per hundred tonnes with diamond values of $144 per carat. At the Kono underground trial mine previous bulk sampling has produced 4,200 carats as part of an economic evaluation exercise. In Guinea drilling has commenced on the Droujba kimberlite pipe and at Bouro bulk sampling of a high grade kimberlite dyke adjacent to the Company’s Mandala mine is also planned.


STEL 17-10 Final Results, 14-12-10