August 10, 2010

Grant of Options & Issue of Equity



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

Stellar, the London Listed (AIM: STEL) diamond mining and exploration company focused on West Africa announces that the Board of Directors have approved the recommendation by the Remuneration Committee for the grant of a total of 2,950,000 share options at an exercise price of 11p per ordinary share exercisable for a period of 5 years from the date of grant.

The allocation of new share options is detailed in the following table:

Directors Position Number of options granted Exercise price Total number of options held
Lord Daresbury Non Executive Chairman 300,000 11p 702,000
N. Karl Smithson Chief Executive Officer 700,000 11p 2,006,500
Angus Ogilvie Financial Director 500,000 11p 701,000
Steven Poulton Non Executive Director 250,000 11p 652,000
James Campbell Non Executive Director 150,000 11p 370,000
Luis da Silva Non Executive Director 150,000 11p 753,000
2,050,000 5,184,500
Other Employees 900,000 11p 3,197,963
2,950,000 8,382,463

The Company also announces the issue of new equity, with 72,727 new ordinary shares of 5p each being issued to the Company’s Chief Operating Officer as a performance related payment. These shares will rank pari passu in all respects with the existing ordinary shares in issue. An application to AIM to list the new shares has been made, and the Company expects dealing of the new shares to commence on 16 August 2010.

Following these option grants and issue of new equity the total number of shares under option is 8,382,463 representing 8.28% of the company’s increased issued share capital of 101,266,659 Ordinary Shares.

The exercise prices and expiry dates of shares under option are detailed in the following table:

Number of options Exercise price Expiry date
240,000 £1.00 to £1.23 21-Feb-11
1,110,138 £0.87 to £1.18 15-Sep-13 to 30-Sep-14
3,482,325 £0.20 22-Apr-15
2,950,000 £0.11 10-Aug-15
600,000 £0.15 23-Jul-16

Since the completion of the reverse acquisition on 22 February 2010, a total of 20,439,939 warrants have expired. The Company currently has 1,190,125 warrants at an exercise price of 20p per ordinary share outstanding in addition to a £300,000 convertible loan note that matures on 21 September 2011 with the option to convert in to 1,507,500 ordinary shares at 20p together with 1,507,600 warrants at 25.1p expiring on 22 February 2012.

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 707971

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

Astaire Securities
Charles Vaughan
Tel: +44 (0) 20 7448 4400

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