May 31, 2011

Grant of Share Options

NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO U.S NEWS WIRE SERVICES.

Stellar, the London Listed (AIM: STEL) diamond mining and exploration company focused on West Africa announces the grant of share options to directors and employees of the Company and its group of subsidiary companies. A total of 8,150,000 share options have been granted at an exercise price of 8 pence per ordinary share, exercisable for a period of 5 years from the date of grant, subject to the terms of the unapproved Company share option scheme. The exercise price represents a premium of 28% to the closing share price on 27 May 2011.

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

Directors Position Share Options granted Exercise price (£) Total number of Share Options held
Lord Daresbury Non Executive Chairman 1,000,000 0.08 1,702,000
Karl Smithson Chief Executive Officer 2,000,000 0.08 4,006,500
Steven Poulton Non Executive Director 800,000 0.08 1,452,000
James Campbell Non Executive Director 600,000 0.08 970,000
Luis da Silva Non Executive Director 600,000 0.08 1,353,000
5,000,000 9,483,500
Other Employees 3,150,000 0.08 5,910,175
Total 15,393,675

Following these option grants the total number of shares under option is 15,393,675 representing 7.10% of the company’s share capital of 216,766,659 ordinary shares. In addition there are 23,064,383 warrants outstanding, exercisable at 12 pence per ordinary share.

For further information please contact the following or visit the Company’s website at www.stellar-diamonds.com.

Stellar Diamonds plc
Karl Smithson, Chief Executive
Tel: +44 (0) 20 7257 2930

Northland Capital Partners Limited
Gavin Burnell, Edward Hutton
Charles Vaughan
Tel: +44 (0) 20 7796 8800

Daniel Stewart & Company plc
Martin Lampshire, Oliver Rigby
Tel: +44 (0) 20 7776 6550

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