May 31, 2016

Initial Approval of Tongo Mine Licence

31 May 2016

AIM: STEL

Stellar Diamonds plc

(“Stellar” or the “Company”)

Initial Approval of Tongo Mine Licence

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, has been verbally informed that the Minerals Advisory Board (MAB) has approved the application for a mining licence over its 100% owned Tongo project in Sierra Leone. Progression of the licencing process remains subject to the National Minerals Agency (“NMA”), the licencing body of the Ministry of Mines, formally writing to Stellar to inform it of the decision and drawing up a licence agreement to be forwarded to the Minister of Mines for approval.

Thereafter the fiscal terms of the mining licence will be negotiated between Stellar and the Government of Sierra Leone and the resulting mining concession agreement will then require ratification through Parliament.

In the meantime, Stellar is engaging with the Environmental Protection Agency (“EPA”) with regards to the required environmental licence, which must also be issued before mining can commence.

A further announcement will be made to shareholders as and when the formal letter is received from the NMA. Such announcement will include any initial conditions expected in relation to the licence.

About Stellar Diamonds plc

Stellar is an AIM quoted (AIM: STEL) West African focused diamond company with projects at the trial mining and mine development stages in Guinea and Sierra Leone.

** ENDS **

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

Karl Smithson, CEO

Philip Knowles, CFO

Stellar Diamonds plc

Stellar Diamonds plc

Tel: +44 (0) 20 7010 7686

Tel: +44 (0) 20 7010 7686

Jon Belliss

Martin Lampshire

Beaufort Securities Limited (Joint Broker)

Daniel Stewart & Company (Joint Broker)

Tel: +44 (0) 20 7382 8300

Tel: +44 (0) 20 7776 6574

Emma Earl

Sandy Jamieson

Cairn Financial Advisers (Nominated Advisor) Tel: +44 (0) 20 7148 7900
Lottie Brocklehurst St Brides Partners Ltd Tel: +44 (0) 20 7236 1177