March 29, 2016

Interim Results for the six months to 31 December 2015

29 March 2016


Stellar Diamonds plc

(“Stellar” or the “Company”)

Interim Results for the six months to 31 December 2015

Stellar Diamonds plc, the AIM listed (AIM: STEL) diamond development company focused on West Africa, announces its unaudited interim results for the six months to 31 December 2015.

Operational and Financial Highlights during the period:

    • Cash, diamonds held for sale and other inventories of US$0.7m at period end
    • US$2.4m of funding brought in through the issue of a Convertible Loan and placing of shares, predominately through new strategic funding partner Deutsche Balaton
    • Repayment of Yorkville loan in full
    • Administrative costs further reduced to US$0.65m from US$0.91m in the 6 months to December 2014 (29% reduction) and US$1.44m for the 12 months to June 2015 (10% reduction for 6 month equivalent)
    • Mining licence application submitted for Tongo Kimberlite Dyke-1 Project in November 2015 and making good progress
    • Continued progress of the trial mining process at the Baoulé Kimberlite Pipe Project

Post period-end Highlights

  • Baoulé Kimberlite Pipe Project, Guinea (“Baoulé”):
    • Diamond sale in March 2016 realising approximately US$0.3 million taking total revenues to date from diamond sales to approximately US$1 million
    • Gem diamonds of high quality achieving prices of up to US$6,800 per carat
    • Trial mining continues and has yielded over 9,300 carats to date
    • Largest stone of 55 carats, though of low quality, indicates large stone potential of pipe
    • 100,000 tonne bulk sample now 73% completed
  • Tongo Kimberlite Dyke-1 Project, Sierra Leone (“Tongo”):
    • Good progress made on Mining Licence application
    • Environmental Impact Assessment approved
    • Estimated project NPV of US$53m and IRR of 31%, however; the weakening of South African Rand and lowering of diesel price has significantly enhanced current project economics
  • Financial Highlights
    • Equity raising of £0.6m before expenses (conditional on Admission)

Stellar Diamonds Chief Executive Karl Smithson commented, “During the six months reporting period Stellar has continued to achieve good progress at the advanced Tongo and Baoulé projects.

“At Tongo the application for the mining licence over the 1.45 million carat Dyke-1 resource was submitted in November 2015, after we had compiled all necessary technical and financial information in support of the application. The first stages of the approval process have been completed and we now await the recommendation of the Minerals Advisory Board (MAB) to the Minister of Mines. We have also prepared and submitted our environmental impact assessment study to the Environmental Protection Agency (EPA) and this was recently approved in February of this year. We will now engage with the EPA to determine an appropriate licence fee in order to receive our environmental licence which will enable the mining licence to be granted, subject to the MAB and Ministerial approval.

“Trial mining has continued at the 5 hectare Baoulé pipe where we are now 73% of the way through our stated 100,000 tonne bulk sample. The diamond grade remains at the expected 13cpht at a +1.25mm cut off and diamonds of up to 55 carats in size have been yielded, which confirms that the pipe is a source of large diamonds. We sold two diamond parcels in the first half of 2015, realising over US$700,000 in revenues, and a third sale was recently completed post reporting period which generated a further US$300,000 in revenues, bringing total revenues to US$1 million. From the sales conducted we have realised high values for single stones of up to US$6,800 per carat, which demonstrates the high quality of some of the diamonds in the deposit. At the end of the trial mining period we intend to establish a maiden diamond resource for the pipe with a target of 3 million carats based on current diamond grade and modelled tonnages.”

Chairman’s Statement

During difficult resource market conditions, Stellar’s focus has rightly remained on the key projects of Tongo and Baoulé which offer the most direct routes to enabling Stellar to become a significant diamond producing company. This has been achieved under very challenging circumstances on the ground during the Ebola outbreak which, I am pleased to report, is totally eradicated from Sierra Leone and with only a few recent sporadic cases in remote areas of Guinea that signify the end of the outbreak there. As Chairman, I am proud of what our Company achieved in its commitment to educate and protect its staff and nearby local communities during this period, often at great personal risk.

Tongo Project, Sierra Leone

Last calendar year we managed to complete all the necessary resource, mine plan and financial modelling requirements for the 1.45 million carat resource at Dyke-1 in the form of an independent Preliminary Economic Assessment (PEA). Armed with this information we were then able to submit the mining licence application which is being given due consideration by the Government authorities. This, to my knowledge, will be the first mining licence application in Sierra Leone since the onset of the Ebola crisis.

The resource at Tongo is high grade (120cpht) and of high diamond value (US$270/ct) which offers an attractive in-situ value of over US$300 per tonne of rock. This is what drives the attractive margin and returns, as evidenced in our PEA where an NPV of US$53 million and IRR of 31% (at a 10% discount rate) were calculated in H1 2015. However, if we adjust the model for today’s South African Rand to US Dollar exchange rate, and the current diesel price in Sierra Leone, the project returns jump to an NPV of US$68.9 million and IRR of 41%.

As I have previously written, there is further resource potential at Tongo from three as yet undrilled, high-grade kimberlites next to Dyke-1. Subject to available finance we will aim to drill Dyke-4 and bring it into resource with a target of 500,000 carats that can contribute to the 1.45 million carat resource at Dyke-1 as we commence production.

We are now turning our attention to potential and appropriate sources of funding for the Tongo mine. A total capital requirement (including working capital for the project) is calculated to be around US$25 million which will enable both the surface and underground mining operation to be brought on stream. We will provide further details on this in due course.

Baoulé Project, Guinea

We resumed trial mining late in the report period after a prolonged rainy season. Our objective remains to mine and process 100,000 tonnes from the 5 hectare pipe, with an approximate equal amount being from the east and west lobes so as to be able to compare results.

We are currently 73% of the way though this sample, having mined 46,500 tonnes from the east lobe and 26,000 tonnes from the west lobe. Processing of this material has yielded over 9,300 carats at an average run of mine (diluted) grade of 12.7 carats per hundred tonnes at a +1.25mm cut off. The largest stone recovered so far is a low quality 55 carat diamond but this does demonstrate the pipe has large diamonds. Notable gem stones up to 13 carats in size have been yielded with some achieving high rough selling prices of up to US$6,800 per carat (for a 10 carat fancy yellow stone).

Three diamond sales have been concluded in Antwerp which have realised US$1 million in revenues. The average prices received for each sale have been highly variable due to the different mix of product and also the volatility in the rough diamond market experienced over the past 12 months.

Based on current production levels of approximately 1,000 carats per month, the trial mining exercise is mostly a cash neutral exercise which is an efficient way to conduct what is essentially an evaluation and resource building exercise. We expect the trial mining component of the process to be completed before the next rainy season (circa. July) and thereafter we will establish maiden resource statement for the Baoulé pipe. In-house modelling of previous drilling over the pipe suggests a target of over 22 million tonnes to a depth of 300m. At an average target grade of 12.7cpht, this would suggest a diamond resource in the region of 3 million carats.


In November we were delighted to welcome Deutsche Balaton, a German based investment company, as a significant shareholder and funding partner. Deutsche Balaton invested approximately US$2.4m into Stellar through a convertible loan and a direct equity investment, and at the same time we undertook a capital reorganisation through a 1 for 50 consolidation of our ordinary shares. We hope to work closely with Deutsche Balaton over the coming months as we fund and develop the Tongo mine into production.

We were also pleased to welcome Hansjörg Plaggemars onto the Board of Stellar as the appointed representative of Deutsche Balaton. However, as part of our efforts to rationalise our corporate costs we have streamlined the Board and Dr. Markus Elsasser and Liviu Meran, both representatives of significant shareholders, stepped down from their non-executive director positions. I would like to thank them both on behalf of the Board for their contribution to Stellar and we will continue to work closely with them as key shareholders as we move forward on our strategy of becoming a diamond producing company. Also in November we undertook a capital reorganization through a 1 for 50 consolidation of our ordinary shares.

As in previous periods we have continued to look for ways of reducing our corporate and general administrative cost overheads and I am pleased to report that this has again resulted in a significant reduction of these costs.

Diamond Market

The rough diamond market in 2015 saw average price declines of 15%. However, it is noted that prices have recovered strongly in the first two months of 2016 with both De Beers and Alrosa managing supply to the market to meet the actual demand. There is likely to be some ongoing uncertainty in pricing in the shorter term after manufacturers have restocked so prices for 2016 are likely to remain vulnerable if there is excess supply to the market. The longer term fundamentals for diamonds nevertheless remain robust and one of the most compelling of any commodity.


Looking ahead our objective for 2016 is for Stellar to evolve from an explorer to a funded diamond mining company with Tongo moving into the development phase once the mining licence is granted and the necessary funding has been secured. This will be the key focus of the executive team over the coming months and it is no doubt going to be challenging with the current tough resource market conditions. However, we believe that we have the project and the team to make this happen.

Finally, I would like to take this opportunity to thank all our shareholders for their ongoing support for Stellar during these tough markets, as well as my fellow Board members and team on the ground for their commitment in driving the projects forwards. We are all hopeful that 2016 will be one of success and renewed value creation for Stellar.

Lord Daresbury

Non-Executive Chairman

** ENDS **

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

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 Beaufort Securities Limited (Joint Broker) Tel: +44 (0) 20 7382 8300
Martin Lampshire Daniel Stewart & Co. plc (Joint Broker) Tel: +44 (0) 20 7776 6574
Emma Earl Cairn Financial Advisers (Nomad) Tel: +44 (0) 20 7148 7900
Lottie Brocklehurst St Brides Partners (Financial PR) Tel: +44 (0) 20 7236 1177

Condensed consolidated statement of comprehensive loss (unaudited)

for the six months ended 31 December 2015

(Stated in U.S. dollars)

Notes Six months ended

31 December 2015


Six months ended

31 December 2014 (unaudited)

Year ended 30 June 2015 (audited)
Revenue 2 614,228
Cost of sales (31,369) (31,401) (1,047,608)
Gross loss (31,369) (31,401) (433,380)
Impairment of intangibles 4 (605,728)
Depreciation of plant and equipment (311,219) (2,235) (499,807)
Administrative expenses (646,332) (914,474) (1,437,838)
Finance costs (173,111) (8,081) (75,102)
Remeasurement of derivatives 275,568
(855,094) (924,790) (2,618,475)
Loss before tax (886,463) (956,191) (3,051,855)
Income tax expense
Loss after tax attributable to equity holders of the parent (886,463) (956,191) (3,051,855)
Other comprehensive income
Remeasurement of derivatives 21,263 36,173
Total comprehensive loss for the period attributable to equity holders of the parent (886,463) (934,928) (3,015,682)
Basic and diluted loss per share (0.049) (0.001) (0.004)

Condensed consolidated statement of financial position (unaudited)

as at 31 December 2015

(Stated in U.S. dollars)

Notes 31 December 2015


31 December 2014 (unaudited) 30 June 2015 (audited)
Non-current assets
Intangible assets 3 17,490,007 16,913,029 16,700,417
Property, plant and equipment 4 1,865,401 2,633,082 2,192,719
Total non-current assets 19,355,408 19,546,111 18,893,136
Current assets
Inventories 306,303 461,992 154,170
Trade and other receivables 139,897 89,449 166,750
Cash and cash equivalents 373,602 65,649 94,624
Total current assets 819,802 617,090 415,544
Total assets 20,175,210 20,163,201 19,308,680
Equity and liabilities
Capital and reserves
Share capital 26,801,078 25,315,443 26,655,961
Share premium 29,746,844 28,804,151 29,000,173
Reverse acquisition reserve 17,073,279 17,073,279 17,073,279
Share option reserve 4,286,666 5,008,756 4,286,666
Warrant reserve 530,919
Accumulated loss (59,606,959) (57,398,478) (58,720,496)
Total equity 18,831,827 18,803,151 18,295,583
Non-current liabilities
Loans and borrowings 737,374
Derivative financial instruments 84,010
Provision 104,369 104,369 104,369
Total non-current liabilities 925,753 104,369 104,369
Current liabilities
Trade and other payables 417,630 697,220 880,974
Loans and borrowings 491,292
Derivative financial instruments 67,169 27,754
Total current liabilities 417,630 1,255,681 908,728
Total liabilities 1,343,383 1,360,050 1,013,097
Total equity and liabilities 20,175,210 20,163,201 19,308,680

Company registration number: 5424214

Share Share Warrant Share option Reverse acquisition Accumulated Total
capital premium reserve reserve reserve loss equity
Balance at 30 June 2014 24,906,611 28,609,454 27,643 5,008,756 17,073,279 (56,491,193) 19,134,550
Total comprehensive loss for the year (3,015,682) (3,015,682)
Issue of placing shares 1,749,350 440,607 2,189,957
Share issue costs (13,242) (13,242)
Warrants issued (36,646) 36,646
Transfer to accumulated loss (64,289) 64,289
Share options expired (722,090) 722,090
Balance as at 30 June 2015 26,655,961 29,000,173 4,286,666 17,073,279 (58,720,496) 18,295,583
Total comprehensive loss for the year (886,463) (886,463)
Issue of placing shares 145,117 798,148 943,265
Share issue costs (51,477) (51,477)
Warrants issued 530,919 530,919
Balance at 31 December 2015 26,801,078 29,746,844 530,919 4,286,666 17,073,279 (59,606,959) 18,831,827

Condensed consolidated statement of changes in equity (unaudited)

as at 31 December 2015

(Stated in U.S. dollars)


Condensed consolidated statement of cash flows (unaudited)

For the six months ended 31 December 201

(Stated in U.S. dollars)

Six months ended Six months ended Year ended
31 December 2015 (unaudited) 31 December 2014 (unaudited) 30 June 2015 (audited)
Cash flows from operating activities:
Net loss for the period (886,463) (934,928) (3,015,682)
Adjustments for:
Depreciation of property, plant and equipment 311,219 2,235 499,807
Impairment of intangibles 605,728
Share-based payment expense
Shares issued to directors in lieu of fees 192,343 55,115
Remeasurement of derivatives (275,568) (36,173)
Net foreign exchange (gain)/loss (79,970) 8,114 (31,770)
Finance costs 173,111
Change in working capital items:
Decrease in receivables 26,853 78,313 1,012
(Increase) in inventories (152,133) (240,400) (154,170)
Increase/(Decrease) in trade and other payables (463,350) 448,251 578,954
Net cash used in operations (1,153,958) (638,415) (1,497,179)
Cash flows from investing activities
Purchases of property, plant and equipment (707,996) (713,028)
Payments to acquire intangible assets (773,492) (983,509) (1,207,209)
Net cash used in investing activities (773,492) (1,691,505) (1,920,237)
Cash flows from financing activities
Proceeds from issue of share capital, net of costs 699,445 603,529 2,121,599
Proceeds from borrowings, net of costs 1,551,407 441,483
Interest paid on borrowings (124,394)
Net cash generated by financing activities 2,126,458 1,045,012 2,121,599
Net (decrease)/increase in cash and cash equivalents 199,008 (1,284,908) (1,295,817)
Cash and cash equivalents, beginning of period 94,624 1,358,671 1,358,671
Effect of foreign exchange rate changes 79,970 (8,114) 31,770
Cash and cash equivalents, end of period 373,602 65,649 94,624


Notes to the consolidated financial statements (unaudited)

for the six months ended 31 December 2015

(Stated in U.S. dollars)

1. Basis of presentation

Stellar Diamonds plc (the “Company” or on a consolidated basis the “Group”) is presenting unaudited financial statements as of and for the six months ended 31 December 2015. The comparative periods presented are the audited financial statements as of and for the year ended 30 June 2015 and the unaudited financial statements as of and for the six months ended 31 December 2014.

The information for the six months ended 31 December 2015 does not constitute statutory accounts for Stellar Diamonds plc as defined in section 434 of the Companies Act 2006. A copy of the most recent statutory accounts for the year ended 30 June 2015 has been delivered to the Registrar of Companies. The auditors reported on those accounts: their report was unqualified but drew attention to the Company’s ability to continue as a going concern and the valuation of intangible assets by way of emphasis and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (“IFRS”). The condensed set of financial statements included in this interim financial report has been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting”, as adopted by the European Union.

1.1 Going concern

The Company’s business activities, together with the factors likely to affect its future development, its key risks and performance are set out in the Chairman’s Statement.

As discussed in the Chairman’s Statement, the Company is focusing on the ongoing trial mining production and resource building at its Baoulé Joint Venture project in Guinea, and taking the Company’s Tongo kimberlite project in Sierra Leone into production. In November 2015 the company raised $2.4m before costs through the issue of shares and a convertible loan and following the end of the period in March the Company raised a further $0.85m through the issue of equity to new and existing shareholders. Additionally the Company continues to produce diamonds from its trial mining exercise at Baoulé and completed a sale of $0.3m in March, and will continue to generate revenues during 2016, however there can be no guarantee as to the timing or amount of any such sales. Given the ongoing trial mining productions at Baoulé and the potential of the Tongo project for near term development, the directors believe that the Company will continue to have the ability to access sufficient levels of finance to continue the Group’s projects for the foreseeable future. On that basis, the directors continue to adopt the going concern basis in preparing these financial statements.

1.2 Changes in accounting policy

The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in Stellar Diamonds plc’s latest audited financial statements as of and for the year ended 30 June 2015.

2. Segments

The Company is engaged in the acquisition, exploration, development and production of diamond properties in the West African countries of Sierra Leone and Guinea. Information presented to the Chief Executive Officer for the purposes of resource allocation and assessment of segment performance is focussed on the individual projects in geographical locations. The reportable segments under IFRS 8 are therefore as follows:

· Mandala (Guinea);

· Bomboko (Guinea);

· Kono (Sierra Leone);

· Tongo (Sierra Leone);

· Droujba (Guinea);

· Baoulé (Guinea);

· Corporate and other exploration activities.

Following is an analysis of the Group’s revenue, results, assets and liabilities by reportable segment for the six months ended 31 December 2015:

Mandala/ Bomboko Baoulé Kono Tongo Droujba Corporate and other Total
$ $ $ $ $ $ $
Revenue – sale of diamonds
Segment result (78,450) (341,868) (34,555) 50,273 (584,320) (988,920)
Finance costs (173,111)
Remeasurement of derivatives 275,568
Loss before tax (886,463)
Income tax expense
Loss after tax (886,463)
Segment assets 88,997 4,230,401 4,304,141 6,887,112 4,248,497 416,061 20,175,210
Segment liabilities (104,369) (2,684) (1,236,330) (1,343,383)
Carrying value of intangible assets 2,164,601 4,300,528 6,730,822 4,248,497 45,559 17,490,007
Net book value of property, plant and equipment 1,759,497 3,423 91,234 11,247 1,865,401
Capital additions

– property, plant and equipment

– intangible assets





Depreciation of property, plant and equipment 310,499 604 16,100 115 327,318

Following is an analysis of the Group’s revenue and results by reportable segment for the year ended 30 June 2015:

Mandala/ Bomboko Baoulé Kono Tongo Droujba Corporate and other Total
$ $ $ $ $ $ $
Revenue – sale of diamonds 614,228 614,228
Segment result (178,302) (930,814) (129,678) (1,701,786) (2,940,580)
Finance costs (75,102)
Loss before tax (3,015,682)
Income tax expense
Loss after tax (3,015,682)
Segment assets 23,054 3,954,171 4,304,755 6,540,190 4,238,618 293,608 19,354,396
Segment liabilities (150,086) (76,458) (2,684) (829,592) (1,058,820)
Carrying value of intangible assets 1,708,472 4,300,528 6,407,240 4,238,618 45,558 16,700,416
Net book value of property, plant and equipment 2,069,997 4,027 107,334 11,361 2,192,719
Capital additions

– property, plant and equipment

– intangible assets







Depreciation of property, plant and equipment 795,894 1,726 46,000 329 843,949
Impairment of intangibles 605,728 605,728

3. Intangible assets

Six months ended 31 December 2015 Year ended 30 June 2015
$ $
Exploration and evaluation expenditure
Opening balance 34,989,394 33,438,044
Additions 789,591 1,551,350
Closing balance 35,778,985 34,989,394
Opening balance 18,288,978 17,683,250
Charge for the period 605,728
Closing balance 18,288,978 18,288,978
Carrying value 17,490,007 16,700,416

4. Property, plant and equipment

Mining assets Machinery and equipment Total
$ $ $
At 1 July 2014 11,079,305 9,778,339 20,857,644
Additions 713,028 713,028
At 30 June 2015 11,079,305 10,491,367 21,570,672
At 31 December 2015 11,079,305 10,491,367 21,570,672
At 1 July 2014 11,079,305 7,454,699 18,534,004
Charge for the year 843,949 843,949
At 30 June 2015 11,079,305 8,298,648 19,377,953
Charge for the period 327,318 327,318
At 31 December 2015 11,079,305 8,625,966 19,705,276
Net book value
At 31 December 2015 1,865,401 1,865,401
At 30 June 2015 2,192,719 2,192,719

5. Share capital

Unlimited number of ordinary shares of 1p and deferred shares of 4p and 49p each.

Ordinary Shares

Number Deferred 49p Shares Number Deferred 4p Shares Share



Share premium


Allotted called-up and fully paid:
Balance as at 30 June 2014 698,007,642 216,766,659 24,906,611 28,609,454
Shares issued on share placing 113,922,082 1,749,350 440,607
Share issue costs (49,888)
Balance as at 30 June 2015 811,929,724 216,766,659 26,655,961 29,000,173
Share consolidation (1 for 50) 16,238,595 16,238,595 26,655,961 29,000,173
Shares issued on share placing 9,563,881 145,117 798,148
Share issue costs (51,477)
Balance as at 31 December 2015 25,802,476 16,238,595 216,766,659 26,801,078 29,746,844

On 19 November 2015 the Company carried out a consolidation and subdivision of its existing share capital on a 1 for 50 basis. For every 50 Existing Ordinary Shares of 1 pence each held at the time of the capital reorganisation date was consolidated into 1 Consolidated Share of 50 pence and immediately following the Consolidation, each Consolidated Share was then sub-divided into 1 New Ordinary Share of 1 pence and 1 New Deferred Share of 49 pence each.

Following the reorganisation described above, on 19 November 2015 the Company allotted and issued 7,594,692 new ordinary 1 pence shares for gross proceeds of $750,928, net of issue costs, including costs related to the reorganisation, of $50,147.

On 3 December 2015 the Company allotted and issued 1,969,189 new ordinary 1 pence shares in lieu of fees owed to Directors and Senior Management of the Company for gross proceeds of $192,343. There were no issue costs relating to the issue of these shares.

6. Convertible loan

31 December 2015
Convertible loan: $
Opening balance
Proceeds from issuance 1,650,000
Issuance costs (98,600)
Embedded derivate element relating to conversion option (331,824)
Fair value of warrant issued (transferred to warrant reserve) (530,919)
Effective interest charged in the period 48,717
Presented as non-current loans and borrowings 737,374
Embedded derivative:
Fair value of derivate financial instrument at inception of convertible loan 331,824
Gain recognised on revaluation at 31 December 2015 (248,748)
Presented as non-current Derivative Financial Instrument 84,010

On 19 November 2015 the company issued a secured convertible loan note (CLN) of $1,650,000, net of corporate finance and legal issuance costs of $98,600, to Deutsche Balaton. The CLN has a 2 year term and is repayable by 19 November 2017 and carries interest at 6% p.a. payable on the 12, 18 and 24 month anniversary of the issue date. The CLN is convertible into 3,747,368 ordinary 1p shares of the Company and can also be converted into shares in subsidiaries of the Company based on a set formula, full details of which can be found in the circular posted on the Company website dated 2 November 2015. The Company also granted 5,995,789 warrants to Deutsche Balaton with an aggregate subscription value of $1,650,000. The warrants can only be exercised following conversion or repayment of the corresponding proportion of the CLN and have an expiry date of 21 November 2017.

The conversion feature of the CLN represents an Embedded Derivative for accounting purposes and is separated from the host CLN at fair value on the date of issue and presented as a Derivative Financial Instrument liability. This is revalued at each balance sheet date with the movement recorded through the income statement.

The fair value of the warrants are also separated from the host CLN and recorded in the Warrant Reserve. The warrants are not subsequently revalued and remain at initial fair value until exercise or expiry.

7. Post balance sheet events

In March 2016 the Company allotted and issued 6,000,000 new ordinary 1 pence shares for gross proceeds of $853,000, net of issue costs.

Also in March 2016 the company sold diamonds from the Baoulé trial mining project for gross proceeds of $300,000.

8. The Company’s unaudited six month results to 31 December 2015 will be available to download from the Company’s website at