June 12, 2007

Progress Update On Stellar Diamonds

Mano River Resources Inc. (“Mano” or “the Company”), the TSX-V and AIM listed exploration and development company focused on natural resources in West Africa, today announces an update on the progress of its diamond subsidiary Stellar Diamonds Limited (“Stellar”).

  • Stellar has acquired all the diamond assets of Mano
  • Diamond assets valued by the board of Stellar at £23.9 million, supported by a private report by MPH Consulting Limited
  • Completed a private placing raising £800,000
  • Additional Pre-IPO financing planned, raising up to £4.5 million, with a proposed IPO of Stellar in Q4 2007
  • Appointment of Rowan Carr as VP Exploration

Acquisition of diamond assets

Mano has completed an internal corporate re-organisation of its diamond assets and Stellar has acquired a 100% interest in Mano’s diamond assets in Liberia, Sierra Leone and Guinea. Stellar has also acquired from SearchGold Resources Inc., its 50% interest in the Guinean joint venture company, Guinean Diamond Corporation Ltd., which holds the Bouro/Mandala alluvial project. In consideration for these acquisitions, Stellar has issued 22 million shares (19.3 million shares to Mano and 2.7 million shares to SearchGold and a local minority shareholder, respectively) at a price of £0.87. The directors of Stellar valued the diamond assets at £23.9 million, which was supported by a private independent report by MPH Consulting Limited completed on 1st March 2007.

Financing

Stellar has completed a private placing raising £800,000 at £0.87 per share. The funds will be used towards maintaining Stellar’s equity interests in its various on-going JV projects in 2007.

As a result of these acquisitions and the private placing, Mano currently holds an approximate 83% interest in Stellar. A further Pre-IPO financing is currently planned, raising up to £4.5 million, the proceeds of which will be used to advance Stellar’s exploration and development programmes.

Appointment of VP Exploration

Mano is also pleased to announce that Rowan Carr has joined Stellar as Vice President of Exploration. Rowan brings with him over 20 years of African diamond exploration and management experience gained with the De Beers group of companies, having managed diamond projects in Botswana, South Africa, Angola, Guinea, Central African Republic and the Democratic Republic of Congo. In addition Rowan was also the technical manager of the De Beers’ largest mineral processing laboratory in Kimberley.

Stellar’s CEO, and director of Mano, Karl Smithson, commented:

“Through this restructuring and the proposed financing and listing of Stellar, we are confident that significant value will be unlocked for Mano shareholders. We hope to further increase the value of Stellar in the run up to the planned IPO through progressing the current advanced kimberlite projects in Sierra Leone and Liberia and through selective acquisitions and potential Joint Ventures, including one in the DRC.

On behalf of the board, I welcome Rowan Carr, who brings significant diamond exploration experience to Stellar’s management team.”

Notes to Editors:

About Stellar Diamonds Limited

Stellar Diamonds will be an integrated diamond miner and explorer with a focus on West and Central Africa. The Company’s portfolio of diamond properties and joint ventures in West Africa is summarised as follows:

  • A 49% interest in a JV with Petra Diamonds on the Lion Kimberlite Dykes project in the Kono diamond fields of Sierra Leone, with underground diamond production planned to commence in early 2008. A 75-tonne per hour processing plant is already built and exploration shaft sinking is being conducted on numerous diamond bearing kimberlite dykes.
  • A 50% interest in a JV with Trans Hex Group in the Weasua cluster of diamondiferous kimberlite pipes in Liberia, where bulk sampling to determine diamond grades and value is currently underway.
  • A 100% interest in the Mandala alluvial and Bouro kimberlite dyke project in Guinea, where a non-43-101 compliant indicated alluvial diamond resource of 550,000 carats has been established and where high grade kimberlite dykes are present.
  • A 15,000km² reconnaissance licence in western Liberia where diamond bearing kimberlites and numerous high interest mineral indicator anomalies have been discovered.
  • A JV with BHP Billiton, who are earning into an initial 51% interest in certain south-eastern Sierra Leone tenements. The joint venture has located a high-grade diamond bearing extension of the high grade Tongo dyke field.
  • Two licences in south east Sierra Leone where kimberlite has been discovered and indicator mineral anomalies require further follow up work.
  • A JV with African Aura in Liberia where exploration is ongoing to earn into a 78% interest in the diamond rights of the 400km2 north Bea exploration project.
  • A 100% held interest in the diamond rights of the 1,000km2 Bea MDA licence in Liberia where indicator mineral anomalies have been generated and require further follow up work.
  • An agreement with De Beers to access their regional Guinea database, where an independent consultant has reviewed the data and target selection is now ongoing.

Mano’s Qualified Person responsible for reviewing the content of this release is its President, Dr Tom Elder, who holds a BSc and Doctorate in Geology from Durham University in the UK, is a Fellow and former Member of Council of The Institution of Mining and Metallurgy and a Fellow of The Geological Society.

ENDS

For further information on Mano River Resources and its exploration programme, you are invited to visit the Company’s website at www.manoriver.com or contact one of the following:

Mano River Resources Inc.
Tom Elder / Luis da Silva
Tel +44 (0) 1235 810 740
mano@manoriver.com

Stellar Diamonds Ltd
N Karl Smithson
nkarls@mweb.co.za
Tel +27 82 802 8802

GMP Securities Europe LLP
James Hannon, an Appointed Representative of Panmure Gordon (UK) Limited.
Tel +44 (0) 20 7459 3606
james.hannon@gmpeurope.com

Pelham PR Ltd
Charles Vivian
Tel +44 (0) 20 7743 6670
charles.vivian@pelhampr.com
James Macfarlane
Tel +44 (0) 20 7743 6375
james.macfarlane@pelhampr.com

The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release