June 13, 2016

Shareholder Loan Facility

13 June 2016


Stellar Diamonds plc

(“Stellar” or the “Company”)

Shareholder Loan Facility

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces that it has entered into an unsecured loan facility agreement (“the Agreement”) with existing shareholders Altus Strategies Limited (“Altus”) and Deutsche Balaton AG (“Deutsche Balaton”) to provide funding to the Company of £465,000 in aggregate (the “Loan”), of which £325,000 is to be provided by Altus and £140,000 by Deutsche Balaton. The proceeds of the Loan will be used for working capital purposes as the Company advances its mining licence application for its Tongo kimberlite project in Sierra Leone and establishes a maiden resource at its Baoulé kimberlite project in Guinea.

The Loan is repayable six months following the date of the Agreement, or as otherwise agreed from time to time and bears interest at a rate of 20% per annum, payable in arrears. Stellar may prepay all or part of the Loan at any time, subject to a minimum prepayment amount. The Loan agreement includes customary terms and conditions, including agreement to use best endeavours to sell certain non-core assets (namely plant and equipment) to repay the Loan in the event of default.

By virtue of Deutsche Balaton being a substantial shareholder of the Company and Steven Poulton, a Director of the Company being the Chief Executive Officer of and minority shareholder in Altus, the Loan constitutes a related party transaction under the AIM Rules for Companies. The Directors who are independent of the Loan consider, having consulted with the Company’s Nominated Adviser, that the terms of the Loan are fair and reasonable in so far as the Company’s shareholders are concerned.

About Altus Strategies Ltd

Altus is a private UK based natural resource group which was founded in 2007. Through its subsidiaries, Altus is advancing a diversified portfolio of mineral exploration projects across Africa, is authorised by the FCA to undertake investment management activities and makes principal investments in selected special situations. Further information on Altus is available at: www.altus-strategies.com.

About Deutsche Balaton AG

Deutsche Balaton is a German investment company which was founded in 1991. Its shares are traded on the Frankfurt Stock Exchange (Regulated Unofficial Market) and the company invests as principal in public and private equities, interest bearing securities and alternative assets across a range of sectors and geographies. Deutsche Balaton typically makes investments which result in it holding between 25 per cent. and 100 per cent. of a company. Further information on Deutsche Balaton is available at: www.deutsche-balaton.de

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.

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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 Adviser) Tel: +44 (0) 20 7148 7900
Lottie Brocklehurst St Brides Partners Ltd Tel: +44 (0) 20 7236 1177