March 31, 2008

Stellar Diamonds Closes £2.375 million Pre-IPO Financing and Appoints New Non-Executive Director

Mano River Resources Inc (“Mano”) is pleased to announce that its majority owned subsidiary Stellar Diamonds Ltd (“Stellar” or “the Company”) has completed a pre-IPO placing of 2,375,000 new ordinary shares (the “Placing Shares”) of 1 pence each in Stellar at 100 pence per share, raising gross proceeds of £2.375 million (the “Placing”). In addition, it is announced that Guy Pas and Philippe Giaro have resigned from the Board of Stellar and that Denis Alexandrov will be appointed to the Stellar Board as non-executive director, effective as of 1st April 2008.

Placing Highlights:

  • Stellar raises gross proceeds of £2.375 million, net of expenses estimated to be £17,500
  • Non-Executive Chairman Lord Peter Daresbury purchased 300,000 shares and CEO Karl Smithson purchased 25,000 shares at this financing
  • Stellar has an enlarged issued share capital of 30,458,303 million ordinary shares with 3,016,969 warrants and 260,390 adviser’s options in issue and 2,550,000 share options in issue
  • Placing Shares represent 7.8 per cent. of Stellar’s enlarged issued share capital
  • Mano remains largest shareholder in Stellar with 63% of the enlarged issued capital
  • Listing on AIM proposed, subject to market conditions

The proceeds from the placing will be used to continue development of near term production projects at the Kono underground trial mining project in joint venture with Petra Diamonds in Sierra Leone and the 100% owned Mandala alluvial diamond project in Guinea. Additionally, the proceeds will be used to advance key diamond exploration activities and for general working capital purposes.

Denis Alexandrov has been appointed to the Board as a non-executive director. Denis is presently CFO of Arlan Investment Company and is a member of the Board of Directors. Denis has held various senior positions at AIM listed natural resource companies most recently Commercial Director of Timan Oil & Gas Plc and head of Internal Audit and Finance Director of Highland Gold Mining Plc. He has also held senior positions at Alfa Group based in London and Moscow and PricewaterhouseCoopers, based in Moscow and Vladivostok. Denis is a Fellow Chartered Certified Accountant with the UK Association of Chartered Certified Accountants.

Stellar’s CEO Karl Smithson commented:

“We are delighted to have completed this private placement at 100p, compared to 87.1p per share at the previous financing completed in July 2007. We have attracted a number of key new shareholders into Stellar, including the recently appointed Non-Executive Chairman, Lord Peter Daresbury.

“The funds raised will primarily be used to strengthen Stellar’s portfolio ahead of achieving a listing on AIM by further developing our near term production projects and by building the long term growth prospects for the Company by investing further capital into our 2008 exploration programmes. We continue to see encouraging results from our development and exploration activities and remain positive about the outlook for Stellar. I look forward to updating shareholders on progress from these projects in due course.

“I would also like to take this opportunity to thank both Guy Pas and Philippe Giaro for their valuable contribution to the success of Stellar to date. Guy in particular has been instrumental in helping to assemble Stellar’s portfolio of assets over the past eight years. The appointment of Denis Alexandrov to the Board of Stellar is also a major step forward ahead of the Company’s proposed AIM listing. Denis has a great deal of experience at CFO level and working with AIM listed resource companies, and his skills will be critical to the Company going forward. On behalf of the Board I welcome Denis to Stellar.”

For further information on Mano River Resources and Stellar Diamonds Limited, you are invited to visit Mano’s website at or contact:

Mano River Resources Inc
Luis da Silva, CEO +44 (0) 20 7299 4212

Stellar Diamonds Limited
Karl Smithson, CEO +44 (0) 77 837 07971

Pelham PR
Charles Vivian / James MacFarlane +44 (0) 20 7743 6670

Panmure Gordon (UK) Limited
Edward Farmer +44 (0) 20 7614 8384

Mano’s Qualified Person responsible for reviewing the content of this release is Karl Smithson, who holds a BSc in Geology from Kingston University in the UK, and an MBA from the Graduate School of Business in Cape Town, South Africa. He is also a member of The South African Council for Natural Scientific Professions and has 20 years of diamond industry experience.

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