July 26, 2007

Stellar Diamonds Closes £4.2 million Pre-IPO Financing

Further to the announcement dated 12 June 2007, Mano River Resources Inc (“Mano”) announces its majority owned subsidiary Stellar Diamonds Limited (“Stellar” or “the Company”) has completed a pre-IPO placing of 4,822,044 new ordinary shares (the “Placing Shares”) of 1 pence each in Stellar at 87.1 pence per share, raising gross proceeds of £4.2 million (the “Placing”). In addition, the Company has issued 2,411,024 warrants with a two year term and exercise price of 120 pence per share on a 1 for each 2 Placing Shares basis as well as 260,390 adviser’s options with a two year term and exercise price of 87.1 pence per share.

Placing Highlights:

  • Stellar raises £4.2 million (gross proceeds*)
  • Stellar capitalised at £24.5 million based on placing price of 87.1 pence per share
  • Stellar’s enlarged issued share capital of 28,083,303 million ordinary shares with 3,016,969 warrants and 260,390 adviser’s options in issue
  • Placing Shares represent 17.2 per cent. of Stellar’s enlarged share capital
  • Mano remains largest shareholder in Stellar with 68.5% of the issued capital
  • Listing on AIM proposed by the end of 2007, subject to market conditions
  • Panmure Gordon (UK) Limited acted as placing agent

The proceeds from the placing will be used to procure the plant for the Bouro/Mandala project in Guinea, to advance additional diamond exploration activities, to maintain the Company’s equity interests in joint venture projects and for general working capital purposes.

Stellar’s CEO Karl Smithson, commented:

“We are delighted with the level of financial support received for Stellar from a number of Mano’s existing shareholders and new institutional investors. The completion of the Pre-IPO financing represents a significant milestone for Stellar and the corporate strategy of Mano. After this financing Stellar has an enlarged issued share capital of 28.1 million shares and a capitalisation of £24.5 million based upon the placing price of 87.1 pence per share. We hope to add significant value to Stellar in the coming months and to list the Company on AIM before the end of 2007. In the meantime our multiple diamond exploration and joint venture programmes in West Africa are on going and I look forward to updating shareholders on progress from them in due course.”

* The total costs and expenses relating to the Placing which are payable by the Company are estimated to amount to £0.36 million (including any applicable VAT). The net proceeds of the Placing are therefore expected to amount to £ 3.84 million.

Notes to Editors:

About Stellar Diamonds Limited

Stellar Diamonds is a majority owned subsidiary of AIM and TSX-V listed Mano River Resources Inc. Stellar plans to list on London’s AIM market as an integrated diamond miner and explorer with a focus on West and Central Africa. The Company’s current 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 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 the south-eastern Sierra Leone tenements. The joint venture has located extensions of the high-grade diamondiferous Tongo dyke field and identified numerous geophysical targets for drill testing.

    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.

For further information, you are invited to visit the Company’s website at www.manoriver.com or contact one of the following:

Mano River Resources Inc +44 (0) 1235 810 740
Tom Elder, Chief Executive
Luis da Silva, CFO

Stellar Diamonds Limited +27 82 802 8802
Karl Smithson, Chief Executive

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

GMP Securities Europe LLP, an Appointed Representative of Panmure Gordon (UK) Limited

James Hannon +44 (0) 20 7459 3606

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

APPENDIX

Panmure Gordon (UK) Limited (“Panmure Gordon”), which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as placing agent to the Company in connection with the Placing and other matters referred to in this announcement and will not be responsible to any person other than the Company for providing the protections afforded to customers of Panmure Gordon, or for advising any such person on the contents of this announcement or any other transaction, arrangement or matter referred to herein.

This Announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy or subscribe for securities in the United States, Australia or Japan or any jurisdiction in which such offer or solicitation is unlawful and should not be relied upon in connection with any decision to acquire the Placing Shares or any other Stellar securities.

The information contained in this Announcement is not for release, publication or distribution, directly or indirectly, to persons in the United States. This Announcement is not an offer of securities for sale into the United States. The Placing Shares have not been and will not be registered under the US Securities Act of 1933, as amended, or under the securities laws of any state or other jurisdiction of the United States, and absent registration may not be offered or sold, directly or indirectly, in the United States except pursuant to an exemption from, or as part of a transaction not subject to, the registration requirements of the Securities Act and the securities laws of any state or other jurisdiction of the United States. There will be no public offering of securities in the United States. The Placing Shares have not been and will not be registered with any regulatory authority of any state or other jurisdiction within the United States. The Placing shares have not been and will not be registered under the applicable securities laws of the other Prohibited Territories and, unless an exemption under such laws is available, may not be offered for sale or subscription or sold or subscribed, directly or indirectly within such Prohibited Territories for the account or benefit of any national, resident or citizen of such Prohibited Territories.

The distribution of this announcement in jurisdictions other than the United Kingdom may be restricted by law and therefore any persons who are subject to the laws of any jurisdiction other than the United Kingdom should inform themselves about, and observe any applicable requirements.