FIRESTONE DIAMONDS TO COMMENCE COMMERCIAL MINE DEVELOPTMENT AT BK11 BOTSWANA PROJECT

Firestone diamonds plc plans to start development of commercial mining operations on its Botswana BK11 kimberlite, about 20km southeast of Debswana's Orapa Mine and 7km northwest of Debswana's Letlhakane Mine. The primary objective of this work was to recover a sufficiently large parcel of diamonds in order for a high-confidence diamond valuation to be obtained and to allow a mine development decision to be made, said the company. Excellent progress has been made, and grade and diamond quality from material processed from the bulk sampling trench have met the company's expectations. With revenue estimates of $16 per tonne and with low operating costs in the Orapa area of approximately $6.50 per tonne, mining of the KW area at BK11 is expected to produce annual revenues of approximately $24 million per annum at operating margins of 60 percent. Finally, an additional inferred resource of 6 million tonnes of kimberlite containing approximately 200,000 carats has been identified between 120 and 250 meters. Limited sampling has been carried out on this part of the resource, and further work will be undertaken as mining progresses.