Company Information for Firestone Diamonds Plc

AIM-FDI

www.firestonediamonds.com

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AIM; FDI

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Company Statement

Firestone Diamonds plc is an international diamond mining and exploration company with operations in Botswana and South Africa, which are the world's largest and fourth largest producers of diamonds, respectively, and the lowest cost producers among major diamond producing countries.

Firestone has extensive interests in Botswana, which produces over 34 million carats per annum, worth over $3.5 billion. Botswana is considered to be one of the top countries in the world to explore for kimberlite - the primary source rock for diamonds.

Firestone is the largest holder of exploration rights around the Orapa Mine, including the BK11 evaluation project, and around the Jwaneng mine. In addition, De Beers has entered into joint ventures with Firestone over some of Firestone's ground holdings in the Orapa and Jwaneng areas.

The company also holds exploration rights over the entire Tsabong kimberlite field in south-west Botswana, which is one of the largest diamondiferous kimberlite fields in the world. Exploration carried out to date has identified 81 kimberlites, of which 17 have been proven to be diamondiferous. Tsabong is noted for the exceptionally large size of many of its kimberlites, in particular the 180 hectare MK1 kimberlite, which is one of the largest known diamondiferous kimberlites.

Firestone is also exploring for kimberlite in the US on the Laurentia craton, which extends into Canada, where it hosts a number of diamondiferous kimberlite deposits.

Firestone's mining operations include the Bonte Koe, Avontuur and Oena Mines, which are located on the west coast of South Africa, in Namaqualand. Namaqualand has been one of the world's largest alluvial diamond producing regions for the past 60 years, with total production to date estimated to be worth more than $3 billion. Firestone has entered into a mining joint venture with De Beers at the Bonte Koe Mine, which provides the company with guaranteed cash flow for processing gravel mined by De Beers in the area surrounding Bonte Koe.

The company also has a growing portfolio of early stage and advanced exploration projects in Namaqualand, of which the Groen River Valley project, which is being explored by De Beers in joint venture with the company, is the most advanced.

Current Operations

Tsabong kimberlite field
The Tsabong kimberlite field is located approximately 280 km south west of the Jwaneng Mine, which is the world’s most profitable diamond mine, producing over $2 billion revenue and over $1.8 billion operating profit per annum. The Tsabong project extends over an area of approximately 5,000 square kilometres, and covers the entire Tsabong kimberlite field.

Tsabong is one of the largest diamondiferous kimberlite fields in the world, with 78 known kimberlites, of which 17 have been proven to be diamondiferous. Tsabong is noted for the exceptionally large size of many of its kimberlites, in particular the 180 hectare MK1 kimberlite, which is one of the largest diamondiferous kimberlites known. The Tsabong field also contains 35 kimberlites larger than 20 hectares in size.

An intensive evaluation programme is underway on the top 10 of the known diamondiferous kimberlites with approximately 12,000 metres of core drilling planned to obtain fresh, undiluted material for detailed microdiamond, KIM chemistry and petrographic analyses. Bulk sampling of selected kimberlites by large diameter drilling will start in 2007 to provide an initial indication of grade and diamond value.

A 10,000 metre exploration drilling programme targeting approximately 80 well defined geophysical anomalies is also underway. Eleven kimberlites have been discovered since November 2006, and the company expects the total number of kimberlites in the Tsabong area to reach more than 100.

Orapa kimberlite field
BK11 kimberlite
The BK11 kimberlite is located approximately 7 kilometres from De Beers' Letlhakane Mine, 20 kilometres from the Orapa Mine and 5 kilometres from the AK6 kimberlite, on which De Beers and African Diamonds are developing a major new mine.

BK11 was discovered by De Beers in 1974 but limited evaluation was carried out at the time. The surface area of BK11 is estimated to be 6.5 hectares, and overburden is shallow at less than 20 metres. Historical sampling on BK11 has produced grades between 2 and 17 carats per hundred tonnes.

A detailed evaluation programme is underway to provide better estimates of grade and to recover sufficient macro diamonds to provide an estimate of diamond value. This work is expected to be completed by the end of 2007 and, subject to results, resource delineation work will be undertaken in 2008. With the infrastructure already available in the Orapa area, the grade required for BK11 to be economically viable is modest.

De Beers Joint Venture:
The Orapa joint venture project with De Beers covers an area of approximately 4,900 sq. km close to the Orapa and Letlhakane mines. Under the terms of the joint venture, De Beers is financing all exploration and evaluation work up to completion of bankable feasibility. Four kimberlites have been discovered in the joint venture area to date.

Firestone Exploration Area:
The company also holds prospecting licences covering 7,300 square kilometers in the Orapa region, and field work has recently begun in this area.

Jwaneng kimberlite field
The Jwaneng joint venture project with De Beers covers an area of approximately 3,700 sq. km located around the Jwaneng Mine. De Beers is financing all exploration and evaluation work up to completion of bankable feasibility in return for a 61% interest in the project. Much of the project area has never been explored using modern geophysical exploration techniques and is considered to be highly prospective for the discovery of new diamondiferous kimberlites. De Beers has commenced geophysical surveys in the Jwaneng region using their new Zeppelin Airborne Gravity Gradiometer system, which is the most advanced airborne gravity system available. Drilling of targets is expected to commence in the second half of 2007.

Bonte Koe Mine
Firestone has an agreement with De Beers to exploit deposits on the Buffels River over which De Beers holds mining rights. Under the terms of the agreement, Firestone will use its plant and infrastructure at Bonte Koe to process gravel mined by De Beers on a toll-treatment basis. The operation is expected to provide Firestone with average annual revenue of approximately £3.5 million and operating profits of £2 million. Firestone's revenue and profits from the project are expected to increase further through an increase in mineable resources in the Buffels River area, which would extend the life of the project to beyond 2013, and through profit sharing provisions in the agreement with De Beers.

Oena Mine
The Oena Mine is located on the lower Orange River in a well established diamond producing area which produces diamonds comparable to the best in the world, typically selling at prices over $1,500 per carat. The Oena mining lease covers 8,900 hectares, and extends in a 4.8 kilometre wide strip along 15 kilometres of the Orange River. The mine is currently operating at limited production levels, as the company plans to introduce a mining contractor to take over operations at the Oena Mine on a revenue-sharing basis.

Groen River Valley
De Beers is financing all exploration and evaluation work up to completion of bankable feasibility in return for a 61% interest in the project. A programme of drilling and bulk sampling is being undertaken to evaluate the 13 deposits that have been identified in the project area. Bulk sampling on the HL deposit has produced five high quality gem diamonds weighing 1.11 carats. Sampling on the GR2 deposit is planned for 2007. Previous work on the GR2 deposit has produced grades of 7-13 carats per hundred tonnes, which would be economically viable given the high value of Groen River Valley diamonds.

Daly City Ventures Joint Venture
Firestone has an agreement under which it can earn an 81% interest in Daly City Ventures, which holds a prospecting licence in the Orapa region over an area of approximately 380 sq. km. High resolution geophysical surveys have been conducted over the area to identify drilling targets.

African Diamonds
Firestone also holds a 6.6% interest in African Diamonds plc, which is developing a major new mine on the AK6 kimberlite in the Orapa field in conjunction with De Beers.

Geographical Spread

Botswana – kimberlites; South Africa - alluvial diamonds

Board of Directors and Key Management

James Kenny	Chairman
Philip Kenny	CEO
Tim Wilkes	COO
Jan Louw	Director of Operations

Hugh Jenner-Clarke	Director
James Kenny Jnr	Director
Michael Hampton	Non Exec Director
William Baxter	Non Exec Director

Company Address

26-28 Hammersmith Grove
London, United Kingdom W6 7BA


Telephone:	+44 20 8834 1028
Facsimile:	+44 20 8181 6894
Email:	info[at]firestonediamonds.com
Website:	http://www.firestonediamonds.com

Additional Address/Key Contact

South Africa office
Firestone Diamonds plc
PO Box 4604
111 Loop Street
Cape Town 8001, South Africa
Tel: +27 21 424 2505
Fax: +27 21 422 1238
Email: capetown@firestonediamonds.com

Capital

55,791,445

Annual General Meeting

January

Year End

June 30

Nominated Brokers

Canaccord Adams Limited

Nominated Advisors