Company Information for Firestone Diamonds Plc

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Company Statement

Corporate profile
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.

Firestone has a highly qualified management team with extensive experience in the exploration, evaluation and development of diamond projects. Firestone is quoted on the Alternative Investment Market (AIM) of the London Stock Exchange and trades under the symbol FDI.L.

Our Strategy and Objectives
Firestone Diamonds plc is a UK-based international diamond mining and exploration company with operations in Botswana and South Africa. Firestone's objective is to become a leading mid-tier diamond producer.

Firestone's strategy is to use cash flow from alluvial mining operations in South Africa to finance exploration projects in established diamond producing areas with the potential for large scale economic diamond deposits. Firestone's key competitive advantage is its highly prospective portfolio of exploration projects in Botswana, which is the world's largest producer of diamonds. The company is the largest holder of exploration rights around the major Orapa and Jwaneng mines, and controls the entire Tsabong kimberlite field, which is one of the largest diamondiferous kimberlite fields in the world.

Current Operations

Botswana
Tsabong Kimberlite Field
The Tsabong kimberlite field is located in south western Botswana, approximately 280 kilometres 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 7,400 square kilometres, and covers the entire Tsabong kimberlite field.

Tsabong is one of the largest diamondiferous kimberlite fields in the world, containing 85 known kimberlites, of which 18 have been proven to be diamondiferous. It 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. The Tsabong field also contains five kimberlites larger than 50 hectares and 32 kimberlites between 20 and 50 hectares in size. Work at Tsabong has been primarily focused on 14 high interest kimberlites that were selected on the basis of diamond content, kimberlite indicator mineral ("KIM") chemistry and size. A programme of 17,000 metres of core and percussion drilling has been undertaken on these kimberlites to obtain material for detailed microdiamond, KIM chemistry and petrographic analyses. Bulk samples from selected kimberlites is being undertaken by large diameter drilling to provide an indication of grade and diamond value.

Exploration at Tsabong is targeting approximately 80 well defined geophysical anomalies that have been identified by interpretation of aeromagnetic survey data over the area. The company expects the total number of kimberlites in the Tsabong area to reach more than 100, once exploration has been completed.

With rough diamond prices estimated to have tripled since the Tsabong field was discovered in the early 1980's, the threshold for economic viability is modest. A kimberlite in Tsabong with a grade of 20 cpht and average quality diamonds of $100 per carat would support a large-scale, profitable mining operation. Access to the area is via tarred road from Gaborone and infrastructure in the area is good. Firestone owns a 100% interest in the Tsabong project.

BK11 Kimberlite
The BK11 kimberlite is located in the Orapa kimberlite field in northern Botswana. With eight economic kimberlites out of the 75 kimberlites discovered in the field to date and a new mine being developed by African Diamonds plc in joint venture with De Beers, the Orapa field has an economic ratio of more than 10%, which is significantly higher than the global average of 1%. The Orapa Mine produces approximately $1 billion in revenue and $800 million in operating profit per annum, and is one of the richest diamond mines in the world.

BK11 is located approximately 7 kilometres north-west and 20 kilometres south-east of De Beers' Letlhakane and Orapa mines, respectively, and is within 5 kilometres of the proposed new mine at AK6. The surface area of BK11 is estimated to be 8 hectares, and overburden is shallow at less than 20 metres.

Phase 1 evaluation was completed in June 2008, with very encouraging results. A sample of 135 tonnes of kimberlite produced a sample grade of 10 cpht and a modelled grade of 15 cpht. The quality of diamonds recovered was very good, comprising mostly clear white gemstones, and the value was estimated at approximately $200 per carat in June 2008. BK11 contains approximately 17 million tonnes of kimberlite material to a depth of 120 metres.

Phase 2 evaluation, comprising approximately 2,300 metres of percussion, core and 36 inch large diameter drilling, commenced in July 2008. The Company expects that this will provide sufficient data to define an inferred resource.
With the well developed infrastructure in the Orapa area and a new mine being developed 5 kilometres away at AK6, the grade required for BK11 to be economically viable is modest. Subject to the results of the Phase 2 evaluation work, the Company is examining the feasibility of accelerating a development decision on BK11 to allow first production from BK11 to commence in 2010. Firestone owns an 80% interest in BK11.

Drilling Update

• New diamond recovery facility constructed in Gaborone
• Pilot plant construction on schedule
• Significant progress made with scoping study
• Mine development decision may be advanced from Q4 2009 to Q1 2009, with possible commencement of production in 2010

BK16 Kimberlite, Orapa, Botswana
In June 2008 the Company entered into an agreement with SouthernEra under which it can acquire an 87.5% interest in the BK16 kimberlite in return for carrying all costs to completion of bankable feasibility. It is situated approximately 22 kilometres north east of BK11 and 12 kilometres north of the Letlhakane Mine. It was discovered by De Beers in the 1970's and a grade of 15 cpht was reported from bulk sampling.

Limited work has been carried out on BK16 since then, until SouthernEra acquired control of the project in 2007. SouthernEra has carried out high resolution ground geophysical surveys and drilled 19 core and percussion holes totalling approximately 2,300 metres. Based on this work, BK16 is estimated to be a minimum of 3.5 hectares in size and to contain approximately 17 million tonnes of kimberlite to a depth of 200 metres. Diamonds recovered by the limited sampling carried out by SouthernEra and others has recovered predominantly high quality, white gemstones, with few industrial diamonds. This indicates that diamonds from BK16 are likely to have a high average value, possibly similar to BK11. Firestone intends to carry out bulk sampling in 2009 in order to confirm representative grades and diamond values. Subject to the results of this work, a resource development programme would be undertaken on BK16 similar to that planned on BK11.

Orapa
Firestone controls prospecting licences over an area of approximately 10,000 square kilometres in the Orapa region. These licences contain eight known kimberlites, of which four have been proven to be diamondiferous. Firestone owns a 100% interest in these prospecting licences.

Jwaneng
Firestone holds prospecting licences over a total of approximately 6,000 square kilometres in the Jwaneng area. The Jwaneng Mine is the world's biggest diamond mine, producing over $2 billion revenue and over $1.8 billion operating profit per annum. The area covered by the Jwaneng prospecting licences has recently been surveyed for the first time using modern high resolution airborne and ground geophysical exploration techniques and is considered prospective for the discovery of new diamondiferous kimberlites. Firestone owns a 100% interest in these prospecting licences.

South Africa
Bonte Koe Mine
The Bonte Koe mine covers an area of approximately 25 square kilometres along the Buffels River in Namaqualand, a region that has been a significant diamond producing area for the past 40 years. Mining operations in the area have produced an estimated total of over 3 million carats, with an estimated current value of over $750 million. The Buffels River area produces diamonds with an average size of approximately 0.4 carats per stone and a value of over $200 per carat.

Firestone has an agreement with De Beers to jointly exploit deposits on the Buffels River adjacent to Bonte Koe over which De Beers holds mining rights. Under the terms of the agreement Firestone uses its plant and infrastructure at Bonte Koe to process gravel mined by De Beers on a toll-treatment basis.

The toll-treatment operation provides Firestone with average annual revenue of approximately £3.5 million and operating profits of £1.5 million. Following the completion of a significant expansion to the plant capacity at Bonte Koe in early 2007, the plant is now operating at full capacity.

Firestone's interest in the Bonte Koe Mine is held through African Star Minerals, the Company's black empowerment subsidiary.

Alluvial Mining and Exploration Projects, South Africa
Following the decision to focus the Company's exploration and development activities on its kimberlite projects in Botswana, the Company decided to seek expressions of interest in relation to the sale or joint venturing of its alluvial projects in South Africa. A number of discussions have been held with interested parties, but no agreements have been concluded yet.

Groen River Valley
The Groen River Valley exploration project covers an area of approximately 500 square kilometres of the lower reaches of the Groen River in Namaqualand. A considerable amount of prospecting has been carried out by Firestone, resulting in the identification of the palaeo river systems which were responsible for transporting the diamonds of large size and high quality that have been mined near the mouth of the Groen River by De Beers and other operators. Firestone owns a 100% interest in the Groen River Valley project.

Oena
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 89 square kilometres, and extends along 15 kilometres of the Orange River. Oena is located upstream of the Auchas Mine, operated by De Beers, and the Baken Mine, operated by Trans Hex, South Africa's second largest diamond producer.Firestone owns an 87.5% interest in the Oena Mine.

Geographical Spread

Botswana – kimberlites; South Africa - alluvial diamonds

Board of Directors and Key Management

James F Kenny	Chairman
Philip Kenny	Chief Executive Officer
Tim Wilkes	Chief Operating Officer
Jan Louw	Director of Operations
Hugh Jenner-Clarke	Director
James Kenny	Director
Michael Hampton	Non-executive Director
William Douglas Baxter	Non-executive 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 Physical Address: 9th Floor Metropolitan Centre 7 Coen Steytler Avenue Cape Town 8000 South Africa Postal address: Firestone Diamonds plc PO Box 8399 Cape Town 8012 Tel: +27 21 44 66 040 Fax: +27 21 44 66 050 Email: capetown@firestonediamonds.com

Capital Shares in issue: 61,732,194

Annual General Meeting January

Year End June 30

Nominated Brokers Canaccord Adams Limited Cardinal Place 7th Floor 80 Victoria Street London SW1E 5JL Astaire Securities Plc 30 Old Broad Street London EC2N 1HT

Nominated Advisors Brewin Dolphin Securities Limited 48 St. Vincent Street Glasgow G2 5TS

Major Shareholders

Shareholder Name	Amount	% Holding
Blenheim Trust Company Limited	7,450,000	13.36 %
Aurora International Investments Limited	7,200,000	12.91 %
AXA S.A	5,781,018	10.37 %
Gartmore Investment Management Plc, Gartmore Investment Limited and Gartmore Fund Managers Limited	5,170,527	9.27 %
JP Morgan Asset Management	3,065,536	5.50 %
Artemis Investment Management Limited	1,805,000	2.93 %

Related News

03/03/09 - Firestone Diamonds Is Just A Signature Or Two Away From Locking Down Hundreds Of Millions Of Dollars In Future Revenues
21/08/08 - On The Ground In Botswana With Firestone Diamonds And DiamonEx: Good Progress, But De Beers Casts A Long Shadow
14/04/08 - A Rollercoaster Ride Or A Long And Winding Road? The Shape Of The Future For Firestone Diamonds Hangs On The MK1 Kimberlite
05/03/08 - Firestone Diamonds Needs A Billion Dollars For MK1

Most Recent Statement

02/06/09 - Appointment of Joint Brokers
31/03/09 - Interim Results
30/03/09 - BK11 Update
27/03/09 - Tsabong Project Update
19/02/09 - Firestone selected as preferred bidder
09/02/09 - Buffels River Toll Treatment Update