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.

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 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 kimberlites discovered to date, 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 5 kimberlites larger than 50 hectares and 30 kimberlites between 20 and 50 hectares in size.

Firestone is carrying out two parallel work programmes at Tsabong. The first is an intensive evaluation programme on the known diamondiferous kimberlites. The second is an exploration programme targeting new kimberlite discoveries.

Drilling Update

Bulk sample plant modifications completed on schedule in August 2008
Diamonds recovered from MK1 tailings audit; all tailings now being reprocessed
First macrodiamonds recovered from MK38; microdiamond analysis indicates potential grade of 25-30 cpht
LDD drilling completed on 4 other kimberlites
Work continues on other 79 kimberlites in the field

BK11 Kimberlite
The BK11 kimberlite is located in the Orapa kimberlite field in northern Botswana. With 8 economic kimberlites out of the 75 kimberlites discovered to date, the Orapa field has an economic ratio of more than 10%, which is much 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.

In March 2007, Firestone was awarded a prospecting licence for BK11. BK11 is located approximately 7 kilometres north-west and 20 kilometres south-east of De Beers' Letlhakane and Orapa mines, respectively. BK11 is also located approximately 5 kilometres north-east of the AK6 kimberlite, on which De Beers and African Diamonds are developing a major new mine.

Firestone intends to carry out a detailed evaluation programme on BK11 to provide better estimates of grade and to recover sufficient macro diamonds to provide an estimate of diamond value. The evaluation programme will consist of follow-up ground geophysics, core drilling and bulk sampling. This work is expected to be completed by the end of 2007. Subject to results, resource delineation work will be undertaken in 2008.

Drilling Update

Drilling and bulk sampling ahead of schedule; results expected Q4 2008
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

Orapa
With 8 economic kimberlites out of the 75 kimberlites discovered to date, the Orapa field has an economic ratio of more than 10%, which is much 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. In addition to the BK11 kimberlite evaluation project, Firestone has a number of other projects in the Orapa area, as follow: De Beers Joint Venture, Firestone Exploration Area, Daly City Ventures Joint Venture, African Diamonds.

Jwaneng
The Jwaneng Mine is the world's biggest diamond mine, producing over $2 billion revenue and over $1.8 billion operating profit per annum.Two of the Companys joint projects are held in this area.

South Africa
Bonte Koe Mine
The Bonte Koe mine covers an area of approximately 2,500 hectares 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.

In 2006, Firestone entered into an agreement with De Beers to develop a new mining operation around Bonte Koe to exploit deposits on the Buffels River over which De Beers holds mining rights.

With the plant at Bonte Koe now dedicated to processing De Beers' gravel, Firestone plans to resume exploiting its own gravel resources at Bonte Koe after processing of De Beers' gravels has been completed.

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 has entered into a joint venture under which De Beers will finance all exploration and evaluation.

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. A mobile sampling plant is in the process of being erected in the Groen River Valley in order to increase the speed of sample processing and is expected to be in operation in Q1 2007.

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. 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.

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.

Avontuur Mine
The Avontuur Mine covers approximately 2,600 hectares and is located near the coastal town of Hondeklip Bay in Namaqualand. The Hondeklip Bay area produces diamonds with an average size of approximately 0.2 carats per stone and a value of £110-120 per carat. Firestone owns a 100% interest in the Avontuur Mine. Production at Avontuur is currently temporarily suspended pending approval from the Department of Minerals & Energy of the acquisition of the Hondeklip Bay Mine.

USA
USA exploration project
Firestone's US kimberlite exploration project is situated on the North American Laurentia craton, which is the largest area of prospective diamond potential in the world and considered to be highly prospective in terms of geological potential. Exploration indicates that at least one previously unknown kimberlite field is located in the project area, and that some of these kimberlites may be diamondiferous. Results from follow-up sampling have identified a number of high priority target areas for further exploration, which will include airborne geophysical surveys to select targets for drilling.

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
capetown@firestonediamonds.com

Capital

55,791,445

Annual General Meeting

January

Year End

June 30

Nominated Brokers

Canaccord Adams Limited
Cardinal Place
7th Floor
80 Victoria Street
London SW1E 5JL

Blue Oar Securities plc
30 Old Broad Street
London EC2N 1HT

Nominated Advisors

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

Broker/Analyst Reports

02/07/07 - RBC Capital Markets

Major Shareholders

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
Artemis Investment Management Limited	3,115,000	5.59
JP Morgan Asset Management	3,065,536	5.50

Most Recent Statement

06/10/08 - Botswana Operations Update
16/07/08 - Placing raises £5 million
26/06/08 - Positive bulk sample results from BK11 - Botswana operations update
19/06/08 - Appointment of Joint Broker
18/06/08 - Exercise of Options
22/04/08 - Unaudited interim results for the six months to 31 December 2007

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