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15 March 2010 AIM STEL Stellar Diamonds plc _“Stellar” or the

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15 March 2010 AIM STEL Stellar Diamonds plc _“Stellar” or the Powered By Docstoc
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15 March 2010

AIM: STEL
                                   Stellar Diamonds plc
                               (“Stellar” or the “Company”)


                                    PROGRESS UPDATE

Stellar, the London listed (AIM:STEL) diamond mining and exploration company focused on
West Africa, is pleased to provide a progress update on its operations following the successful
Reverse Takeover of West African Diamonds plc.


Highlights

        Operational and corporate synergies being harnessed after Reverse Takeover
        Production at Mandala has exceeded 64,000 carats since mid 2009
        A 37 carat fancy yellow stone has been recently mined from Mandala
        Diamond sales from Mandala exceed US$1.7m to date
        Expansion programmes at both Mandala and Bomboko mines underway

Mandala Diamond Mine (Guinea)
Mining at the 100% owned Mandala diamond mine in southeast Guinea has produced 64,800
carats at a grade of over 42 carats per hundred tonnes (“cpht”) since mining commenced in
mid-2009. The project currently has a measured and indicated diamond resource of 676,000
carats, with a further 114,000 carats in the inferred category. Production for January and
February 2010 reached 16,400 carats at an average grade of 38.5cpht.


During February a special 37 carat „fancy‟ yellow stone was recovered, the largest diamond
produced to date by Stellar at the Mandala mine. The diamond has been exported to Antwerp
for valuation and sale.

Between May 2009 and Feb 2010 some 60,800 carats have been sold from the Mandala
mine, generating revenues in excess of US$1.7million for the Company, at an average price
of US$29 per carat. The latest sale of 6,000 carats in early March recorded an average price
of US$42 per carat (excluding the 37 carat fancy yellow diamond), indicative of an improving
rough diamond market.

Bomboko Diamond mine (Guinea)
Since the Placing and Readmission, the Company has allocated resources to further develop
the 100% owned Bomboko diamond mine, located some 60km from the Mandala mine in
southeast Guinea, with the objectives of increasing production levels and improving diamond
recoveries.
The Bomboko project has produced 2,562 carats since trial mining commenced in Q4-2009 at
an average grade of over 4cpht. Recent production, however, has seen a significant increase
in grade of 7cpht to 9cpht, subsequent to the implementation of improved mining and grade
control measures. The largest diamond recovered to date is a 16 carat gem quality stone.

Three diamond sales totaling 1,816 carats have been completed from Bomboko since July
2009, with prices progressively increasing from US$114 per carat to US$126 per carat,
reflecting the improving diamond market. An export of over 1,000 carats is expected in late
March. The Bomboko run of mine goods are comprised of a high percentage (typically above
55%) of gem stones with a high average diamond size (typically above 0.5/ct), which impacts
positively on the diamond price.


Diamond production to increase
Stellar is in the process of acquiring additional mining equipment in order to boost production
at both the Mandala and Bomboko diamond mines, including the addition of a 16-foot pan
plant and a Flow Sort X-Ray machine at Bomboko, which is expected to be installed during
Q2-2010. It is expected that these initiatives will lead to increased production and processing
capacities, as well as enhancing security in the diamond recovery process. This should enable
the Company to meet its near term forecasts of 2,000 carats and 12,500 carats per month
from the Bomboko and Mandala mines respectively.


Kimberlite Diamond Projects
Stellar is assessing the next exploration and development phases at its Tongo (Sierra Leone)
and Droujba (Guinea) kimberlite diamond projects. These may include surface bulk sampling
and drilling in order to define geological models and establish early-stage diamond grades and
values. Previous mini-bulk sampling of Tongo yielded grades of approximately 100cpht with
high value diamonds ($189 per carat; November 2008 Government of Sierra Leone valuation)
and there are reported grades of up to 200cpht for the Droujba kimberlite pipe.

Karl Smithson, Chief Executive of Stellar, comments;
“Since the Reverse Takeover of West African Diamonds was completed in late February 2010
the Company has moved quickly to restructure its operations and fast track production. We
are in the process of boosting the capital at Mandala and Bomboko which will positively
impact on our revenue generating capabilities in the near term.

“The continued high grade being recovered at the Mandala mine, as well as the improving
grades at Bomboko, is in line with our forecast and we are particularly pleased with the recent
recovery of the 37 carat fancy yellow diamond from Mandala. The rough diamond market has
recovered strongly since we commenced production in 2009 and we expect this to continue.
This is recognised in our recent sales prices achieved.

“We are very pleased with the Company‟s accelerated progress as a newly quoted diamond
producing company and I look forward to updating shareholders of our further progress in the
near future.”

For further information please contact the following or visit the company‟s website at
www.stellar-diamonds.com
In accordance with the AIM Rules, the information in this announcement has been reviewed
by Karl Smithson, CEO of Stellar, a qualified geologist with 22 years‟ experience.



Stellar Diamonds plc
Karl Smithson, Chief Executive                           Tel: +44 (0) 7783 707971

RBC Capital Markets
Martin Eales / Daniel Conti                              Tel:+44 (0) 20 7653 4000

Astaire Securities
Jerry Keen / Charles Vaughan                             Tel:+44 (0) 20 7448 4400

Pelham Bell Pottinger
Charles Vivian / James MacFarlane                        Tel:+44 (0) 20 7337 1500

About Stellar Diamonds plc
Stellar Diamonds plc is London (AIM: STEL) quoted diamond mining and exploration
company that was formed from the merger of Stellar Diamonds Limited and West African
Diamonds plc. Stellar has a portfolio of projects in West Africa. Two projects in Guinea are in
production, Mandala and Bomboko, which provide robust cash flow.

Stellar also owns rights over four high-grade kimberlites that are the focus of further
development. In Sierra Leone the Tongo and Kono projects comprise a series of kimberlite
dykes, with the Kono project having produced 4,200 carats of diamonds through underground
trial mining with Joint Venture partner Petra Diamonds. In Guinea the Droujba kimberlite pipe
and the Bouro kimberlite dykes are located in proximity to the Mandala mine and demonstrate
grades of up to 200cpht and 500cpht respectively.


Forward-looking Statements
This press release includes certain forward-looking statements. All statements, other than
statements of historical fact, included herein, including without limitation, statements
regarding the future plans and objectives of Stellar, are forward-looking statements that
involve various known and unknown risks and uncertainties as well as other factors. Such
forward-looking statements are subject to a number of risks and uncertainties that may cause
actual results or events to differ materially from current expectations, including delays in
obtaining or failure to obtain required regulatory approvals. There can be no assurance that
such statements will prove to be accurate and actual results and future events could differ
materially from those anticipated in such statements. Any forward-looking statements speak
only as of the date hereof and, except as may be required by applicable law, Stellar disclaim
any obligation to update or modify such forward-looking statements, either as a result of new
information, future events or for any other reason.

				
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