19 December 2011

AIM: STEL

Further Encouraging Microdiamond Results for Droujba Kimberlite Pipe in Guinea

Stellar Diamonds plc, the London listed (AIM: STEL) Diamond development company focused on West Africa, announces further microdiamond results from the Company's Droujba kimberlite pipe.

Highlights:

• 304kg of kimberlite drill core has yielded 279 diamonds
• Largest Diamond measured 2.6mm x 2.0mm x 1.1mm
• Majority of diamonds are described as white and colourless
• DMS plant nearing commissioning with bulk samples already collected
• On track to deliver maiden resource estimate in Q1 2012

Chief Executive Karl Smithson commented:

"Microdiamond recovery from the Droujba kimberlite core continues to yield encouraging results. This consignment represented selective samples from the hypabyssal and breccia material and the results confirm our view that the hypabyssal kimberlite is significantly diamondiferous. On site construction of the bulk sampling plant is nearing completion with final commissioning expected shortly. We have made excellent progress at Droujba with our success, to date, demonstrating the significant potential of this project. I look forward to updating shareholders as we progress Droujba towards its maiden resource in the first quarter of 2012. This will be a key milestone for Stellar Diamonds as we look to advance Droujba and enhance the value of our Diamond portfolio."

Microdiamond Sampling and Results

The results of a 304kg sample of hypabyssal kimberlite and kimberlite breccia have been received from the Saskatchewan Research Council laboratory in Canada ("SRC"). Some 279 diamonds were recovered from the total sample. However, the Diamond recoveries from the hypabyssal are, as expected, far better than the diluted kimberlite breccia, as reflected in the results Table below. Some 159.4kg of hypabyssal kimberlite yielded 251 diamonds (average 1.57 diamonds per kilogramme) whereas 144.7kg of kimberlite breccia yielded 28 diamonds (0.19 diamonds per kilogramme). The majority of the diamonds in the +0.3mm size fraction are described as white/colourless and transparent. The largest Diamond, recovered from the hypabyssal kimberlite, measured 2.6mm x 2.0mm x 1.1mm.

A further consignment of 199kg of drill core material has been dispatched to SRC for microdiamond analysis. This will complete the microdiamond analysis of the drill core and will provide statistically representative data across the Droujba pipe and at depth on which to base commercial grade forecasts.