Goldstone Resources Regulatory News (GRL)

9 Jul 2007 17:15

Goldstone Resources Ltd09 July 2007 GOLDSTONE RESOURCES LTD BAUXITE PROGRESS REPORT The Directors of GoldStone Resources Ltd ("GoldStone" or the "Company") wish toprovide the following update on the Company's bauxite interests. In September 2005, GoldStone entered into an option agreement with BHP Billitonover the bauxite interests in Guyana. An initial programme was launched toexplore the bauxite potential in the lease areas. This programme confirmed thedeposits previously identified by GoldStone. BHP Billiton accordingly madepayment during September 2006 of the option fee of US$100,000 required tomaintain the option until 7 June 2007. Further, more detailed sampling was undertaken during the first quarter of 2007and this programme has been completed. The Company is awaiting the results ofthe programme. Under the agreement, BHP Billiton was required to elect by notlater than 7 June 2007 whether to exercise its option to require GoldStone toapply for such prospecting licences as may be permissible under the BauxiteReconnaissance Permission. By 7 June 2007 BHP Billiton had not elected to exercise this option, butsubsequently reached an agreement with the Company pursuant to which theelection date of 7 June 2007 was extended to 7 July 2007. GoldStone received apayment of US$25,000 from BHP Billiton in consideration for the one monthextension. BHP Billiton has now elected not to exercise this option and no further paymentsare accordingly due from BHP Billiton. BHP Billiton is obliged to make available to GoldStone forthwith all informationin its possession which relates to the exploration programme, as well as asummarising geological report. The Company intends, subject to a positiveevaluation of the information and report, to continue to hold the BauxiteReconnaissance Permission in good standing and to enter into discussions withother major players in the bauxite industry. A further announcement will be made in due course. Enquiries: GoldStone Resources Ltd 00 27 21 794 4004Nico van der Hoven Hanson Westhouse Limited 0113 246 2610Tim Feather tim.feather@hansonwesthouse.comMatthew Johnson matthew.johnson@hansonwesthouse.com This information is provided by RNS The company news service from the London Stock Exchange