Goldstone Resources Regulatory News (GRL)

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

Final Results for the year ended 28 February 2011

GoldStone (AIM: GRL), the AIM quoted company focused on gold in West Africa, announces its final results for the year ended 28 February 2011.

Operational Highlights (including post year-end)

·; Strategic alliance entered into with ASX listed Unity Mining Limited in which Unity subscribed for 32,704,166 ordinary shares at a price of 6.5p raising £2,125,771

·; Approximately £2.06 million (before expenses) raised through a placing of 58,857,142 new ordinary shares at 3.5p

·; Increased ownership of Homase licence to 51% and acquired a 95.1% interest in Pan African Resources Ghana Ltd which wholly owns the adjoining Akrokerri licence

·; JORC compliant gold resource at the Homase/Akrokerri project of 8.87 million tonnes of ore at an average grade of 1.42 g/t containing 405,600 ounces of gold

·; All holes drilled to date at Homase have intersected the known mineralisation zone

·; Results of first five boreholes beneath the Homase pit demonstrate high-grade mineralisation continues at least 140m below the bottom of the dormant pit

·; Permit wide termite mound sampling results have indicated presence of significant gold anomalies in the Company's Sangola licence area in Senegal

·; Soil sampling at Manso Amenfi identified multiple consistent and extensive anomalies, some of which appear to run parallel to regional fertile structures

·; The Oyem and Ngoutou licence areas in Gabon have been awarded to the Company's wholly owned Gabonese subsidiary

Jurie Wessels, GoldStone's Chief Executive commented: "I believe the Company has an attractive and balanced portfolio of exploration properties, all of which are capable of generating significant and exciting exploration results. At Homase/Akrokerri, early positive drill results have enhanced the prospects of increasing our gold resource. At our grass roots projects at Manso Amenfi, Sangola, Oyem and Ngoutou, we have discovered and acquired multiple significant gold anomalies, which improve our chances of making a company transforming discovery."

Enquiries:

Final Results for the period ended 28 February 2011

Chief Executive's Report

Since the start of the year under review, the Company significantly progressed its West African projects in Ghana and Senegal and entered Central Africa by acquiring the Ngoutou and Oyem licences in Gabon.

In Ghana, the Company consolidated its land holding by acquiring the Akrokerri prospect, increased the gold resource at Homase/Akrokerri to 405,600 ounces, executed a permit-wide soil sampling programme at its grass roots Manso Amenfi licence and commenced drilling activities underneath the Homase pit.

At the Sangola project in Senegal a permit-wide termite mound sampling programme was concluded and in Gabon geological reconnaissance efforts are underway at the Ngoutou and Oyem licences.

Excellent results were received from drilling underneath the Homase pit, and at Manso Amenfi and Sangola the geochemical surveys returned results that point towards the presence of multiple gold anomalies.

The year was not without its challenges, most of which, I am satisfied to report, have been resolved. After extended delays the Company was granted the necessary certificate by the Environmental Protection Agency of Ghana in April 2011 which allowed it to commence drilling at Homase/Akrokerri and the long awaited Sangola licence was finally granted.

In completing its activities during the financial year the Company spent US$1.55 million (2010: US$610,000).

GHANA PROJECTS

The Company increased its presence in Ghana by acquiring the Akrokerri licence in October 2010. This acquisition resulted in an increase in the Company's resources at the Homase/Akrokerri project area and added significant exploration potential. Drilling is underway underneath the Homase pit and on 11 August 2011 the Company announced its first drill results since the Company changed direction in 2009. Positive geochemical results at Manso Amenfi point towards the existence of a number of mineralised zones in the licence area which appear to run parallel to the nearby gold fertile Ayanfuri and Salman structures.

Homase/Akrokerri

The Homase Licence area is located in close proximity to Anglo Gold Ashanti's Obuasi mine and is situated within the well known Ashanti Gold Belt. The Akrokerri Licence area adjoins the southern border of Homase Licence and the eastern boundary of the Obuasi gold mine. Both licence areas, although differing in ownership structure, are dealt with as a geological unit by the Company because the gold mineralisation on both permits has been controlled by the same geological structure and both permits lie in the same geological environment as the Obuasi gold deposit.

Homase/Akrokerri: JORC Resource

In April 2010, GoldStone announced a maiden JORC compliant gold resource estimate at the Homase property of 282,608 ounces. This was followed in June 2011 by the announcement of a JORC compliant gold resource estimate of 123,000 ounces at Akrokerri. The Akrokerri resource is the direct southerly extension of the Homase resource and the resources, which were estimated solely from historical drill data, combine to a total of 8.87 million tonnes of ore at an average grade of 1.42 g/t and containing 405,600 ounces of gold. Details of the Homase/Akrokerri combined resource, for which a 0.5 g/t gold cut off was applied, are given in the table below:

Approximately 128,543 oz, or 31.5%, of the resource is contained within the oxide zone and 277,013 oz in the transitional and sulphide zones. A table showing the Homase/Akrokerri combined resource by oxidation is shown below:

Overall metallurgical recoveries reported by previous explorers at Homase were encouraging at 93% for the oxide material and 84% for the sulphides.

Homase/Akrokerri: Completed Exploration

On 6 June 2011, drilling operations commenced at Homase after a delay was experienced resulting from requirements imposed by the Environmental Protection Agency of Ghana. To date 2,088m (nine holes) of the first phase 4,500m drilling programme have been drilled with a tenth hole currently underway. All holes drilled to date have intersected the known mineralised zone, which is identifiable by graphitic marker horizons directly in the foot and hanging wall of the gold mineralisation. A second phase drilling programme of further 4,500m is being planned and will commence once all assay results for the first phase drilling have been received.

In May 2010, GoldStone completed a helicopter borne electromagnetic survey (VTEM system) over the southern part of the Homase Licence and announced in early September 2010 that it had received positive results from this survey. The survey confirmed the potential extension of the ore controlling structure to depth beneath the known gold resource and along strike to the north. The survey also identified further exploration targets with geophysical signatures similar to the signature observed over the Homase resource area.

Homase/Akrokerri: Future Exploration

The Directors are of the opinion that the Homase/Akrokerri project area lies within a similar geological environment as the 42 million ounce Obuasi gold deposit 15 km to the southwest. This deposit has been exploited at surface and underground where high grade shoots are currently being mined to a depth of close to 2,000m. Results of the first five boreholes drilled below the Homase pit, which were announced in early August 2011, demonstrate that high-grade mineralisation continues to at least 140m below the bottom of the dormant pit and show signs of a high grade shoot extending to unknown depth. The focus of present drilling operations at Homase is to continue following this high grade shoot down dip and explore for additional shoots below the Homase pits which may lead to an increase in the resource. The mineralisation associated with the Akrokerri resource also includes high grade shoots which may continue to plunge steeply beyond their currently known extent of approximately 130m below surface. The existence of deep plunging high grade shoots underneath the Akrokerri resource will also be tested in future exploration. Soil anomalies over both licence areas indicate that the potential exists for mineralisation to extend north and south along strike of the Homase/Akrokerri resource.

The prominent VTEM anomaly identified at Adubrim, which is coincident with a gold in soil anomaly, has a strike length in excess of 3.5 km and structures that run parallel to the existing resource area will be investigated further in the coming months by follow up soil sampling and additional high resolution geophysical surveys. Separate large gold in soil anomalies over the Akrokerri granite, which is situated in the western part of the Akrokerri Licence area and where extensive artisanal workings are being conducted by illegal small scale miners, will also be investigated and will be the subject of a future drilling campaign over the Akrokerri Licence area.

Homase/Akrokerri: Ownership Structure and Licences

In March 2010 the Minister of Lands, Forestry and Mines consented to the joint venture agreement GoldStone concluded in October 2009 with its joint venture partner Cherry Hill Mining Company Limited ("Cherry Hill") in respect of the Homase Licence. Cherry Hill received notification from the Minerals Commission of Ghana ("MinCom") in June 2011 that the prospecting licence over the entire Homase Licence area has been extended for a further 12 month period and is due to expire on 28 July 2012. During May 2010 GoldStone increased its ownership in the Homase Licence to 51%. and the Directors anticipate that the Company will increase its interest in the project to 65% during the coming months by expending the minimum required exploration expenditure of US$1,000,000 for this phase over the licence area. Upon reaching a 65% interest in the Homase Licence the Company would be able to increase its interest to 85% upon completion of a successful feasibility study over the licence area.

GoldStone entered into an agreement with Pan African Resources PLC ("PAR") in October 2010 to acquire PAR's entire interest of 95.1% in Pan African Resources Ghana Ltd, which was renamed GoldStone Akrokerri Ltd ("GoldStone AKR") and wholly owns the Akrokerri Licence. This acquisition led to GoldStone obtaining an indirect interest of 95.1% in the Akrokerri Licence in Ghana. The balance of 4.9% of the issued shares in GoldStone AKR is held by Volta Resources Ltd (previously Birim Goldfields Ltd) which will, together with the interest of GoldStone, dilute if and when the Ghanaian Government claims its 10% free carried equity interest at the time of the issuing of a mining licence. The acquisition was made for a consideration of US$1 on the basis that GoldStone AKR has no environmental rehabilitation liabilities, statutory requirements outstanding (including taxes), future or existing contractual liabilities or pending legal proceedings which may, in aggregate, amount to more than US$25,000 in value. In April 2011 MinCom informed GoldStone AKR that it had extended the Akrokerri licence for a period of 12 months up to April 2012.

Both the Akrokerri and Homase licences are subject to renewal in 2012 and the Directors are not aware of any reason why the licences will not be renewed.

Under Ghanaian law the Government of Ghana is entitled to receive a mining royalty of between 3% and 6% of the total revenue obtained from mining operations, in addition to the 10% free carried interest it acquires upon the issue of a mining licence. The corporate tax rate for Ghanaian companies and for income derived from Ghana is 25% and dividends attract a withholding tax of 8%.

Manso Amenfi

The Manso Amenfi licence area over which GoldStone has a joint venture with Asasemu Mining Limited ("Asasemu Mining") had never been explored extensively until GoldStone undertook a permit wide geochemical survey, which was completed in June 2011. The licence area is prospective because it appears to abut the intersection of the two main gold bearing structures in the area with intense artisanal gold mining activity.

Manso Amenfi: Completed Exploration

In June 2011 the permit-wide soil sampling programme was completed and artisanal gold mining sites were mapped. Samples were collected every 100m along northwest trending lines, which were 400m apart and all gold assay results have been received. The results, some of which returned a gold content as high as 2.4 g/t gold, demonstrated the presence of multiple elongated and consistent gold in soil anomalies of considerable extent (up to five kilometres in strike) some of which appear to be parallel to the north trending Salman structure and others parallel to the northeast trending gold-fertile Ayanfuri structure.

Manso Amenfi: Future Exploration

A multi-element geochemical investigation is currently underway and an IP geophysical survey is planned, the results of which will assist the Company's geologists to rank soil anomalies in order to identify areas for further exploration.

Manso Amenfi: Ownership Structure and Licences

In November 2009, the Company entered into a joint venture with Asasemu Mining which wholly owns the Manso Amenfi licence. GoldStone currently owns a 10% interest in the licence area and has the right to increase its interest to 90% after achieving certain exploration benchmarks. The Company will attain an interest of 25% after spending US$500,000 and an interest of 55% after spending US$800,000 or upon defining a code compliant inferred resource of any magnitude. An interest of 70% will be attained by either spending an additional US$1,000,000 or by completing a successful pre-feasibility over any defined resource. An interest of 90% will be attained by concluding a positive feasibility study in the licence area.

SANGOLA: SENEGAL

The Sangola licence, which is wholly owned by GoldStone, lies in the south-eastern corner of Senegal in an established gold province known to geologists as the Kenieba Inlier of Birimian Formation. The licence area is highly prospective because it is largely unexplored and covers the south-western limits of the Main Transcurrent Shear Zone, or "MTZ", that is known to be responsible for the formation of gold deposits north-east of the licence area. Exploration of the Kenieba Inlier resulted in the discovery of more than 30 million ounces of gold and north-east of the Sangola Licence the MTZ yielded the 3.4 Moz Massawa deposit (Randgold Resources).

During the past six months the Company has conducted a permit-wide termite mound sampling programme over the licence area and received results which indicate the presence of significant gold anomalies that appear to overlie splays off the MTZ or structures parallel to the MTZ. The Company's efforts in the coming months will be to investigate the identified anomalies further by follow-up surface sampling and trenching.

Sangola: Completed Exploration

The exploration programme commenced with a structural and regolith study based on remotely sensed data and the mapping of artisanal gold mining sites. A termite mound sampling progamme which covered the prospective Birimian rocks in the licence area was completed in May 2011. A total of 8,150 samples were taken during this programme from termite mounds along north-south trending lines. The purpose of the programme was to detect any gold mineralisation in the underlying rocks and to confirm the location of the MTZ. Results confirmed the location of the MTZ and the presence of gold mineralisation at multiple locations.

Sangola: Future Exploration

Interpretation of all results is ongoing and closely spaced follow-up termite mound sampling is underway. Information from the follow-up programme will enable the identification of sites for trenching or limited drilling. Due to the onset of the rainy season, during which further work is not possible, the Company will only be able to finalise the follow up work later in 2011 or early 2012.

Sangola: Ownership Structure and Licences

The Company entered into a Convention de Recherché ("Convention") on 9 September 2009 with the Senegalese Ministry of Mines over the licence area but the decree, which is necessary to allow the Company to commence exploration activities, was only granted in October 2010. The Sangola Licence covers an area of approximately 471 km² and is granted up to September 2013 and is renewable thereafter for two further three year periods. If exploration is successful, the Convention prescribes that an operating company will be created in which the State of Senegal will have a free carried interest of 10%, with an option to take up a further contributing interest of 25%. Under the Convention, the Government of Senegal guarantees GoldStone and the operating company a minimum interest of 65% in the operating company, exemption from certain taxes during the exploration phases, a four year customs-free status during the development phase, a seven year tax-free status (including income and withholding taxes) during the mining phase and unfettered repatriation of foreign loans and remittance of dividends.

OYEM & NGOUTOU: GABON

Early in 2010, the Company reviewed information resulting from a European Union sponsored survey conducted over large parts of Gabon by the French and South African Geological Surveys and the Gabonese Mining Department. As a result of this review the Company selected the Oyem and Ngoutou licences for application. Both licences contain compelling and extensive gold in soil anomalies which show a clear relationship with the underlying rocks. The shear size and linear extent including the continuous and robust surface expression of both licences' gold anomalies hold much promise for the Company. The anomalous areas will be aggressively explored in the future.

Oyem and Ngoutou: Completed Exploration

During the last few months the Company conducted a logistical reconnaissance over both licence areas. It was found that both areas contain artisanal gold workings in the streams that cut through the gold anomalies and both areas are easily accessible by using existing logging roads. From desktop work it was established that the gold in soil anomaly associated with the Oyem permit in the northern part of Gabon covers a well-known regional geological structure in gold-prospective Archean rocks and that the Ngoutou anomaly in the eastern central part of Gabon also covers Archean rocks.

Oyem and Ngoutou: Future Exploration

The Company's field teams are busy erecting field camps for a geological reconnaissance study. The geological reconnaissance is aimed at conducting an orientation study which includes in-fill soil sampling and shallow drilling in order to identify targets for deeper drilling. This work will be conducted during the coming months before the rainy season starts in February.

Oyem and Ngoutou: Ownership Structure and Licences

The licences have both been awarded to the Company's wholly owned Gabonese subsidiary for a period of three years and can be renewed twice for a period of three years.

PLACING

On 14 June 2010 the Company raised approximately £2.06 million (before expenses) through a placing of 58,857,142 new ordinary shares at a price of 3.5 pence per share. The Company is using these funds, together with the investment in the Company by Unity Mining Limited referred to below, to explore for gold on its current projects, in particular by drilling the Homase/Akrokerri project.

UNITY MINING LIMITED

On 6 May 2010, the Company entered into a strategic alliance with ASX-listed Unity Mining Limited (then known as Bendigo Mining Limited) ("Unity"). Under the terms of the agreement Unity subscribed for 32,704,166 ordinary shares in the Company at a price of 6.5p per share raising £2,125,771. In addition, the Company issued non-tradable and non-transferrable warrants to Unity in two tranches. The first tranche entitles Unity to subscribe for 10,901,389 shares in GoldStone at 8.5 pence per share between 8 November 2011 and 7 November 2012 and the second tranche entitles Unity to subscribe for 10,901,389 shares at 11.5p per share between 8 May 2012 and 7 May 2013.

Unity currently holds 33.47% of the issued share capital.

CHANGES TO THE BOARD

Nico van der Hoven, who had served as Non-Executive Chairman of GoldStone since May 2009, retired from the Board at the end of November 2010 and Gennen McDowall, a Non-Executive Director, was appointed Non-Executive Chairman.

On 14 May 2010, Tim Churcher, Chief Financial Officer of Unity, was appointed as a Non-Executive Director, following the Company's strategic alliance with Unity. Post year end and subsequent to the increased holding of Unity, Rod Hanson was appointed as a Non-Executive Director on 24 June 2011. Mr. Hanson is the Managing Director and Chief Executive Officer of Unity.

OUTLOOK

Since mid-2009, the Company has built an impressive portfolio of exploration properties. During the course of the closing months of the year under review, the focus has changed towards target driven exploration which is directed at testing the prospectivity and intrinsic value of the exploration assets. So far the Board has been very encouraged by the results. The Homase drilling results announced in August 2011 were an excellent, inaugural result. The intercepts not only greatly improved our confidence to probe deeper and follow the identified high grade shoot, but also to seek similar shoots along strike and below the Homase/Akrokerri resource.

At Manso Amenfi the identification of multiple distinct and large soil anomalies increased the project's exploration value and encouraged us to increase our interest in the project by further spending. This will be done by conducting geophysical surveys and possibly trenching in order to identify drill ready targets.

In Senegal we completed a termite mound sampling programme over difficult terrain within a short period of time and were able to identify consistent and contiguous gold anomalies, as expected, over splays associated with the MTZ. Our work at Sangola will now focus on identifying drill targets and will include infill soil sampling and possibly trenching.

We are also excited with the possibilities Gabon holds for the Company as both licence areas contain impressive anomalies that deserve drilling and further investigation. At Oyem we have built an exploration camp and intend to utilise our light mobile drill rig and the planned infill soil sampling programme to identify drilling targets that could potentially lead to a discovery. We intend to replicate the Oyem work programme at Ngoutou once our operations are underway at Oyem.

The Board looks forward to reporting on future progress in due course.

Jurie Wessels

Chief Executive Officer

23 August 2011

STATEMENT OF COMPREHENSIVE INCOME

For the year ended 28 February 2011

BALANCE SHEET

28 February 2011

NOTES

1. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the losses attributable to ordinary shareholders by the weighted average number of ordinary shares in issue after the placing on AIM. Diluted earnings per share is calculated using the weighted average number of ordinary shares in issue as adjusted to assume conversion of all dilutive potential ordinary shares. As there were no potentially dilutive shares in issue at the year end, the weighted average number of ordinary shares is the same in both cases.

The company has the following instruments which could potentially dilute basic earnings per share in the future:

FINANCIAL INFORMATION

The financial information set out above does not constitute the Company's statutory accounts for the year ended 28 February 2011, but is derived from those accounts. The auditors have reported on those accounts; their reports were unqualified and did not draw attention to any matters by way of emphasis without qualifying their report.

ANNUAL REPORT

The annual report and accounts for the year ended 28 February 2011 will be posted to shareholders by 31 August 2011 and will be available from the Company's website at www.goldstoneresources.com shortly.