Goldstone Resources Regulatory News (GRL)

GOLDSTONE RESOURCES LIMITED

("GoldStone" or the "Company")

Interim Results for the period ended 31 August 2010

GoldStone Resources (AIM: GRL), the AIM quoted company focused on gold in West Africa, announces its interim results for the period ended 31 August 2010.

In the period under review Goldstone announced a resource estimate in accordance with the JORC code for its Homase joint venture project in Ghana and subsequently earned a 51% interest in the licence. The Company also commenced exploration activities at Homase and at its Manso Amenfi project in Ghana. In May GoldStone announced a £2.1 million placing and strategic alliance with Bendigo Mining Limited and raised an additional £2.1 million in June. The Company had US$ 6.2m cash on hand at the end of the reporting period.

Highlights since period end:

Homase Licence VTEM Survey Results

·; The structure that controls the gold mineralisation at Homase and Akrokerri has been found to extend to depth underneath the known mineralisation and along strike towards the north.

·; Several new exploration targets were identified north of Homase and on a parallel structure.

Acquisition of the Akrokerri Licence

·; The licence area is situated between Anglo Gold Ashanti's 50 million ounce Obuasi Gold Mine and GoldStone's Homase Permit.

·; An initial code compliant resource may be achieved from historical drill data and would add to the Homase resource.

·; The licence area also includes a dormant underground gold mine where 75,000 ounces of gold were mined at an average grade of 24 grammes per tonne, and several regional exploration targets.

Sangola Decree Issued

·; Exploration may now commence with a regional soil sampling programme over this highly prospective and strategically located licence area in Senegal.

Jurie Wessels, GoldStone's Chief Executive commented: "During the past few months we started exploration activities in Ghana, added some very prospective ground around Homase and have removed licensing obstacles in Senegal. The Company is well funded to execute its exploration plans and our focus will now be on target driven exploration at Homase and Akrokerri and to get the ball rolling at our Sangola and Manso Amenfi grass roots projects. We are also optimistic that the Ngoutou permit, one of the two permits applied for in Gabon, will be granted. Although most of our attention will now shift away from acquisition and consolidation to direct exploration, we are still investigating some opportunities that may make commercial sense for GoldStone."

Enquiries:

Chief Executive's Report

During the half year ended 31 August 2010 the Company announced a resource estimate in accordance with the JORC code at Homase in Ghana and subsequently acquired a 51% interest in the licence. As a result of the placing relating to the strategic alliance with Bendigo Mining Limited and the subsequent placing completed in June 2010, the Company is well funded to execute its exploration plans.

GHANA

The Company commenced exploration activities on its Homase and Manso Amenfi joint venture properties. A VTEM (Versatile Time-Domain Electromagnetic) survey was completed over the Homase prospecting licence, where GoldStone has a joint venture with Cherry Hill Mining Company Ltd ("Cherry Hill") and a desk top study was completed on the Manso Amenfi prospecting licence where GoldStone has a joint venture agreement with Asaasemu Mining Ltd ("Asaasemu"). Under the terms of both agreements, the Company has the right to earn an interest in the licences of up to 85% by funding exploration costs or reaching certain exploration targets.

Homase

The Company completed an airborne electromagnetic VTEM survey 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 extensions of the controlling structure known ore body to depth underneath 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. The prominent VTEM anomaly at Adubrim was especially encouraging because it corresponded with a gold in soil anomaly and has a strike length in excess of 3.5 km. The projection of the Adubrim geophysical anomaly extends into the Akrokerri Licence and has a shape, magnitude and depth extent identical to the anomaly observed over the known resource under the Homase pits. The significance of these newly identified targets will be investigated by exploration activity in 2011.

The Company's Joint Venture partner, Cherry Hill received notification from the Minerals Commission of Ghana ("MinCom") that the prospecting licence over the entire Homase Licence area has been extended for a further 12 month period with effect from 2 September 2010. The prospecting licence was granted on 3 September 2008 and was due to expire on 2 September 2010. In March 2010 the Minister of Lands, Forestry and Mines consented to the joint venture agreement with Cherry Hill.

Minerex Drilling Contractors Limited has been engaged by the Company to execute an initial 4,000 metre drilling programme on the Homase property, however drilling is being delayed until the Environmental Protection Agency of Ghana ("EPA") is satisfied that community interests are safeguarded in the Homase Licence area during exploration work. The Company is in regular contact with the EPA and other interested parties and expects to make progress in this regard soon.

Akrokerri

In October GoldStone entered into an agreement with Pan African Resources PLC ("PAF") that led to the Company obtaining an initial interest of 95.1% in the Akrokerri Licence in Ghana.

The Akrokerri Licence area of 27.6 km² adjoins the southern boundary of GoldStone's Homase permit and the eastern border of Anglo-Gold Ashanti's Obuasi gold mine and covers the structure that controlled the formation of the Obuasi gold deposit and the mineralisation in the Homase pits area.

Historical drilling data, from which a small code compliant resource may be compiled, and a 2.8 km long gold in soil anomaly suggest that the Homase gold deposit extends into the northern portion of the Akrokerri permit. Significant drill intersects from this area are listed below:

* The widths given in the table do not reflect the true widths of the mineralisation.

The gold mineralisation in the southern part of the Homase permit and the northern part of the Akrokerri permit are part of the same geological unit and warrant a unified exploration approach. Drilling between the widely spaced drill fences on the Akrokerri permit and under the known part of the mineralisation may add additional ounces to a combined Akrokerri/Homase resource and thus may greatly improve the prospects of both permits.

GoldStone currently owns 95.1% of Par African Resources Ghana Ltd ("PAR Ghana"), the holder of the Akrokerri Licence, the remaining 4.9% is held by Volta Resources Ltd (previously Birim Goldfields Ltd). GoldStone's shareholding will be reduced to 85.1% after the transfer of a 10% free carried interest to the Government of Ghana, which will take place when the prospecting permit is converted to a mining lease. The Akrokerri Licence expired on 6 November 2010 but the directors are positive that an application for renewal, which has been filed with MinCom, will be favourably received and that the renewal will be granted. The acquisition was made for a consideration of US$1 on the basis that PAR Ghana 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.

Manso Amenfi

The Company has commenced exploration activities on the Manso Amenfi licence area by finalising a regional desk top study. A permit wide regional soil sampling programme will be conducted in order to confirm two large gold-in-soil anomalies. This may be followed up by soil sampling or trenching in order to define drill targets.

SENEGAL

Sangola

The Company entered into a Convention de Recherché with the Government of Senegal and was granted the Sangola Exploration Licence ("Sangola Licence") for a period of three years in November 2009. GoldStone was not able to explore the Sangola Licence area until the issue of a decree in October 2010 by the Mining Minister. A desk top study based on remotely sensed data to generate maps of the most prospective structures and the regolith in the permit area has been commissioned and a termite mound and soil sampling programme to cover most of the licence area will commence during December 2010 or January 2011. Gold and/or pathfinder element anomalies identified by this work will be followed up with infill soil sampling and trenching.

The Sangola Licence (471 km²) covers part of the gold-prospective Kenieba Inlier of Birimian Formation. The licence is located close to Kedougou, the regional capital city. Historic exploration of the Kenieba Inlier resulted in the discovery of more than 30 million ounces ("Moz") of gold in five major deposits in Mali and Senegal. The licence area shows signs of artisanal gold mining activity and covers the very prospective Mako Volcanic Formation that hosts the 3 Moz Sabodala Gold Mine.

GABON

The Company filed applications for two licences that exhibit promising soil anomalies from interpretation of the recently published SYSMIN data compiled by the French, South African and Gabonese Geological Surveys. The Gabonese Department of Geology and Mining has acknowledged the Company's applications and has assured the Company that its applications are ready to be considered by the Minister.

OUTLOOK

Based on historical drill data only, the code compliant resource at Homase may be upgraded by the addition of a small resource at Akrokerri. Successful drilling underneath and along strike of the known mineralisation at Homase-Akrokerri, combined with successful exploration of the new regional targets, could enhance the combined Homase-Akrokerri resource to a minable gold reserve. Results of the drilling programme scheduled for 2011 may justify the commissioning of a scoping study to investigate the feasibility of mining.

Any gold anomalies detected by the upcoming soil surveys over the Sangola and Manso Amenfi permits will be ranked for follow-up by means of in-fill soil sampling and trenching. The directors are optimistic that the Company's applications in Gabon will be successful and hope to commence exploration in this country during the first quarter of next year. In order to limit discovery risk the Company is continuing to evaluate other exploration opportunities which may contribute and enhance its existing projects.

Jurie Wessels

Chief Executive Officer

Cape Town, South Africa