Goldstone Resources Regulatory News (GRL)

20 Feb 2008 12:00

Goldstone Resources Ltd20 February 2008 GOLDSTONE RESOURCES LTD PROGRESS REPORT The Directors of GoldStone Resources Ltd ("GoldStone" or the "Company") wish toprovide the following update on the Company's activities. APPOINTMENT OF EXPLORATION MANAGER Dr. Hendrik Schloemann was appointed Exploration Manager of the Company witheffect from 1 February 2008. Dr. Schloemann is a qualified geologist and hasthirteen years of exploration experience in Africa and South America. During2006 and 2007 Dr. Schloemann held the position of Exploration Manager forHarmony Gold Mining Company Limited ("Harmony") and was responsible forHarmony's exploration activities in Africa. Prior to this Dr. Schloemann workedfor Aurelian Resources Inc. where he contributed significantly to the discoveryof the 14M oz Fruta del Norte gold deposit in Ecuador in 2006. Dr. Schloemannhas responsibility for identifying and reviewing potential exploration projectswhich may be of interest to the Company. SWARTDORING DIAMOND PROJECT In April 2007 GoldStone conditionally agreed to acquire a 70% interest in XanaduMining (Pty) Ltd ("Xanadu") from GeoQuest Holdings Limited ("GeoQuest") (the"Acquisition"). The interest comprises 70% of both the share capital of Xanaduand inter-company loans owed by Xanadu to GeoQuest. Xanadu, through its wholly owned subsidiaries, GrindStone Mining (Pty) Ltd andMultidirect Mining (Pty) Ltd, holds prospecting rights over the SwartdoringDiamond Project. Completion of the Acquisition is conditional on: • The successful listing of GoldStone on the Alternative Exchange of the JSE Limited ("ALTx"); and • The approval of the Acquisition by the South African Reserve Bank ("SARB"). The Directors are pleased to report that the outstanding SARB approvals havebeen obtained and the listing of GoldStone on the ALTx is progressing. It isexpected that the listing will occur during March 2008. GoldStone and GeoQuesthave agreed to extend the long stop date for completion of the Acquisition to 31March 2008. FINANCING The Company's cash resources are currently approximately US$2.5 million. Enquiries: GoldStone Resources Ltd 00 27 21 794 4004Nico van der Hoven (Chief Executive Officer) Hanson Westhouse Limited 0113 246 2610Tim Feather / Matthew Johnson This information is provided by RNS The company news service from the London Stock Exchange