Stellar Diamonds Regulatory News (STEL)

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13 April 2011

AIM: STEL

Stellar Diamonds plc

("Stellar" or the "Company")

Encouraging drilling results from the Droujba kimberlite pipe in Guinea

Stellar Diamonds plc, the London listed (AIM:STEL) diamond mining and exploration company focused on West Africa, is pleased to provide an update on the drilling programme at the Company's 100% owned Droujba kimberlite pipe in south east Guinea.

Highlights:

·; Phase-1 programme completed with 18 holes for a total of 3,031 metres drilled

·; Surface area of pipe delineated at 3 hectares

·; Deepest kimberlite intersection to date of 222m from surface and remains open at depth

·; New blind discovery associated with geophysical anomaly intersected to southeast and west of main pipe

·; Microdiamond analysis results from third sample batch expected shortly

·; 3,000m Phase-2 drilling programme underway at Droujba with 10 holes planned

Karl Smithson, Chief Executive Officer, commented:

"The Phase-1 drilling programme at Droujba has been a complete success. We have delineated the main pipe at 3 hectares close to surface and the initial microdiamond results have been excellent. The drilling has also discovered two adjacent sub-surface kimberlite intrusions that are associated with geophysical anomalies. The preliminary 3D geological model suggests that the kimberlite has significant tonnage potential and our drilling programme over the next few months will entail deeper drilling to more accurately delineate the pipe and its internal geology between 120m and 250m depth.

"We expect additional microdiamond results in the near future and will be submitting more material to the laboratory in Canada for further diamond analysis. The microdiamond results received to date are very encouraging and suggest that the hypabyssal kimberlite sampled is significantly diamondiferous. We will shortly be mobilising a processing plant to Droujba and establishing it with a view to bulk sampling of the kimberlite pipe and other proximal kimberlite intrusions.

"I look forward to updating shareholders on the continued progress at Droujba in Guinea over the coming weeks and months."

Drilling Programme

The first phase of drilling, comprising 18 holes for 3,031m, was recently completed after which the programme extended into the second, deeper phase of drilling. These holes were primarily drilled to ascertain geological information of the main Droujba pipe which partly lies beneath a 20m deep flooded pit created during previous mining in the 1960's by the Russian Aid Mission.

The kimberlite pipe was intersected in most holes, with the deepest intersection to date being at 222m vertical depth from surface. The pipe is interpreted as being comprised of two main geological units, a core of hypabyssal kimberlite and associated dykes that have intruded an earlier kimberlite that created a breccia with varying kimberlite content. The surface area of the pipe has been delineated at 3 hectares, which is approximately three times the size previously reported by the Russian Aid Mission.

Two new sub-surface kimberlite intrusions were also intersected to the southeast and west, but adjacent to the main Droujba pipe. These intrusions are associated with strong geophysical anomalies. It is not yet known whether these intrusions coalesce with the main pipe at depth but they do form significant additions to the tonnage potential of the resource. Further drilling will be aimed at determining the relationship and depth extensions to these new bodies as well as the main pipe as part of the Phase-2 programme. The objective is to delineate the kimberlite resource to a depth of up to 250m.

Geological Model

Datamine South Africa has been retained to input the drill log information and generate a three dimensional geological model for the Droujba kimberlite. This process is ongoing and the model will be refined as further drill hole information becomes available.

Microdiamond Analysis

Two samples of kimberlite were recently submitted to the Saskatchewan Research Council laboratory in Canada ("SRC") for microdiamond analysis. These samples comprised 67.60kg of hypabyssal kimberlite from the main pipe and 136.55kg from the south east sub-surface kimberlite intrusion. The smaller sample is designed to complement previous results from the hypabyssal unit of the main pipe, which yielded 490 diamonds from 197kg of kimberlite. The larger sample was submitted to determine whether the diamond content of the hypabyssal kimberlite of the south east intrusion is significantly different from the main pipe. The results from this are expected to be available in the near future.

About Stellar Diamonds plc

Stellar is a London (AIM: STEL) listed diamond mining and exploration company that has a portfolio of projects in West Africa.

Stellar owns a 100% interest in four high-grade kimberlite projects that are the focus of exploration and development. In Sierra Leone at the Tongo project a bulk sampling programme is ongoing on one key kimberlite to assess the diamond grade and value. At the Kono further bulk sampling is planned on a key kimberlite target. Previous underground trial mining by the Company produced 4,200 carats as part of an economic evaluation exercise before being placed on care and maintenance during the financial crisis. In Guinea drilling is continuing on the diamondiferous Droujba kimberlite pipe and bulk sampling is continuing on the high grade Bouro kimberlite dyke, which is adjacent to the Company's Mandala alluvial diamond operation, and where the first bulk sample result returned a grade of 243cpht.

For further information please contact the following or visit the Company's website at www.stellar-diamonds.com.

In accordance with the AIM Rules, the information in this announcement has been reviewed by Karl Smithson, CEO of Stellar, a qualified geologist with 22 years' experience.

Stellar Diamonds plc

Karl Smithson, Chief Executive Tel: +44 (0) 7783 707971

Northland Capital Partners Limited

Gavin Burnell, Edward Hutton

Charles Vaughan Tel: +44 (0) 20 7492 4750

Daniel Stewart & Company plc

Martin Lampshire, Oliver Rigby Tel: +44 (0) 20 7776 6550

Pelham Bell Pottinger

Charles Vivian / James MacFarlane Tel: +44 (0) 20 7861 3232