Stellar Diamonds Regulatory News (STEL)

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26 February 2014

AIM: STEL

Stellar Diamonds plc

("Stellar" or the "Company")

Exercise of Warrants

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, is pleased to announce it has raised £314,914 following the exercise of 28,628,545 warrants at a price of 1.1p each by existing investors Foradex Invest SRL ("Foradex") and Hottinger (Adam & Co.) ("Hottinger"). The Company is pleased to see the continued support of large shareholders, with the funds being used to further progress its flagship 1.1 million carat resource Tongo Dyke-1 kimberlite project in Sierra Leone which is currently undergoing a definitive feasibility study.

Stellar Diamonds Chief Executive Karl Smithson commented, "The exercise of these warrants underpins the supportive nature of our major shareholders and the prospectively of our project portfolio, particularly Tongo where recent results from bulk sampling taken for the DFS were outstanding, and confirmed the continued high grade nature of the 1.1 million carat resource. We are at an exciting juncture in the development of our company as we advance Tongo towards production and look forward to providing regular updates on the progress being made."

Stellar has issued 28,628,545 new ordinary shares of 1p each (the "New Ordinary Shares") following the exercise of warrants. The warrants were issued as part of the subscription announced on 17 December 2013. Application has been made for the New Ordinary Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will occur on or around 3 March 2014. The New Ordinary Shares will, when admitted, rank pari passu in all respects with the existing ordinary shares.

Total voting rights

Following Admission of the above New Ordinary Shares, the Company's enlarged issued share capital ("Issued Share Capital") will comprise of 549,828,166 Ordinary Shares of 1 p each with voting rights. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

Substantial Shareholdings

Foradex, the Company's largest shareholder, has exercised warrants for 24,628,545 New Ordinary Shares. Post Admission, Foradex will hold 114,192,090 Ordinary Shares representing 20.77 per cent. of the Company's Issued Share Capital.

Hottinger has exercised warrants for 4,000,000 New Ordinary Shares. Post Admission, Hottinger will hold 32,618,500 representing 5.93 per cent. of the Company's Issued Share Capital.

About Stellar Diamonds plc:

Stellar is an AIM quoted (AIM: STEL) West African focused diamond development company which is advancing the 1.1 million carat Tongo Dyke-1 resource into the feasibility stage and towards a production decision in 2014. The Company recently signed a joint venture to earn a 75% interest over the multi-million carat potential 5 hectare Baoulé pipe in Guinea. In addition, Stellar holds the 3 million carat Droujba project and continues to pursue both diplomatic and legal channels to ensure the proper reinstatement of its Kono licences.

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