Progress Report

11 May 2006 14:04

Goldstone Resources Ltd11 May 2006 GOLDSTONE RESOURCES LIMITED PROGRESS REPORT The Directors of GoldStone Resources Ltd ("GoldStone" or the "Company") wish toprovide the following update on the Company's activities. GOLD PROGRAMME IN GUYANA The present drilling programme of shallow holes in Lease Area A has beenterminated and, from the drill cores recovered, Dr Lawrie Minter, the Company'sDirector of Exploration, has established that mineralised conglomerate fans havenot developed above the angular unconformity previously identified. As aresult, the Directors have decided not to further pursue two of the threeidentified potential prospecting licence areas in Lease Area A. A drilling programme in Lease Area B, which was designed to confirm theexistence and extent of the mineralised layer previously identified, hascommenced. Five holes have been completed and further drilling currently inprogress is expected to be completed in two weeks' time. Dr Minter reports thatthe drill hole locations have been sited so as to define the areal limits ofgold mineralization, which is associated with an extensive palaeosurface. Assayresults, which are expected by the end of July 2006, may enable the Company toestimate the grade and tonnage of this prospective resource. Dr Lawrie Minter, who holds a PhD in Palaeoplacer Sedimentology and who isGoldStone's Director of Exploration, has reviewed and approved the content ofthe above. POTENTIAL ADDITIONAL PROJECT With the assistance of an independent minerals consultancy, the Directors arecurrently evaluating a prospective transaction which, if concluded, would resultin the Company acquiring an additional minerals project. GoldStone currently has cash resources of approximately US$3 million. Contact: GoldStone Resources Ltd 00 27 21 794 4004Nico van der Hoven (Chief Executive Officer) This information is provided by RNS The company news service from the London Stock Exchange