Firestone Diamonds plc is a UK-based international diamond mining and exploration company with operations in Botswana and South Africa. Firestone's objective is to become a leading mid-tier diamond producer.

Firestone's strategy is to use cash flow from alluvial mining operations in South Africa to finance exploration projects in established diamond producing areas with the potential for large scale economic diamond deposits. Firestone's key competitive advantage is its highly prospective portfolio of exploration projects in Botswana, which is the world's largest producer of diamonds. The company is the largest holder of exploration rights around the major Orapa and Jwaneng mines, and controls the entire Tsabong kimberlite field, which is one of the largest diamondiferous kimberlite fields in the world.

Map of Firestone Diamonds Current operations

Botswana Projects

BK11 Kimberlite, Orapa, Botswana

The BK11 kimberlite is located in the Orapa kimberlite field in northern Botswana. With eight economic kimberlites out of the 75 kimberlites discovered in the field to date and a new mine being developed by African Diamonds plc in joint venture with De Beers, the Orapa field has an economic ratio of more than 10%, which is significantly higher than the global average of 1%. The Orapa Mine produces approximately $1 billion in revenue and $800 million in operating profit per annum, and is one of the richest diamond mines in the world.

BK16 Kimberlite, Orapa, Botswana

In June 2008 the Company entered into an agreement with SouthernEra under which it can acquire an 87.5% interest in the BK16 kimberlite in return for carrying all costs to completion of bankable feasibility. It is situated approximately 22 kilometres north east of BK11 and 12 kilometres north of the Letlhakane Mine. It was discovered by De Beers in the 1970's and a grade of 15 cpht was reported from bulk sampling.

Tsabong, Botswana

The Tsabong kimberlite field is located in south western Botswana, approximately 280 kilometres south west of the Jwaneng Mine, which is the world's most profitable diamond mine, producing over $2 billion revenue and over $1.8 billion operating profit per annum. The Tsabong project extends over an area of approximately 7,400 square kilometres, and covers the entire Tsabong kimberlite field.

Aeromagnetic survey of the central Tsabong area

Image of the Tsabong town (Right Image) Image of Core drilling mk1 March 2007 (Left Image)

Orapa Exploration

Firestone controls prospecting licences over an area of approximately 10,000 square kilometres in the Orapa region. These licences contain eight known kimberlites, of which four have been proven to be diamondiferous. Firestone owns a 100% interest in these prospecting licences.

Right image of the Orapa Mine, Left Image of the Kimberlitic indicator minerals 

Jwaneng, Botswana

Firestone holds prospecting licences over a total of approximately 6,000 square kilometres in the Jwaneng area. The Jwaneng Mine is the world's biggest diamond mine, producing over $2 billion revenue and over $1.8 billion operating profit per annum. The area covered by the Jwaneng prospecting licences has recently been surveyed for the first time using modern high resolution airborne and ground geophysical exploration techniques and is considered prospective for the discovery of new diamondiferous kimberlites. Firestone owns a 100% interest in these prospecting licences.

Right Image of the Jwaneng Mine, Left Image of the Zeppelin airship Jwaneng

South Africa Projects

The Bonte Koe Mine, South Africa

The Bonte Koe mine covers an area of approximately 25 square kilometres along the Buffels River in Namaqualand, a region that has been a significant diamond producing area for the past 40 years. Mining operations in the area have produced an estimated total of over 3 million carats, with an estimated current value of over $750 million. The Buffels River area produces diamonds with an average size of approximately 0.4 carats per stone and a value of over $200 per carat.

Right Image of the Bonte Koe Diamonds, Left Image of the Processing Plant

Groen River Valley

The Groen River Valley exploration project covers an area of approximately 500 square kilometres of the lower reaches of the Groen River in Namaqualand. A considerable amount of prospecting has been carried out by Firestone, resulting in the identification of the palaeo river systems which were responsible for transporting the diamonds of large size and high quality that have been mined near the mouth of the Groen River by De Beers and other operators. Firestone owns a 100% interest in the Groen River Valley project.

Right Image of the Groen River Valley diamonds, Left Image of the Groen River Valley drill samples

Alluvial Mining and Exploration Projects

Following the decision to focus the Company's exploration and development activities on its kimberlite projects in Botswana, the Company decided to seek expressions of interest in relation to the sale or joint venturing of its alluvial projects in South Africa. A number of discussions have been held with interested parties, but no agreements have been concluded yet.


Oena

The Oena Mine is located on the lower Orange River in a well established diamond producing area which produces diamonds comparable to the best in the world, typically selling at prices over $1,500 per carat. The Oena mining lease covers 89 square kilometres, and extends along 15 kilometres of the Orange River. Oena is located upstream of the Auchas Mine, operated by De Beers, and the Baken Mine, operated by Trans Hex, South Africa's second largest diamond producer.Firestone owns an 87.5% interest in the Oena Mine.

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From Firestone Diamonds Website last Updated 18/08/10

Shares in issue: 352.8m 20p Ordinary Shares in Issue, as at Last Close

Shareholder Name Amount % Holding

Legal & General Group PLC 32,613,035 10.07

Audley Capital Management Ltd 32,395,000 10.02

JP Morgan Asset Management 26,587,826 9.77

Gartmore Investment Ltd 29,578,755 9.22

Lanstead Partners 13,782,224 4.30

TD Waterhouse 11,005,629 4.04

UBS Investment Bank 10,703,451 3.30

Axa Framlington 8,383,600 3.08

Blenheim 8,166,328 3.00

From Firestone Diamonds Website last Updated 18/08/10

Shares in issue: 352.8m 20p Ordinary Shares in Issue, as at Last Close

Shareholder Name Amount % Holding

Legal & General Group PLC 32,613,035 10.07

Audley Capital Management Ltd 32,395,000 10.02

JP Morgan Asset Management 26,587,826 9.77

Gartmore Investment Ltd 29,578,755 9.22

Lanstead Partners 13,782,224 4.30

TD Waterhouse 11,005,629 4.04

UBS Investment Bank 10,703,451 3.30

Axa Framlington 8,383,600 3.08

Blenheim 8,166,328 3.00