Firestone Diamonds plc

Firestone Diamonds plc is quoted on the Alternative Investment Market (AIM) of the London Stock Exchange and trades under the symbol - FDI.L. Firestone currently has 55,426,901 shares in issue.

Company Background and Strategy

Firestone Diamonds plc is a UK-based international diamond mining and exploration company with activities in the United States, Botswana and the Namaqualand region of South Africa.

Firestone’s objective is to create serious growth in shareholder value through the successful development of large scale diamond exploration projects that have the potential to yield significant reserves of gem quality diamonds. Firestone’s key competitive advantage is its substantial intellectual property database and expertise from more than 40 years of diamond exploration worldwide.

Firestone's corporate development strategy is to use its intellectual property database to identify and secure attractive, large scale exploration projects, and to build a portfolio comprising production and advanced development projects to provide sustainable cash flow to fund ongoing exploration programmes. The company plans to develop its exploration projects through a combination of joint ventures and the company’s own exploration programmes.

Namaqualand, which is located on the west coast of South Africa, has been one of the world’s largest alluvial diamond producing regions for the past 60 years, with total production to date estimated to be worth more than $3 billion. Firestone’s mining operations in Namaqualand include the Bonte Koe, Avontuur and Oena Mines, all of which produce high quality alluvial diamonds, and a growing portfolio of advanced and early stage exploration projects, of which the Groen River Valley project is the most important.

Firestone has extensive interests in Botswana, which is the world's largest producer of diamonds, with annual production of over 30 million carats worth over $ 2.5 billion. Botswana is considered to be one of the best countries in the world to explore for kimberlite — the primary source rock for diamonds. Firestone is also exploring for kimberlite in the US on the Laurentia craton, which extends into Canada, where it hosts the Ekati and Diavik diamond mines.

Avontuur Mine, Namaqualand, South Africa

Firestone's Avontuur Mine is located near the coastal town of Hondeklip Bay in Namaqualand. Hondeklip Bay is a well established alluvial diamond producing area and hosts De Beers’ Koingnaas Mine and Trans Hex's Hondeklip Bay Mine. These mines have been producing diamonds for 20 years and 15 years respectively and are estimated to have yielded in excess of 10 million carats with an estimated value of over $ 1 billion at current market prices.
Firestone has recently completed a major expansion programme at the Avontuur Mine, resulting in the integration of two previously separate and adjoining operations on the Nova and Gras Kom properties into a single expanded operation centred on the Avontuur Mine.
Earthmoving capacity has been more than doubled to over 1 million tonnes per annum, gravel treatment capacity has been increased by 60% to approximately 320 tonnes per day, and exploration drilling capability has been increased ten fold.

Recent drilling on the mine has also led to the discovery of a number of new gravel deposits, and while further evaluation of these deposits is required, the Company is confident that they will result in an Diamonds produced from Avontuur average approximately 0,2 carats in weight and more than 80 per cent are of gem quality and good, white colour. The largest diamond recovered to date weighed 1,9 carats. Firestone markets its diamond production independently of the CSO by private tender, and sales are held several times a year in South Africa. The high quality of the Avontuur gem stones ensures that Firestone receives better than average prices for its diamonds, and in recent sales prices have averaged between $ 100 and $ 110 per carat.

Oena Mine, Namaqualand, South Africa

Firestone acquired an 87,5% interest in the Oena Mine in February 2000, and is in the process of re-establishing mining operations at the mine. The Oena mining lease covers an area of 8,800 hectares and extends for 17 kilometres along the banks of the lower Orange River. The Orange River played a very significant role in the creation of the alluvial diamond deposits on the west coast of Southern Africa. First, it was the largest and most important river which transported diamonds to the west coast. Second, it carried diamonds of a size and quality considered equal to best in the world, with average values of between $700 and $900 per carat.

Asam Minerals, Firestone’s geological consulting affiliate, carried out the first prospecting activities on the lower reaches of the Orange River in the late 1960’s, and was responsible for the discovery and development of the first mines on the lower Orange River at Octha and Baken.

Octha is estimated to have produced 700,000 carats, with a current value of $500 million. Baken, which is considered to be one of the premier alluvial diamond mines in the world, is the flagship of Trans Hex, South Africa’s second largest diamond producer, and has been producing for over 30 years. Baken currently produces approximately 50,000 carats per annum, with a gross value of about $40 million. De Beers’ Auchas Mine is located opposite Baken on the Namibian side of the Orange River and currently produces 25,000 carats per annum. The Oena Mine is located approximately 17 kilometres upstream of Baken. Upstream of Oena, Global Diamond Resources, a US listed company, is developing a mine at Grasdrif. Trans Hex is carrying out a feasibility study at their Northbank project, located on the Namibian side of the river opposite Grasdrif.

Oena also has significant exploration potential, as it is believed that high grade proto Orange gravels have been preserved beneath the meso Orange gravels in certain locations at the mine.

Directors of Firestone Diamond plc.

Firestone has a highly qualified management team with extensive experience in the financing and development of diamond and other natural resource projects.

James Flannan Kenny, B.A., LL.B., M. Sc., Executive Chairman
James Kenny is a graduate in law and economics from University College, Dublin, and holds a Masters degree in Economics from Columbia University Graduate School of Business Administration, New York.

Hugh Clifford David Jenner-Clarke, B. Sc. (Hons.), F.G.S., Deputy Chairman and Director of Exploration
Hugh Jenner-Clarke is a graduate in geology from Imperial College, London and leads the Company's diamond exploration and development programmes.

Philip Kenny, B.E., M.B.A., Chief Executive
Philip Kenny is a graduate in Mechanical Engineering from University College, Dublin, and holds postgraduate qualifications in Engineering from Trinity College, Dublin and a Master of Business Administration in Finance from Boston College, Massachusetts.

Tim Wilkes, Chief Operating Officer
Tim Wilkes is a graduate in geology from Kingston University, England. He is Chairman of the sub-committee for diamonds of the South African Mineral resource Committee (SAMREC).

Michael James Hampton, B.A., Non-executive Director
Michael Hampton is a graduate of Harvard University.

James Kenny, B. Comm., M.B.S., Corporate Development Director
James Kenny is an honours graduate in Commerce and also holds a Master's Degree in Finance from University College Dublin.

William Douglas Baxter, M.A., M.A.I., Non-executive Director
Douglas Baxter holds a Masters degree in Engineering from Trinity College, Dublin, and is a Fellow of both the Institution of Civil Engineers of Ireland and of the Institution of Civil Engineers (UK).

Jan Louw, Director of Operations
Jan Louw holds a degree in Engineering from Stellenbosch University, South Africa.