Firestone Diamonds plc is a UK-based international diamond mining and exploration company with operations in the Namaqualand region of South Africa and Botswana. 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. Botswana is the world's largest producer of diamonds by value, with annual production of over 20 million carats worth over $1.6 billion.

Firestones strategy has been to build a portfolio comprising advanced development and production projects to provide sustainable cash flow to fund ongoing exploration programmes and to provide an early return on investment, together with large scale exploration projects which have the potential to yield significant reserves of gem quality diamonds.

The company operates the Avontuur Mine and the Oena Mine of Namaqualand, which produces high quality alluvial diamonds, and has a growing portfolio of advanced and early stage exploration projects in known diamond producing areas in Namaqualand and Botswana.



Since 1996 the company has increased reserves and resources more than thirty two times from 34,000 carats to over 1.1 million carats at present, with an estimated gross value of approximately 260 million. Firestone is debt free and well funded and has a highly qualified management team with extensive experience in the financing and development of diamond and other natural resource projects. Firestone is quoted on the Alternative Investment Market (AIM) of the London Stock Exchange and trades under the symbol FDI.L.

Firestone also has an exploration project in the USA.



Main Mining Pit, Avontuur Mine, Namaqualand, South Africa.






For FDI Corporate information : http://www.firestonediamonds.com/frcorporate.htm

For FDI homepage : http://www.firestonediamonds.com/index.htm

Firestone Dimaonds shares in issue: 65m 20p Ords

Firestone Diamonds PLC - Major Shareholders

Major Shareholders ---- Amount --- % Holding
Elfin Trust Company Ltd 7,200,000 16.68
Aurora Investment Trust 7,200,000 16.68
Gartmore Investment Mgt 5,418,116 12.56

And holders sold based on that information?! Please. What is wrong with people....

Queen1,

A brief mention in yesterday's Sunday Times.


The Sunday Times

August 28, 2005

Teeling feels African heat from Petra - Ciaran Hancock

JOHN TEELING, the Clontarf-based entrepreneur, is facing another battle to retain control of African Diamonds, a listed company with potentially lucrative diamond mining licences in Botswana.

Petra Diamonds, a London-listed mining company with operations in Angola, South Africa and Sierra Leone, is believed to have approached Mark Scowcroft and Leon Daniels, two Africa-based shareholders who between them own 18% of African Diamonds shares.

Petra, which has a market capitalisation of 92m (134m) and is headed by Johan Dippenaar, is believed to be interested in acquiring Kalahari Diamonds, an unquoted diamond explorer in Botswana, with ground close to African Diamonds licences in the Orapa area.

BHP, a mining giant, is a key shareholder in Kalahari and is also Petras joint venture partner in Angola. African Diamonds would offer potential synergies for the company. De Beers, African Diamonds joint venture partner, is likely to block such a move, given Petras links with BHP, one of its biggest rivals.

Scowcroft resigned as a director of African Diamonds, which has a market cap of 33m, on August 23, fuelling speculation that he might sell his stake in the company. As a director, he would be obliged to inform the board of any approach from a third party. Leaving the board allows him to talk freely to any interested party, but he may be obliged to give first option to De Beers.

On the day Scowcroft resigned, De Beers said it had asked the board of African Diamonds to implement one of the terms of its joint venture deal, under which each director is granted rights of first refusal to the mining giant if they choose to sell their shareholding. Scowcroft, who had a public falling out with Teeling earlier this year, could be bound by this.

Petras interest follows a similar approach from Firestone Diamonds, a UK-quoted mining company headed by Irishman Philip Kenny. Firestone, which also has diamond licences in Botswana, is believed to have held talks with Scowcroft and Daniels with a view to using their equity to gain control of African Diamonds board.

Teeling said: I am aware of the interest of Firestone Diamonds and of Petra.

The resignation of Mark Scowcroft was unfortunate because he was a very good geologist. Replacement specialists will be appointed within a short time. I would be concerned that there are predators out there who would like a slice of the Orapa discovery and that they would use Mark Scowcroft as the entry point.

Thanks Andy. I'm a little disappointed (again) with the current sp. Any views?

queen1,

Me too, to be honest, I don't see any reason for the drift downwards. To the best of my knowledge there's no bad news around that, so maybe simply the absense of any news at all?

I personally think a deal with AFD would muddy the waters for FDI, so I would prefer to see FDI continue to do what they seem to do best, exploration.

Having said that, Phil Kenny is shrewd, so i'm sure of he does a deal, it will be value enhancing.

Andy,

Take a look at KYS, Vice chairman is Simon Cawkwell [ E K ] he holds at least 700,000 shares.

Zeppelin to be used to spy SAs diamonds

Johannesburg A German-built airship, or Zeppelin, arrived yesterday in South Africa, where it has been chartered by diamond producer De Beers for use as a platform for mineral exploration in southern Africa.

Astonished onlookers noticed the cigar-shaped vessel floating near Cape Towns Table Mountain after it was unloaded at the citys dock and took off for the Ysterplaat military base about 30km away. The prototype airship, one of only three of its kind in the world, was flown from the factory near Lake Constance to Amsterdam and shipped to South Africa.

De Beers spokesman Tom Tweedy said it would be fitted with measuring equipment to enable the study of geological formations indicating the presence of diamonds in SA, Namibia and Botswana. Sapa

Aldwick,

Ok will do, thanks.

Any particular reason for you liking them?

Andy,

Since i posted that Simon Cawkwell as bought more shares/ options, I have been told by a top man at a top brokers, that there are rurmours that he as a massive amount of options that have not been made known to the city.

aldwick,

Nice rise today!

the 100k buy presumably started the rise.

Andy,
Yes, and AFD up. Have you looked at KYS yet ?

aldwick,

Only briefly, I see Ek has left the company, but significantly increased his holding, and is planning to visit again soon.

I have to admit if he's putting his own money where his mouth is, and paying market price, I would see that as very positive.

I am going to read a bit more about them.


Yet another nice little rise here today, to finish off the week on a very positive note!

I hear there is a shortage of stock, and online dealing was restricted yesterday afternoon, Squaregain would only trade 2500 electronicaly.

The free float on FDI is only around 20%, so they will struggle for sellers IMO.

Aldwick,

This is the new airship De Beers will be using for exploration in Botswana!

Interestingly, it carries the name Debswana, sugesting it will only be used in Botswana, and not SA.

Lots of activity in the shares and hence the SP up to 1.60 ish

Nothing obvious on trawling thru the internet but a liitle mention in the Daily Express market report today ........."Rumours of an upbeat drilling report from Botswana helped Firestone Diamonds sparkle, up 8.5p to 160.5p".

hobbst,

Yes I saw the snippet in the Express, but FDI have not confirmed the rumour, so it may just be that.

FDI have never been a leaky company, so I was surprised to see the comment in the Express, although the David Shand column has had it's fair share of failures in the past!

I was expecting some sort of confirmation from the Groen River , rather than Botswana to be honest, although FDI could announce news on a number of fronts as they have several areas ongoing at the moment.

Hobbst,

Well no announcement from FDI thus far, and the price has retraced, possibly hot money leaving.

I guess if they had an announcement, they may have to hold on for a while now, or run the risk of being accused of leaking the info.

The Express specifically mentioned "Botswana drilling results", so any news from alluvials in SA could be safely released IMO.

News just out!

"Strategic investment" in AFD!

------------------

Firestone Diamonds PLC
05 October 2005


Firestone Diamonds plc

Acquisition of interest in African Diamonds plc


5 October 2005


Firestone Diamonds plc ('Firestone Diamonds' or the 'Company') today announces
that it has entered into an agreement to acquire a total of 4,879,220 ordinary
shares in African Diamonds plc ('African Diamonds'), representing approximately
7.28% of the issued share capital of African Diamonds.


The shares in African Diamonds are being acquired in exchange for new ordinary
shares in Firestone Diamonds, on the basis of one new ordinary share in
Firestone Diamonds for each 2.6 ordinary shares in African Diamonds. On 4
October 2005, the respective closing mid-market prices for Firestone Diamonds
and African Diamonds were 146p and 54p, respectively, giving a relative ratio of
2.7.


The Company regards the acquisition as a strategic investment and does not
intend to make an offer for African Diamonds.


For further information:


Philip Kenny, Firestone Diamonds +44 20 8834 1028 / +44 7831 324 645


Leesa Peters, Conduit PR +44 20 7618 8760 / +44 7812 159 885


Jamie Cumming, Bell Lawrie +44 141 314 8103 / +44 7768 044 620



Website:

www.firestonediamonds.com




Background information:


Firestone Diamonds plc is an international diamond mining and exploration
company with operations in the Namaqualand region of South Africa, Botswana and
the United States.


Firestone has extensive interests in Botswana, which is the world's largest
producer of diamonds, with annual production of approximately 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's Mopipi, Orapa and Jwaneng projects are located close to the major
Orapa and Jwaneng mines and are all being explored by De Beers in joint venture
with Firestone. Firestone is also exploring for kimberlite in the US on the
Laurentia craton, which extends into Canada, where it hosts a number of
diamondiferous kimberlite deposits.


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 early stage and advanced exploration projects, of which the Groen
River Valley project is the most important.


Firestone has a highly qualified management team with extensive experience in
the exploration, evaluation and development of diamond projects. Firestone is
quoted on the Alternative Investment Market (AIM) of the London Stock Exchange
and trades under the symbol FDI.L.


This information is provided by RNS
The company news service from the London Stock Exchange

It looks like the market was expecting different news, down 4p now!

Hmmm ........ dont know quite what to make of this announcement ........ is it an indication of the confidence Firestone feels in its future or a case of learning to run before it can walk. I suppose you have to give the benefit of the doubt to Messrs Kenny and Co but even so I was expecting some drilling news rather than corporate action.

hobbst,

I expected drilling news, or something from the Groen, but certainly not this, although there have been rumours for a few months regarding FDI and AFD.

Maybe the game has moved into the second half, and some consolidation and/or co-operation between the junior diamond miners is coming?

Petra have recently taken out Kalahari (why?) and now Mano River, and now we see Firestone taking a "strategic stake" in their neighbour on the ground in Botswana, AFD!

Many people seem to think the AFD's AK6 and AK8 pipes will become mines, so a 7% stake may at least become a more valuable asset in time, if nothing else.

On the otherhand, with the current wave of consolidation, it may be a timely move, as FDI are De Beers' friendly, to prevent Petra/BHP form gaining a foothold in the Orapa, as the current AFD directors, as well as MS are subjec to the De Beers pre emption over their shares!

All in all, some intereting times ahead I think.

hobst,

I found this article, first published 29/6/05 on the web, from a mining magazine, and it certainly highlights the potential at the Groen River IMO.

-----------------------

Exploration JV to fast track SA gem project

The South African arm of the world's largest diamond-miner and AIM-listed Firestone Diamonds yesterday announced details of a new exploration joint venture that was signed recently.

The joint venture builds on an announcement made by Firestone in March this year.

The deal sees De Beers Consolidated Mines retaining the right to market any diamonds recovered through the joint venture, as well as being on call to provide Firestone with loan finance.

In total, De Beers could earn a 70% share in the area.

The company will take over exploration and evaluation work with the intention of fast-tracking the project.

The end of 2004 saw Firestone start carrying out exploration drilling on previously identified targets.

De Beers will carry on this work and its three-dimensional topography model aims to identify the most attractive exploration targets.

The work is already at an advanced stage and two new targets for further drilling have been identified.

De Beers' review of work previously carried out focused on the HL gravel deposit, which is thought to be similar to the largest Namaqualand deposit discovered so far - the Megalodon deposit.

Evaluation of the HL deposit is a high priority for the joint venture and plans for bulk sampling to take place in the second half of this year are being accelerated.

Results of the sampling are hoped to provide an indication of the grade of the deposit as well as a value of the diamonds.

Bulk sampling will be carried out by using a Bauer specialised large-diameter auger drill.

Firestone CEO Philip Kenny points out that this is the fourth joint venture agreement with De Beers in the last twelve months.

He hopes the agreement will bear out the company's belief that Groen River has the potential to become a major new alluvial diamond-producing region.

Kenny added that De Beers' interest in the project indicates that it also recognises the potential for a new, large-scale source of high quality diamonds.

In its interim results in March this year, Firestone announced that it had signed a joint venture agreement with De Beers and that an initial work programme was already under way at the Namaqualand-based dig.

Described as Firestone's most promising exploration project in South Africa because of the high quality and large size of diamonds that have previously been mined, the area shows good potential.

It is reported to have ancient river channels, which were responsible for transporting the high-quality large-sized diamonds previously mined.

Diamonds from the valley have recorded values of over $1 000 per carat.

The agreement entitles De Beers to earn a 61% interest by financing and carrying out all exploration and evaluation work, up to completion of bankable feasibility studies on any deposits identified by exploration in the project area.

Also in March this year, Fieldstone announced that it had been awarded a prospecting permit for a substantial new area in the Groen River Valley region.

This effectively increased its land position by 150% to over 50 000 ha.

The land is believed to contain significant extensions to the diamondiferous palaeochannels previously identified in the region.

Firestone said that it will explore the new area through its black-empowerment subsidiary, African Star Minerals.

After a bankable feasibility study is completed, the companies will be responsible pro rata for their share of mine construction costs.

Despite this, Firestone will have the option to call on De Beers to provide additional loan finance for its share of these costs.

This would entitle De Beers to an extra nine per cent interest.

De Beers is also to contribute its mineral rights to the joint venture, which cover an area of some 90 km2.

The world's most prolific diamond-miner is no stranger to the area, having explored there before.

The company has already conducted a geological due-diligence review on the results of Firestone's exploration.

Included in the due-diligence was a review and interpretation of the material recovered from drilling, a geological interpretation of drilling logs and profiles, a review of the location and value of diamonds recovered by exploration in the area, and the grade of the deposits from which the diamonds were recovered.

De Beers also looked into Firestone's palaeo drainage interpretation for the area, which it found to be consistent with its own interpretation.