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

aldwickk,

Sorry you sold, as I believe FDI are entering an exciting phase, with considerable news and prospects due in the next 12 months.

We are due sampling news from Botswana before the end of 2005, and the decision on the HL deposit at Groen River is probably due by Q2 2006.

I don't blame you though, the fallback has been a little dispappointing, and I wish you good luck in whatever stock you invest the funds in.

With regard to a bid for AFD, I personally doubt it. The recent fundraising was 10 million, so I would think a bid for a smaller player such as EPD, (11 million market cap), or even Mano River, (15 million MC),was more likely.

Having said that, I would be surprised to see FDI invest in any a country such as Sierra Leone, or Angola, I think they will stay in the politically more stable, and infrastruturally better served, SA and Botswana.

Flood gates will be open soon, often it's just a case of waiting for a paper to be signed.

Driftwood1,

I certainly hope so!

Nice movement upwards in the last couple of days. A little snippet in the Daily Express today ....."gossips also believe a bullish trading update is on the way from Firestone Diamonds, 3.5p richer at 146p."

Up another 2.5p today on the back of some decent volume.

That would be nice hobbst. It's been good to see this mini-recovery over the last week, let's hope there is some news to maintain the momentum.

hobbst / queen1,

Thanks for the snippet from the Express, maybe there is a rumour circulating.

After the comments in the July RNS, I would doubt that the trading will be anything but flat, but if it is better then it will be a welcome bonus.

It is positive to see this rise from the placing price of 130p so soon.

I think i sold to soon, what a diffence a week makes.

aldwickk,

Yes a shame you sold when you did, although to be fair, the price had fallen away Just before, but often a stock retreats to a placing price level before advancing again..

I felt we would be ok as long as 130p held, and formed a bottom. Had it fallen through I would have been more concerned.

I hope you bought well with the funds released!

Queen1,

The Daily Express mentioned rumours of "better than expected results" had driven the price higher.

I still don't think so, but things could have changed since their last update in July, so we shall see.

I expect the final results by next Friday, at the latest.

Andy, with the greatest respect I hope that you're wrong. If the market believes the results to be better than expected and they're not, I fear the sp will drop south of 130p which would be bearish (although as their's still so much potential here it would make the shares a steal again.....).

queen1,

So Do I!

Im not sure we would drop below 130p though, as FDI is a tightly held share normally, so perhaps not too many sales will occur if they are flat.

I think the major holders have realistic expectations for this year's results, so would hope they will continue to hold.

Maybe P. Kenny has a card up his sleeve?

Minesite tomorrow, maybe they will release in the morning?

aldwickk,

Looking at the date of previous year's results, the latest release date was the 16th of December, so I hope to see them out by this Friday, latest.

As stated before, I don't expect anything but flat revenues, the focus is 2006 IMO, and with this in mind, I would hope to see something positive mentioned in the notes.

I don't expect any significant news until Q1 2006, maybe January or February, if PK had a project(s) in mind for the recent placing monies, and I'm sure he did!

Well they finally released their results!

2005 was flat, as expected, but 2006 looks to have some real promise, with various projects due to report in the first two quarters.

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

Firestone Diamonds PLC
16 December 2005

Firestone Diamonds plc

Preliminary statement of results

for the year ended 30 June, 2005


LONDON: 16 December, 2005 - The Board of Firestone Diamonds plc, ('Firestone' or
'the Company'), the AIM-quoted diamond mining and exploration company, announces
preliminary results for the year ended 30 June, 2005.


HIGHLIGHTS


Groen River Valley

Joint venture signed with De Beers in June 2005

Potential resource of 9 million carats and gross value of $2.7 to
$4.5 billion

Confirms potential as a significant new alluvial diamond producing
area

Bulk sampling under way



Orapa

Orapa joint venture signed with De Beers in December 2004

Intensive work programme under way at Orapa and Mopipi

Four new kimberlites discovered; three kimberlites bulk sampled

Joint venture signed with Daly City Ventures in March 2005



New exploration projects

Applications pending for new areas around Orapa and Jwaneng

Applications submitted for substantial new area similar to Groen
River Valley

New project identified in Botswana and applications submitted



Mining operations

Mining operations to be refocused following strategic review

Negotiations at advanced stage for new project and expansion to
Bonte Koe Mine

Oena Mine to transition to mining contractor in Q1 2006

Resource evaluation programme planned for new Hondeklip Bay projects



Corporate

Acquired 7.28% interest in African Diamonds plc in October 2005

Appointed Tim Wilkes to position of Chief Operating Officer in
December 2005



Financial

Turnover for FY 2005 in line with FY 2004; operating loss due to
development expenditure at Bonte Koe

10 million equity financing completed in November 2005



Diamond market

Rough diamond market remains strong; prices increased 20% in 2004
and 6% in 2005



Outlook

New production stage projects identified and being evaluated in
South Africa

Significant improvement expected in turnover and financial
performance in coming year


Dear Shareholder,

The past year has seen continued good progress in the growth and development of
Firestone's exploration and mining project portfolio.


Exploration Summary

One of our key objectives for the year was to increase the scale of the
Company's exploration activities and to work with joint venture partners in
order to allow us to accelerate the development of our exploration project
portfolio. We made significant progress in this regard during the year in both
South Africa and Botswana

One of the highlights of the year was the substantial progress made at the Groen
River Valley, which is the Company's most promising exploration project. During
the year, the Company increased its license position in the Groen River Valley
by 150%, to over 500 square kilometres, and in June 2005 the Company announced
that it had entered into a joint venture with De Beers over the project.
Substantial exploration work has been carried out since then.

In October 2005, the Company announced that 13 alluvial deposits had been
identified in the area, with a potential resource of approximately nine million
carats and gross value of $2.7 billion to $4.5 billion. These results confirm
that the Groen River Valley project has the potential to become a major new
alluvial diamond mining area, producing high quality diamonds, and support our
view that it is one of the most attractive undeveloped alluvial diamond projects
in the world.

An extensive programme of drilling and bulk sampling is being undertaken to
further evaluate the economic potential of the area. The first phase of this
programme includes bulk sampling of the HL, KK and KR deposits, to provide an
indication of the diamond content and value of the deposits. The bulk sampling
programme is now under way, with initial results expected in the first quarter
of 2006.

Substantial progress was also made in Botswana. During the year, two new
kimberlite exploration projects were secured close to the Orapa and Jwaneng
Mines, increasing the area held by the Company by 150%, to approximately 9,000
square kilometres. Two new joint ventures were signed with De Beers over these
projects during the year, in addition to the joint venture signed over the
Mopipi project in 2004.

An intensive exploration programme has been carried out in the Orapa and Mopipi
areas, resulting in the identification of 180 geophysical targets for further
follow up. A total of 51 targets have been drilled to date, resulting in the
discovery of four new kimberlites. Following the recovery of microdiamonds from
three kimberlites, 100 tonne bulk samples were taken to test for the presence of
macrodiamonds. Full results and analysis from bulk sampling of all three
kimberlites are expected to be available in early 2006.

With many targets still to be followed up in the Orapa and Mopipi areas, the
Company considers it likely that more kimberlites will be discovered as drilling
continues in 2006. Given the fact that more than 10% of the 75 known
kimberlites in the region are economic, we believe that the prospects for new
economic discoveries in the area are very good.

During the year, the Company entered into an agreement to acquire an 81%
interest in Daly City Ventures, which controls an area of approximately 380
square kilometres in the Orapa region. Exploration work in this area is
currently under way.


Mining Operations Summary

Firestone's mining operations play an important role in contributing cash flow
to finance the Company's exploration activities.

The Bonte Koe Mine on the Buffels River was the primary focus for the Company's
mining operations during the year, and mine construction and commissioning were
completed in the first quarter of 2005. Initial grades from gravel processed
were below the expected average of 10 carats/100 tonnes, but grades have since
improved and production is expected to continue to increase in 2006. Activities
at Avontuur have been focused on preparations to take over the adjacent
Hondeklip Bay Mine and Marine Concession 7a from Trans Hex, while production was
limited at Oena, as we had not identified a suitable replacement mining
contractor for the mine.

We strengthened our management team during the year with the appointment of Tim
Wilkes as Director, Resource Development. Prior to joining Firestone, he was
General Manager - Mineral Resource Management for De Beers and was the Competent
Person responsible for the management of De Beers' mineral resources worldwide.
Mr. Wilkes has led a strategic review of the Company's mining operations and new
mining and development project opportunities. As a result of this review, which
has recently been completed, the Company intends to focus only on projects that
have potential for significant scale, while smaller scale projects will be joint
ventured or contracted out. A number of decisions have been made in respect of
the Company's current projects, as follows:

Bonte Koe will continue to be the primary focus for the Company's mining
operations. The Company is at an advanced stage in negotiations in respect of a
significant production stage project in the Buffels River area, close to the
Bonte Koe mine. This project is expected to result in a significant expansion
to the scale of operations and production at the mine in the coming year.

The Company intends to make a significant expansion to operations at Avontuur to
exploit the substantial resources at the Hondeklip Bay Mine and Marine
Concession 7a. A detailed resource evaluation programme, comprising geophysics,
drilling and bulk sampling, is currently being developed for both projects and
is expected to result in a significant increase in the Company's diamond
resources and production in Hondeklip Bay. This programme will be the focus of
the Company's activities in the area in 2006.

At Oena, we intend to replace the Company's own mining operations with a
significantly larger scale operation by appointing a mining contractor on a
revenue sharing basis. After extensive discussions, a shortlist of two suitably
qualified mining contractors has been selected. Both contractors have indicated
that they are willing to make a significant capital commitment to operations at
Oena, which should result in increased turnover at the mine. An appointment is
expected to be made in the first quarter of 2006.


Corporate

With the growth in the Company's mining and exploration project portfolio over
the past year and the further expansion now being planned, we recently decided
to create the position of Chief Operating Officer, with responsibility for
managing all operational aspects of the company's portfolio of mining and
exploration projects. Tim Wilkes has been promoted to this position, and we
expect him to play a central role in helping Firestone to achieve its objective
of becoming a leading mid-tier diamond mining and exploration company.

In October 2005, the Company further expanded its interests in Botswana through
the acquisition of a 7.28% interest in African Diamonds plc. African Diamonds
has a joint venture with De Beers in the Orapa region, over ground which adjoins
Firestone's Orapa and Mopipi projects.


Financial

Turnover from mining operations was broadly in line with last year, although it
should be noted that Bonte Koe did not make a significant contribution during
the financial year, as commissioning was only completed at the end of the third
quarter.

Operations showed a small loss, primarily as a result of increased staff costs
during the development and commissioning stage of the Bonte Koe project, which
have since reduced, and interest payments, which rose significantly during the
year as a result of project financing facilities used by the Company to finance
part of the development costs at Bonte Koe.

We expect to see a substantial improvement in the Company's turnover and
financial performance in the coming year, as the planned expansion and
refocusing of the Company's mining operations take place.

Since the end of the year, the most significant development has been the
completion of a 10 million equity financing in November 2005. These funds will
be used to finance the planned expansion of the Company's mining and exploration
activities in South Africa and Botswana.


The Diamond Market

Prices in the rough diamond market continued to increase, driven by the growing
shortage in rough diamond supply across all segments of the market. Rough
diamond prices increased by about 20% in 2004 and this trend continued into
2005, with De Beers raising rough diamond prices by 6% during the year. De
Beers' sales for 2005 are expected to reach a record level of $6.4 billion, a
12% increase from the previous record set in 2004. With De Beers' stocks now at
minimum working levels, and the rough diamond supply deficit expected to
continue for the next three to five years, the outlook for diamond prices
continues to be very positive.


Outlook

We expect to see continued development of our exploration and mining project
portfolio in the coming year.

In South Africa, there will be substantial activity at the Groen River Valley,
with exploration drilling and bulk sampling expected to continue throughout the
year.

On the basis of positive results from the Groen River Valley, the Company has
decided to pursue new exploration projects further inland on the Groen River
Valley palaeo river systems. A significant amount of work has been carried out
and a number of prospective areas have been identified which the Company
believes have the potential to host significant resources of large, high quality
diamonds. We are pleased to announce that, based on this work, the Company has
recently applied for three new prospecting permits covering approximately 1,500
square kilometres.

We consider Botswana to be one of the best countries in the world to explore for
kimberlite. Firestone is already the largest holder of diamond exploration
rights around the Orapa Mine, and is the only significant holder of diamond
exploration rights, other than De Beers, around the Jwaneng Mine. The Company
has submitted prospecting licence applications for a total area of 15,000 square
kilometres in the Orapa and Jwaneng regions, which, if granted, would increase
the area held by 170%, to 24,000 square kilometres, giving the Company a very
significant, strategic land position.

Firestone also intends to undertake exploration in a new region in Botswana
which is considered to be prospective for the discovery of diamondiferous
kimberlites, and has recently submitted new prospecting licence applications
covering a substantial area in that region. We expect to be able to announce
developments in this regard in 2006.

In terms of mining operations, the Company is in the process of evaluating a
number of significant new production stage and cash-flow generating projects,
and expects to be able to update shareholders in this regard in the coming
months.

With substantial funding now in place, the many opportunities that are available
to Firestone, and the strength of the rough diamond market expected to continue
in the medium term, we remain confident about the Company's long term prospects.

Finally, I would like to record the Board's appreciation of the continued
dedication and commitment of our senior management and staff, who have
contributed to the Company's continued growth and development over the past
year.


James F. Kenny
Chairman

16 December 2005


Review of Operations

Groen River Valley, South Africa

The Groen River Valley project is the Company's most promising exploration
project in South Africa due to the high quality and large size of diamonds that
have been mined in the area, and the large area controlled by the Company.
During the year a prospecting permit was granted for a substantial area,
increasing Firestone's land position by 150%, to over 500 square kilometres.
This gives the Company control of all of the prospective ground in the lower
reaches of the Groen River.

The most significant development during the year was the signing of a joint
venture agreement with De Beers. Under the terms of the joint venture
agreement, De Beers can earn a 61% interest in the project 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.

Since June, modeling carried out on data from exploration carried out by De
Beers and Firestone has estimated the size of the 13 deposits identified to date
in the project area at 360 million tonnes. Using grade estimates of between two
and three cpht, this indicates a potential resource of approximately nine
million carats. The average value of diamonds in the area varies from $500 to
$1,000 per carat, but applying a conservative diamond value range of $300 to
$500 per carat results in a potential gross value of $2.7 billion to $4.5
billion. These results confirm that the GRV project has the potential to become
a major, new high quality diamond producing region.

A systematic multi-phase programme of drilling and bulk sampling is now being
undertaken to further evaluate the area's economic potential. The first phase
of this programme includes bulk sampling of the HL deposit. Since the end of
the year, approximately 2,000 metres of probe drilling has been carried out on
the deposit in preparation for bulk sampling using a large diameter bucket auger
('LDA') drill. The objective of the first phase of LDA drilling, which will
comprise approximately 20 holes, is to provide an initial indication of the
grade of the deposit.

During the year, approximately 8,400 metres of probe drilling was carried out
over 234 holes on two new targets, known as the KK and KR targets, and confirmed
the presence of alluvial gravels. It is also planned to drill a number of LDA
holes on the KK and KR deposits in order to provide an initial indication of
diamond content. Based on the results of this work, a decision will be made
whether to proceed to bulk sampling.


Mopipi and Orapa, Botswana

The Mopipi project covers an area of approximately 3,600 square kilometers and
is located in the Orapa area, which hosts the Orapa, Letlhakane and Damtshaa
diamond mines. In 2004, the Company entered into a joint venture with De Beers
over the Mopipi project, under which De Beers can earn a 61% interest in the
project by taking it to completion of bankable feasibility.

During the year, the Company was granted prospecting licences for a new area
covering approximately 1,300 square kilometers, known as the Orapa project. In
December 2004, the Company entered into a new joint venture with De Beers over
the Orapa project, on similar commercial terms to the Mopipi joint venture.

An intensive exploration programme was carried out in the Orapa and Mopipi
project areas during the year. More than 51,000 line kilometres of
high-resolution geophysical surveys, including airborne magnetics, ground
gravity and ground magnetics, were conducted. Interpretation of the data from
these surveys has identified 180 potential kimberlite drilling targets for
further investigation. To date, a total of 51 geophysical targets have been
drilled in the Orapa and Mopipi project areas, resulting in the discovery of
four new kimberlites - AK21, AK22 and AK23, which are located approximately 15
kilometres south of the Orapa Mine, and BK53, which is located approximately 10
kilometres north of the Letlhakane Mine. As there are still a significant
number of targets to be investigated in the Orapa and Mopipi project areas,
exploration drilling will continue in 2006.

Detailed high-resolution ground geophysical surveys and drilling were carried
out on AK21, AK22 and AK23, on the basis of which their sizes are estimated at
3, 3 and 3.5 hectares, respectively. AK22 and AK23 coalesce, giving a much
larger area of kimberlite close to surface, of approximately nine hectares.
Following the recovery of microdiamonds from all three kimberlites, 100 tonne
bulk samples were taken from each kimberlite to test for the presence of
macrodiamonds. Full results and analysis from bulk sampling of all three
kimberlites are expected to be available in early 2006.

In March 2005, the Company announced that it had entered into an agreement to
earn an 81% interest in Daly City Ventures, which holds a prospecting licence in
the Orapa region over an area of approximately 380 square kilometres. A review
of data from previous exploration in the area has been completed, and field
exploration activities are expected to commence in early 2006.


Jwaneng, Botswana

During the year, the Company was granted new prospecting licences for an area of
approximately 3,700 square kilometers, located close to the Jwaneng diamond
mine. In December 2004, we announced that the Company had entered into a joint
venture agreement with De Beers over the Jwaneng project, on similar commercial
terms to the Mopipi and Orapa joint ventures.

During the year, data from exploration recently carried out by De Beers has been
integrated with data from kimberlite indicator mineral sampling in order to
identify target areas for follow-up work on the ground. High-resolution gravity
and magnetic surveys will be conducted on selected target areas in the first
half of 2006 to identify potential kimberlite drilling targets.


Bonte Koe Mine, South Africa

During the year, the Company's black empowerment joint venture company, African
Star Minerals, completed the development of new mining operations at the Bonte
Koe Mine. This included construction of a new 150 tonne per hour gravel
treatment plant, a 10 km power line and a 35km water pipeline. Commissioning of
the gravel treatment plant was completed in the first quarter of 2005.

Mining operations at Bonte Koe since then have been focused on processing
material from a number of locations on the property with the objective of
improving the geological interpretation of the deposits on the mine and allowing
material from a number of areas to be blended. Grades from gravel processed to
date range from one to nine carats/100 tonnes. This is below the expected
average grade of 10 carats/100 tonnes for the mine, but grades have improved as
new mining areas have been opened up. Production at Bonte Koe is expected to
increase significantly in 2006.

A total of 1,461 carats was recovered during the year, at an average size of 0.5
carats per stone. The average price for diamonds sold increased from $205 per
carat to $223 per carat by the end of the year, compared to the $200 per carat
that was originally expected. A total of 2,792 metres of drilling over 461
holes was carried out on selected exploration targets on the mine.


Avontuur Mine, South Africa

The Company's recent activities at the Avontuur Mine have been primarily focused
on preparations for an expansion of operations to exploit the Hondeklip Bay Mine
and Marine Concession 7a projects, which were announced earlier this year.

The Hondeklip Bay Mine, which adjoins Firestone's Avontuur Mine, hosts marine
terraces and palaeo-channels related to those mined by De Beers both to the
north and to the south of the mine. Firestone intends to exploit the
substantial gravel resources remaining at the Hondeklip Bay mine by using the
Company's plant and equipment at the Avontuur Mine. Substantial work has
already been carried out on the evaluation of these resources.

Concession 7a covers a one kilometre wide strip in the sea, adjacent to and
parallel to the coast, and extends approximately 33 kilometres along the coast.
Under the terms of the joint venture agreement with the concession holder, Trans
Hex. Firestone will be responsible for securing, supporting and managing
contractors for Concession 7a, with revenue from mining operations to be shared
between Firestone and Trans Hex.

Production for the year was lower at 4,375 carats due to the deployment of some
mining equipment to Bonte Koe and to work done in preparation for taking over
the Hondeklip Bay Mine and Concession 7a. Diamonds produced continued to be
approximately 85% gem quality, with an average size of 0.22 carats per stone.
The average price for diamonds sold during the period decreased from $125 to
$118 per carat. A total of 1,487 metres of drilling was carried out over 124
holes on selected exploration targets on the mine.


Oena Mine, South Africa

Production at Oena was limited during the year. The Company's efforts were
focused on securing a new mining contractor, with the objective of significantly
increasing earthmoving and processing capacity at the mine. A shortlist of two
suitably qualified mining contractors has been drawn up, and an appointment is
expected to be made in the first quarter of 2006.

Production at Oena during the year was 677 carats. The average grade from
mining areas was in line with last year, at 0.5 carats/100 tonnes, with diamonds
produced averaging 1.36 carats per stone. The average price for diamonds sold
increased 3% to $1,198 per carat, primarily due to the sale of a number of
large, high value stones. A number of special diamonds were recovered during
the year, including stones of 62.24 and 32.57 carats that sold for approximately
$3,277 and $3,684 per carat, respectively.


US Exploration Project

Exploration at the Company's kimberlite exploration project in the United States
indicates that at least one previously unknown kimberlite field is located in
the project area, and that some of these kimberlites may be diamondiferous. The
Company's joint venture partner, American Diamonds, has completed the first
phase of follow-up sampling in the high priority target areas identified by
previous exploration. Sampling results are currently being compiled and are
expected to be announced in early 2006.


For further information:


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

Leesa Peters, Conduit PR +44 20 7429 6600 / +44 7812 159 885

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


Website:

www.firestonediamonds.com





FIRESTONE DIAMONDS PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2005




2005 2004


Production 928,978 961,435

Turnover 940,706 978,298

Change in stocks of finished goods and in work in progress (11,728) (16,863)

Raw materials and consumables (148,795) (142,634)
Staff costs (388,975) (158,871)
Depreciation and amortisation (236,359) (124,925)
Other operating charges (371,186) (428,256)

Operating (loss)/profit (216,337) 106,749

Profit on disposal of fixed assets - 43,857

(Loss)/profit on ordinary activities before interest and taxation (216,337) 150,606

Interest receivable and similar income 43,177 28,311
Interest payable and similar charges (149,409) (4,958)

(Loss)/profit on ordinary activities before taxation (322,569) 173,959

Deferred tax on loss/profit on ordinary activities 96,899 (17,480)

(Loss)/profit on ordinary activities after taxation (225,670) 156,479

Minority interests 21,349 5,019

Retained (loss)/profit for the year (204,321) 161,498


(Loss)/earnings per share
Basic (loss)/earnings per share (0.5)p 0.4p
Diluted (loss)/earnings per share (0.5)p 0.4p




Turnover is wholly derived from continuing activities.



CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 30 JUNE 2005




(Loss)/profit for the financial year (204,321) 161,498
Currency translation differences (824,826) 113,782
Deferred tax on exchange differences 125,705 -


Total recognised gains and losses for the year (903,442) 275,280




FIRESTONE DIAMONDS PLC
CONSOLIDATED BALANCE SHEET
30 JUNE 2005


2005 2004


FIXED ASSETS
Intangible assets 5,950,744 10,746,075
Tangible assets 11,625,753 3,307,431
Investments 230,439 609,351

17,806,936 14,662,857

CURRENT ASSETS
Stocks 105,793 121,063
Debtors 598,898 478,649
Cash at bank and in hand 2,112,261 293,934

2,816,952 893,646

CREDITORS
Amounts falling due within (1,940,437) (684,894)
one year

NET CURRENT ASSETS 876,515 208,752

TOTAL ASSETS LESS CURRENT LIABILITIES 18,683,451 14,871,609

CREDITORS
Amounts falling due after one year (718,815) (1,010,976)

PROVISIONS FOR LIABILITIES
AND CHARGES
Other provisions (1,056,289) (877,110)
Deferred tax (375,309) (469,013)

(1,431,598) (1,346,123)

NET ASSETS 16,533,038 12,514,510

CAPITAL AND RESERVES
Called up share capital 9,167,594 8,193,094
Share premium account 8,383,823 4,415,004
Merger reserve (1,076,399) (1,076,399)
Profit and loss account 80,723 984,165

EQUITY SHAREHOLDERS' FUNDS 16,555,741 12,515,864
Minority equity interests (22,703) (1,354)

16,533,038 12,514,510







FIRESTONE DIAMONDS PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2005


2005 2004


Net cash inflow/(outflow) from operating activities 1,382,286 (149,154)

Returns on investments and
servicing of finance
Interest received 43,177 28,311
Interest element of finance lease payments (46,790) (4,958)
Interest paid on loans (87,378) -


Net cash (outflow)/inflow from returns on (90,991) 23,353
investments and servicing of finance

Capital expenditure and financial investment
Payments to acquire intangible fixed assets (2,411,052) (1,501,683)
Payments to acquire tangible fixed assets (1,804,860) (1,019,076)
Receipts from sales of tangible fixed assets - 110,885
Payments to acquire investments - (231,076)


Net cash outflow from capital expenditure and (4,215,912) (2,640,950)
financial investment

Net cash outflow before use of (2,924,617) (2,766,751)
liquid resources and financing

Financing
Long term loans - 877,948
Repayment of long term loans (121,008) -
Issue of ordinary share capital 4,943,319 2,119,881
Finance lease payments (52,483) (228,716)


4,769,828 2,769,113

Increase in cash 1,845,211 2,362





Notes to the preliminary statement of results for the year ended 30 June 2005



1. Basis of preparation

The financial statements have been prepared in accordance with applicable UK
accounting standards and under the historical cost convention.

2. Loss per share

Basic loss per share is based on a loss of 204,321 (2004: profit of 161,498)
and a weighted average number of shares in issue of 43,837,579 (2004:
39,853,921).

In 2005 the diluted loss per share has been calculated on the same basis as
basic loss per share because the effect of the potential ordinary shares (share
options) reduces the net loss per share and is therefore anti-dilutive. In 2004
diluted earnings per share was based on a profit of 161,498). The weighted
average number of shares used to calculate diluted earnings per share
incorporated the weighted average number of shares in issue of 39,853,921 plus
dilutive potential ordinary shares arising from share options of 2,375,709
totalling 42,229,630.

3. Publication of non-statutory accounts

The financial information set out above does not constitute statutory accounts
as defined in section 240 of the Companies Act 1985.

The consolidated profit and loss account, balance sheet and cash flow statement
and associated notes have been extracted from the Company's 2005 statutory
financial statements, which were approved by the Board on 16 December 2005. The
auditors have reported on these accounts; their report is unqualified and does
not contain statements under section 237(2) or (3) of the Companies Act 1985.
The financial statements will be filed with the Registrar of Companies in due
course. The report and accounts will be posted to shareholders in the near
future.

4. Annual General Meeting

The company's Annual General Meeting will be held at MWB Business Exchange, 78
Cannon Street, Fourth Floor, London EC4N 6NQ on 27 January, 2006 at 12.00 p.m.

5. Dividends

The directors do not recommend the payment of a dividend for the period.




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

Thanks Andy.

been following the share price of this company for a long time - could somebody explain in a few words why it cannot make any money.

seems to me it is rushing around exploring this and that but failing to turn all these opportunities into money

maddoctor,

Briefly, IMO, because they are busy securing licences in very prospective areas of Botswana and South Africa, and bulk sampling those prospects already secured, in order to determine whether they are commercially viable.

The last few years they have made a profit, now a loss, on the back of all the expenditure for drilling and licences etc, and next year I think we will see FDI return to profit.

Patience is the key with mining stocks, I wil post below later my thoughts on the results, but I am optimistic for 2006, more so than ever before, there is so much potential now.

Andy , thanks for reply.

by the way , are you the same "andy" as over the road

maddcotor,

Well FDI got thumped today, not sure why, results just released, and no bad news around that I am aware of, although clearly I only hear the odd titbit.

The same with AFD, is AFD better value now then FDI ?

aldwickk,

Well, IMHO, FDI have FAR more prospects and projects than AFD, and their licences in Botswana are alongside each other, and BOTH companies may well have at least one mine there.

FDI also have Groen River, Oena, Avontuur, marine gravels, and Bonte Koe in addition, whereas AFD only have what some consider to be limited prospects in West Africa.

Then they have existing production, which is increasing after a disappointing year at Bonte Koe, and the appointment of a new contractor at Oena imminent in Q1 2006.

I'm staying with FDI, but hoping AFD succeed too, as FDI have a 7.5% stake.