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Private & Confidential
Tel Aviv Presentation
February 2008
2
An emerging integrated diamond explorer and producer in Africa
November 2007
Disclaimer
This presentation has been compiled by Stellar Diamonds Limited (“the Company”) for information purposes only and is not advice
upon which it is intended that recipients should rely in deciding whether or not to invest in the Company. It is provided solely for use
by recipients to consider the proposed business of the Company and is not an offer of shares or an invitation to subscribe for shares or
to make any loan or other funding available to the Company. This document is only being distributed to persons who are reasonably
believed to be sufficiently expert to understand the risks involved as described in the Financial Services and Markets Act (Financial
Promotions) Order 2001.
The recipients accept that they will make their own investigation, analysis and decision relating to investing in the Company and will
not rely upon or use this document to form the basis or any decision on such an investment. This document does not take into account
the particular investment objectives, financial situation or the needs of individuals investors and you should consider whether it is
suitable for your circumstances and, if necessary, seek professional advice.
The directors and advisers of the Company make no representation or warranty themselves, express or implied, as to the accuracy,
reasonableness or completeness of the information contained in this document and it should not be relied upon as such. It contains
statements and estimates with respect to the future anticipated performance of the Company. Such information may or may not prove
to be correct. To the extent that it is lawfully able to do so, the Company and its advisers exclude liability for any representation or as
to the accuracy of such statements, estimates or projections.
This document is confidential. It is only for the use of those to whom it is issued. It must not be copied or distributed to third parties
(other than in confidence to the recipient’s professional advisers).
The Company’s affiliates, officers, directors, advisers and employees, including persons involved in the preparation or issuance of this
document may from time to time have holdings in the Company’s securities.
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An emerging integrated diamond explorer and producer in Africa
November 2007
Introduction
Created in May 2007 as part of reorganisation of Mano River Resources
Focussed diamond mining and exploration company
Active in Sierra Leone, Liberia, Guinea and DRC
JV partners include: BHP Billiton, De Beers, Petra Diamonds, Trans Hex
AIM listing planned for first half of 2008 (future TSX Listing under
consideration)
Financing of up to £10 million
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An emerging integrated diamond explorer and producer in Africa
November 2007
Current Capital structure
Stellar Diamonds Ltd28.1m shares
3.2m warrants*
Mano River Res. Inc 68.5%
Search Gold Res. Inc.9.5%
Seed and Pre-IPO Investors
22.0%
* 3,016,967 warrants exercisable at £1.20
* 260,390 broker warrants exercisable at £0.87
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An emerging integrated diamond explorer and producer in Africa
November 2007
Experienced Board
Karl Smithson, Chief Executive Officer
Diamond Geologist and MBA with 20 years African
experience, including 8 in West Africa. Senior
management positions with De Beers, SouthernEra
and Mano River
Lord Peter Daresbury, Non-executive Chairman
Involvement in emerging markets since 1994.
Previously Chairman of De Vere Hotels plc 2000-2005,
Highland Gold Mining Ltd 2002-2004 and Chairman of
KazakhGold Group Ltd 2005-2007
Luis da Silva, Executive Director
Mining Engineer and MBA with 14 years industry
and corporate experience with Blue Circle Industries
and Lafarge SA. CEO Mano River Resources
Steven Poulton, Non-executive Director
Mining geologist with entrepreneurial track record,
previously 7 years with Mano River. Founder of
Ariana, African Aura and Altus Strategies.
Philippe Giaro, Non-Executive Director
Geologist with 23 years experience in mineral
exploration and engineering. President of TSX-V listed
SearchGold Resources
Paul Rankine, Non-Executive Director
Mining engineer and MBA with 22 years experience
including Zambesi Nickel (founder and CEO),
Citigroup Asset Mgt., and De Beers. Director of Altima
Partners
Guido (‘Guy’) Pas, Non-Executive
Founder, Co-founder or seed investor of, Addax&Oryx,
Samax, Eastbound, Mano River, Oxus, Afren,
AfricaWest, Siberian Diamonds
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An emerging integrated diamond explorer and producer in Africa
November 2007
Corporate Strategy
Focus on advanced projects to generate cash flow in 2008
– Bring alluvial project into production at Mandala, Guinea
– Continue underground trial mining in Kono, Sierra Leone
Continue key exploration projects
– Bulk sample high grade kimberlites at Tongo and Bouro
– Increase alluvial resource in Guinea
– Discover new diamondiferous kimberlites in Liberia and North DRC
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An emerging integrated diamond explorer and producer in Africa
November 2007
Production expected from 2008
2008 2009 2010
Sierra Leone($200 per carat)*
6,500 20,000 30,000
Guinea($60 per carat)*
25,000 102,000 102,000
Note: * director’s estimate
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An emerging integrated diamond explorer and producer in Africa
November 2007
Africa Focussed
West Africa
Historical Production:
• 150 million carats
• worth $15billion
• Mostly alluvial sources
North DRC
Production in 2006:
• 146,000 carats, >$100/ct
• All alluvial sources
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An emerging integrated diamond explorer and producer in Africa
November 2007
Emerging Democracies
Sierra Leone peaceful since 2002. Two free and fair democratic elections,
change of government in 2007 when President Koroma elected.
Liberia peaceful since 2004. Ellen Johnson Sirleaf elected first woman
president of Africa in 2006.
Guinea never at war. New Government appointed by President Conte.
DRC stabilising under President Kabila.
Massive investment in the resources sector confirms these countries as
acceptable and improving investment destinations.
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An emerging integrated diamond explorer and producer in Africa
November 2007
West Africa Portfolio (15,112 km2)
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An emerging integrated diamond explorer and producer in Africa
November 2007
Sierra Leone - Overview
Historical diamond production estimated at 50 million carats
Current diamond production over 600,000 carats valued at $144million
Stellar holds licences in Kono and Tongo, the key diamond districts
970ct ‘Star of Sierra Leone’ found in Kono (world’s 3rd largest diamond)
970 ct ‘Star of Sierra Leone’
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An emerging integrated diamond explorer and producer in Africa
November 2007
Sierra Leone, Kono JV
49:51 JV with Petra Diamonds
Underground bulk sampling underway
Grades between 50cpht to 80cpht
Diamond value of $200/ct forecasted
Production decision in 2008
75tph DMS plant site at Kono
Trial mining shaft site
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An emerging integrated diamond explorer and producer in Africa
November 2007
Sierra Leone, Kono JV
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An emerging integrated diamond explorer and producer in Africa
November 2007
Sierra Leone, BHP Billiton JV (Tongo)
BHP spending $3.4 million for 51%
4 kimberlite dykes
Grab sample grades up to 385cpht
1,200kg yielded 1,894 diamonds
(2.05 carats)
Grade estimate of over 500cpht
Historical value reported $175/carat
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An emerging integrated diamond explorer and producer in Africa
November 2007
Guinea Projects
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An emerging integrated diamond explorer and producer in Africa
November 2007
Guinea - Overview
Highly prospective Man Craton as found in Sierra Leone and Liberia
Alluvial diamonds mined since 1935
Under explored for primary sources, with no hard rock diamond mining
Stellar has kimberlite and alluvial diamond projects:
– Mandala alluvial diamond project
– Bouro kimberlite project
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An emerging integrated diamond explorer and producer in Africa
November 2007
Guinea, Mandala Alluvial Project
536,000 carat indicated resource
144,000 carat inferred resource
$60/ct estimate
Largest diamond 21.47 carats
MB100tph plant under construction
Mine fleet purchased and shipped
Production expected H2-08
Attractive margin / low capex mining
operation giving early cash flow
Mandala Valley
MB100 Plant in DRC
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An emerging integrated diamond explorer and producer in Africa
November 2007
Guinea, Mandala Project Scenarios
Budgeted Mining
Capacity
Increased Mining Capacity
Capital ($2.6m spent) $5.2million $5.8million
Life of Mine 60 months 40 months
Carats per annum 102,000 151,600
Gross revenue - annual $6,120,000 $9,096,000
Cost per cubic metre $17.49 $13.94
Cost per carat $37.21 $29.66
Revenue per carat $60 $60
Capital payback October 2011 June 2010
Note: These diamonds were recovered from Search Gold’s bulk sampling in 2002 to 2004 which produced 6,571 carats
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An emerging integrated diamond explorer and producer in Africa
November 2007
Guinea, Bouro Kimberlite Project
Formerly held by De Beers
Four dyke zones drilled and sampled
5km Bouro North dyke focus
1,920kg = 4,635 diamonds (10.44 cts)
Grade estimation over 500cpht
Bulk sample planning stage
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An emerging integrated diamond explorer and producer in Africa
November 2007
Liberia Projects
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An emerging integrated diamond explorer and producer in Africa
November 2007
Liberia - Overview
Highly prospective, unexplored craton with numerous diamond areas
Artisanal production approximately 150,000 carats pa at ±$150 / ct (est.
Rapaport 4/5/2007)
Diamond sanctions lifted in May 2007
Stellar holds strong ‘first mover’ land position in Weasua & MCA
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An emerging integrated diamond explorer and producer in Africa
November 2007
Liberia, Weasua JV Project
50:50 JV with Trans Hex Group
5 diamondiferous pipes (1ha - 6ha)
Significant tonnage potential
Bulk sampling in progress
Further kimberlite discoveries expected
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An emerging integrated diamond explorer and producer in Africa
November 2007
Liberia, MCA Licence
11,550km2 of Archaean craton
Active artisanal diamond mining
Sampling completed
Airborne geophysics completed
Several new targets defined
New pipe discoveries expected
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An emerging integrated diamond explorer and producer in Africa
November 2007
DRC Projects
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An emerging integrated diamond explorer and producer in Africa
November 2007
DRC - Overview
DRC is world’s 3rd largest diamond producer by volume
2006 production of 32 million carats, valued at $540 million ($17/ct) mostly from
southern DRC
Stellar has properties in the under explored north DRC
Estimated production in north DRC valued at $20m per year at >$100/ct
Unexplored, highly prospective Archaean craton yielding gem diamonds
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An emerging integrated diamond explorer and producer in Africa
November 2007
North DRC, BHP Billiton JV
10,852 km2 JV with BHPB
Stellar to earn 50% interest
500t bulk sample triggers 50%
Activity artisanal mining
Value reported to be >$300/ct
39 ct stone reported
Note: These diamonds were observed by Competent Person John Brook in buying offices in Medje and Isiro during his site visit in September 2007.
Medje is located in the southern BHPB JV area.
from buying office in Medje 200 carat parcel from Medjefrom buying office in Isiro
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An emerging integrated diamond explorer and producer in Africa
November 2007
North DRC, Remec JV
1,308 km2 JV with REMEC
Stellar can earn 75% interest
Diamond mining town of Panga
Contiguous with De Beers
Panga
Suspected Artisanal diamond workings
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An emerging integrated diamond explorer and producer in Africa
November 2007
Country Project % £m JV Partner Use
Sierra Leone Kono 49% 2.3 Petra DiamondsMaintain equity in underground development and mining
Guinea Bouro/Mandala 100% 3.9 Finish capitalising and w/c for alluvial mine
Liberia Weasua pipes 50% 0.4 Trans Hex Bulk sampling and exploration
Liberia North Bea 0% 0.1 African Aura Geophysics and drill testing
Liberia MCA + Alpha 70% 0.0 Gov’t of Liberia Exploration – JV discussions
Guinea Regional 100% 0.2 De Beers Exploration
DRC Regional 0% 0.5 BHPB Exploration
DRC Regional 0% 0.8 Remec Exploration
Corporate 0.7
IPO, legal and audit fees 0.7 Estimated cost
18 Month Budget 9.6
Use of Proceeds – 18 months
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An emerging integrated diamond explorer and producer in Africa
November 2007
Summary
Balanced portfolio of assets in West and Central Africa
– Near production, bulk sampling & exploration with excellent discovery potential
Cash flow expected from Guinea and Sierra Leone in 2008
Experienced management team
Industry leading JV partners
Strong platform for future growth
Private & Confidential
32 Bloomsbury Street, London, WC1B 3QJ, United Kingdom
Tel: + 44 (0) 207 299 4212 / Fax: + 44 (0) 207 299 4209 / Cell: + 44 (0) 778 370 7971
www.stellar-diamonds.com
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