Approval of ESHIA for Tongo Mine Licence

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17 February 2016

AIM: STEL

Stellar Diamonds plc

("Stellar" or the "Company")

Approval of Environmental, Social and Health Impact Assessment for Tongo Mine Licence

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces that it has received a letter of approval for its Environmental, Social and Health Impact Assessment ("ESHIA") from the Environmental Protection Agency (EPA) in relation to the mining licence application for its 100% owned Tongo Dyke-1 project ("Tongo" or "the Project") in Sierra Leone.

Chief Executive Karl Smithson commented:

"The approval of our ESHIA marks another key step in the process of obtaining the mining and environmental licences that will allow for the development of the 1.45 million carat diamond resource at Tongo Dyke-1, one of four kimberlite dykes at our Tongo project. We will now schedule a meeting with the EPA to discuss and agree on the fee relating to the issuing of the environmental licence.

"We have also recently successfully concluded the surface rental agreement with the landowners and other key stakeholders and this will now be incorporated in to a legally binding agreement.

"I look forward to updating shareholders in due course on progress relating to the mining licence application which awaits consideration by the Minerals Advisory Board as we continue to progress the development of this high-grade, high-value diamond resource."

Competent person

This announcement has been reviewed by Karl Smithson, Chief Executive of Stellar, a qualified geologist and Fellow of the Institute of Materials, Metals, Mining, with 27 years' experience.

About Stellar Diamonds plc

Stellar is an AIM quoted (AIM: STEL) West African focused diamond development company which continues trial mining of its Baoulé kimberlite in Guinea, and is progressing the 1.45 million carat Tongo Dyke-1 resource in Sierra Leone through the mining licence application process. In addition, Stellar holds the 3 million carat Droujba project in Guinea and continues to pursue channels to ensure the proper reinstatement of its Kono licences in Sierra Leone.

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For further information contact the following or visit the Company's website at www.stellar-diamonds.com.