Extensions of Longstop date & Guinea Exclusivity

NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWS WIRE SERVICES.

2 August 2017

AIM: STEL

Stellar Diamonds plc

("Stellar" or the "Company")

 Extensions of Sierra Leone Transaction Longstop date and Guinea Disposal Exclusivity Period

Stellar Diamonds plc, the London listed diamond development company focused on West Africa, announces that it has agreed with Octea Mining to extend the longstop date (for the satisfaction of certain of the conditions precedent of the binding Tribute Mining and Revenue Agreements in relation to the Tongo-Tonguma mine development project in Sierra Leone, as defined in the announcement dated 28 April 2017) to 31 August 2017.

Furthermore, Stellar is in discussions with BDG Capital regarding an extension to the exclusivity period related to the disposal of Stellar's Guinea projects and assets to allow for completion of the remaining project and financial due diligence tasks and drafting of the required Share Purchase Agreement. Further details will be announced in due course.

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

About Stellar Diamonds plc

Stellar is an AIM listed (AIM: STEL) focussed on developing the high-grade and high value Tongo-Tonguma project in Sierra Leone.

 This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. In particular, there is no guarantee that the Company will be able to complete the Transaction. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.

A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Subject to any continuing obligations under applicable law or any relevant AIM Rule requirements, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

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