Issue of Equity

Firestone Diamonds plc

Placing to raise £9.45 million

LONDON: 15 April, 2010

Firestone Diamonds plc, ("Firestone" or "the Company"), the AIM-quoted diamond mining and exploration company (ticker: AIM:FDI), today announces that it has conditionally placed 30,000,000 new ordinary shares ('Ordinary Shares') of 20 pence each in the Company (the 'Placing Shares') with institutional and other investors at a price of 31.5p per Ordinary Share (the 'Placing Price') to raise £9.45 million before expenses (the "Placing"). The Placing Price represents a discount of 13.1 percent to the closing middle market price of 36.25 pence per Ordinary Share on 14 April 2010 and a discount of 12.2 percent to the 30 day volume weighted average price to 14 April 2010 of 35.88 pence. The Placing Shares will represent approximately 23 percent of the Company's enlarged issued share capital immediately following admission to trading on AIM ('Admission'). The Placing Shares will rank pari passu in all respects with the existing Ordinary Shares in the Company. Application has been made for the Placing Shares to be admitted to trading on AIM, and it is expected that trading will commence at 8.00 am on 19 April 2010. 

The proceeds of the Placing will be used as follows:

Following Admission, the total issued ordinary share capital of the Company will be 127,891,637 Ordinary Shares, all of which have voting rights.

Philip Kenny, CEO of Firestone Diamonds, commented: "We are very pleased to have received significant support from existing and new shareholders for this financing. While we are still progressing discussions with our bankers in Botswana in relation to debt financing for BK11, the completion of this equity financing and expected cash flow from production at BK11 substantially strengthens the Company's financial position and will allow us to increase the pace of development of our portfolio of over 100 kimberlites and our toll treatment projects. With Firestone shortly to become one of only three kimberlite producers worldwide outside of the major mining companies and the significant shortfall in rough diamond supply projected in the coming years, we remain confident about Firestone's future prospects."

A copy of the Company's corporate presentation will be made available on the Company's website, www.firestonediamonds.com.

For further information, visit the Company's web site or contact:

Background information on Firestone Diamonds:

Firestone Diamonds plc ("FDI.L") is an international diamond mining and exploration company with operations in Botswana and South Africa. Botswana is the world's largest and lowest cost producer of diamonds, with annual production worth over $2.5 billion, and is considered to be one of the most prospective countries in the world to explore for diamonds.

Firestone is the largest holder of mineral rights in Botswana's diamondiferous kimberlite fields, controlling over 25,000 square kilometres around the major Orapa and Jwaneng mines and the entire Tsabong kimberlite field. Firestone has 103 kimberlites in its portfolio, of which BK11 is due to commence production in Q2 2010, and 29 others have been proven to be diamondiferous.

DISCLAIMER

Brewin Dolphin Limited ("Brewin Dolphin"), which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as nominated adviser to the Company for the purpose of the AIM Rules. Evolution Securities Limited and Mirabaud Securities LLP, which are both authorised and regulated in the United Kingdom by the Financial Services Authority, are acting exclusively for the Company in relation to the Placing. None of Brewin Dolphin, Evolution nor Mirabaud is acting for any other person in connection with the matters referred to in this announcement and they will not be responsible to anyone other than the Company for providing the protections afforded to clients of Brewin Dolphin, Evolution and Mirabaud or for giving advice in relation to the matters referred to in this announcement.

This announcement has been issued by the Company and is the sole responsibility of the Company. 

This announcement does not constitute a prospectus relating to the Company and has not been approved by the UK Listing Authority, nor does it constitute or form any part of any offer or invitation to purchase, sell or subscribe for, or any solicitation of any such offer to purchase, sell or subscribe for, any securities in the Company under any circumstances, and in any jurisdiction, in which such offer or solicitation is unlawful. Accordingly, copies of this announcement are not being and must not be mailed or otherwise distributed or sent in or into or from the United States, Canada, Australia or Japan or any other jurisdiction if to do so would constitute a violation of the relevant laws of, or require registration thereof in, such jurisdiction or to, or for the account or benefit of, any United States, Canadian, Australian or Japanese person and any person receiving this announcement, (including, without limitation, custodians, nominees and trustees) must not distribute or send it, in whole or in part, in or into or from the United States, Canada, Australia or Japan.