Update on the sale of the Botswana operations

2 October 2015

Firestone Diamonds plc

("Firestone", the "Group" or the "Company") (AIM: FDI)

Update on the sale of the Botswana operations

Further to the conditional sale agreement ("CSA"), entered into by the Company, in respect of the disposal of the Company's Botswana operations to Tango Mining Limited ("Tango Mining"), announced on 9 July 2015, Tango Mining has informed Firestone that it has not been able to pay US$0.3 million into escrow as a deposit by 30 September 2015 as stipulated in the CSA.

Accordingly, Tango Mining has now formally requested an extension to the previously disclosed timetable, in order to complete their fundraising activities in relation to the consideration still due, being US$7.65 million, and Firestone is currently in discussions with Tango Mining to consider its request.

Firestone will update the market when the parties have reached agreement on the revised terms and timelines or if discussions with Tango Mining are terminated.

For more information contact:

Background information on Firestone

Firestone is an international diamond development company with operations focused on Lesotho. Firestone is currently in the process of developing the Liqhobong Mine Development Project in Lesotho to become a plus one million carat per annum producer.

Lesotho is emerging as one of Africa's significant new diamond producers, and hosts Gem Diamonds' Letseng Mine, Firestone's Liqhobong Mine, as well as Namakwa Diamonds' Kao Mine and the Mothae development project.

For more information please visit: www.firestonediamonds.com.

**ENDS**