CORPORATE

PRESENTATION

Q1 2014

ADVANCING DIAMOND PROJECTS TO PRODUCTION IN WEST AFRICA

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DISCLAIMER

This presentation is being made by or on behalf of Stellar Diamonds Plc (“Company”). This presentation has not been approved for issue as a financialpromotion for the purposes of section 21 of the Financial Services and Markets Act 2000 (“FSMA”) and is being supplied in the United Kingdom only to (i)persons who have professional experience in matters relating to investments (being "investment professionals" within the meaning of Article 19 of theFinancial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "FPO")) or (ii) persons falling within Article 49(2) ("high net worthcompanies, unincorporated associations etc") of the FPO or (iii) persons who are otherwise permitted by law to receive it. The information contained inthe presentation is not intended to be viewed by, passed on or distributed (directly or indirectly) to, any other category of persons.

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OVERVIEW

African focused diamond development company listed on AIM

Portfolio of development projects in prolific diamond regions of Sierra Leone and Guinea

Flagship 1.1 million carat Tongo Project: high grade kimberlite undergoing definitive feasibility

study, low capex development, high US$ per tonne value and a current US$53 million NPV10

Baoulé Project: kimberlite pipe with multi-million carat resource potential; prolific diamond

area in Guinea; open pit mine potential

Defined development programme in place for Tongo and Baoulé leading to near term

production potential – high impact news flow

Additional assets with resource of over 3.3 million carats - ready for development on recovery of

rough diamond pries

Targeting aggregate resource base of 7.5 million carats in 2014 with in-situ value of US$1 billion

Experienced Board of Directors with track record of value creation and decades of experience

in the diamond sector and West African region

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PORTFOLIO OF ASSETS

TONGO PROJECTSIERRA LEONE

Stage: Definitive Feasibility Study

Dyke 1 (of 4): Initial resource: 1.074M cts

High grade: 120cpht

Diamond value: US$248/ct

NPV10: US$53M

BAOULÉ PROJECTGUINEA

Stage: Resource Definition

Initial target resource: 3M cts

Estimated grade: between 13 & 40 cpht

Estimated diamond value: over US$200/ct

ADDITIONAL PROJECTSMANDALA MINE

Guinea: est. alluvial resource of 200,000 cts

KONO*Sierra Leone: advanced kimberlite trial mining

DROUJBA Guinea: 3.1M ct resource

*Licences under dispute

Baoulé

Tongo

Kono

Droujba

Mandala

Potential for significant resource

increase and recommencement of

production from additional projects

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STRATEGY

Build a leading diamond explorer and producer in West Africa

Focus on highly prolific West African Diamond Fields - relativelyunderexplored by modern methods but has yielded millions of highquality diamonds, mostly from artisanal mining methods

2014 focus on delivering Tongo Dyke-1 DFS which has a current 1.1 million carat resource

Targeting an increase in aggregate resource base to 7.5 million carats with an in-situ value of US$1 billion on definition of an estimated 3 million carat resource at Baoulé

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BOARD OF DIRECTORS

KARL SMITHSON, CHIEF EXECUTIVE OFFICER Geologist and MBA with 25 years’ African diamond

exploration and development experience, including 12 years in West Africa. Senior management positions with

De Beers, SouthernEra and African Aura Mining.

LORD DARESBURY (PETER), NON-EXECUTIVE CHAIRMAN Involvement in emerging markets since 1994.

Previously Non-Executive Chairman of De Vere Group plc 2000-2006, Chairman of KazakhGold Group Ltd 2005-

2007 and Executive Chairman of Highland Gold Mining Ltd 2002-2004.

JAMES CAMPBELL, NON-EXEC DIRECTOR Mining geologist and MBA with 26 years’ experience in the

diamond mining industry under De Beers, where he held a number of senior positions. Previously Managing

Director of African Diamonds Plc. CEO and President of Rockwell Diamonds.

LUIS DA SILVA, NON-EXEC DIRECTOR CEO of GB Minerals (TSX) and Non-Executive Director of Aureus

Mining. Mining Engineer and MBA with operational, technical and corporate experience globally with Blue

Circle Industries and Lafarge SA.

STEVEN POULTON, NON-EXEC DIRECTOR Mining geologist previously with Mano River. Co-founder of

Ariana, African Aura, Afferro Mining, Aureus Mining and Altus Strategies (CEO).

DR. MARKUS ELSASSER, NON-EXEC DIRECTOR An experienced financer and investor in the natural

resources sector. Director of Arctic Gold, Kopi Goldfields, Stellar Resources Ltd and Impact Minerals.

Currently head of the Elsässer Family Office.

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MANAGEMENT TEAM

ROWAN D. CARR, CHIEF OPERATING OFFICER Rowan has 25 years of diamond industry experience throughout Africa. He

spent 21 years working for De Beers Group in senior management positions heading up exploration efforts across the country.

Rowan joined Stellar in 2007 and has been at the forefront of project exploration and development on the ground.

PHILIP KNOWLES, CHIEF FINANCIAL OFFICER Philip joined Stellar in June 2011. He is a qualified accountant with over 10

years of accountancy experience. Most recently Philip was Group Financial Controller for Firestone Diamonds plc and for Kopane

Diamonds plc, and brings with him strong experience of working for growing diamond mining companies.

GRAHAM C. RADBURND, TONGO PROJECT MANAGER Graham’s early career was focused in the civil construction sector in

Africa and the Middle East. He also brings 13 years of diamond industry experience in both production and management roles in

Angola, DR Congo, Russia, Guinea and Sierra Leone. Graham joined the Stellar team in 2008.

ALKALY YANSANE, COUNTRY REPRESENTATIVE, GUINEA Alkaly is a Guinean national with a degree in geology. He was

the Director of the CPDM in Conakry for a number of years, responsible for many aspects of the mineral sector. He also worked

for 16 years in the private sector of the exploration and mining industry with Rio Tinto, West African Diamonds and now Stellar.

ABDULAYE DIALLO, SENIOR GEOLOGIST, DROUJBA PROJECT Abdulaye is a Guinean national with a degree in mining

geology. He previously worked with Mano River Resources as project geologist exploring for gold and diamonds in Guinea,

Sierra Leone and Liberia. Abdulaye joined Stellar in 2007 and is currently responsible for the drilling project at Droujba.

KASSIM MANSARAY, SENIOR GEOLOGIST, SIERRA LEONE Kassim is a qualified geologist with +30 years of industrial

experience. He brings a vast wealth of multi-commodity experience having worked in Sierra Leone, Liberia, Guinea, Gabon and

the Central African Republic, having spent the past 15 years with the Mano River-Stellar Diamonds group of companies.

SULAIMAN SWARAY, TONGO PROJECT GEOLOGIST Sulaiman is a Sierra Leone national with a degree in Geology. He was

previously project geologist in a regional diamond exploration JV with BHP Billiton and joined Stellar in 2004 and . This led to the

discovery and development of the Tongo kimberlites. Sulaiman is now project geologist for the resource estimation programme.

FODÉ CAMARA, MANDALA PROJECT MANAGER Fodé is a Guinean national with a degree in geology. He has 16 years

diamond industry experience, 12 of which was with De Beers in senior positions in Guinea, South Africa, Botswana, Zimbabwe,

Madagascar, Gabon and DR Congo. Fodé joined Stellar in 2008 and is currently project manager at the Mandala mine.

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KEY DATA

Market EPIC Share

Price

Shares in

Issue

Market

Cap

52 Week

price range

Share

Options

Warrants

Outstanding

Fully

Diluted

AIM STEL1.5

pence

521

million

£7.4

million

0.75 – 3

pence42,926,150 187,973,331 752,099,102

Foradex Invest SLR 17.2%UBS Deutschland (private) 12.3%Nassim Funds (institutional) 8.5%Aureus Mining 5.9%Hottinger 5.5%Directors & Management 5.0%BlackRock 3.7%Other 41.9%

Share price graph Major Shareholders

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TONGO PROJECT: SIERRA LEONEDYKE-1: A SNAPSHOT

Current

NPV10 US$53.1M

32% IRR

1.1 million caratJORC

Compliant Resource for Dyke-1 only

17 year

Life of Mine

3 remaining

dykes to

drill

Gross Cash Flows

US$413

DFS Targeted H2 2014

Located in one of

Sierra Leone’s

premier diamond

districts

Low Cost

US$16millionStarting capex

2nd bulk

sampling

programme

underway

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TONGO KIMBERLITE PROJECT:SIERRA LEONE

Located in the Kenema District of the Eastern Province of

Sierra Leone in the heart of the prolific Tongo Diamond Fields

Four diamondiferous dykes, main two being:Dyke-1: 2km long, 120 cpht, US$248/ct

Dyke-4: 1km long, 110cpht, US$140/ct

Additional potential:Dyke-2: 1km long, 140cpht

Dyke-3: 0.5km long, 185cpht

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TONGO DEVELOPMENT

Extensive development since 2007 culminating in a

current JORC compliant diamond resource delivered

by CAE Mining in December 2012 of 1.1 million carats

for 1 of 4 known kimberlite dykes

Development work included: stream and soil sampling,

ground geophysical surveys, core drilling,

microdiamond analysis and larger scale bulk sampling

Robust economics indicated in independent

economic scoping study by Paradigm Project

Management for the development of an underground

diamond mine

Dyke-1 – Stellar’s current priority - has now been

advanced to the Inferred Resource status

DFS targeted for H2 2014

Tongo 5tph DMS plant

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DYKE-1: POSITIVE INITIAL ECONOMIC SCOPING STUDY 2013*

Tongo Dyke-1 Base Case Enhanced Case

Life of mine (years) 13 17

Tonnes mined 1,131,000 1,738,000

Carats recovered 638,000 1,051,000

Starting diamond price (US$/ct) 248 248

Life of mine capital (US$m) 21 30

Life of mine cost per tonne (US$) 84 122

Life of mine gross cash flow (US$m) 169 412

NPV (10%) pre-tax (US$m) 16.2 53.1**

IRR pre-tax 23% 32%

*N.B. at the current US$:ZAR exchange rate, NPV10 increases to US$59.5m

*Paradigm Project Management preliminary economic scoping study July 2013

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TONGO DYKE-1:HIGH GRADE AND VALUE RESOURCE

Kimberlite Metres Depth Grade cut-

off (mm)

Resource

tonnes

Grade

+1mm (cpht)

Inferred JORC

carats in

resource

Modelled

average

diamond value

(US$/ct)

Implied

contained

value US$m

In-situ value

US$/t

Dyke-1 300m +1.0mm 895,000 120 1,074,000 248 266 298

Tongo Dyke-1 diamonds

Definitive Feasibility Study Progress

650 tonnes bulk samples already collected

Sample processing commenced using Stellar’s

on-site 5tph DMS plant

Objective to recover minimum 1,000 carat parcel

for diamond grade and value creation

First results expected February 2014

Previous results established a grade of 120cpht at

US$248 per carat from 1,050 carat parcel

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BAOULÉ PROJECT, GUINEA:A SNAPSHOT

22Mt

TargetLarge tonnage

JV signedSociété

TassilimanNov 2013

Drilling to 300m

to establish

resource

Diamondiferous

Kimberlite

Pipe Located in Guinea’s most

renowned diamond mining district

US$200/ctDiamond value internal estimation

100% interest

earn-in optionUS$5m earn-in for 75% &

option to acquire

remaining 25%

13-40 cphtgrade

internal estimation

Open pit

mine

potential

Target

resource

3 million cts

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BAOULÉ KIMBERLITE PROJECT:GUINEA

The Baoulé kimberlite pipe is believed

to be a source of the high value Baoulé

alluvial diamonds in the Aredor region

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AREDOR: GUINEALARGE STONE PRODUCING AREA

Historically produced the largest and highest valuediamonds in Guinea

Numerous high quality diamonds in excess of 100 caratsrecovered from commercial alluvial mining operations

In 1990s Aredor FCMC mined alluvial diamonds withaverage values of over US$400 per carat 7kmdownstream from the Baoulé pipe

Year Diamonds US$ /ct Selling Price (US$)

1986 121.13 1,501/ct 181,855

100.30 15,533/ct 1,558,000

57.83 12,226/ct 707,065

1987 142.96 25,560/ct 3,654,000

1988 181.77 47,412/ct 8,618,177

1989 255.61 39,263/ct 10,036,000

1991 192.95 16,325/ct 3,150,000

1993 22.52 81,705/ct 1,840,000

284.96 28,442/ct 8,105,000

1997 70.10 39,443/ct 2,765,000

1999 146.00 13,507/ct 1,972,000

2000 25.73 51,185/ct 1,317,000 (pink)

16.91 46,008/ct 778,000 (pink)

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BAOULÉ KIMBERLITE:DEVELOPMENT

5 hectare kimberlite pipe discovered in 1999

Significant drilling (5,708m) and bulk samplingcompleted by Trivalence Mining Corporation (TSX)and Rio Tinto – access to historic exploration database

JV signed with Société Tassiliman – a Guineanincorporated company headed by the well-respected& prominent businessman El Hadj MohammedMoustapha Kaba

Option to earn into 75% interest through US$5mexpenditure (indefinite time period) with option topurchase remaining 25%On 100% acquisition by Stellar, Tassiliman will begranted 2% net profit royalty on any future productionrevenues

Stellar has completed block modelling of pipe withestimated diamond value of over US$200/ct

Modelled 22 million tonnes to 300m depth at anestimated grade of 13cpht – giving estimated resourceof 3 million carats

Diamond diggings over Baoulé kimberlite pipe

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BAOULÉ MODELLING:BLOCK MODEL WESTERN LOBE

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ADDITIONAL ASSETS:VALUE UPLIFT POTENTIAL

Droujba Project: Guinea Kono Project: Sierra Leone Mandala Project: Guinea

• Kimberlite pipe and

dyke with 3.1M carat

resource

• Grades of 88cpht

(Droujba pipe) and

140cpht (Katcha dyke)

• Economic scoping

study completed

• Project on C&M until

higher diamond prices

• Underground trial

mining on two

kimberlites that

yielded over 4,000

carats of high quality

diamonds

• Licence dispute with

Ministry of Mines –

Stellar continues to

pursue diplomatic and

legal remedies to have

the licences reinstated

• Alluvial mining licence

renewed (5yrs)

• Restart production on

improvement in rough

diamond prices

• Previous mining

yielded 128,000 carats

at a grade of 33cpht

with gems up to 37

carats

• Estimated 200,000 cts

remaining in resource

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SUMMARY

Tongo diamonds

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VALUE CREATION: MILESTONES DELIVERED

Tongo Dyke-1 resource increased from 660,000 to 1.1million carats following

2,929m drilling with potential to significantly

increase

Positive economic scoping study for Tongo Dyke-1 demonstrating NPV US$53million and

low capex

Definitive Feasibility Study commenced at Tongo Dyke-1 –

completion expected H2 2014

Resource increase at Droujba project to 3.1 million carats –

significant future potential

Excellent progress made in advancing the Tongo Dyke-1 during the course of 2013 –

the team has created project value and has significantly de-risked the project resulting

in visibility to production

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DIAMOND RESOURCE BASE

CURRENT

RESOURCE TONNES

GRADE

(cpht) CARATS

DIAMOND

VALUE ($/ct)

CONTAINED

VALUE ($m)

PROJECT

STATUS

TONGO 895,000 120 1,074,000 248 266 Feasibility

DROUJBA 3,960,000 63 2,474,000 45 111 C&M

KATCHA 319,000 140 446,000 57 25 C&M

TOTAL 5,174,000 3,994,000 402

TARGET

RESOURCE TONNES

GRADE

(cpht) CARATS

DIAMOND

VALUE ($/ct)

CONTAINED

VALUE ($m)

PROJECT

STATUS

TONGO 1,250,000 120 1,500,000 248 372 Feasibility

BAOULÉ 23,000,000 13 3,000,000 200 600 Resource

SUBTOTAL 24,250,000 4,500,000 972

DROUJBA 3,960,000 63 2,474,000 45 111 C&M

KATCHA 319,000 140 446,000 57 25 C&M

TOTAL 28,529,000 7,420,000 1,108

Stellar Diamonds is targeting a resource increase to 7.5 million carats in 2014

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SUMMARY

Robust outlook for rough diamond market gives potential to recommence operations at

Mandala and Droujba projects due to

PROJECTS

EXPERIENCE

Advancing two diamond projects with multi-million carat potential to production in West

Africa

ADDRESSFocused on prolific diamond regions of Sierra Leone and Guinea with new

acquisition/growth opportunities in West Africa

UNDERVALUED

VALUE CREATION

Undervalued relative to peer group due to extent of exploration & development work

completed to date & value to be added as Stellar takes Tongo through DFS

Board and management has extensive experience in the diamond sector and West

African region – track record of value creation

Creating a defined path to production at Tongo. Targeting an overall resource base of

7.5m carats across our projects with an in-situ value of US$1billion

POTENTIAL

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CONTACT

STELLAR DIAMONDS PLC355 The StrandLondonWC2R 0HS

KARL SMITHSONChief Executive OfficerTel: +44 (0) 77 837 0971Email: karl.smithson@stellar-diamonds.com

PHILIP KNOWLESChief Financial OfficerTel: +44 (0) 755 744 4007Email: philip.knowles@stellar-diamonds.com

HUGO DE SALIS / LOTTIE BROCKLEHURSTSt Brides Media & Finance Ltd (Financial PR)Tel: +44 (0) 20 7236 1177Email: lottie@sbmf.co.uk

Tongo Dyke-1 Diamonds