FDI Firestone Diamonds Plc

RNS Number:0841F
Firestone Diamonds PLC
11 November 2004

                             Firestone Diamonds plc


  Acquires seven new prospecting licences to become largest holder of diamond
         exploration ground around Orapa and Jwaneng mines in Botswana

          Expansion to Mopipi joint venture with De Beers in Botswana


LONDON:  11th November 2004


Firestone Diamonds plc ("Firestone" or the "Company") today announces that it
has significantly expanded its kimberlite exploration activities in Botswana,
following the granting of seven new prospecting licences covering a total of
approximately 5,400 square kilometers.

The new licences cover ground that is considered to be highly prospective for
hosting diamondiferous kimberlite as they are located close to De Beers' Orapa
and Jwaneng diamond mines, which are the two richest diamond mines in the world,
producing approximately 29 million carats per annum with a value of over $2.5
billion.  Much of the area covered by these new licences has never been fully
explored using modern geophysical and other exploration techniques.  Three of
the new licences are located close to the Orapa Mine, and one of these licences
is subject to the existing joint venture with De Beers over Firestone's Mopipi
Project.  The other four new licences are located close to the Jwaneng Mine.

Following the granting of these new licences, Firestone now controls diamond
exploration rights over an area of approximately 8,600 square kilometers, making
it the largest holder of diamond exploration rights in the Orapa and Jwaneng
areas.

Philip Kenny, CEO of Firestone Diamonds, commented today: "The experience and
relationships that we have developed during the eight years that we have been
exploring in Botswana have helped us to secure exploration rights over highly
sought after ground with exceptional potential.  We now control the largest
portfolio of diamond exploration rights around the two richest diamond mines in
the world, over ground that has not been properly explored using modern
geophysical and other exploration techniques.  With De Beers' work on the Mopipi
joint venture progressing well, and with the new exploration work that we plan
to carry out, we are very excited about the prospects for the discovery of new
diamondiferous kimberlites in Botswana."


Orapa Project

Firestone's new Orapa Project comprises two licences that have been granted to
the Company over an area of approximately 1,300 square kilometers.  This area
adjoins the western boundary of the Orapa Mine, and the southern and eastern
boundaries of the nearby Letlhakane Mine, and is considered to be highly
prospective for the discovery of new diamondiferous kimberlites.  Orapa is the
second largest diamond mine in the world, and produces approximately 16 million
carats per annum worth over $1 billion.

An aggressive work programme is planned for the Orapa Project.  Initial work
will focus on the review and analysis of historical exploration data for the
region, following which areas will be selected for follow up kimberlite
indicator mineral sampling.  High resolution geophysical surveys will be then
carried out to identify potential kimberlite drilling targets.  It is expected
that this work programme will be completed during 2005.


Mopipi Joint Venture expansion

Firestone's Mopipi Project covers an area of approximately 3,200 square
kilometers and is located adjacent to De Beers' Orapa and Letlhakane diamond
mines.  Firestone has carried out a substantial amount of exploration at Mopipi
over the past 8 years, the results of which strongly suggest the presence of a
new diamondiferous kimberlite source in the area.  In June 2004, Firestone
entered into a joint venture with De Beers over the Mopipi Project.   Under the
terms of the joint venture agreement, De Beers is responsible for financing and
carrying out all exploration and evaluation work, up to and including the
completion of bankable feasibility studies on any kimberlites discovered in the
project area, in return for a 61% interest in the project.

Firestone has been granted one new licence over an area of approximately 450
square kilometers.  This licence will be considered as part of the Mopipi
Project and will be subject to the terms of the joint venture agreement with De
Beers.  De Beers has already commenced exploration on the new licence, and this
work will continue in parallel with the other exploration work that is currently
being carried out by De Beers in the Mopipi Project area.


Jwaneng Project

Firestone's new Jwaneng Project comprises four licences that have been granted
to the Company over an area of approximately 3,700 square kilometers.  These
licences are located at a distance of between 25 and 75 kilometres from the
Jwaneng Mine.  Jwaneng is the largest diamond mine in the world, and produces
approximately 12 million carats per annum worth over $1.5 billion.

As Firestone has not previously carried out any exploration in the Jwaneng area,
the initial work programme will consist of the review and analysis of historical
exploration data for the region to identify high interest target areas for
follow up work.  More detailed work programmes, comprising kimberlitic indicator
mineral sampling and geophysics will then be drawn up for these targets areas.
It is expected that the initial work programme will be completed during 2005.


For further information:

Philip Kenny, Firestone Diamonds        +44 20 7370 6452 /  +44 7831 324 645
Leesa Peters, Conduit PR                +44 20 7618 8707/ +44 7812 159 885
Jamie Cumming, Bell Lawrie White        +44 141 314 8103 / +44 776 8044 620

                       Website: www.firestonediamonds.com


Background information:

Mopipi, Botswana

Botswana is the world's largest producer of diamonds by value, with annual
production of approximately 30 million carats worth over $2.5 billion and
accounting for over 25% of worldwide production by value.  Botswana hosts De
Beers' Orapa, Letlhakane and Jwaneng mines and is considered to be one of the
best countries in the world to explore for kimberlite - the primary source rock
for diamonds.  Firestone's Mopipi, Orapa and Jwaneng projects do not include any
ground located within the Central Kalahari Game Reserve.


Firestone Diamonds

Firestone is also active in the Namaqualand region of South Africa, one of the
most prolific alluvial diamond producing areas in the world, where the Company
operates the Bonte Koe, Avontuur and Oena mines.  The Company has extensive
exploration properties in Namaqualand, including the Groen River Valley
exploration project, and is also engaged in kimberlite exploration in the United
States.  Firestone is quoted on the London Stock Exchange's Alternative
Investment Market (AIM).


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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