21 July 2016

Firestone Diamonds plc

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

Issue of shares

Firestone Diamonds plc, the AIM-quoted diamond development company, announces that, in accordance with the terms of the US$30.0 million Eurobond debt facility ("Eurobonds"), it has opted to issue, in aggregate, 1,380,040 new ordinary shares of 1 pence each ("Ordinary Shares") in respect of the quarterly interest due on the Eurobonds, for the quarter ended 30 June 2016.  As at 30 June 2016, Eurobonds amounting to US$30.0 million had been issued.

Accordingly, the Company will issue, in aggregate, 690,020 new Ordinary Shares to Pacific Road Resources Fund II L.P. and Pacific Road Resources Fund II (together "Pacific Road") and 690,020 new Ordinary Shares to Resource Capital Fund VI L.P. ("RCF") in respect of the interest due on the Eurobonds, for the quarter ended 30 June 2016.

Application has been made to the London Stock Exchange plc for the new Ordinary Shares to be admitted to trading on AIM.  Admission and dealings in the new Ordinary Shares is expected to commence at 8.00 a.m. on 27 July 2016.  On Admission, the Company will have 313,954,684 Ordinary Shares in issue.

The Company does not currently hold any Ordinary Shares in treasury.  Accordingly, the above figure of 313,954,684 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Following the issue of the new Ordinary Shares, Pacific Road and RCF will be interested in 73,608,506 and 73,647,138 Ordinary Shares respectively, representing approximately 23.45% and 23.46% respectively of the Company's issued share capital.

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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 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.

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

**ENDS**