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SML.V ·

Oena Diamond Sales Q4 2022 and Q1 2023 Reports

Corporate Updates

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Southstone Minerals Limited

2751 Graham Street

Victoria, British Columbia, V8T 3Z1

TSX Venture : SML

www.southstoneminerals.com

OENA DIAMOND SALES Q4 2022 AND Q1 2023 REPORTS

VICTORIA, BRITISH COLUMBIA — 28 NOVEMBER 2022 — Southstone Minerals Limited (“Southstone” or the

“Company”) (TSX.V – SML) is pleased to provide a diamond sales and operational update for the Oena Diamond

Mine (“Oena”), South Africa for the periods 1 June 2022 to 31 August 2022 (Q4 2022) and 1 September 2022

to 30 November 2022 (Q1 2023).

Diamond sales for Q4 2022 and Q1 2023 totals 520.78 carats averaging USD $1,6 55 per carat with gross

revenue of USD $861,829 (Table 1). This includes six exceptional specials (>10.8 carats) (Table 2) including a

31.33 carat diamond that sold for gross revenue of USD $268,107 (USD $8,559 per carat).

Diamonds are sold monthly at a designated tender facility (see news release dated 19 April 2022 for detailed

terms) and total sales in each of Q4 2022 and Q1 2023 are summarized in Table 1.

Period Mining location Weight sold

(carats)

Number of

diamonds

Gross revenue

(USD)

Price per carat

(USD)

Q4 2022 Blokwerf Section 144.57 82 $110,669 $766

Q1 2023 Blokwerf Section 376.21 182 $751,160 $1.997

Total sales Blokwerf Section 520.78 264 $861,829 $1,655

Table 1 - Q4 2022 and Q1 2023 total diamond sales.

Oena continues to produce large and high-quality special diamonds (>10.8 carats) as summarized in Table 2.

Diamond Mining location Weight sold

(carats)

Gross revenue (USD) Price per carat

(USD)

1 Blokwerf Section 18.69 $97,823 $5,233

2 Blokwerf Section 21.36 $36,888 $1,727

3 Blokwerf Section 12.35 $70,383 $5,700

4 Blokwerf Section 15.19 $59,646 $3,927

5 Blokwerf Section 31.33 $268,107 $8,559

6 Blokwerf Section 12.88 $18,189 $1,413

Total 111.80 $551,036

Table 2 – Blokwerf Section diamonds recovered >10.8 carats.

Oryx Mining (Pty) Ltd (“ Oryx”) commenced diamond mining operations in early June 2022 in the southern

Blokwerf Section (Figure 1) (see news release dated 13 June 2022) and Oryx appointed a subcontractor (“APS”)

in Q1 2023 to operate in northern Blokwerf Section (Figure 1) . Oryx operates 23 hours a day, 6 days a week

with total head feed capacity of 200 tonnes per hour to a Bell Finlay 883 mobile screen which then feeds an

18-foot pan plant. APS operates 12 hours a day, 6 days a week with total head feed capacity of 350 tonnes per

hour to a barrel screen which then feeds an 18 -foot pan plant. Concentrate produced from the pan plants is

transferred securely to a high security processing facility where diamonds are recovered using BVX technology.

Oryx has completed a significant amount of exploration and bulk sample testing to determine the viability of

the operation and continues to do so.

Oena consists of an 8,800-hectare mining right located along the Orange River (Figure 1) and mining operations

commenced at Blokwerf Section. Oena is owned by African Star Minerals (ASM) of which 43% is owned by

Southstone. ASM receives 20% of gross revenue and ASM is responsible for any mineral royalties payable.

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Oena operations will be discontinued for a break over the upcoming holidays between 15 December 2022

and will recommence on 7 January 2023.

Figure 1 – Oena Mining License

The Company also reports that Mr. Samer Khalaf has resigned as C hief Executive Officer, effective 28

November 2022, due to personal reasons but will remain as an Independent Director of the Company. Mr.

Terry L. Tucker has consented to act as Interim Chief Executive Officer, in addition to his role as Interim Chief

Financial Officer and holds both positions at the discretion of the Board of Directors.

The technical disclosure in this news release has been approved by Terry L. Tucker, P.Geo., a Qualified Person

as defined by National Instrument 43-101 of the Canadian Securities Administrators.

ON BEHALF OF THE BOARD OF DIRECTORS OF SOUTHSTONE MINERALS LIMITED

Terry L. Tucker, P.Geo.

Executive Chairman

[email protected]

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX

Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statement

Certain information set forth in this news release contains “forward- looking statements” and “forward- looking

information” under applicable securities laws. Except for statements of historical fact, certain information contained

herein constitutes forward-looking statements, which include management’s assessment of future plans and operations

and are based on current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be

incorrect. Some of the forward-looking statements may be identified by words such as “forecasts”, estimates”, “expects”

“anticipates”, “believes”, “projects”, “plans”, “outlook”, “capacity” and similar expressions. These statements are not

guarantees of future performance and undue reliance should not be placed on them.

Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the

Company’s actual performance and financial results in future periods to differ materially from any projecti ons of future

performance or results expressed or implied by such forward- looking statements. These risks and uncertainties include,

but are not limited to statements with respect to the estimation of mineral resources; the realization of mineral resource

estimates; anticipated future production, capital and operating costs; cash flows and mine life; potential size of a

mineralized zone; potential expansion of mineralization; potential types of mining operations; permitting timelines;

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government regulation of exploration and mining operations; risks that the presence of diamond deposits mentioned

nearby the Company’s property are not indicative of the diamond mineralization on the Company’s property, the supply

and demand for, deliveries of and the level and volatility of prices of rough diamonds, risks that the actual revenues will

be less than projected; risks that the target production for the existing mining contracts will be less than projected or

expected; risks that production will not commence as projected due to delay or inability to receive governmental approval

of the Company’s acquisition or the timely completion of an NI43-101 report; technical problems; inability of management

to secure sales or third party purchase contracts; currency and interest rate fluctuations; COVID -19; foreign exchange

fluctuations and foreign operations; various events which could disrupt operations, including labor stoppages and severe

weather conditions; and management’s ability to anticipate and manage the foregoing factors and risks.

The forward- looking statements and information contained in this news release are based on certain assumptions

regarding, among other things, future prices for coal and diamonds; future currency and exchange rates; the Company’s

ability to generate sufficient cash flow from operations and access capital markets to meet its future obligations; coal

consumption levels; and the Company’s ability to retain qualified staff and equipment in a cost -efficient manner to meet

its demand. There can be no assurance that forward- looking statements will prove to be accurate, as actual results and

future events could differ materially from those anticipated in such statements. The reader is cautioned not to place undue

reliance on forward- looking statements. The Company does not undertake to update any of the forward- looking

statements contained in this news release unless required by law. The statements as to the Company’s capacity to achieve

revenue are no assurance that it will achieve these levels of revenue.