Southstone Provides Financial and Corporate Update
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Southstone Minerals Limited
2751 Graham Street
Victoria, British Columbia, V8T 3Z1
TSX Venture : SML
www.southstoneminerals.com
SOUTHSTONE PROVIDES FINANCIAL AND CORPORATE UPDATE
VICTORIA, BRITISH COLUMBIA — 29 July 2026 — Southstone Minerals Limited (“Southstone” or the “Company”)
(TSX-V: SML) provides a financial and corporate update, including the resumption of trading in its common shares
on the TSX Venture Exchange and a correction to the earnings per share figures pres ented in its condensed
consolidated interim financial statements for the nine months ended May 31, 2026.
Resumption of Trading
Trading in the Company’s common shares resumed on the TSX Venture Exchange on 27 July 2026, following
completion of the steps previously announced to address the TSX Venture Exchange Policy 3.1 deficiencies
underlying the trading halt that had been in plac e since 10 January 2024, including the appointment of an
additional independent director and Chair of the Audit Committee and the appointment of a Chief Financial Officer
separate from the Chief Executive Officer (see the Company’s news releases of 27 May 2026 and 7 July 2026).
Correction of Earnings Per Share
The Company advises that the earnings per share figures presented in its condensed consolidated interim financial
statements for the nine months ended May 31, 2026, filed on SEDAR+ on July 22, 2026, were calculated using
total consolidated net income, which includes the 57% interest in the Company’s subsidiary, African Star Minerals
(Pty) Ltd (“ASM”), that is held by parties other than Southstone. The Company holds a 43% ownership interest in
ASM but consolidates 100% of ASM’s results, having been determined to have control of ASM notwithstanding its
minority ownership interest (see Note 3.3 to the Company’s audited annual and interim financial statements). The
Company’s effective economic interest in net tender proceeds is accordingly 8.60% where the 80:20 split applies
and 6.45% where the 85:15 split applies (see revenue split section below).
In accordance with IAS 33 (Earnings per Share), however, basic and diluted earnings per share should be calculated
using net income attributable to owners of the Company only, not total consolidated net income.
On a corrected basis, net income attributable to Southstone shareholders was $195,498 for the nine months
ended May 31, 2026 and $108,236 for the three months ended May 31, 2026. The originally reported and
corrected basic and diluted earnings (loss) per share for each affected period are summarised below:
Period As originally
reported As corrected Status
Three months ended May 31, 2026 $0.009 $0.003 Amended and restated statements filed
Nine months ended May 31, 2026 $0.015 $0.006 Amended and restated statements filed
Three months ended May 31, 2025 (comparative) $0.004 $0.000 Restated in the amended statements (IAS 8)
Nine months ended May 31, 2025 (comparative) $nil $(0.004) Restated in the amended statements (IAS 8)
Three months ended November 30, 2025
(Q1 fiscal 2026) $0.006 $0.002(1) To be reflected in the FY2026 annual financial
statements
Six months ended February 28, 2026
(Q2 fiscal 2026) $0.007 $0.003(1) To be reflected in the FY2026 annual financial
statements
Year ended August 31, 2025 $nil $(0.003)(1) To be reflected in the FY2026 annual financial
statements
(1) Corrected figures for periods not yet amended reflect management’s recalculation of basic and diluted earnings (loss) per share on the basis of net income
attributable to owners of the Company; the three months ended February 28, 2026 round to $nil on either basis.
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This correction affects only the presentation of earnings per share. Net income, the allocation of net income
between Southstone and the 57% outside interest in ASM, total assets, total liabilities, and total equity are
unaffected.
The Company has filed amended and restated condensed consolidated interim financial statements for the nine
months ended May 31, 2026 on SEDAR+, together with the required certifications. The amended and restated
financial statements replace and supersede the statements originally filed on July 22, 2026. The Company’s MD&A
– Quarterly Highlights for the period does not present earnings per share figures and has not been refiled. The
corrected earnings per share figures for the first and second quarters of fiscal 2026 and for the comparative annual
periods will be reflected in the Company’s annual financial statements for the year ending August 31, 2026.
Oena Diamond Mine
Revenue split: the Contract Mining and Diamond Recovery Agreement dated January 31, 2025 between the
Company’s subsidiary, African Star Minerals (Pty) Ltd (“ASM”), and its contract miner, Rietput Delwery BK
(“Rietput”), as amended with effect from July 1, 2025, tender sa le proceeds are shared 80% to Rietput and 20%
to ASM (net of tender costs) where the Gross Selling Price of a Tender Sale is ZAR 10,000,000 or more. Where the
Gross Selling Price of a Tender Sale is less than ZAR 10,000,000, the split changes to 85% to Rie tput and 15% to
ASM. There can be no assurance that future tenders will meet or exceed that threshold, and any tender priced
below ZAR 10,000,000 will be subject to the 85:15 split.
Cautionary Note Regarding Financial Information
Revenue in the Company’s consolidated financial statements is reported on a gross basis and includes 100% of
ASM’s diamond tender sales, notwithstanding that the contract miner is entitled to the majority share of tender
proceeds under the Contract Mining and Diamond Recovery Agreement described above and that Southstone
holds a 43% interest in ASM. Consolidated revenue is therefore not indicative of the amounts attributable to
Southstone shareholders. In addition, revenue reported by the Company for earlier financial years is not directly
comparable to current periods: prior periods included revenue from business segments that the Company no
longer owns or operates, and reflect contract mining and revenue -sharing arrangements that differ from those
currently in place. Shareholders and investors are cautioned to rely only on the Company’s continuous disclosure
record filed under its profile on SEDAR+ (www.sedarplus.ca) and on news releases issued by the Company, read
in their full context.
ON BEHALF OF SOUTHSTONE MINERALS LIMITED
Terry L. Tucker, P.Geo.
Executive Chairman
For additional information, please contact Terry L. Tucker at [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. Capitalized terms used
herein that have not been defined have the same meanings ascribed in the policies of the TSX.V.
Forward Looking Statements Disclaimer
Certain statements in this news release may constitute “forward -looking statements” within the meaning of
applicable securities laws, including, without limitation, statements regarding the reflection of corrected earnings
per share figures for prior perio ds in the Company’s annual financial statements for the year ending August 31,
2026, and whether future tender sales at the Oena Diamond Mine will meet or exceed the ZAR 10,000,000
threshold under the Contract Mining and Diamond Recovery Agreement with Rie tput Delwery BK. Forward -
looking statements are based on the Company’s current expectations and are subject to known and unknown
risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or
implied. Read ers are cautioned not to place undue reliance on forward -looking statements. Forward -looking
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statements are made as of the date of this news release, and the Company undertakes no obligation to update or
revise them except as required under applicable securities laws.