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SML.V ·

Southstone Reports Continued Recovery of High-Quality Diamonds from Oena

Corporate Updates

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Southstone Minerals Limited

202 – 5626 Larch Street

Vancouver, British Columbia, V6M 4E1

TSX Venture: SML

www.southstoneminerals.com

SOUTHSTONE REPORTS CONTINUED RECOVERY OF HIGH-QUALITY DIAMONDS FROM OENA

VANCOUVER, BRITISH COLUMBIA — 31 October 2019 – Southstone Minerals Limited (“Southstone” or the

“Company”) (TSX.V – SML) is pleased to provide an operational and production update for the Oena Diamond Mine

(“Oena”). During the production period, 8 August to 16 October 2019, a total of 742 carats were produced, placed

on tender and sold with an average price of US1,495 per carat (USD $1,110,164 in sales).

Southstone maintains its strategic focus on its diamond operations , in particular the Company’s flagship asset the

Oena Diamond Mine, located in the Northern Cape, South Africa, which produces very high-quality diamonds. There

are currently two mining contractors on site operating eight (8) pan plants which process both run of mine (“ROM”)

and pan tailings and bantam material (“Tailings”) and one Bourevestnik (“BVX”) unit is used for diamond recovery.

The two mining contractors continue their activities at Oena as per a Contract Mining and Diamond Recovery

Agreement (see news releases dated 2 May 2018, 10 October 2018 and 16 November 2017) and a Joint Operating

Agreement (see news release date 17 June 2019).

ON BEHALF OF THE BOARD OF DIRECTORS OF

SOUTHSTONE MINERALS LIMITED

Mr. Samer Khalaf

Chief Executive Officer

Southstone Minerals Limited

[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 historic al 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 no t 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 fu ture periods to differ materially from any

projections 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; 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

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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; 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 an d 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 u ndue 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.