Southstone Reports Oena Diamond MINE Q1 2026 Sales and Recovery and Sale of a 65.812-CARAT Diamond
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SOUTHSTONE REPORTS OENA DIAMOND MINE Q1 2026 SALES
AND RECOVERY AND SALE OF A 65.812-CARAT DIAMOND
VICTORIA, BRITISH COLUMBIA — 5 February 2026 — Southstone Minerals Limited
(“Southstone” or the “Company”) (TSX-V:SML) reports diamond sales results from the Oena
Diamond Mine in South Africa for the quarter ended November 30, 2025 (Q1 fiscal 2026) and
provides an update on Tender 273 (January 2026) and production subsequent to quarter-end.
Operations at the Sandberg Section—managed via the Company’s 43%-owned subsidiary, African
Star Minerals (Pty) Ltd—delivered an increase in both sales and realized pricing, including the
recovery of several high-value diamonds greater than 10.8 carats (“Specials”).
Q1 2026 Operational & Financial Highlights (Sept – Nov 2025):
• Gross diamond sales (total tender proceeds before tender costs): approximately US $1.90
million, a 29% increase over Q4 2025.
• Sales Volume: 897.24 carats sold marking a 12% rise compared to Q4 2025.
• Pricing: The average price per carat was approximately US $2,122, a 15% increase over
the previous quarter.
• Recoveries: Eight Specials were sold, averaging 23 carats each for total proceeds of US
$1,274,668.
• Notable Diamond: A 65.812-carat stone (see Photo 1) sold for US $579,984.
• Three Q1 diamonds sold achieved prices exceeding US $5,000 per carat.
Q2 2026 Results to Date (Unaudited) (Dec 2025 – Feb 2026):
The Company has continued into the current quarter as mining exploits the lower, diamond-
bearing gravel layer at Sandberg:
• Recoveries: Approximately 989 carats have been recovered to date in Q2. A portion of
these were sold in Tender 273 and the balance remains in inventory for future tender
sale.
• January Sales: Tender 273 (January 22, 2026) saw the sale of 414.87 carats for gross
diamond sales of US $587,759, including two stones (see Photo 2) priced above US $5,000
per carat.
• Unsold Inventory: 574 carats recovered subsequent to the Tender 273 cut-off, including
13 Specials averaging 19.9 carats each, remain in inventory for future tender sale.
Southstone Minerals Limited
2751 Graham Street
Victoria, British Columbia, V8T 3Z1
TSX Venture:SML
www.southstoneminerals.com
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Historical Performance of Specials
Since production resumed at the Sandberg Section in November 2023 (based on internal
production and tender records), Specials have represented 29% of recovered carats and 61% of
gross sales value from the Sandberg Section.
Sandberg Section
mining period
Total
carats
sold
Total Number
of Diamonds
Average Diamond
Size (carats)
US ($)
per carat
Gross Diamond
Sales US ($)
Sep 2018 to Nov 2021 2,690 1,157 2.33 - -
Nov 2023 to Aug 2024 769 319 2.41 1,935 1,488,052
Apr 2025 to Jan 2026 2,713 941 2.88 1,800 4,883,400
Table 1 – Sandberg Section 2018 to 2026 diamond sales. Additional 574 carats from Q2 2026
production to date (as of January 27, 2026) remain in inventory for future tender sale. Note:
Gross diamond sales represent total tender proceeds before tender costs.
Since the acquisition of Oena in 2014, the Company has recorded total diamond sales of 12,356
carats with an average stone size of 2.17 carats and an average sales price of US $1,660 per
carat.
Oena mining
period
Total carats
sold
Total Number
of Diamonds
Average Diamond
Size (carats)
US ($)
per carat
Gross Diamond
Sales US
($)
Jul 2015 to Jan 2026 12,356 5,689 2.17 1,660 20,511,160
Table 2 – Oena Mine 2015 to 2026 diamond sales. Additional 574 carats from Q2 2026
production to date (as of January 27, 2026) remain in inventory for future tender sale. Note:
Gross diamond sales represent total tender proceeds before tender costs.
Southstone, through African Star, provides operational oversight at Oena, including diamond
sales administration, contractor liaison, mining license compliance, and security. The Company
maintains a management and security team in South Africa, including the CEO of African Star and
the Oena Operational Site Manager. The Company’s Executive Chairman, with external geological
support, provides operational support for internal reporting of Oena activities and provides
geological and technical support to the operations team and contractors.
Contract Amendment
African Star Minerals (Pty) Ltd. ("African Star"), a 43%-owned subsidiary of Southstone, is party
to a Contract Mining and Diamond Recovery Agreement dated January 31, 2025, which originally
entitled African Star to 20% of net tender proceeds after deduction of tender costs, representing
an indirect economic interest of 8.6% to Southstone.
On August 1, 2025, African Star and Rietput Delwery BK amended the agreement, effective July
1, 2025. The amendment provides for a conditional revenue split based on tender sale value:
where the gross diamond sales for any single tender is less than ZAR 10,000,000, revenue is
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distributed 85% to Rietput Delwery BK and 15% to African Star (representing a 6.45% indirect
interest to Southstone); where the gross diamond sales equals or exceeds ZAR 10,000,000, the
original 80%/20% split applies (representing an 8.6% indirect interest to Southstone).
The conditional structure reflects the variability in tender values at Sandberg, where the presence
or absence of Specials can materially influence gross diamond sales. During Q1 fiscal 2026, one
of three tenders exceeded the ZAR 10,000,000 threshold and therefore qualified for the original
80%/20% split for African Star; tenders below the threshold were subject to the 85%/15% split.
During the quarter ended November 30, 2025, three tenders were completed: Tender 270
(September 18, 2025) sold 353.35 carats (Gross diamond sales ZAR 8,246,643; 85%/15% split
applied); Tender 271 (October 16, 2025) sold 209.15 carats (Gross diamond sales ZAR 18,162,179;
80%/20% split applied); and Tender 272 (November 27, 2025) sold 334.74 carats (Gross diamond
sales ZAR 6,470,618; 85%/15% split applied). Subsequent to quarter-end, Tender 273 (January
22, 2026) sold 414.87 carats (Gross diamond sales ZAR 9,533,445; 85%/15% split applied).
Tender 271 represented 55% of Q1 2026 gross diamond sales despite accounting for only 23% of
carats sold, demonstrating the high-value nature of certain diamonds recovered during the
quarter. This tender's gross diamond sales of ZAR 18.2 million triggered the original 80%/20%
revenue split, under which African Star received 20% of tender proceeds, representing an 8.6%
indirect economic interest to Southstone.
Qualified Person Statement
The technical disclosure in this news release relating to diamond production, recovery and sales
has been approved by Terry L. Tucker, P.Geo. (APEGBC), Executive Chairman, and a Qualified
Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. Mr.
Tucker has verified the production and sales records disclosed in this release.
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 release are forward-looking statements, which are statements that are not purely historical, including any statements
regarding beliefs, plans, expectations, or intentions regarding the future. Forward-looking statements in this news release include expectations
regarding continued production from the lower, diamond-bearing gravel layer at Sandberg, anticipated timing and results of subsequent tenders,
expected characteristics of unsold diamond inventory, and the Company's plans for ongoing operations at the Oena Diamond Mine. Forward-
looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements
included in this news release, other than statements of historical fact, are forward-looking statements that involve risks and uncertainties. There
can be no assurance that such statements will prove to be accurate and actual results, and future events could differ materia lly from those
anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include
quality and quantity of any mineral deposits that may be located, the Company’s inability to obtain any necessary permits, co nsents or
authorizations required for its activities, fluctuations in global diamond prices and market demand, variations in the size, quality, and quantity of
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recovered diamonds, contractor operational performance, movements in the ZAR/USD exchange rate affecting tender value thresholds, quality
and quantity of any mineral deposits, the Company’s inability to raise the necessary capital to be fully able to implement its business strategies,
and other risks and uncertainties disclosed in the Company’s latest interim Management Discussion and Analysis filed with cer tain securities
commissions in Canada.
The reader is cautioned that assumptions used in the preparation of any forward-looking statements herein may prove to be incorrect.
Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown
risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue
reliance on any forward-looking information. Such information, although considered reasonable by management at the time of
preparation, may prove to be incorrect, and actual results may differ materially from those anticipated. Forward -looking statements
contained in this news release are expressly qualified by this cautionary statement. The forward -looking statements contained in this
news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-
looking statements as expressly required by Canadian securities law.
Photo 1 – Sandberg Specials sold in Q1 2026 (not to scale):
(1) 65.812 carats sold for US $579,984 or US $8,813 per carat.
(2) 38.100 carats sold for US $408,999 or US $10,735 per carat.
(3) 11.557 carats sold for US $126,889 or US $10,979 per carat.
(4) 13.383 carats sold for US $55,999 or US $4,184 per carat.
(5) 13.978 carats sold for US $35,740 or US $2,557 per carat.
(6) 11.439 carats sold for US $31,697 or US $2,771 per carat.
(7) 10.988 carats sold for US $20,060 or US $1,826 per carat.
(8) 18.745 carats sold for US $15,300 or US $816 per carat.
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Photo 2 – Sandberg Specials sold in Q2 2026 to date (unaudited) (interim, not to scale):
(1) 25.812 carats sold for US $216,212 or US $8,376 per carat.
(2) 11.088 carats sold for US $68,888 or US $6,213 per carat.
(3) 11.683 carats sold for US $24,999 or US $2,140 per carat.
(4) 11.296 carats sold for US $24,690 or US $2,186 per carat.