Goldstone Resources Ltd
09 July 2007
GOLDSTONE RESOURCES LTD
BAUXITE PROGRESS REPORT
The Directors of GoldStone Resources Ltd ('GoldStone' or the 'Company') wish to
provide the following update on the Company's bauxite interests.
In September 2005, GoldStone entered into an option agreement with BHP Billiton
over the bauxite interests in Guyana. An initial programme was launched to
explore the bauxite potential in the lease areas. This programme confirmed the
deposits previously identified by GoldStone. BHP Billiton accordingly made
payment during September 2006 of the option fee of US$100,000 required to
maintain the option until 7 June 2007.
Further, more detailed sampling was undertaken during the first quarter of 2007
and this programme has been completed. The Company is awaiting the results of
the programme. Under the agreement, BHP Billiton was required to elect by not
later than 7 June 2007 whether to exercise its option to require GoldStone to
apply for such prospecting licences as may be permissible under the Bauxite
Reconnaissance Permission.
By 7 June 2007 BHP Billiton had not elected to exercise this option, but
subsequently reached an agreement with the Company pursuant to which the
election date of 7 June 2007 was extended to 7 July 2007. GoldStone received a
payment of US$25,000 from BHP Billiton in consideration for the one month
extension.
BHP Billiton has now elected not to exercise this option and no further payments
are accordingly due from BHP Billiton.
BHP Billiton is obliged to make available to GoldStone forthwith all information
in its possession which relates to the exploration programme, as well as a
summarising geological report. The Company intends, subject to a positive
evaluation of the information and report, to continue to hold the Bauxite
Reconnaissance Permission in good standing and to enter into discussions with
other major players in the bauxite industry.
A further announcement will be made in due course.
Enquiries:
GoldStone Resources Ltd 00 27 21 794 4004
Nico van der Hoven
Hanson Westhouse Limited 0113 246 2610
Tim Feather tim.feather@hansonwesthouse.com
Matthew Johnson matthew.johnson@hansonwesthouse.com
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