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Corporate Overview RBC Diamond Conference, London May 2008.

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Presentation on theme: "Corporate Overview RBC Diamond Conference, London May 2008."— Presentation transcript:

1 Corporate Overview RBC Diamond Conference, London May 2008

2 1 Topics 1Company Background 2Diamond Exploration Worldwide 3Key projects – Botswana 4Outlook

3 2 Company Background  Listed on AIM 1998  Management team –Philip Kenny – CEO –Tim Wilkes – COO –Jan Louw – Director of Operations –10 diamond geologists on staff  Focused on kimberlite exploration in Botswana –assembled largest land position in Botswana kimberlite fields  Cash flow from toll treatment JV with De Beers in South Africa

4 3 Diamond Exploration Worldwide Source: BHP Billiton Siberia Kasai Kaapvaal 11% 9% 10% 40% 3% Craton “Hot spots” 17%

5 4 Diamond Mines in Southern Africa

6 5 3Key Projects – Botswana

7 6 Why Botswana?  World’s largest diamond producer –30% by value –geology is favourable for new discoveries  Lowest cost producer –Climate, infrastructure, politics are favourable  Lowest economic threshold of major kimberlite producing regions –Northern Canada, Russia ~ $ /tonne –Angola, DRC ~ $25-50/tonne –Botswana ~ $8-10/tonne

8 7 Botswana Kimberlite Fields Orapa  8 out of 75 economic  Orapa Mine ~ $1B revenue p.a., 70% margin Jwaneng  3 out of 11 economic  Jwaneng Mine ~ $2B revenue p.a., >90% margin Martin’s Drift  5 out of 7 economic  Mine being developed Gope  1 out of 9 economic  Gem doing feasibility Kokong  79 kimberlites  19 with diamonds  Rio Tinto evaluating Tsabong  83 kimberlites  18 with diamonds  Firestone evaluating Economic ratio worldwide: 1% Economic ratio Botswana: 7%

9 8 Firestone Interests in Botswana Firestone Licence areas De Beers JV areas Tsabong  5,000 sq km  Covers entire kimberlite field Jwaneng  3,000 sq km surrounding Jwaneng  JV with De Beers over 3,000 sq km; De Beers earning 61% to BFS Orapa  BK11 advanced evaluation  10,000 sq km surrounding Orapa  JV with De Beers over 5,000 sq km; De Beers earning 61% to BFS

10 9 3Key Projects – Botswana  Tsabong

11 10  One of the largest diamondiferous kimberlite fields in the world  83 known kimberlites; 18 diamondiferous  MK1 kimberlite hectares, diamondiferous Mir 7ha ~200 cpht $200/t~100 cpht $100/t ~100 cpht $200/t ~40 cpht $14/t ~147 cpht $162/t MK1 180ha MK45 25ha MK38 ~20ha Udachnaya 20ha Orapa 111ha ~46 cpht $28/t Catoca 66ha Kimberley 4ha Premier 32ha Jwaneng 45ha Tsabong Kimberlite Field

12 11 Tsabong Background  Limited evaluation since first discoveries in the 1980’s –Evaluation limited by overburden – 20 to 80m –Microdiamond and geochem techniques in their infancy –Most kimberlites sampled with 50 kg sample from a single 6” hole  Good diamond potential –Geochemistry favourable for diamonds –Similar setting to Jwaneng –Drilling technology improved significantly –Diamond prices increased substantially  Economic threshold is modest –20 cpht & $120/carat would support a major mine

13 12 Tsabong Kimberlites 95%>10Ha

14 13 Evaluation Programme  Focus on most prospective kimberlites –Indicator mineral chemistry –Diamond content –Size  14 high interest kimberlites selected –17 LDD holes planned  ~ 6,000 m of 24” LDD drilling  ~ 3,500 tonnes of kimberlite sample – 6,000 metres of core drilling

15 14 MK1 - Historical Work Significant microdiamond intersections m Tuffaceous FaciesKalahariCrater Sedimentary FaciesIntrusive facies AA’ ???

16 15 MK1 – Firestone Work Tuffaceous FaciesKalahariCrater Sedimentary FaciesIntrusive facies m 14 diamonds m 15 diamonds m 26 diamonds m 62 diamonds 510m

17 MK1 – MiDa Results  117 microdiamonds recovered from 561 kgs  Size frequency analysis done by Tinus Oosterveld –Plotted micro portion –Extrapolated macro portion –Requires diamonds –Ideally 20 stones across the middle sieve sizes  Grade of all samples 20cpht  Grade of sample 4 – 119cpht 20cpht 119cpht

18 17 MK1 - Work Programme Hole 53 AA’ 510m DDHLDDH Tuffaceous FaciesKalahariCrater Sedimentary FaciesIntrusive facies m 4 x 100t LDD holes planned 524m 490m MiDa samples pending

19 18 Bulk sampling – LDD Rig  Large diameter drill rig –18” & 24” holes –Drill to 700m –Allows rapid recovery of bulk sample

20 19 Bulk sampling – DMS plant  10 tonne per hour, tonne per day  No reliance on labs  bulk samples in 2008  Mobile

21 MK1 - Volume Model (m) MK

22 MK1 - Preliminary Volume Estimates 21

23 22 MK1 - conceptual modelling  Base case $120/ct = $24/tonne revenue  $10/tonne opex  1.1 B tonnes  24Mt per annum  50 year LOM  Start 2014, full tonnage 2015

24 23 High Interest Kimberlites

25 24 High Interest Kimberlites KimberliteSurface AreaMacros recoveredMicros recoveredComments MK Very large size; 13% G10 garnets MK 3175NS+Large size MK 4525NS-4% G10 garnets; best KIM chemistry MK 420NS+10% G10 garnets MK 4220NS+ MK 3920NS+ MK 3820NS+24% G10 garnets; best KIM chemistry MK 720NS-Group 1 eclogitic garnets MK 3420NS+ MK 5215NS+ MK 5110NS+17% G10 garnets MK 8210NS-10% G10 garnets; best KIM chemistry MK 6510NS+Best diamond results MK 4810NS+ NS = Not yet sampled

26 25 Olivine macrocrysts Graded bedding MK45 Core Mantle eclogite

27 26 MK38 Core

28 27 # of HolesTonsJanFebMarAprMayJunJulAugSepOctNov BK MK14560 MK MK MK MK MK MK MK MK41140 MK MK MK71140 MK MK ?1 ?1 ?1 ?1 ?1 253,680 Mini Bulk Sampling Programme Rig 1 Rig 2 Legend LD Drilling Treatment Results

29 28 Tsabong Evaluation Timeline H2H1H2H1H2H1

30 29 Tsabong Exploration

31 30 Tsabong Exploration MK1 MK6 MK4 MK51 MK37 MK1 >80 geophysical targets to drill. 13 kimberlites discovered since Nov 06 8,000 metres of drilling planned

32 31 New discoveries Kimberlite Estimated Size (Ha) Depth of Overburden (m)Kimberlite type MK711548Crater/diatreme MK722291Crater/diatreme MK731816Diatreme/hypabyssal MK74820Diatreme/hypabyssal MK752897Diatreme MK761235Crater MK77834Crater MK78590Crater/diatreme MK Crater/diatreme MK Crater/diatreme MK811863Crater MK821291Crater MK Crater

33 32 Tsabong Exploration Timeline Q4Q1Q2Q3Q4Q1Q2Q3Q4 Ranking and evaluation KIM and Mida analyses Discovery drilling Geophysics KIM and Mida analyses Discovery drilling GeophysicsPhase 1 Phase 2

34 33 Tsabong Town

35 34 4 Outlook

36 35 Botswana projects  92 kimberlites, 23 diamondiferous  Expect more than 100 kimberlites by end 2008  Bulk sample kimberlites by end 2008 (3 samples completed)  Botswana economic ratio 7%  Good prospects for significant economic discovery  New projects identified

37 36 Corporate Information  Shares in issue: 55 million, 63 million fully diluted –~45% institutions; ~26% retail; ~29% management  Market cap £106 million  Cash Dec 07 ~ £5 million  Major shareholders –AXA/Framlington - 10% –Gartmore - 9% –JPMorgan - 6% –Artemis - 6%

38 37 Summary Experienced management team Cash and cash flow Highly prospective kimberlite portfolio Bulk sampling and exploration news flow in 2008

39 Disclaimer The information contained in this presentation ("Presentation") has been prepared by Firestone Diamonds plc (the "Company") and is being communicated for general background informational purposes only. The Presentation has not been independently verified and the information contained within is subject to updating, completion, revision, verification and further amendment. While the information contained herein has been prepared in good faith, neither the Company, nor its shareholders, directors, officers, agents, employees, or advisors give, has given or has authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortuous, statutory or otherwise, in respect of the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising from this Presentation. In communicating this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent. Information contained in this Presentation is the property of the Company. It is made available strictly for the purposes referred to above. The presentation and any further information made available to any recipient may not be reproduced, used or disclosed without the prior written consent of the Company. This Presentation shall not be copied, published, reproduced, or distributed in whole or in part at any time without the prior written consent of the Company.


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