Private & Confidential Tel Aviv Presentation February 2008

Private & Confidential

Tel Aviv Presentation

February 2008

2

An emerging integrated diamond explorer and producer in Africa

November 2007

Disclaimer

This presentation has been compiled by Stellar Diamonds Limited (“the Company”) for information purposes only and is not advice

upon which it is intended that recipients should rely in deciding whether or not to invest in the Company. It is provided solely for use

by recipients to consider the proposed business of the Company and is not an offer of shares or an invitation to subscribe for shares or

to make any loan or other funding available to the Company. This document is only being distributed to persons who are reasonably

believed to be sufficiently expert to understand the risks involved as described in the Financial Services and Markets Act (Financial

Promotions) Order 2001.

The recipients accept that they will make their own investigation, analysis and decision relating to investing in the Company and will

not rely upon or use this document to form the basis or any decision on such an investment. This document does not take into account

the particular investment objectives, financial situation or the needs of individuals investors and you should consider whether it is

suitable for your circumstances and, if necessary, seek professional advice.

The directors and advisers of the Company make no representation or warranty themselves, express or implied, as to the accuracy,

reasonableness or completeness of the information contained in this document and it should not be relied upon as such. It contains

statements and estimates with respect to the future anticipated performance of the Company. Such information may or may not prove

to be correct. To the extent that it is lawfully able to do so, the Company and its advisers exclude liability for any representation or as

to the accuracy of such statements, estimates or projections.

This document is confidential. It is only for the use of those to whom it is issued. It must not be copied or distributed to third parties

(other than in confidence to the recipient’s professional advisers).

The Company’s affiliates, officers, directors, advisers and employees, including persons involved in the preparation or issuance of this

document may from time to time have holdings in the Company’s securities.

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November 2007

Introduction

Created in May 2007 as part of reorganisation of Mano River Resources

Focussed diamond mining and exploration company

Active in Sierra Leone, Liberia, Guinea and DRC

JV partners include: BHP Billiton, De Beers, Petra Diamonds, Trans Hex

AIM listing planned for first half of 2008 (future TSX Listing under

consideration)

Financing of up to £10 million

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November 2007

Current Capital structure

Stellar Diamonds Ltd28.1m shares

3.2m warrants*

Mano River Res. Inc 68.5%

Search Gold Res. Inc.9.5%

Seed and Pre-IPO Investors

22.0%

* 3,016,967 warrants exercisable at £1.20

* 260,390 broker warrants exercisable at £0.87

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November 2007

Experienced Board

Karl Smithson, Chief Executive Officer

Diamond Geologist and MBA with 20 years African

experience, including 8 in West Africa. Senior

management positions with De Beers, SouthernEra

and Mano River

Lord Peter Daresbury, Non-executive Chairman

Involvement in emerging markets since 1994.

Previously Chairman of De Vere Hotels plc 2000-2005,

Highland Gold Mining Ltd 2002-2004 and Chairman of

KazakhGold Group Ltd 2005-2007

Luis da Silva, Executive Director

Mining Engineer and MBA with 14 years industry

and corporate experience with Blue Circle Industries

and Lafarge SA. CEO Mano River Resources

Steven Poulton, Non-executive Director

Mining geologist with entrepreneurial track record,

previously 7 years with Mano River. Founder of

Ariana, African Aura and Altus Strategies.

Philippe Giaro, Non-Executive Director

Geologist with 23 years experience in mineral

exploration and engineering. President of TSX-V listed

SearchGold Resources

Paul Rankine, Non-Executive Director

Mining engineer and MBA with 22 years experience

including Zambesi Nickel (founder and CEO),

Citigroup Asset Mgt., and De Beers. Director of Altima

Partners

Guido (‘Guy’) Pas, Non-Executive

Founder, Co-founder or seed investor of, Addax&Oryx,

Samax, Eastbound, Mano River, Oxus, Afren,

AfricaWest, Siberian Diamonds

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November 2007

Corporate Strategy

Focus on advanced projects to generate cash flow in 2008

– Bring alluvial project into production at Mandala, Guinea

– Continue underground trial mining in Kono, Sierra Leone

Continue key exploration projects

– Bulk sample high grade kimberlites at Tongo and Bouro

– Increase alluvial resource in Guinea

– Discover new diamondiferous kimberlites in Liberia and North DRC

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November 2007

Production expected from 2008

2008 2009 2010

Sierra Leone($200 per carat)*

6,500 20,000 30,000

Guinea($60 per carat)*

25,000 102,000 102,000

Note: * director’s estimate

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November 2007

Africa Focussed

West Africa

Historical Production:

• 150 million carats

• worth $15billion

• Mostly alluvial sources

North DRC

Production in 2006:

• 146,000 carats, >$100/ct

• All alluvial sources

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November 2007

Emerging Democracies

Sierra Leone peaceful since 2002. Two free and fair democratic elections,

change of government in 2007 when President Koroma elected.

Liberia peaceful since 2004. Ellen Johnson Sirleaf elected first woman

president of Africa in 2006.

Guinea never at war. New Government appointed by President Conte.

DRC stabilising under President Kabila.

Massive investment in the resources sector confirms these countries as

acceptable and improving investment destinations.

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November 2007

West Africa Portfolio (15,112 km2)

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November 2007

Sierra Leone - Overview

Historical diamond production estimated at 50 million carats

Current diamond production over 600,000 carats valued at $144million

Stellar holds licences in Kono and Tongo, the key diamond districts

970ct ‘Star of Sierra Leone’ found in Kono (world’s 3rd largest diamond)

970 ct ‘Star of Sierra Leone’

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November 2007

Sierra Leone, Kono JV

49:51 JV with Petra Diamonds

Underground bulk sampling underway

Grades between 50cpht to 80cpht

Diamond value of $200/ct forecasted

Production decision in 2008

75tph DMS plant site at Kono

Trial mining shaft site

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November 2007

Sierra Leone, Kono JV

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November 2007

Sierra Leone, BHP Billiton JV (Tongo)

BHP spending $3.4 million for 51%

4 kimberlite dykes

Grab sample grades up to 385cpht

1,200kg yielded 1,894 diamonds

(2.05 carats)

Grade estimate of over 500cpht

Historical value reported $175/carat

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November 2007

Guinea Projects

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November 2007

Guinea - Overview

Highly prospective Man Craton as found in Sierra Leone and Liberia

Alluvial diamonds mined since 1935

Under explored for primary sources, with no hard rock diamond mining

Stellar has kimberlite and alluvial diamond projects:

– Mandala alluvial diamond project

– Bouro kimberlite project

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November 2007

Guinea, Mandala Alluvial Project

536,000 carat indicated resource

144,000 carat inferred resource

$60/ct estimate

Largest diamond 21.47 carats

MB100tph plant under construction

Mine fleet purchased and shipped

Production expected H2-08

Attractive margin / low capex mining

operation giving early cash flow

Mandala Valley

MB100 Plant in DRC

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November 2007

Guinea, Mandala Project Scenarios

Budgeted Mining

Capacity

Increased Mining Capacity

Capital ($2.6m spent) $5.2million $5.8million

Life of Mine 60 months 40 months

Carats per annum 102,000 151,600

Gross revenue - annual $6,120,000 $9,096,000

Cost per cubic metre $17.49 $13.94

Cost per carat $37.21 $29.66

Revenue per carat $60 $60

Capital payback October 2011 June 2010

Note: These diamonds were recovered from Search Gold’s bulk sampling in 2002 to 2004 which produced 6,571 carats

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November 2007

Guinea, Bouro Kimberlite Project

Formerly held by De Beers

Four dyke zones drilled and sampled

5km Bouro North dyke focus

1,920kg = 4,635 diamonds (10.44 cts)

Grade estimation over 500cpht

Bulk sample planning stage

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November 2007

Liberia Projects

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November 2007

Liberia - Overview

Highly prospective, unexplored craton with numerous diamond areas

Artisanal production approximately 150,000 carats pa at ±$150 / ct (est.

Rapaport 4/5/2007)

Diamond sanctions lifted in May 2007

Stellar holds strong ‘first mover’ land position in Weasua & MCA

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November 2007

Liberia, Weasua JV Project

50:50 JV with Trans Hex Group

5 diamondiferous pipes (1ha - 6ha)

Significant tonnage potential

Bulk sampling in progress

Further kimberlite discoveries expected

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November 2007

Liberia, MCA Licence

11,550km2 of Archaean craton

Active artisanal diamond mining

Sampling completed

Airborne geophysics completed

Several new targets defined

New pipe discoveries expected

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November 2007

DRC Projects

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November 2007

DRC - Overview

DRC is world’s 3rd largest diamond producer by volume

2006 production of 32 million carats, valued at $540 million ($17/ct) mostly from

southern DRC

Stellar has properties in the under explored north DRC

Estimated production in north DRC valued at $20m per year at >$100/ct

Unexplored, highly prospective Archaean craton yielding gem diamonds

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November 2007

North DRC, BHP Billiton JV

10,852 km2 JV with BHPB

Stellar to earn 50% interest

500t bulk sample triggers 50%

Activity artisanal mining

Value reported to be >$300/ct

39 ct stone reported

Note: These diamonds were observed by Competent Person John Brook in buying offices in Medje and Isiro during his site visit in September 2007.

Medje is located in the southern BHPB JV area.

from buying office in Medje 200 carat parcel from Medjefrom buying office in Isiro

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November 2007

North DRC, Remec JV

1,308 km2 JV with REMEC

Stellar can earn 75% interest

Diamond mining town of Panga

Contiguous with De Beers

Panga

Suspected Artisanal diamond workings

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November 2007

Country Project % £m JV Partner Use

Sierra Leone Kono 49% 2.3 Petra DiamondsMaintain equity in underground development and mining

Guinea Bouro/Mandala 100% 3.9 Finish capitalising and w/c for alluvial mine

Liberia Weasua pipes 50% 0.4 Trans Hex Bulk sampling and exploration

Liberia North Bea 0% 0.1 African Aura Geophysics and drill testing

Liberia MCA + Alpha 70% 0.0 Gov’t of Liberia Exploration – JV discussions

Guinea Regional 100% 0.2 De Beers Exploration

DRC Regional 0% 0.5 BHPB Exploration

DRC Regional 0% 0.8 Remec Exploration

Corporate 0.7

IPO, legal and audit fees 0.7 Estimated cost

18 Month Budget 9.6

Use of Proceeds – 18 months

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November 2007

Summary

Balanced portfolio of assets in West and Central Africa

– Near production, bulk sampling & exploration with excellent discovery potential

Cash flow expected from Guinea and Sierra Leone in 2008

Experienced management team

Industry leading JV partners

Strong platform for future growth

Private & Confidential

32 Bloomsbury Street, London, WC1B 3QJ, United Kingdom

Tel: + 44 (0) 207 299 4212 / Fax: + 44 (0) 207 299 4209 / Cell: + 44 (0) 778 370 7971

www.stellar-diamonds.com

Documents

Private & Confidential Tel Aviv Presentation February 2008