Final Results

Goldstone Resources Ltd
20 July 2007



                            GOLDSTONE RESOURCES LTD

                         ('Goldstone' or the 'Company')



          ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2007



CHIEF EXECUTIVE'S REPORT



I am setting out below a review of GoldStone's activities during the year ended
28 February 2007 which incorporates an update on the current status of the
Company's projects.



SWARTDORING DIAMOND PROJECT

In April 2007 GoldStone conditionally agreed to acquire a 70 per cent. interest
in Xanadu Mining (Pty) Limited from GeoQuest Holdings Limited (the 'Acquisition
').

Xanadu Mining has, through its wholly-owned subsidiaries, GrindStone Mining
(Pty) Limited and Multi-Direct Mining (Pty) Limited, filed applications for
prospecting rights over the Swartdoring Diamond Project, all of which have been
granted by the Department of Minerals and Energy in the Republic of South Africa
and subsequently notarially executed.

Completion of the Acquisition is now conditional on:



  • The successful listing of GoldStone on the Alternative Exchange of the JSE
    Securities Exchange; and



  • The approval of the Acquisition by the South African Reserve Bank.



Completion of the Acquisition will not take place until satisfaction of all of
the conditions, which must occur before 30 October 2007.

The Swartdoring diamond deposit is a preserved diamondiferous palaeochannel of
the Swartdoring river in the Northern and Western Cape Provinces of South
Africa.  The subsurface channel, which is buried beneath surficial sand cover,
ranges from 400 to 2,000 metres in width and occupies an area of 1,345 hectares.
  An inferred resource of 12 million tonnes of loose, uncemented,
diamond-bearing gravel, interpreted from drill hole records, lies beneath loose
to slightly cemented sandy overburden at an average stripping ratio of 12.4.
There is a possibility to extend this resource to approximately 49 million
tonnes of diamond-bearing gravel after analysis of results from further drilling
work and bulk sampling operations possibly to be conducted in the future.

Statistical analysis of the gravel bulk sampling results from samples collected
at either end of the palaeochannel indicates an average grade of 3.2 cpht for
both ends of the palaeochannel.  The last parcel of stones recovered at the
eastern end of the channel was classified as very good gem quality and was
valued at approximately US$475 per carat in current day terms.

In order to advance the project, the Directors estimate that an investment of
approximately US$500,000 will be required to fund direct exploration expenses.
The exploration will be conducted in order to complete a mining feasibility
study on the inferred resource of the project.



GOLD

The low tenor of gold intersections made in the most prospective palaeoplacers
during the drilling programme in Lease Areas 'A' and 'B' in Guyana, led the
Board to conclude that the likelihood of finding economical grades was poor.

In view of these results, the Company withdrew its prospecting licence
applications during the second quarter of 2006 and therefore ceased the gold
exploration programme in Guyana.



BAUXITE

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 final
analytical results of a bulk sample collected during the programme.

In July 2007, BHP Billiton elected not to exercise the option, which had been
extended, and no further payments are due.

BHP Billiton was obliged to make available and has delivered to GoldStone 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.



FINANCING

The Company's cash resources are currently approximately US$2.8 million.



BOARD

Mr Mike Christie, a non-executive director of the Company sadly passed away
during July 2006.



APPROVAL

Dr Lawrie Minter, who holds a PhD in palaeoplacer sedimentology, has reviewed
and approved the content of this announcement.



SUMMARY

The Board looks forward to completing the acquisition of the Swartdoring Diamond
project, which has the potential to provide near-term production to the Company.

The listing of GoldStone on the Alternative Exchange of the JSE Securities
Exchange is progressing as planned and the Board expects that this process will
be concluded to enable completion of the Acquisition before 31 October 2007.

In addition, on an ongoing basis the Board is investigating and reviewing other
potential exploration projects which may fall within the ambit of sediment
hosted minerals.



Nico van der Hoven

Chief Executive Officer



Enquiries:


GoldStone Resources Ltd                                                          00 27 21 794 4004

Nico van der Hoven

Hanson Westhouse Limited                                                             0113 246 2610

Tim Feather                                                        [e-mail]
Matthew Johnson                                                [e-mail]




PROFIT AND LOSS ACCOUNT


                                                             Note      Year ended     Year ended 
                                                                       28 February   28 February
                                                                              2007          2006
                                                                               US$           US$

TURNOVER
Exploration expenses - discontinued operations                            (759,626)   (2,498,919)

Gross loss                                                                (759,626)    (2,498,919


Management fees - discontinued operations                                   139,722        55,556
Other operating expenses - continuing operations                          (490,857)   (1,361,673)
Interest receivable - continuing operations                                 141,583        87,161


OPERATING LOSS FOR THE FINANCIAL YEAR
From discontinued operations                                              (619,904)   (2,443,363)
From continuing operations                                                (349,274)   (1,274,512)

                                                                          (969,178)   (3,717,875)

Profit on disposal of fixed asset - discontinued operations                 290,929             -

LOSS FOR THE FINANCIAL YEAR                                               (678,249)   (3,717,875)


Loss per ordinary share                                      1
Basic, from continuing operations (cents per share)                           (0.3)         (1.3)
Basic, from discontinued operations (cents per share)                         (0.2)         (2.5)



There are no other recognised gains or losses for the current or preceding
financial year other than as stated in the profit and loss account.



BALANCE SHEETS
                                                         Note                       28 February    28 February
                                                                                           2007           2006
                                                                                            US$            US$

FIXED ASSETS
Tangible assets                                                                          30,490        135,826

CURRENT ASSETS
Debtors and prepayments                                                                  48,540        394,563
Cash at bank                                                                          3,103,109      3,321,151

                                                                                      3,151,649      3,715,714
CREDITORS: amounts falling due within one year

Creditors and accruals                                                                 (78,679)       (69,831)

Net current assets                                                                    3,072,970      3,645,883

TOTAL ASSETS LESS CURRENT LIABILITIES                                                 3,103,460      3,781,709

CAPITAL AND RESERVES
Share capital                                                                         2,354,482      2,354,482
Share premium                                                                        13,849,554     13,849,554
Capital contribution reserve                                                            555,110        555,110
Profit and loss account - (deficit)                                                (13,655,686)   (12,977,437)

EQUITY SHAREHOLDERS' FUNDS                                                            3,103,460      3,781,709




CASHFLOW STATEMENT


                                                                                  Year ended 28 Year ended 28
                                                                                  February 2007 February 2006
                                                                                              $             $

Net cash outflow from operating activities                                            (705,657)   (4,460,469)

Returns on investment and servicing of finance
Interest received                                                                       141,583        87,155
Capital expenditure and financial investments
Purchase of fixed assets                                                                (3,968)       (5,362)
Sale of fixed assets                                                                    350,000       250,000

                                                                                      (218,042)   (4,128,676)

Financing
Issue of shares net of expenses and capital contribution                                      -     3,583,236

Decrease in cash                                                                      (218,042)     (545,440)


(i)  Reconciliation of net cash flow to movement in net debt

Decrease in cash                                                                      (218,042)     (545,440)
Net funds brought forward                                                             3,321,151     3,866,591

Net funds carried forward                                                             3,103,109     3,321,151


(ii)  Reconciliation of operating loss to net cash outflow
from operating activities
Operating loss                                                                        (969,178)   (3,717,875)

Adjusted for:

Depreciation & impairment loss                                                           50,233        81,004
Finance raising cost                                                                          -       111,263
Interest received                                                                     (141,583)      (87,155)
Decrease/(increase) in debtors                                                          346,023     (392,034)
Increase/(decrease) in creditors                                                          8,848     (455,672)


Net cash outflow from operating activities                                            (705,657)   (4,460,469)




NOTES:



1.  LOSS PER SHARE

Basic earnings per share is calculated by dividing the losses attributable to
ordinary shareholders by the weighted average number of ordinary shares in issue
after the placing on the AIM.  Diluted earnings per share is calculated using
the weighted average number of ordinary shares in issue as adjusted to assume
conversion of all dilutive potential ordinary shares.

FRS 22: Earnings Per Share ('EPS'), requires presentation of diluted EPS when a
company could be called upon to issue shares that would decrease net profit or
increase net loss per share.  For a loss making company with outstanding
warrants, net loss per share would only be increased by the exercise of out-of
the-money warrants.  Since it seems inappropriate to assume that option holders
would act irrationally, no adjustments has been made to diluted EPS for
out-of-the-money warrants.  The warrants expired on 30 September 2006.
                                                                                     2007            2006
                                                                                        $               $
Earnings per share

Loss attributable to share holders from continuing operations                   (349,274)     (1,274,512)
Loss attributable to share holders from discontinued operations                 (328,975)     (2,443,363)

Weighted average number of ordinary shares                                    130,816,633      96,608,315


Basic, from continuing operations (cents per share)                                 (0.3)           (1.3)
Basic, from discontinued operations (cents per share)                               (0.2)           (2.5)



2.  Annual report

The annual report and accounts for the year ended 28 February 2007 will be
posted to shareholders on or around 15 August 2007 and will be available from
the Company's website at www.goldstoneresources.com from the date of posting.






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