Interim Results

Goldstone Resources Ltd
30 November 2004

GOLDSTONE RESOURCES LIMITED
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2004



Chief Executive's Statement



I am pleased to provide a review of GoldStone's activities during the six months
ended 31 August 2004.



The exploration in Guyana commenced soon after the Company's successful
admission to AIM in March 2004.  The task of clearing drill sites got underway
during April 2004 and preparations were made to facilitate drilling operations.



Drilling commenced in August but progress was subject to delays caused by the
drilling contractor and as a result, in September, the Company took possession
and control of the two drill rigs.  The rate of drilling has accelerated during
the past two months and should improve further when two additional rigs are
commissioned in December 2004.  In order to safeguard the Company's interests
and to allow the Company sufficient scope to complete the planned exploration
programme, the Board negotiated an extension of the reconnaissance permit until
December 2005.



The first cores recovered in August have been logged and were assayed in
October.  In Lease Area 'A', well-developed conglomeratic palaeoplacer-type
sequences have been intersected and in one hole a palaeoplacer was intersected
54 metres below surface which assayed 6.3 g/t over a thickness of 5 cm.  In
Lease Area 'B', where a gold-bearing palaeoplacer containing 3 g/t over 45 cm
was previously intersected, only one of the five new holes drilled revealed
continuation of the mineralized trend.  Further geological assessment involving
3-dimensional stratigraphic analysis is necessary before planning any further
drill sites in Lease Area 'B'.



To date 2,680 metres of drilling have been completed out of a planned 15,000
metres.  Although economic mineralization has not been intersected at this early
stage of the programme, the Board is nevertheless encouraged by the
palaeoplacer-type sequences encountered and is optimistic that the Company will
reach its exploration goals.



Further exploration work undertaken on bauxite deposits in the Kopinang Basin
has indicated a potential resource in excess of 1,100 million metric tonnes.  A
major player in the alumina industry is in the process of investigating the
deposit and it is expected that there will be further news early in 2005
regarding the exploration and potential exploitation of this asset.



Nico van der Hoven
Chief Executive Officer
29 November 2004






PROFIT AND LOSS ACCOUNTS
                                            Note                6 Months ended             12 Months ended
                                                                31 August 2004            29 February 2004
                                                                             $                           $

Exploration Expenses                                               (1,770,789)                   (130,607)

Gross Loss                                                         (1,770,789)                   (130,607)

Other operating expenses                                           (1,507,635)                   (343,663)
Interest receivable                                                     83,832                          27


OPERATING LOSS FOR THE PERIOD                                      (3,194,592)                   (474,243)

Balance brought forward - (deficit)                                (2,932,097)                 (2,457,854)

Balance carried forward                                            (6,126,689)                 (2,932,097)



Loss per ordinary share                         1

Basic (cents per share)                                                 (5.12)                    (35,657)

Additional basic (cents per share)                                      (5.12)                      (0.75)

Additional diluted (cents per share)                                    (5.31)                      (0.79)






BALANCE SHEETS
                                                              6 Months ended             12 Months ended
                                                              31 August 2004            29 February 2004
                                                                           $                           $
FIXED ASSETS

Tangible assets                                                      254,329                       8,426


CURRENT ASSETS

Debtors and prepayments                                                    -                     318,938
Cash at bank                                                       7,335,766                       1,183
                                                                   7,335,766                     320,121

CREDITORS:   amounts falling due
             within one year

Amount due to parent company                                        (41,537)                    (18,938)
Creditors and accruals                                             (610,601)                   (257,060)
                                                                   (652,138)                   (275,998)

Net current assets                                                 6,683,628                      44,123

TOTAL ASSETS                                                       6,937,957                      52,549


CAPITAL AND RESERVES

Share capital                                                      1,122,982                       2,082

Share premium                                                     11,386,554                   1,912,362

Capital contribution reserve                                         555,110                   1,070,202

Profit and loss - (deficit)                                      (6,126,689)                 (2,932,097)

                                                                   6,937,957                      52,549




CASH FLOW STATEMENTS
                                                Notes                6 Months ended           12 Months ended
                                                                     31 August 2004          29 February 2004
                                                                                  $                         $
Reconciliation of operating loss
to net cash outflow from operating activities

Operating loss                                                          (3,194,592)                 (474,243)

Adjusted for:
Depreciation                                                                 22,359                    13,885
Finance raising costs                                                       827,820                         0
Interest received                                                          (83,832)                      (27)
Decrease in debtors                                                         318,938                 (262,073)
Increase in creditors                                                       376,140                   205,396

Net cash outflow from operating activities                              (1,733,167)                 (517,062)



CASH FLOW STATEMENT

Net cash outflow from operating activities                              (1,733,167)                 (517,062)

Returns on investment and servicing of finance                               83,832                        27

Capital expenditure                                                         268,262                         0

                                                                        (1,917,597)                 (517,035)

Financing                                         1                       9,252,180                   515,092

Increase in cash                                                        (7,334,583)                   (1,943)

Reconciliation of net cash flow to movement in    2
net debt

Increase in cash in the period                                            7,334,583                   (1,943)
Net Funds at 1 March 2004                                                     1,183                     3,126

Net Funds at 31 August 2004                                               7,335,766                     1,183




NOTES TO CASH FLOW STATEMENTS
                                                    6 Months ended                       12 Months ended
 1. Financing                                       31 August 2004                      29 February 2004
                                                                 $                                     $

    Issuing of ordinary share capital                   10,080,000                                     -
    subsequent to placing on AIM
    Listing expenses                                     (827,820)
    Funds to converted to share capital                                                          515,092

                                                         9,252,180                               515,092


 2. Analysis of changes in net debt
                                                      1 March 2004   Cash flows           31 August 2004
                                                                 $            $                        $

    Cash in hand and at bank                                 1,183    7,334,583                7,335,766

                                                             1,183    7,334,583                7,335,766


                                                      1 March 2003   Cash flows         29 February 2004
                                                                 $            $                        $

    Cash in hand and at bank                                 3,126      (1,943)                    1,183

                                                             3,126      (1,943)                    1,183




NOTES

 1   Earnings 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.

     Additional earnings per share calculations have been given on the basis of taking account of the
     shares and potential shares in issue after the date of the admission to AIM, as if they had been in
     issue throughout the period of these financial statements.

     The company has one class of dilutive potential ordinary shares being the warrants issued at the time
     of placing and admission to AIM.



                                              6 Months ended                12 Months ended
                                              31 August 2004               29 February 2004
                                                           $                              $
     Earnings per share

     Loss attributable to shareholders           (3,194,592)                      (474,243)


                                                         No.                            No.
     Weighted average number of
     ordinary shares                              62,400,000                          1,330


     Basic loss per share (cents)                       5.12                         35,657


     Additional earnings per share                       No.                            No.

     Weighted average number of
     ordinary shares (million)                          62.4                           62.4

     Effect of dilutive ordinary shares:
     Warrants                                          (2.2)                          (2.2)

                                                        60.2                           60.2

     Basic loss per share (cents)                     (5.12)                         (0.75)

     Diluted loss per share (cents)                   (5.31)                         (0.79)






2.  The financial statements have been prepared in United States Dollars under the historical cost convention in        
    accordance with accounting standards applicable in the United Kingdom.


                      This information is provided by RNS
            The company news service from the London Stock Exchange