Interim Results

Goldstone Resources Ltd
22 November 2006


                          GOLDSTONE RESOURCES LIMITED

            INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2006


Chief Executive's Report

I am setting out below a review of GoldStone's activities during the 6 months
ended 31st August 2006, which incorporates an update on the current status of
the Company's projects.


GOLD PROGRAMME IN GUYANA

The low tenor of gold intersections made in the most prospective palaeoplacers
during the overall 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 and therefore ceased the gold exploration programme in Guyana.


BAUXITE

In September 2005, GoldStone entered into an option agreement with BHP Billiton
over the Company's 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 6 June 2007.

Further, more detailed, sampling is planned and this programme has now
commenced.


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 disappointing results from the gold exploration programme caused the Board
during the period under review to terminate any further exploration for
palaeoplacer gold deposits in Guyana.

The bauxite exploration continues under the terms of the agreement with BHP
Billiton, which is funding the programme.

The Company has significant cash resources and the Board is currently reviewing
the potential acquisition of an alluvial diamond project.


Nico van der Hoven
Chief Executive Officer

16th November 2006



PROFIT AND LOSS ACCOUNTS
                                                  6 Months ended          6 Months ended          12 Months ended
                                                  31 August 2006          31 August 2005         28 February 2006

Turnover
Exploration Expenses                                    (582,273)             (2,204,449)              (2,498,919)

Gross Loss                                              (582,273)             (2,204,449)              (2,498,919)

Management fee Income                                      39,722                       0                   55,556
Other operating expenses                                (217,482)               (738,931)              (1,361,673)
Interest receivable                                        70,155                  36,584                   87,161

OPERATING LOSS FOR THE PERIOD                           (689,878)             (2,906,796)              (3,717,875)

Balance brought forward - (deficit)                  (12,977,437)             (9,259,562)              (9,259,562)

Balance brought forward - (deficit)                  (13,667,315)            (12,166,358)             (12,977,437)

Loss per ordinary share

Basic (cents per share)                                     (0.7)                   (4.7)                    (3.8)


BALANCE
SHEET
                          6 Months ended                   6 Months ended                   12 Months ended
                          31 August 2006                   31 August 2005                  28 February 2006
                  
FIXED ASSETS

Tangible assets                   95,099                          451,499                           135,826


CURRENT ASSETS

Debtors and prepayments           43,689                                0                           394,563

Cash at bank                   2,988,989                          615,580                         3,321,151

                               3,032,679                          615,580                         3,715,714

CREDITORS: amounts falling
due within one year

Creditors and accruals           (35,947)                        (168,791)                          (69,831)

                                 (35,947)                        (168,791)                          (69,831)

Net current assets             2,996,732                          446,789                         3,645,883

TOTAL ASSETS                   3,091,831                          898,288                         3,781,709


CAPITAL AND RESERVES

Share capital                  2,354,482                        1,122,982                         2,354,482

Share premium                 13,849,554                       11,386,554                        13,849,554

Capital contribution             555,110                          555,110                           555,110

reserve

Profit and loss -            (13,667,315)                     (12,166,358)                      (12,977,437)
(deficit)

                                3,091,831                          898,288                         3,781,709



CASH FLOW STATEMENT
                                                    6 Months ended         6 Months ended         12 Months ended
                                                    31 August 2006         31 August 2005         28 February 2006

Reconcilliation of operating profit/(loss)
to net cash inflow from operating activities

Operating loss                                             (689,878)            (2,906,796)             (3,717,875)

Adjusted for:
Depreciation                                                  40,726                  9,969                  81,004
Finance raising costs                                              0                      0                 111,263
Interest Received                                           (70,155)               (36,585)                (87,155)
Decrease in Debtors                                          350,874                  2,529               (392,034)
Decrease in Creditors                                       (33,884)              (356,713)               (455,672)

Net cash outflow from operating activities                 (402,317)            (3,287,595)             (4,460,469)



CASH FLOW STATEMENT

Net cash outflow from operating activities                 (402,317)            (3,287,595)             (4,460,469)

Returns on investment and servicing of                        70,155                 36,585                  87,154
finance

Capital expenditure                                                                       0
Purchase of Fixed Assets                                                                                    (5,362)
Sale of Fixed Assets                                                                                        250,000

                                                           (332,162)            (3,251,011)             (4,128,677)

Financing                                                          0                      0               3,583,237

Decrease in cash                                           (332,162)            (3,251,011)               (545,440)


Reconciliation of net cash flow to movement in
net debt

Decrease in cash in the period                             (332,162)            (3,251,011)               (545,440)
Net Funds 1 March 2006                                     3,321,151              3,866,591               3,866,591

Net Funds at 31 August 2006                                2,988,989                615,580               3,321,151





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.

  FRS 14: Earnings Per Share ('EPS'), requires presentation of diluted EPS when 
  a company could be called upon to issue share 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 
  warrants of out-of-the-money warrants.  Since it seems inapropriate to assume 
  that option holders would act irrationally, no adjustment has been made to 
  diluted EPS for out-of-the-money warrants

                                      6 Months ended    6 Months ended          12 Months ended
                                      31 August 2006    31 August 2005         28 February 2006
                                                                                                     
Earnings per share

Loss attributable to shareholders           (689,878)      (2,906,796)                (3,717,875)

                                                  No.            No.                    No.
Weighted average number of
ordinary shares                           96,608,315       62,400,000                 96,608,315

Basic loss per share (cents)                 (0.7)            (4.7)                      (3.8)


2 Basis of Preparation

  The financial information in this report has been prepared in United States 
  Dollars under the historical cost convention and in accordance with accounting
  standards applicable in the United Kingdom.



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