Interim Results

Goldstone Resources Ltd
29 November 2005

                          GOLDSTONE RESOURCES LIMITED

            INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2005


Chief Executive Officer's Report

I am pleased to provide a review of GoldStone's activities during the 6 months
ended 31 August 2005.

The gold reconnaissance drilling programme was completed in June 2005.  A total
of 12,285 metres of core was recovered from 56 drill sites.  All assay results
have been received and indicate that fifty four gold-bearing palaeoplacer layers
have been intersected.  Assay values obtained range from 0.10 to 3.78 g/tonne
over an average sample thickness of 27 centimetres.

The six most prospective palaeoplacers, ranked according to geological
attributes and gold assay results, each extend over 100 km2 and are at present
being explored further by means of outcrop sampling and soil geochemistry.  This
approach is successfully defining targets where the best gold grades can be
tested.  Further stratigraphic and sedimentological analysis of the data base
will be integrated with these results and by mid-January sites will be selected
for trenching and detailed drilling.

A separate and additional Bauxite Reconnaissance Permit was obtained from the
Guyana Geological and Mines Commission during August 2005.  Pursuant thereto, an
option agreement pertaining to the Company's bauxite interests in Guyana was
concluded with BHP Billiton during the same month.  Work on the bauxite deposits
in the Kopinang basin, which is being funded by BHP Billiton, has commenced with
two exploration teams currently in progress in the field.

In order to provide sufficient working capital to maintain the various mineral
rights and to carry out the next phase of exploration on the gold project, the
Company carried out a placing during October 2005, which successfully raised
£2,042,500.  Under the placing, 68,083,330 ordinary shares of 1p each were
issued at a price of 3p per share.  The successful placing will afford the
Company the opportunity to take the gold project to the next stage and may also
enable a strategic alliance with a major gold company, aimed at investigating
other potential gold-bearing palaeoplacer deposits located elsewhere in the
world.

Nico van der Hoven
Chief Executive Officer
28 November 2005


PROFIT AND LOSS ACCOUNTS
                            Notes         6 months ended          12 months ended            6 months ended
                                         31 August 2005          28 February 2005            31 August 2004
                                                US$                     US$                       US$

Turnover                                         -                       -                         -
Exploration expenses                        (2,204,449)             (4,336,090)               (1,770,789)

Gross loss                                  (2,204,449)             (4,336,090)               (1,770,789)

Other operating expenses                     (738,931)              (2,158,287)               (1,507,635)
Interest receivable                           36,584                  166,912                    83,832


OPERATING LOSS FOR THE                      (2,906,795)             (6,327,465)               (3,194,592)
PERIOD

Balance brought forward -                   (9,259,562)             (2,932,097)               (2,932,097)
(deficit)

Balance brought forward -                  (12,166,357)             (9,259,562)               (6,126,689)
(deficit)

Loss per ordinary share

Basic (cents per share)       1                (4.7)                  (10.1)                     (5.1)




BALANCE SHEETS
                                          6 months ended         12 months ended            6 months ended
FIXED ASSETS                              31 August 2005         28 February 2005           31 August 2004

Tangible assets                               451,499                461,468                    254,329


CURRENT ASSETS

Debtors and prepayments                          -                    2,529                        -
Cash at bank                                  615,580               3,866,591                  7,335,766
                                              615,580               3,869,120                  7,335,766

CREDITORS: amounts falling
due within one year

Amount due to parent                             -                   (40,499)                  (41,537)
company
Creditors and accruals                       (168,791)              (485,005)                  (610,601)
                                             (168,791)              (525,504)                  (652,138)

Net current assets                            446,789               3,343,616                  6,683,628

TOTAL ASSETS                                  898,288               3,805,084                  6,937,957


CAPITAL AND RESERVES

Share capital                                1,122,982              1,122,982                  1,122,982
Share premium                               11,386,554              11,386,554                11,386,554
Capital contribution                          555,110                555,110                    555,110
reserve
Profit and loss -                          (12,166,358)            (9,259,562)                (6,126,689)
(deficit)

Equity Shareholders' Funds                    898,288               3,805,084                  6,937,957




CASH FLOW STATEMENTS
                                          6 months ended         12 months ended            6 months ended
                                          31 August 2005         28 February 2005           31 August 2004

Reconciliation of operating
loss to net cash inflow from
operating activities

Operating loss                             (2,906,796)             (6,327,465)                (3,194,592)

Adjusted for:
Depreciation                                  9,969                  237,614                    22,359
Finance raising costs                           -                    827,820                    827,820
Interest received                            (36,585)               (166,912)                  (83,832)
Decrease in debtors                           2,529                  316,409                    318,938
Decrease in creditors                       (356,713)                249,506                    376,140

Net cash outflow from                      (3,287,595)             (4,863,028)                (1,733,167)
operating activities

Net cash outflow from                      (3,287,595)             (4,863,028)                (1,733,167)
operating activities

Returns on investment and                     36,585                 166,912                    83,832
servicing of finance

Capital expenditure                             -                   (690,656)                  (268,262)

Financing                                       -                   9,252,180                  9,252,180

Increase in cash                           (3,251,011)              3,865,408                  7,334,583

Reconciliation of net cash
flow to movement in net debt

Decrease in cash in the period             (3,251,011)              3,865,408                  7,334,583
Net funds at 1 March 2005                   3,866,591                 1,183                      1,183

Net funds at 31 August 2005                  615,580                3,866,591                  7,335,766




NOTES

1.     Loss per share

Basic loss per share is calculated by dividing the losses attributable to ordinary
shareholders by the weighted average number of ordinary shares in issue.  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.

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.  The Company has one class of dilutive potential ordinary shares being the
warrants issued at the time of placing and admission to AIM.  For a loss making
company with outstanding warrants, net loss per share would only be increased by the
exercise of warrants.  No warrants have been exercised during the period; no
adjustment was therefore made to dilute EPS for outstanding warrants.

                            6 months ended      12 months ended         6 months ended
                            31 August 2005     28 February 2005         31 August 2004
Loss per share

Loss attributable to         (2,906,796)          (6,327,465)             (3,194,592)
shareholders

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

Basic loss per share            (4.7)               (10.1)                   (5.1)
(cents)


2.         Basis of preparation

The financial information in this Interim 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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