Progress Report

Goldstone Resources Ltd
03 August 2004


GOLDSTONE RESOURCES LIMITED
DRILLING COMMENCED IN LEASE AREA 'A' IN GUYANA

The Directors of GoldStone Resources Limited ('the Company') are pleased to
announce that it has commenced drilling operations in the Kurupung Area of Lease
Area 'A'.

It is envisaged that assay results from the first bore holes will, as originally
anticipated, be available for release to the market towards the end of this
quarter.

A second new drill, which recently arrived in Guyana, is currently being
commissioned to start drilling operations in Lease Area 'B' ('Parish's Peak').
The Company had during its previous exploration programme in Parish's Peak
intersected a gold bearing palaeoplacer.  It is anticipated that drilling will
commence here within a fortnight and that assay results will be available
together with the results of the first drill holes of Lease Area A.

Contacts:

GoldStone Resources Limited                                  00 27 21 794 4004
Nico van der Hoven (Chief Executive Officer)
Jurie Wessels (Finance Director)

Westhouse Securities                                             020 7601 6101
Bill Staple
Tim Feather


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