Progress Report

Goldstone Resources Ltd
12 October 2004



GOLDSTONE RESOURCES LTD
PROGRESS REPORT


The Directors of GoldStone Resources Ltd ('the Company' or 'GoldStone') are
pleased to report on the progress of the Company's gold and bauxite exploration
programmes.


RORAIMA GOLD

The Company has to date identified and positioned in excess of 60 sites for the
drilling of holes.  The majority of these sites have been cleared and are ready
for drilling.  Further drill holes will be positioned depending on the assay
results as they are received.  Seven holes have been drilled to date and assay
results have been received in respect of two holes, details of which are set out
below.

The first drill hole, 24SW5, located in Lease Area A, intersected a
well-developed conglomeratic palaeoplacer-type sequence over a thickness of 215
metres.  This core was logged and over 200 samples sent to South Africa for
assay.  Results indicated that a mineralised unconformity had not been
intersected.  The drill rig has now been flown to a new site at the northern end
of the lease area where it is currently completing the second hole, 23NE1.

Drilling of all six holes planned for Lease Area B has been completed.  The two
favourable horizons being targeted have been intersected consistently in all
these holes and the cores are being sampled.  Assay results from the first
intersection in drill hole PP1 in Lease Area B have now been received, but have
not indicated values of consequence.  Drill hole PP1 was positioned in close
proximity to drill hole PP2, which was drilled in 2002 and which assayed at 3 g/
t over 45 cm.  The lack of assay values of consequence in PP1 is not
inconsistent with the level of variance associated with distal palaeoplacers.
Assay results from the remaining five drill holes in Lease Area B are expected
to be announced during November 2004.

Whilst the site clearing programme under the direct control of the Company is
being executed at speed, the outsourced drilling programme has been slower than
anticipated.  As a result, GoldStone has cancelled the drilling contract with
the third party contractor and in settlement has taken possession and ownership
of the drill rigs.  The execution of the drilling programme is therefore now
under the Company's control.  In order to ensure that delays in the drilling
programme will not prejudice the Company's interests, the Directors have
successfully negotiated with the Government of Guyana to extend the Company's
reconnaissance permit from its previous expiry date of 15 July 2005 to 15
December 2005.  The Board is of the opinion that this additional period is
adequate to safeguard the Company's interests and will provide it with
sufficient scope to complete the planned exploration programme.

Dr Minter reports that: 'Drill Hole 24SW5 in Lease 'A' was located close to the
entry margin of the basin in order to intersect the first key reference section
of Unit 4, which is the most prospective conglomeratic sequence in the Roraima.
As anticipated, it intersected a well developed palaeoplacer-type sequence of
coarse proximal conglomerates over a thickness of 215 metres. These compare
favourably with the Elsburg conglomerates of the Witwatersrand. Textural
evidence indicates many pulses of gravel deposition. Although these may
individually represent some of the repeated unconformities expected, none were
significantly mineralized. One expects that numerous separate fans of gravel
were deposited along the entry front of the basin, but their individual gold
potential will naturally vary and be dependent on sources that may have existed
upstream. Future drilling will systematically investigate each preserved fan for
associated mineralization.

Lease 'B' represents an outlying block of Roraima that lies some distance east
of Lease 'A' and contains deposits much more distant from the basin edge. The
original gold intersection (PP2) made there in 2002 represents a thin distal lag
concentrate containing high gold grades (26g/t) over a thickness of only 5
centimetres. Such deposits have been the most prolific gold bearers in the
history of Witwatersrand gold mining but are characterised by high gold variance
in a lateral sense. Five of the six drill holes planned for Lease 'B' have been
completed and have demonstrated a real continuity of the two favourable surfaces
that are being targeted. Assay results from the first of these drill holes (PP1)
have not indicated values of consequence but it is still premature to make a
pronouncement concerning gold potential of the lease.'


BAUXITE

Discussions continue with a major producer in the bauxite and alumina industry
over the potential exploitation of the Company's bauxite assets.  Separately,
the Board is also in discussions with a mineral consultancy agency regarding the
financing and execution of a full feasibility study on the assets.



Contacts:

GoldStone Resources Ltd                                     00 27 21 794 4004
Nico van der Hoven (Chief Executive Officer)

Westhouse Securities LLP
Bill Staple/Tim Feather                                         020 7601 6100




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