Progress Report

Goldstone Resources Ltd
01 November 2007


                            GOLDSTONE RESOURCES LTD

                PROGRESS REPORT AND CHANGE OF REGISTERED OFFICE


The Directors of GoldStone Resources Ltd ('GoldStone' or the 'Company') wish to
provide the following update on the Company's activities.



SWARTDORING DIAMOND PROJECT



In April 2007 GoldStone conditionally agreed to acquire a 70% interest in Xanadu
Mining (Pty) Ltd ('Xanadu') from GeoQuest Holdings Limited ('GeoQuest') (the '
Acquisition').  The interest comprises 70% of both the share capital of Xanadu
and inter-company loans owed by Xanadu to GeoQuest.



Xanadu, through its wholly owned subsidiaries, GrindStone Mining (Pty) Ltd and
Multidirect Mining (Pty) Ltd, holds prospecting rights over the Swardoring
Diamond Project.



Completion of the Acquisition is conditional on:



•        The successful listing of GoldStone on the Alternative Exchange of the
         JSE Securities Exchange; and



•        The approval of the Acquisition by the South African Reserve Bank ('
         SARB').



The Company has received provisional approval from the Listings Committee of the
JSE Securities Exchange to list on the Alternative Exchange.  In addition the
SARB has approved the acquisition of 70% of the share capital of Xanadu by
GoldStone.  Approval by the SARB of the acquisition of the inter-company loans
is still pending.



Completion of the Acquisition will not take place until full satisfaction of
each of the conditions.  GoldStone and GeoQuest have agreed to extend the long
stop date for completion of the Acquisition to 28 February 2008.



The Swartdoring Diamond Deposit is a preserved diamondiferous palaeochannel of
the Swartdoring River in the Northern and Western Cape Provinces of South
Africa.  An inferred resource of 12 million tonnes of diamond bearing gravel
lies beneath loose to slightly cemented sandy overburden and there is a
possibility to extend this resource to approximately 49 million tonnes of
diamond bearing gravel.  Exploration at an investment cost of approximately
US$500,000 will be conducted in order to complete a Mining Feasibility Study on
the inferred resource of the project.



BAUXITE



In September 2005, GoldStone entered into an option agreement with BHP Billiton
over the bauxite interests in Guyana.  An initial programme was launched to
explore the bauxite potential in the leased areas.  The programme confirmed the
deposits previously identified by GoldStone.



Further more detailed sampling was undertaken during the first quarter of 2007
and the Company has since received all the results from this completed
programme.  BHP Billiton elected during July 2007 not to exercise its option and
subsequently made available to GoldStone all information in its possession
relating to the exploration programme, as well as a summarising geological
report.



During the third quarter of 2007 GoldStone secured an extension of the expiry
date of the bauxite Reconnaissance Permission from 5 September 2007 to 4 January
2008.  The Company has since entered into discussions with other major players
in the bauxite industry and the bauxite project is accordingly being evaluated
and considered.



FINANCING



The Company's cash resources are currently US$2.65 million.



APPROVAL



Dr. Lawrie Minter, who holds a PhD in palaeoplacer sedimentology has reviewed
and approved the content of this announcement.



CHANGE OF REGISTERED OFFICE



The Directors of GoldStone also announce that registered office of the Company
has changed to:



PO Box 560

Heron House

L'Avenue de la Commune

St Peter

JE4 8XP

Jersey





SUMMARY



The Board looks forward to the completion of the acquisition of the Swartdoring
Diamond Project which has the potential to provide near term production to the
Company.



The listing of GoldStone on the Alternative Exchange is taking longer than
planned due to the outstanding SARB approval.  This process is well advanced and
the Board anticipates that the listing and completion of the Acquisition will
take place in early 2008.



In addition and on an ongoing basis the Board is actively investigating and
reviewing other potential exploration projects which may fall within the ambit
of sediment hosted minerals.



Enquiries:


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

Hanson Westhouse Limited                                  0113 246 2610
Tim Feather / Matthew Johnson




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