Progress Report

Goldstone Resources Ltd
07 March 2008


                            GOLDSTONE RESOURCES LTD
                         ('GoldStone' or the 'Company')

                                PROGRESS REPORT


GoldStone announces that the Company appointed Snowden Mining Industry
Consultants (Pty) Ltd ('Snowden') to oversee its upcoming planned exploration
programme for the Swartdoring Diamond Project, with the objective of generating
a bankable feasibility study on the project.

In April 2007 GoldStone conditionally agreed to acquire a 70% interest in Xanadu
Mining (Pty) Ltd ('Xanadu') (the 'Acquisition'). Xanadu indirectly holds
prospecting rights over the Swartdoring Diamond Project.  Completion of the
Acquisition is conditional on the listing of GoldStone on the Alternative
Exchange of the JSE Securities Exchange ('ALTx').

The Board's criteria for this new project were that it should be relatively low
cost, low risk and have the potential to provide early cash flow to the Company.
The rationale for the Acquisition was that the Board estimated that an
investment of approximately US$500,000 would fund the direct exploration
expenses for the completion of a mining feasibility study on the Inferred
Resource of 12 million tonnes and that this satisfied the criteria set for the
new project.  The estimate was based on an exploration programme which was
designed in conjunction with an independent geological consultancy agency.

Snowden has, in preparation for the mandate, reviewed the planned exploration
programme.  Snowden has recommended that the programme be redesigned so that the
exploration be undertaken initially on only part of the Inferred Resource in
order to maximise the value of the drilling and sampling programme while
minimising risk.  Such a programme would be expected to provide an Indicated
Resource in compliance with JORC standards of up to 1.9 million tonnes, out of
the total 12 million tonne Inferred Resource, in an area of approximately 250
metres by 1,000 metres with mining commencing in 12 to 18 months.

The Board anticipates that the revised exploration programme would require an
investment substantially in excess of US$500,000.  The increase in exploration
costs coupled with the substantial reduction in the potentially Indicated
Resource, has led the Board to conclude that the criteria set for the
Acquisition are no longer satisfied.  GoldStone accordingly decided to terminate
the Acquisition and this has been accepted by the vendor, GeoQuest Holdings
Limited.

Despite the termination of the Acquisition, the Company intends to complete the
process of listing the Company on the Alt-X.

The Board continues to pursue other opportunities, with a particular focus on
palaeoplacer and hydrothermal gold prospects in order to leverage the Company's
expertise in this field.  The experience of Dr. Hendrik Schloemann, who has
recently been appointed Exploration Manager, will be valuable in identifying
exploration opportunities in these geological environments.  The Company has
commenced an assessment and review of international opportunities in this field.

Dr. Lawrence Minter, who has a PhD in palaeoplacer sedimentology, has read and
approved this conten of this announcement.

Enquiries:

GoldStone Resources Ltd                               [phone]
Nico van der Hoven
(Chief Executive Officer)
Hanson Westhouse Limited                              + 44 20 7601 6100
Tim Feather


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