Progress Report

Goldstone Resources Ltd
12 July 2005


GOLDSTONE RESOURCES LTD
GOLD: ASSAY RESULTS AND PROGRESS REPORT

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

Since completion of the initial reconnaissance drilling programme, five
follow-up drill holes have now been completed.  A total of 12,285m at 56 drill
hole sites has been drilled in the Company's two lease areas.  The four drill
rigs and the helicopter have been demobilised pending the end of the heavy
rainfall season and completion of assays, following which future exploration
will be considered.

From the initial programme, assay results from a further six drill holes have
been received.  These results included twelve additional anomalous gold values
ranging from 100 to 850 ppb Au (0.1 to 0.85 g/t), which are set out below.

The follow-up holes have confirmed the lateral continuation of the previously
reported two continuous palaeosurfaces intersected at shallow depths, each over
100 square kilometres in extent, with associated anomalous gold mineralization.

A downhole geophysical survey of 25 additional drill holes has been completed
and the data are being integrated with sedimentological logs. All remaining
drill holes, including the five follow-up holes, have been sampled. It is still
anticipated that all the assay data and subsequent three dimensional
stratigraphic analysis will be available by the end of August.

Assay results to date indicate:

  • Forty gold-bearing palaeoplacer tracers in twenty of the drill holes.
  • Twelve barren drill holes,
  • Eight igneous non-host rocks.
  • Samples from sixteen drill holes are being assayed or re-assayed.

Dr Minter, GoldStone's Director of Exploration, reports that: 'In addition to
identification of the two distal palaeoplacer surfaces  previously reported,
analysis of data becoming  progressively available has revealed a robust
proximal conglomerate in strata underlying Unit 4, which averages 281 ppb over
1.07 metres.  A similarly mineralised conglomerate was previously intersected
approximately 25 km further south east.  These tracers that occur lower in the
sequence add to the prospectivity of the Roraima stratigraphy.'


          SAMPLE                       THICKNESS                   ASSAY VALUE
          number                           m                         ppb  Au

           5827                          0.32                          100
           5905                          0.34                          100
           5914                          0.32                          120
           6136                          0.10                          130
           6264                          0.18                          250
           6306                          0.24                          200
           6329                          0.23                          850
           6396                          0.16                          160
           6402                          0.13                          310
           6526                          0.33                          630
           6529                          0.37                          150
           6530                          0.37                          100


Contacts:

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



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