Final Results

Goldstone Resources Ltd
18 August 2006


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


ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2006


Chief Executive's Report

I am setting out below a review of GoldStone's activities during the year ended
28 February 2006, which incorporates an update on the current status of the
Company's projects.


GOLD PROGRAMME IN GUYANA

The gold reconnaissance drilling programme was completed in June 2005.  A total
of 12,285 metres of core was recovered from 56 drill sites.  Assay results
indicated that 54 gold-bearing palaeoplacer layers were intersected.

The six most prospective palaeoplacer layers intersected were evaluated by means
of three-dimensional stratigraphic analysis, projected to surface and
subsequently investigated late in 2005 by means of surface mapping and soil
geochemistry of the overburden.

The leached and heavily vegetated nature of the mountainous terrain in Lease
Area 'A' did not respond to this approach and therefore the only recourse would
be to drill numerous shallow boreholes along the periphery of these subcrops.
However, in view of the low tenor of gold intersections made during the overall
drilling programme in Lease Area 'A', the Board has concluded that the
likelihood of finding economical grades is poor and consequently has decided to
terminate any further exploration in that area.

The soil geochemistry procedure in the pediment surrounding the Roraima plateau
in Lease Area 'B' was more successful, indicating a 2km-wide anomalous zone
southwest of a gold-bearing palaeoplacer previously intersected by a drill hole.
Twelve shallow drill holes subsequently drilled during the 2nd quarter of 2006
across and down this interpreted trend did not intersect any gold, demonstrating
the sporadic nature of the mineralization encountered in this distal Roraima
location.

In view of these results, the Company has withdrawn its prospecting licence
applications and has therefore ceased the gold exploration programme in Guyana.



BAUXITE

In September 2005, GoldStone entered into an option agreement with BHP Billiton
over the Company's bauxite interests in Guyana.  An initial programme was
launched to explore the bauxite potential in the lease areas.  This programme
has confirmed the deposits previously identified by GoldStone and further, more
detailed, sampling is planned.


FINANCING

The Company carried out a placing in October 2005 which raised £2,042,500.  Cash
resources are currently approximately US$2.9 million.


BOARD

We are saddened by the recent death of Mike Christie, a non-executive director
of the Company.  He played an important role in the development of GoldStone and
will be greatly missed.


APPROVAL

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


SUMMARY

The results from the gold exploration programme have clearly been disappointing
and the Board is convinced that it is in shareholders' best interests not to
undertake any further exploration.

The bauxite exploration continues under the terms of the agreement with BHP
Billiton, which is funding the programme.

The Company has significant cash resources and the Board is currently reviewing
the potential acquisition of an alluvial diamond project.  Further information
will be announced as appropriate.



Nico van der Hoven
Chief Executive
18 August 2006





PROFIT AND LOSS ACCOUNT


                                                         Note                 Year ended 28    Year ended 28
                                                                                   February         February
                                                                                       2006             2005
                                                                                          $                $
                                                                                               

Turnover                                                                                     -               -
Exploration expenses                                                               (2,498,919)     (4,336,090)

Gross loss                                                                         (2,498,919)     (4,336,090)


Management fee income                                                                   55,556               -
Other operating expenses                                                           (1,361,673)     (2,158,287)
Interest receivable                                                                     87,161         166,912


OPERATING LOSS FOR THE FINANCIAL YEAR                                              (3,717,875)     (6,327,465)

Balance brought forward - (deficit)                                                (9,259,562)     (2,932,097)

Balance carried forward - (deficit)                                               (12,977,437)     (9,259,562)


Loss per ordinary share
Basic (cents per share)                                  1                               (3.8)           (8.8)





BALANCE SHEETS


                                                                                  28 February     28 February
                                                                                         2006            2005
                                                                                            $               $
                                                                                              

FIXED ASSETS
Tangible assets                                                                       135,826         461,468

CURRENT ASSETS
Debtors and prepayments                                                               394,563           2,529
Cash at bank                                                                        3,321,151       3,866,591

                                                                                    3,715,714       3,869,120
CREDITORS: amounts falling due within one year

Amounts due to group companies                                                              -        (40,499)
Creditors and accruals                                                               (69,831)       (485,005)

                                                                                     (69,831)       (525,504)

Net current assets                                                                  3,645,883       3,343,616



TOTAL ASSETS LESS CURRENT LIABILITIES                                               3,781,709       3,805,084

CAPITAL AND RESERVES
Share capital                                                                       2,354,482       1,122,982
Share premium                                                                      13,849,554      11,386,554
Capital contribution reserve                                                          555,110         555,110
Profit and loss account - (deficit)                                              (12,977,437)     (9,259,562)

EQUITY SHAREHOLDERS' FUNDS                                                          3,781,709       3,805,084






CASH FLOW STATEMENT


                                                                                  Year ended 28 Year ended 28
                                                                                       February      February 
                                                                                           2006          2005
                                                                                              $             $

Net cash outflow from operating activities                                          (4,460,469)   (4,863,028)

Returns on investment and servicing of finance
Interest received                                                                        87,154       166,912
Capital expenditure and financial investments
Purchase of fixed assets                                                                (5,362)     (690,656)
Sale of fixed assets                                                                    250,000             -

                                                                                    (4,128,677)   (5,386,772)
Financing
Issue of shares net of expenses and capital contribution                              3,583,237     9,252,180

(Decrease)/increase in cash                                                           (545,440)     3,865,408

Reconciliation of net cash flow to movement in net debt

(Decrease)/increase in cash in the period                                             (545,440)     3,866,591
Net funds brought forward                                                             3,866,591         1,183



Net funds carried forward                                                             3,321,151     3,866,591

Reconciliation of operating loss to net cash outflow from
operating activities
Operating loss                                                                      (3,717,875)   (6,327,465)

Adjusted for:

Depreciation & impairment loss                                                           81,004       237,614
Finance raising costs                                                                   111,263       827,820
Interest received                                                                      (87,155)     (166,912)
(Increase)/decrease in debtors                                                        (392,034)       316,409
(Decrease)/increase in creditors                                                      (455,672)       249,506


Net cash outflow from operating activities                                          (4,460,469)   (4,863,028)








NOTES



1.         EARNINGS PER SHARE



Basic earnings per share is calculated by dividing the losses attributable to
ordinary shareholders by the weighted average number of ordinary shares in issue
after the placing on the AIM.  Diluted earnings per share is calculated using
the weighted average number of ordinary shares in issue as adjusted to assume
conversion of all dilutive potential ordinary shares.

FRS 14: Earnings Per Share ('EPS'), requires presentation of diluted EPS when a
company could be called upon to issue shares that would decrease net profit or
increase net loss per share.  For a loss making company with outstanding
warrants, net loss per share would only be increased by the exercise of out-of
the-money warrants.  Since it seems inappropriate to assume that option holders
would act irrationally, no adjustments has been made to diluted EPS for
out-of-the-money warrants.


                                                                                    2006            2005
                                                                                       $               $

Earnings per share

Loss attributable to share holders                                            (3,717,875)     (6,327,465)

                                                                                                      No.

Weighted average number of ordinary shares                                     96,608,315      62,400,000


Basic loss per share (cents)                                                        (3.8)           (8.8)





2.   The financial statements incorporated in the annual report and accounts 
     for the year ended 28 February 2006, from which the information in this
     announcement has been extracted, have been prepared in United States 
     Dollars under the historical cost convention and in accordance with 
     accounting standards applicable in the United Kingdom.

3.   The annual report and accounts are expected to be posted to shareholders 
     during week commencing 21 August 2006.  Copies of the annual report
     and accounts will be available for a period of one month from the offices 
     of Hanson Westhouse LLP, 12th Floor, One Angel Court, London EC2R 7HJ.



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