Interim Results

Goldstone Resources Ltd
29 November 2007

                           GOLDSTONE RESOUCES LIMITED

            INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2007





Chief Executive's Report

I am setting out below a review of the activities during the six months ended 31
August 2007 for GoldStone Resources Limited ('GoldStone' or the 'Company'),
which incorporates an update on the current status of the Company's projects.


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 Swartdoring
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 outstanding conditions.  GoldStone and GeoQuest 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.  Following completion of the Acquisition, 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.  A request by Goldstone for a further extension of the expiry date from 4
January 2008 to 4 April 2008 is currently under consideration by the Minister of
Mines in Guyana.  The Company has 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$2.5 million.


APPROVAL


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


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 Limited                                    00 27 21 794 4004
Nico van der Hoven (Chief Executive Officer)

Hanson Westhouse Limited                                           0113 246 2610
Tim Feather



INCOME STATEMENT
                                                           6 Months ended   6 Months ended   12 Months ended
                                                           31 August 2007   31 August 2006  28 February 2007
                                                                      US$              US$               US$

Management fee Income-Continuing Operations                      (25,000)         (39,722)         (139,722)
Depreciation                                                        7,102           40,726            50,233
Employee benefits                                                   8,202           11,767            23,534
Foreign exchange (gains)/losses                                  (31,533)        (106,468)         (147,519)
Other Expenses                                                    323,993          312,204           564,609
Gross Loss                                                        307,764          218,507           351,135

Interest receivable-Continuing Operations                        (76,061)         (70,155)         (141,583)

OPERATING LOSS FOR THE PERIOD-Continuing Operations               231,703          148,352           209,552
OPERATING LOSS FOR THE PERIOD-Discontinued Operations                   -          541,526           468,697

Loss before tax                                                   231,703          689,878           678,249
Income tax for period                                                   -                -                 -

Loss for period                                                   231,703          689,878           678,249

Loss per ordinary share
Basic from continuing operations (cents per share)                  (0.2)            (0.1)             (0.2)
Basic from discontinued operations (cents per share)                    -            (0.4)             (0.3)




BALANCE SHEET

                                                           6 Months ended   6 Months ended   12 Months ended
                                                           31 August 2007   31 August 2006  28 February 2007
                                                                      US$              US$               US$
FIXED ASSETS
Tangible assets                                                    23,674           95,099            30,490

CURRENT ASSETS
Debtors and prepayments                                            58,579           43,690            48,540
Cash at bank                                                    2,859,835        2,988,989         3,103,109
                                                                2,918,414        3,032,679         3,151,649

CREDITORS:

amounts falling due within one year

Creditors and accruals                                           (70,330)         (35,947)          (78,679)
                                                                 (70,330)         (35,947)          (78,679)

Net current assets                                              2,848,084        2,996,732         3,072,970

TOTAL ASSETS                                                    2,871,758        3,091,831         3,103,460


CAPITAL AND RESERVES

Share capital                                                   2,354,482        2,354,482         2,354,482

Share premium                                                  13,849,554       13,849,554        13,849,554

Capital contribution reserve                                      555,110          555,110           555,110

Profit and loss - (deficit)                                  (13,887,388)     (13,667,315)      (13,655,686)

                                                                2,871,758        3,091,831         3,103,460





CASH FLOW STATEMENT
                                                           6 Months ended   6 Months ended   12 Months ended
                                                           31 August 2007   31 August 2006  28 February 2007
                                                                      US$              US$               US$
Cash flows  from operating activities
Cash used in operations                                         (319,047)        (402,317)         (705,657)
Interest income                                                    76,061           70,155           141,583

Net cash from operating activities                              (242,986)        (332,162)         (564,074)

Cash flows from investing activities
Purchase of Fixed Assets                                            (288)                -           (3,968)
Sale of Fixed Assets                                                    -                -           350,000

Net cash from investing activities                                  (288)                -           346,032

Total cash movement for the year                                (243,274)        (332,162)         (218,042)
Cash at the beginning of the year                               3,103,109        3,321,151         3,321,151

Total cash at the end of the year                               2,859,835        2,988,989         3,103,109

Cash used in operations
(Loss) before taxation                                          (231,703)        (689,878)         (678,249)
Adjustments for:
Depreciation                                                        7,105           40,726            50,233
Interest Received                                                (76,061)         (70,155)         (141,583)
Profit on sale of fixed assets                                          -                -         (290,929)
Changes in working capital:
Increase/Decrease in Debtors                                     (10,039)          350,874           346,023
Decrease in Creditors                                             (8,349)         (33,884)             8,848

                                                                (319,047)        (402,317)         (705,657)





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 share 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 warrants of out-of-the-money warrants.  Since it seems inappropriate to assume that
         option holders would act irrationally, no adjustment has been made to diluted EPS for
         out-of-the-money warrants.  The warrants expired on 30 September 2006.


                                                         6 Months ended   6 Months ended   12 Months ended
                                                         31 August 2007   31 August 2006  28 February 2007
                                                                    US$              US$               US$
         Earnings per share
         Loss attributable to shareholders- continuing     (231,703.00)     (107,605.00)      (209,552.00)
         operations
         Loss attributable to shareholders-                           -     (582,273.00)      (468,697.00)
         discontinuing operations

                                                                    No.              No.               No.
         Weighted average number of ordinary shares         130,816,633      130,816,633       130,816,633

         Basic loss per share (cents)- continuing                 (0.2)            (0.1)             (0.2)
         operations
         Basic loss per share (cents)- discontinuing                  -            (0.4)             (0.3)
         operations


       2

         ACCOUNTING POLICIES

         (a)    Statement of compliance and basis of preparation

         GoldStone is required, in accordance with the AIM Rules, to prepare its financial results for the
         year ending 28 February 2008 in compliance with International Financial Reporting Standards ('
         IFRS') as adopted by the EU.  The Company's date of transition for this purpose is 1 March 2007.

         The interim financial information has been prepared under the historical cost convention in
         accordance with the recognition and measurement principles contained within IFRS as endorsed by
         the EU.  The accounting policies set out below have been applied consistently to the interim
         financial information.


         IFRS 1 EXEMPTION


         The Company has elected to apply the following IFRS 1 exemption and transitional provision:

         •     Fair value or revaluation as deemed cost

         The Company has not taken advantage of the transitional provision permitting the revaluation of
         Property, Plant and Equipment and treatment of this fair value as the deemed cost going forward.


         (b)    Tangible fixed assets

         Tangible assets are held at historical cost net of depreciation and any provision
         for impairment.

         Depreciation is calculated to write down the cost to the estimated residual value over the
         expected useful life. The rates generally applicable are:


         Office equipment                       25.0%

         Field, Geological equipment            25.0%

         Computer equipment                     33.3%


         Gold samples are stated at cost and are not depreciated.


         Material residual value estimates are updated as required, but at least annually, whether or not
         the asset has been revalued.

         Where the carrying amount of an asset is greater than its estimated recoverable amount, it is
         written down immediately to its recoverable amount.



         (c)     Impairment


         Whenever events or changes in circumstances indicate that the carrying amount of an asset may not
         be recoverable an asset is reviewed for impairment.

         An asset's carrying value is written down to its estimated recoverable amount if that amount is
         less than the asset's carrying amount.  The recoverable amount is the higher value of fair value
         less costs to sell and value in use.

         Impairment reviews are carried out on a project by project basis, with each project representing
         a potential single cash generating unit.



         (d)     Taxation


         Current income tax assets and liabilities comprise those obligations to, or claims from, fiscal
         authorities relating to the current or prior reporting period, that are unpaid at the balance
         sheet date.  They are calculated according to the tax rates and tax laws applicable to the fiscal
         periods to which they relate, based on the taxable profit for the period.

         Deferred income taxes are calculated using the liability method on temporary differences.
         Deferred tax is generally provided on the difference between carrying amounts of assets and
         liabilities and their tax bases.  However, deferred tax is not provided on the initial
         recognition of goodwill or on the initial recognition of an asset or liability unless the
         relevant transaction is a business combination or affects tax or accounting profit.

         Deferred tax on temporary differences associated with shares in subsidiaries is not provided if
         reversal of these temporary differences can be controlled by the Company and it is probable that
         reversal will not occur in the foreseeable future.  In addition tax losses available to be
         carried forward as well as other income tax credits to the Company are assessed for recognition
         as deferred tax assets.

         Deferred tax liabilities are provided for in full, with no discounting.  Deferred tax assets are
         recognised to the extent that it is probable that the underlying deductible temporary differences
         will be able to be offset against future taxable income.

         Current and deferred tax assets and liabilities are calculated at tax rates that are expected to
         apply to their respective period of realisation, provided they are enacted or substantively
         enacted at the balance sheet date.

         Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the
         income statement, except where they relate to items that are charged or credited directly to
         equity in which case the related deferred tax is also charged or credited to equity.

         The Company has been granted 'Exempt Company' status under article 123A of the Income Tax
         (Jersey) Law 1961.  This status is renewable annually.  The Company plans to maintain this status
         for as long as it is available pending the introduction of the general zero rate of corporation
         tax which is expected to be introduced in 2009.  In order to hold exempt status an annual fee of
         £600 is payable.  The fee is included as an expense in the profit and loss account as it is not
         dependent on the Company's results.

         The Company is also registered for income tax purposes with the South African Revenue Service ('
         SARS').

         Due to the loss making position of the Company, there is no South African corporate tax charge
         this year (2006:$nil).

         The directors believe that the accumulated loss of US$13,887,388 described above might reasonably
         be assessed by the relevant tax authority (Guyanese or South African) as a tax loss in future and
         may be available to be offset against possible future capital or income gains of the Company or
         from other sources of income or capital that may originate outside of the Republic of South
         Africa.

         No deferred tax asset has been recognised this year due to the uncertainty of future profits
         (2006: $nil).


         (e)     Exploration costs


         Exploration costs incurred include appropriate technical and administrative overheads.
         Exploration costs are expensed until the commercial viability of a project has been proven.


         (f)     Share-based payments


         Share based payments are dealt with in accordance with the requirements of IFRS.  The Company
         made no share based payments or other equity - settled transactions during the period.


         (g)     Financial instruments


         A financial instrument is any contract that gives rise to a financial asset of one entity and a
         financial liability or equity instrument of another entity.  Financial assets include cash and
         cash equivalents, other receivables, equity instruments of another enterprise and are recognised
         in the balance sheet at fair value.  Cash and cash equivalents includes cash in hand, deposits
         held at call with banks, other short-term highly liquid investments with original maturities of
         three months or less from acquisition.

         Other receivables are non-derivative financial assets with fixed or determinable payments that
         are not quoted in an active market.  After initial recognition these assets are measured at
         amortised cost using the effective interest method less provision for impairment.  Any change in
         their value is recognised in the income statement.  Prepayments are distinguished form other
         receivables in that a prepayments balance will not result in the receipt of cash.

         Financial liabilities are obligations to pay cash or other financial assets and are recognised
         when the Company becomes a party to the contractual provisions of the instrument.  Financial
         liabilities categorised at fair value through income statement are recorded initially at fair
         value, all transaction costs are recognised immediately in the income statement.  All other
         financial liabilities are recorded initially at fair value, net of direct issue costs.

         Trade and other payables are financial liabilities which are expected to be settled within 12
         months of balance sheet date.  Recognition occurs when a Company becomes a party to the
         contractual provisions of the instrument.  Most obligations are legally enforceable and arise
         under contractual arrangements.  These include amounts owed for assets purchased or services
         obtained (trade creditors), and obligations to provide goods and services where an external party
         has paid in advance.  Accrued expenses are liabilities to pay for goods or services that have
         been received or supplied but have not been paid, invoiced or formally agreed with the supplier.

         The recognition of accrued expenses results directly from the recognition of expenses for items
         of goods and services consumed during the period.  The initial measurement of trade and other
         payables is usually at fair value.

         Interest receivable and payable is accrued and credited/charged to the income statement in the
         period to which it relates.

         Financial assets that the Company has the positive intention and ability to hold to maturity are
         classified as held to maturity assets.

         The Company has not entered into any derivative financial instruments for hedging or any other
         purpose.


         (h)    Available for sale financial assets


         Available for sale financial assets include non-derivative financial assets that are either
         designed as such or do not qualify for inclusion in any of the other categories of financial
         assets that are either designated as such or do not qualify for inclusion in any of the other
         categories of financial assets.

         All financial assets within this category are measured subsequently at fair value, with change
         in value recognised in equity, through the statement of changes in equity/statement of recognised
         income and expenditure.

         Gains and losses arising from investments classified as available for sale are recognised in the
         income statement when they are sold or when the investment is impaired.

         In the case of impairment of available for sale assets, any loss previously recognised in equity
         is transferred to the income statement.  Impairment losses recognised in the income statement on
         equity instruments are not reversed through the income statement.  Impairment losses recognised
         previously on debt securities are reversed through the income statement when the increase can be
         related objectively to an event occurring after the impairment loss was recognised in the income
         statement.

         The Company had nil available for sale financial assets during the year ended 28 February 2007.


         (i)     Pensions and employee benefits


         The cost of short term employee benefits (those payable within 12 months after the service is
         rendered, such as paid vacation and sick leave, bonuses and non monetary benefits such as medical
         care ) are recognised in the period in which the service is rendered and are not discounted.

         The expected cost of compensated absences is recognised as an expense as the employees render
         services that increase their entitlement, in the case of non-accumulating absences, when the
         absence occurs.

         The expected cost of profit sharing and bonus payments is recognised as an expense when there is
         a legal or contractual obligation to make such payments as a result of past performance

         During the period under review the Group did not operate or contribute to any pension schemes.


         (j)     Income and expense recognition


         The Company's income comprises interest receivable from bank deposits and management fees.

         Operating expenses are recognised in the income statement upon utilisation of the service or at
         the date of their origin.

         Interest received is recognised upon receipt and any outstanding interest is accrued at the end
         of the period.

         All other income and expenses are reported on an accrual basis.


         (k)     Foreign currency translation


         The financial information is prepared using United States Dollars as the functional currency.

         Transactions denominated in other currencies are translated into Dollars at the rate actually
         incurred when making the transaction

         Monetary assets and liabilities denominated in other currencies at the balance sheet date are
         translated at the exchange rate ruling at that date.  These translation differences are dealt
         with in the profit and loss account.

         Other assets and liabilities have been translated into Dollars at the closing rate at the balance
         sheet date.

         Where expenses denominated in other currencies were not recorded as incurred, translation takes
         place at an average rate for the period.


         (l)     Equity and share capital


         An equity instrument is any contract that evidences a residual interest in the assets of the
         Company after deducting all its liabilities.

         Equity comprises the following:


         i) 'Share capital' is the nominal value of equity shares translated into Dollars at date of
         issue.

         ii) 'Share premium account' represents the excess over nominal value of the fair value of
         consideration received for equity shares, net of expenses of the share issue translated into
         Dollars at date of issue.

         iii) 'Retained losses' represents retained losses transferred from the profit and loss account.
         If the Company re-acquires its own equity instruments, those treasury shares are deducted from
         equity.  No gain or loss is recognised in profit or loss account on the purchase, sale, issue or
         cancellation of the Company's own equity instruments.

         Consideration paid or received is recognised directly in equity.


         (m)   Operating lease agreements

         Rentals applicable to operating leases where substantially all of the benefits and risks of
         ownership remain with the lessor are charged against profits on a straight-line basis over the
         period of the lease.  The Company did not operate any assets under lease or rental agreements
         during the period.


         (n)     Cash and cash equivalents


         Cash and cash equivalents in the balance sheet comprise cash on hand and demand deposits together
         with other short term, highly liquid investments that are readily convertible into known amounts
         of cash and which are subject to an insignificant risk of changes in value.


         (o)      Goodwill

         Goodwill which represents the excess of the cost of acquisition over the fair value of the
         Company's share of the identifiable net assets acquired is capitalised and reviewed annually for
         impairment.  Goodwill is carried at cost less accumulated impairment losses.  Negative goodwill
         is recognised immediately after acquisition in the income statement.

         Goodwill written-off to reserves prior to the date transition to IFRS remains in reserves.  There
         is no re-instatement of goodwill that was amortised prior to transition to IFRS.  Goodwill
         previously written-off to reserves is not written back to the income statement on subsequent
         disposal.


         (p)    Standards and interpretations not yet applied

         The directors together with their advisers are in the process of evaluating the impact of
         standards and/or interpretations that have not yet become effective.  Listed below are those
         standards and/or interpretations most likely to impact the Company.

         i) IFRIC 11 (IFRS 2) Group and Treasury Share Transactions - mandatory for year 2008; and

         ii) IFRS 8 Operating segments - mandatory for year 2009.

         Based on the Company's current business model and accounting policies it is felt that these
         standards and/or interpretations are not likely to have a material impact on the Company's
         earnings or shareholders funds.


         (q)      Critical accounting estimates and judgements

         The Company makes estimates and assumptions concerning the future.  The resulting estimates will
         by definition seldom equal the actual results.  These estimates and judgments are continually
         evaluated and are based on historical experience and other factors, including expectations of
         future events that are believed to be reasonable under the circumstances. These judgements and
         estimates are based on management's best knowledge of the relevant facts and circumstances,
         having regard to prior experience.

         The board of directors has considered the critical accounting estimates and assumptions used in
         the historical financial information and concluded that areas of judgement that have the most
         significant effect on the amounts recognised in the financial statements concern: the decision
         not to recognise deferred tax and the estimation of share options' 'non-fair value',value.

         The Company has no contractual obligations for restoration from exploration work carried out in
         the period.




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