The Board of Firestone Diamonds plc, ("Firestone" or "the Company"), the AIM-quoted diamond mining and exploration company (ticker: AIM:FDI), is pleased to announce that it intends to commence development of commercial mining operations on its BK11 kimberlite in Botswana. BK11 is situated approximately 20 kilometres south east of Debswana's Orapa Mine and seven kilometres north west of Debswana's Letlhakane Mine.

HIGHLIGHTS

•Decision made to proceed with mine development following final phase of evaluation
- Production to commence ahead of schedule in Q2 2010

- Development costs to be funded from existing cash reserves

- Full production capacity of 1.5 million tonnes per annum to be in place in Q3 2010

•Good results obtained from final phase of bulk sampling
- Overall diamond value increased to $137/carat

- Diamond value increased in KW area to $157/carat

• Resource increased since June 2009
- Resource of 12 million tonnes containing 800,000 carats to 120 metres; includes six million tonnes in the KW area, with average grade of 10 carats per hundred tonnes

- Additional six million tonnes containing 200,000 carats between 120 and 250 metres; further sampling to be undertaken at this level

•Mining to commence in KW area of BK11
- Estimated revenue of $16 per tonne and operating costs of $6.50 per tonne

- Expected to produce annual revenues of approximately $24 million per annum at operating margins of 60%

- Substantial upside with diamond prices expected to increase

• Firestone interest in BK11 increased from 80% to 90%
Philip Kenny, CEO of Firestone Diamonds, commented: "Commencing development of a new mine at BK11 is a major milestone for Firestone Diamonds. By the middle of 2010 our company will have become one of only a small number of listed kimberlite producers worldwide. This is a significant achievement in its own right, but even more so as we will have done so in less than two years from the results of our initial evaluation work on the project. The BK11 mine will give us a very solid foundation from which to further develop our exciting portfolio of projects and opportunities in Botswana. With the projected shortfall in rough diamond supply expected to drive diamond prices higher in coming years, we believe that the prospects for Firestone are extremely good."