ADVANCING DIAMOND RESOURCES

IN SIERRA LEONE AND GUINEA TOWARDS FEASIBILITY AND PRODUCTION

Marketing Presentation: January 2013

AIM:STEL

DISCLAIMER

The content of information contained in these slides and the accompanying verbal presentation (together, the “Presentation”) has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance upon this Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. If any person is in any doubt as to the contents of this Presentation, they should seek independent advice from a person who is authorised for the purposes of FSMA and who specialises in advising in investments of this kind. This Presentation is being supplied to you solely for your information. This Presentation has been prepared by, and is the sole responsibility of, the directors of Stellar Diamonds plc (the “Company”). Those directors have taken all reasonable care to ensure that the facts stated herein are true to the best of their knowledge, information and belief.

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DISCLAIMER (contd.)

The Company’s ordinary shares have not been, and are not expected to be, registered under the United States Securities Act 1933, as amended, (the “US Securities Act”) or under the securities laws of any other jurisdiction, and are not being offered or sold, directly or indirectly, within or into the US, Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland or to, or for the account or benefit of, any US persons or any national, citizen or resident of the US, Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland, unless such offer or sale would qualify for an exemption from registration under the US Securities Act and/or any other applicable securities laws.

This Presentation or documents referred to in it contain forward-looking statements. These statements relate to the future prospects developments and business strategies of the Company and its subsidiaries (the “Group”). Forward-looking statements are identified by the use of such terms as “believe”, “could”, “envisage”, “estimate”, “potential”, “intend”, “may”, “plan”, “will” or the negative of those, variations or comparable expressions, including references to assumptions. The forward-looking statements contained in this Presentation are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialises, or if underlying assumptions prove incorrect, the Group’s actual results may vary materially from those expected, estimated or projected. Given these risks and uncertainties, potential investors should not place any reliance on forward-looking statements. These forward-looking statements speak only as at the date of this Presentation.

No undertaking, representation, warranty or other assurance, expressed or implied, is made or given by or on behalf of the Company, Daniel Stewart & Company Plc (“Daniel Stewart”) or any of their respective directors, officers, partners, employees or advisers or any other person as to the accuracy or the completeness of the information or opinions contained herein and to the extent permitted by law no responsibility or liability is accepted by any of them for any such information or opinions. Notwithstanding the aforesaid, nothing in this paragraph shall exclude liability for any representation or warranty made fraudulently.

Daniel Stewart, which is regulated in the United Kingdom by the Financial Services Authority, act only for the Company in relation to the Placing and are not acting for or advising any other person or treating any other person as its customer in relation thereto and will not be responsible for providing the protections afforded their respective customers or for advising any other person in relation to the matters contained herein or on any matters concerning the Placing. No representation or warranty, express or implied, is made by Daniel Stewart at to the contents of this Presentation and, without limiting the statutory rights of any person to whom this Presentation is issued, no liability whatsoever is accepted by Daniel Stewart for the accuracy of any information or opinions contained in this Presentation or for the omission of any material information for which the directors of the Company are solely responsible.

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OVERVIEW OF STELLAR DIAMONDS

Strategic diamond assets in Sierra Leone and Guinea

JORC compliant resource of c. 4 million carats compiled in 2012

Implied contained value of $381 million (Oct-12 prices)

Market cap £8.1m

Significant growth potential and a robust diamond market outlook

Placing to raise up to £1m to fund economic studies prior to pre-feasibility studies

Tongo gems ($248/ct average run of mine)

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FAST TRACK PROGRESS TOWARDS PRODUCTION

2007-2010 2011 2012 2013 2014

Assets acquired,

exploration starts

Bulk sampling &

drilling

4m carat diamond

resource confirmed

Pre-feasibility

studies

Production decision

$10m invested to date to define an inferred 4m carat JORC resource with an contained value of $381m

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TODAY

FOCUSSED IN THE HEART OF THE WEST AFRICAN DIAMOND FIELDS

PAGE 5 Kono licences in dispute

OPERATIONS ACTIVITIES DURING 2012

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Droujba: panoramic view

Tongo: 5tph bulk sample plant

* Kono licences subject to dispute

Tongo: core drilling (Boart Longyear)

Kono: Lion-5 kimberlite Shuttering - Safety 1st

Droujba: Katcha Dyke bulk sampling

Tongo: Rig mobility – rapid interhole moves (Boart Longyear)

Kono: Inside Lion-5 kimberlite

Droujba: Bulk sampling

Droujba: 5tph bulk sampling plant

Droujba Pit & Bulk sample sites

DIAMOND RESOURCE: 4 MILLION CARAT JORC COMPLIANT

Project Resource tonnes

Grade +1mm (cpht)

Inferred JORC carats in resource

Modelled average

diamond value ($/ct)

Implied contained

value US$m

In-situ value $/t

TONGO 895,000 120 1,074,000 248 266 298

DROUJBA 3,960,000 63 2,474,000 38 94 24

KATCHA 319,000 140 446,000 48 21 67

TOTAL 5,174,000 3,994,000 381

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Further resource potential: Tongo - Dyke-1 increasing resource from 300m to 600m depth could double existing resource - Dyke 2 (140cpht est.) and Dyke 4 (109cpht and $100/ct) not yet in resource

Further resource potential: Droujba - Surface grade of 88cpht (diluted) being confirmed at depth could increase existing resource by 40% - Katcha resource is currently only over a 470m strike length to 150m depth - Katcha is 5,000m long and to 300m depth could increase the current Katcha resource by 20 times

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RISING ROUGH DIAMOND DEMAND DRIVEN BY EMERGING MARKETS

• During the next 10 years, growing GDP and urbanisation in emerging markets plus shifting consumer tastes will drive rough diamond demand

• Global demand for rough diamonds is forecast to grow annually by a rate of 5.9%

• Diamond supply, from existing or new mines, is predicted to grow annually by only 2.5% until around 2018 when global production will level off and probably decline

• Global Jewellery demand, with a trend towards higher gem diamond content, is forecasted to grow by 35% over the next 5 years

• By 2016, India & China will account for ~30% of incremental global demand. By 2020 this is predicted to rise to 50% overtaking the USA as the largest diamond jewellery market

• This supply-demand imbalance will drive diamond price inflation

Source: De Beers

2013: NEXT STEPS

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PROJECT Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

TONGO

(Underground mining)

Conceptual economic scoping study

Conceptual economic scoping study

Commence PFS PFS infill drilling and bulk sampling

PFS report

Underground trial mining decision as ramp up to commercial production

DROUJBA

(Open pit mining)

Conceptual economic scoping study

Conceptual economic scoping study

Commence PFS PFS large diameter drilling and bulk sampling

PFS report

Production decision for open pit operation, 1.5 million carats over 5 years

Note: PFS is estimated to cost $2m+ per project

CONCEPTUAL ECONOMIC SCOPING STUDY

• Define preliminary economics and business case up front

• Focus on mine design, planning and treatment plant design and processing options

• Provide capex, opex and financial analysis

• Allows for prioritisation of projects

• Lower funding requirement

• Less risky use of funds

• Provide Board with an independent validation of project economics

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Trial mine shaft at Kono

- Paradigm Project Management appointed to conduct CESS - PPM executive team has significant experience in all aspects of

diamond mine development - Clients include De Beers, Alrosa, Gem Diamonds, Lucara Diamonds,

Rockwell Diamonds, Paragon Diamonds, Trans Hex Diamonds,

DYKE-1: FAST TRACK TO UNDERGROUND TRIAL MINING

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Conceptual Economic Scoping Study

• Q1-13 conceptual economic scoping study

• Define economic model to 35% confidence limits

• Scenario of producing 80,000 carats per year, generating potential revenues of $20m/yr for 10 years

• Q3-13 commence pre-feasibility study to 15% confidence limits

• Underground trial mining of Dyke 1 as part of ramp up to commercial scale production

Tongo Dyke-1 diamonds: average modelled value $248/ct

Dyke 1 Resource Model: 1.9km strike to 300m depth

W E

CB

Kcm

CBK

DROUJBA PIPE: OPEN PIT MINE POTENTIAL

• Droujba has both open cast and underground mine potential

• CESS aimed at evaluating economics of open pit mine

• Study will concentrate on mine design and planning and process plant design and treatment operations

• Scenario of producing 300,000 carats per year, generating revenues of $15m/yr over 5 years

• Followed by pre-feasibility study to 15% accuracy to include underground resource

• Production decision on open pit operation in Q1 2014

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Conceptual Economic Scoping Study

360m

Open cast potential

Underground potential

CBK Kcm CB

Extreme case (US$200/ct)

Base case x1.6 (US$80/ct)

Base case (US$50/ct)

Droujba open pit showing bulk sample pits

Schematic cross-section of Droujba pipe

PROJECT DELIVERY

Stellar has built a focussed and dedicated team

• 3-man executive team

• Core team of experienced project managers

• 8 skilled geologists trained by Stellar over many years

• Significant local employer

Extensive project and diamond experience in West Africa since 2000

Track record of delivering results on time and within budget

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Stellar team at Droujba

BOARD & MANAGEMENT

KARL SMITHSON, CHIEF EXECUTIVE OFFICER

Geologist and MBA with 24 years’ African diamond exploration and development experience, including 12 years in West Africa. Senior management positions with De Beers, SouthernEra and African Aura Mining.

ROWAN CARR, CHIEF OPERATING OFFICER

Geologist: MSc. with 26 years’ experience in the diamond mining industry under De Beers and Stellar where he managed operations in Botswana, South Africa, Angola, CAR , DRC, Sierra Leone, Liberia and Guinea.

PHILIP KNOWLES, FINANCIAL CONTROLLER

Qualified accountant and MBA with BA in accounting and finance. Over 10 years diversified experience, including four years as Group Financial Controller for both Kopane Diamonds and Firestone Diamonds.

LORD DARESBURY (PETER), NON-EXECUTIVE CHAIRMAN

Involvement in emerging markets since 1994. Previously Non-Executive Chairman of De Vere Group plc 2000-2006, Chairman of KazakhGold Group Ltd 2005-2007 and Executive Chairman of Highland Gold Mining Ltd 2002-2004.

Dr. MARKUS ELSASSER, NON-EXEC DIRECTOR

An experienced financer and investor in the natural resources sector. Director of Arctic Gold and Impact Minerals. Currently head of the Elsässer Family Office.

LUIS DA SILVA, NON-EXEC DIRECTOR

CEO Afferro Mining and Non-Executive Director of Aureus Mining. Mining Engineer and MBA with operational, technical and corporate experience globally with Blue Circle Industries and Lafarge SA.

STEVEN POULTON, NON-EXEC DIRECTOR

Mining geologist previously with Mano River for 7 years. Co-founder of Ariana, African Aura and Altus Strategies, CEO of Altus Strategies.

JAMES CAMPBELL, NON-EXEC DIRECTOR

Mining geologist and MBA with 24 years’ experience in the diamond mining industry under De Beers, where he held a number of senior positions. Previously Managing Director of African Diamonds Plc. CEO and President of Rockwell Diamonds.

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USE OF PROCEEDS

Project Use Amount (£)

Droujba Pipe, Guinea Conceptual Economic Scoping Study 300,000

Togo Dyke, Sierra Leone Conceptual Economic Scoping Study

300,000

Working Capital Corporate and in country overheads and contingency 350,000

Placement fees Corporate finance, legal, commissions 50,000

Total 1,000,000

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CORPORATE INFORMATION STRONG NEWSFLOW IN 2012 NOT REFLECTED IN SHARE PRICE

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Stock data 11th January 2013

Ticker AIM:STEL

Share price £0.0275

Shares in issue 294,512,400

Market capitalisation £8.1m

Significant shareholders

Nassim Funds (institutional) 14.0%

Aureus Mining 10.5%

BlackRock 5.6%

Barclays Nominees 4.6%

Directors and management 4.2%

UBS Deutschland (private) 3.6%

Hottinger 3.5%

Capital structure Number of shares

Shares outstanding 294,512,400

Share options 24,453,575

Fully diluted 318,965,975

0

1

2

3

4

5

6

7

8

Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13

Share Price - GBp

Droujba Resouce of 3m carats

Tongo Resource over 1m carats

Board Dr Elsasser appointed

Droujba 161cpht from Katcha bulk sampling

Droujba 100cpht grade from bulk sampling + large diamonds

Droujba Encouraging grades from bulk sampling

Funding £2m raised from issue of shares

Kono Licence dispute

Droujba 2.5m carat maiden resource

Tongo 660k carat maiden resource

Kono Encouraging diamond grades

Tongo Encouraging diamond grades

INVESTMENT CASE

4mcts in resource valued at $381m delivered in 2012

Low cost economic scoping studies planned to define business case for pre-feasibility studies

Key objective of near term production and revenue

Track record of delivering key milestone targets on time and within budget

Strong diamond sector fundamentals driven by emerging market demand

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Tongo gems ($248/ct average run of mine)

CONTACT DETAILS

STELLAR DIAMONDS PLC. 355 The Strand London WC2R 0HS

KARL SMITHSON Chief Executive Officer Tel: +44 (0) 7783 707 971 Email: karl.smithson@stellar-diamonds.com

PHILIP KNOWLES Financial Controller Tel: +44 (0) 755 744 4007 Email: philip.knowles@stellar-diamonds.com

APPENDIX: KONO KIMBERLITE PROJECT AND LICENCE DISPUTE

Stellar is in dispute with the Ministry of Mines over two permits covering 87km² adjacent to the Koidu Holdings (Octea) mine

Company strongly disputes the claims by the Ministry pertaining to the licences being invalid as all required work programmes and expenditure have been met

Political avenues being pursued to resolve the situation

Tongo licence renewed in Sept-12 for three years

Kono Licences Progress

• US$19m invested to date in Kono since 2004

• Numerous high-grade kimberlites tested

• 4,200 carats produced from underground trial mining

• High in-situ grades:

– Pol-K: 65cpht

– Lion-5: 90cpht

• High diamond quality:

– Pol-K: US$175/ct (est.)

– Lion-5: US$230/ct

• Subject to satisfactory resolution of the licence dispute Stellar will re-institute evaluation and resource definition programme

Sierra Leone

Stellar’s Kono Plant site

Pol-K: 10.51ct gem sold for US$2,700/ct in 2008

Lion-5: 4.45ct gem valued at US$3,000/ct

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