Please find attached and below a copy of the announcement by Stellar Diamonds this morning:
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWS WIRE SERVICES.
19 December 2011
AIM: STEL Stellar Diamonds plc ("Stellar" or the "Company")
Further Encouraging Microdiamond Results for Droujba Kimberlite Pipe in Guinea
Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces further microdiamond results from the Companys Droujba kimberlite pipe.
Highlights: * 304kg of kimberlite drill core has yielded 279 diamonds * Largest diamond measured 2.6mm x 2.0mm x 1.1mm * Majority of diamonds are described as white and colourless * DMS plant nearing commissioning with bulk samples already collected * On track to deliver maiden resource estimate in Q1 2012
Chief Executive Karl Smithson commented: "Microdiamond recovery from the Droujba kimberlite core continues to yield encouraging results.

This consignment represented selective samples from the hypabyssal and breccia material and the results confirm our view that the hypabyssal kimberlite is significantly diamondiferous. On site construction of the bulk sampling plant is nearing completion with final commissioning expected shortly.

We have made excellent progress at Droujba with our success, to date, demonstrating the significant potential of this project.

I look forward to updating shareholders as we progress Droujba towards its maiden resource in the first quarter of 2012.

This will be a key milestone for Stellar Diamonds as we look to advance Droujba and enhance the value of our diamond portfolio."
Microdiamond Sampling and Results The results of a 304kg sample of hypabyssal kimberlite and kimberlite breccia have been received from the Saskatchewan Research Council laboratory in Canada ("SRC").

Some 279 diamonds were recovered from the total sample.

However, the diamond recoveries from the hypabyssal are, as expected, far better than the diluted kimberlite breccia, as reflected in the results Table below.

Some 159.4kg of hypabyssal kimberlite yielded 251 diamonds (average 1.57 diamonds per kilogramme) whereas 144.7kg of kimberlite breccia yielded 28 diamonds (0.19 diamonds per kilogramme).

The majority of the diamonds in the +0.3mm size fraction are described as white/colourless and transparent.

The largest diamond, recovered from the hypabyssal kimberlite, measured 2.6mm x 2.0mm x 1.1mm.
A further consignment of 199kg of drill core material has been dispatched to SRC for microdiamond analysis.

This will complete the microdiamond analysis of the drill core and will provide statistically representative data across the Droujba pipe and at depth on which to base commercial grade forecasts.


RECENT MICRO DIAMOND RESULTS FROM DROUJBA KIMBERLITE
Number of Diamonds According to Sieve Size Fraction (mm)
Sample Kimberlite Sample +0.075 +0.106 +0.150 +0.212 +0.300 +0.425 +0.600 +0.850 +1.180 +1.700 +2.36 Total Carats Diamonds Number Facies Weight (kg)
-0.150 -0.212 -0.300 -0.425 -0.600 -0.850 -1.180 -1.700 -2.36 -3.350 Diamonds +0.85mm per kg GN04-2011-04 Hypabyssal 159.40 98 65 41 17 18 4 7 0 0 1 0 251 0.0656 1.57 GN04-2011-04 Kimberlite Breccia 144.70 13 6 3 1 2 3 0 0 0 0 0 28 0 0.19
Totals 304.1 111 71 44 18 20 7 7 0 0 1 0 279 0.0656 0.91
TOTAL MICRO DIAMOND RESULTS FROM DROUJBA BY KIMBERLITE TYPE
Number of Diamonds According to Sieve Size Fraction (mm)
Sample Kimberlite Sample +0.075 +0.106 +0.150 +0.212 +0.300 +0.425 +0.600 +0.850 +1.180 +1.700 +2.36 Total Carats Diamonds Number Facies Weight (kg)
-0.150 -0.212 -0.300 -0.425 -0.600 -0.850 -1.180 -1.700 -2.36 -3.350 Diamonds +0.85mm per kg GN04-2010-02 Hypabyssal 196.72 178 135 69 53 36 7 9 1 2 0 0 490 0.0647 2.49 GN04-2011-01 Hypabyssal 67.6 37 33 17 14 7 6 2 0 0 0 0 116 0 1.72 GN04-2011-02 Hypabyssal 136.55 115 110 49 40 19 8 2 2 0 1 0 346 0.1401 2.53 GN04-2011-04 Hypabyssal 159.40 98 65 41 17 18 4 7 0 0 1 0 251 0.0656 1.57
Totals 560.27 428 343 176 124 80 25 20 3 2 2 0 1,203 0.2704 2.15
Number of Diamonds According to Sieve Size Fraction (mm)
Sample Kimberlite Sample +0.075 +0.106 +0.150 +0.212 +0.300 +0.425 +0.600 +0.850 +1.180 +1.700 +2.36 Total Carats Diamonds Number Facies Weight (kg)
-0.150 -0.212 -0.300 -0.425 -0.600 -0.850 -1.180 -1.700 -2.36 -3.350 Diamonds +0.85mm per kg GN04-2010-03 Kimberlite Breccia 94.54 10 14 9 7 3 2 1 1 0 0 1 48 0.1940 0.51 GN04-2011-03 Kimberlite Breccia 268.24 14 8 13 5 7 5
0 0 0 0 52 0 0.19 GN04-2011-04 Kimberlite Breccia 144.70 13 6 3 1 2 3 0 0 0 0 0 28 0 0.19
Totals 507.48 37 28 25 13 12 10 1 1 0 0 1 128 0.1940 0.28
Bulk Sample Processing Construction of the DMS processing plant is nearing completion and commissioning is expected to commence shortly utilising already stockpiled kimberlite material collected from the clean-up of the Droujba kimberlite pit.

Once commissioned, the DMS plant will be utilised to process an initial four samples of approximately 250 tonnes each from the base of the kimberlite pit.

These sample sites have already been extracted and stockpiled adjacent to the plant.

All diamonds produced will be exported to Antwerp for valuation in early 2012 as part of the resource estimation programme.
In accordance with the AIM Rules, the information in this announcement has been reviewed by Karl Smithson, CEO of Stellar, a qualified geologist with 23 years experience.
About Stellar Diamonds plc Stellar is a London (AIM: STEL) listed diamond mining and exploration company focussed on West Africa where programmes aimed at generating maiden resource estimates at Droujba (Guinea) and Tongo (Sierra Leone) are ongoing and are expected to be delivered in the first quarter of 2012.

Bulk sampling of the Lion-5 dyke at Kono (Sierra Leone) is also ongoing.
For further information please contact the following or visit the Companys website at www.stellar-diamonds.com .
Stellar Diamonds plc Karl Smithson, Chief Executive Tel: +44 (0) 20 7257 2930
Northland Capital Partners Limited Gavin Burnell, Edward Hutton Charles Vaughan (Sales) Tel: +44 (0) 20 7796 8800
Daniel Stewart & Company plc Martin Lampshire, Oliver Rigby Tel: +44 (0) 20 7776 6550
Pelham Bell Pottinger James MacFarlane/Joanna Boon Tel: +44 (0) 20 7861 3232
James MacFarlane Account Director Direct line: +44(0)20 7861 3864 Mobile: +44 (0) 7841 672 831 Pelham Bell Pottinger 6th Floor, Holborn Gate, 330 High Holborn, London, WC1V 7QD Tel: +44 (0)20 7861 3232 Fax: +44 (0)20 7861 3233 www.pelhambellpottinger.co.uk
....................................... A CarbonNeutral(r) company
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