SOUTHSTONE REPORTS OENA DIAMOND MINE Q1 2026 SALES AND RECOVERY AND SALE OF A 65.812-CARAT DIAMOND

Southstone Minerals Limited has delivered impressive Q1 2026 results from its Oena Diamond Mine operations in South Africa, demonstrating the continued value potential of the Sandberg Section deposit. The company reported gross diamond sales of approximately US $1.90 million for the quarter ended November 30, 2025, representing a robust 29% increase over Q4 2025 performance. Sales volume increased 12% to 897.24 carats, while average pricing improved 15% to approximately US $2,122 per carat, indicating both increased production and enhanced diamond quality.

The standout achievement of the quarter was the recovery and sale of eight high-value diamonds greater than 10.8 carats, generating total proceeds of US $1.274 million. Most notably, a 65.812-carat stone commanded US $579,984, while three diamonds achieved prices exceeding US $5,000 per carat. This performance reinforces the exceptional nature of the Sandberg Section deposit, where large stones have historically represented 29% of recovered carats but 61% of gross sales value since production resumed in November 2023.

Operational momentum has continued into Q2 2026, with approximately 989 carats recovered to date as mining exploits the lower diamond-bearing gravel layer. Tender 273 in January 2026 achieved gross sales of US $587,759 from 414.87 carats, maintaining strong pricing with two stones exceeding US $5,000 per carat. The company maintains significant inventory of 574 carats for future tender sales, including 13 high-value stones averaging 19.9 carats each.

Since acquiring Oena in 2014, Southstone has established a track record of consistent diamond recovery and sales, with total production of 12,356 carats averaging 2.17 carats per stone and US $1,660 per carat. The company's operational structure through its 43%-owned subsidiary African Star Minerals provides strategic oversight while benefiting from a tiered revenue-sharing arrangement that captures higher returns when tender values exceed ZAR 10 million. The strong Q1 2026 results, combined with promising Q2 production indicators and substantial inventory, position Southstone favorably for continued value generation from this unique South African diamond asset.