SOUTHSTONE REPORTS Q2 2026 DIAMOND SALES RESULTS: RECORD QUARTERLY GROSS SALES

Download as PDF VICTORIA, BRITISH COLUMBIA — 27 February 2026 — Southstone Minerals Limited (TSX-V:SML)  (“Southstone” or the “Company”) reports diamond sales and production results from the Oena Diamond Mine in South Africa for the quarter ended February 28, 2026 (Q2 fiscal 2026). Gross diamond sales totalled US$3,713,181 from 1,390.42 carats sold across two tenders. The Company achieved its highest quarterly gross diamond sales since acquiring Oena in 2014. The applicable contractual revenue split between African Star Minerals (Pty) Ltd. and the mining contractor is described below. Q2 2026 Performance (Dec 2025 – Feb 2026) (vs. Q1 fiscal 2026 ended Nov 30, 2025): Gross diamond sales: US$3,713,181 (vs. US$1,903,889; +95%) Carats sold: 1,390.42 (vs. 897.24; +55%) Average price: US$2,671/ct (vs. US$2,122/ct; +26%) Price distribution: 13 diamonds achieved individual prices >US$5,000/ct “Specials” (diamonds >10.8 carats) Mining of basal gravel layers has resulted in the recovery of “Specials” (diamonds greater than 10.8 carats). In the quarter: 22 Specials were sold, averaging 19 carats each, for total proceeds of US$2,774,934. The largest was a 38.247-carat diamond that sold for US$616,197 (US$16,111 per carat). This is the highest individual diamond sale price recorded by the Company since it acquired Oena in 2014. Since November 2023, Specials have represented 29% of recovered carats and 67% of gross sales value from the Sandberg Section. Inventory Unsold Inventory: The Company enters the next fiscal quarter with an additional 305.1 carats, including five Specials, in unsold inventory from late February production.  Sandberg Section Sales Sandberg Section mining period Total carats sold Total Number of Diamonds Average Diamond Size (carats) US ($) per carat Gross Diamond Sales US ($) Sep 2018 to Nov 2021 2,690 1,157 2.33 – – Nov 2023 to Aug 2024 769 319 2.41 1,935 1,488,052 Apr 2025 to Feb 2026 3,689 1,258 2.93 2,171 8,009,655 Table 1 – Sandberg Section 2018 to Q2 2026 diamond sales. An additional 305.1 carats of late Q2 2026 production (February 21-28, 2026) remains in inventory for future tender sale. Note: Gross diamond sales represent total tender proceeds before tender costs. Any inconsistencies between the totals shown are due to rounding. Q2 2026 Tenders African Star Minerals (Pty) Ltd. (“African Star” or “ASM”), a 43%-owned subsidiary of Southstone, is party to a Contract Mining and Diamond Recovery Agreement with mining contractor Rietput Delwery BK (“Rietput”). Effective July 1, 2025, Gross Diamond Sales (net of tender costs) are split 80:20 between Rietput and African Star when individual tender sales equal or exceed ZAR 10,000,000. If a tender sells for less than ZAR 10,000,000, the split is 85:15 between Rietput and African Star. Tender  / Date Carats sold Gross tender proceeds (before tender costs) US ($) Revenue split applied to Rietput & ASM Effective economic interest in ASM share (43% of ASM net tender proceeds) 273 / Jan 22, 2026 414.87 587,759 85:15 6.45% 274 / Feb 19, 2026 975.55 3,025,422 80:20 8.60% Total 1,390.42 3,713,181 Table 2 – Q2, 2026 Tender results and revenue split applied. Revenue split is applied to tender proceeds net of tender costs; gross proceeds are shown before tender costs. Oena Mine Performance Oena mining period Total carats sold Total Number of Diamonds Average Diamond Size (carats) US ($) per carat Gross Diamond Sales US ($) Jul 2015 to Feb 2026 13,332 6,006 2.22 1,773 23,637,579 Table 3 – Oena Mine 2015 to 2026 diamond sales. An additional 305.1 carats of late Q2 2026 production (February 21-28, 2026) remains in inventory for future tender sale. Note: Gross diamond sales represent total tender proceeds before tender costs. Any small inconsistencies between the totals shown are due to rounding. Southstone, through African Star, provides operational oversight at Oena, including diamond sales administration, contractor liaison, mining license compliance, and security. The Company maintains a management and security team in South Africa, including the CEO of African Star and the Oena Operational Site Manager. The Company’s Executive Chairman, with external geological support, provides operational support for internal reporting of Oena activities and provides geological and technical support to the operations team and contractors. Botswana Uranium Acquisition Update Further to its news releases of February 18, July 21 September 12, 2025, Southstone Minerals Limited announces that it has entered a third addendum (the “Third Addendum”) to the binding term sheet with Afrium Energy Pte. Ltd. (“Afrium”). The Third Addendum extends the End Date of the acquisition agreement to September 12, 2026, to allow additional time for the renewal of the three prospecting licences in the Republic of Botswana. All other terms of the agreement remain unchanged and in full force. Southstone recognizes that licence renewals in Botswana can be a lengthy administrative process. The Company, together with Afrium, is actively working with the relevant authorities to ensure the renewals are completed in due course. The Company remains committed to advancing this strategic transaction while continuing to focus on its core operations at the Oena Diamond Mine. Corporate Update      The Company confirms it is not currently in compliance with Exchange Policy 3.1 and 3.2 requirements regarding the composition of the Board and appointment of officers but is acting in good faith and continues to operate responsibly while working toward full compliance. The Company expects/intends to restore compliance upon closing (subject to closing/TSXV acceptance) of the Afrium transaction. At that time, the Company will: Appoint a Chief Financial Officer separate from the CEO; and Appoint at least one additional independent director, enabling the formation of a compliant Audit Committee. Qualified Person Statement The technical disclosure in this news release relating to diamond production, recovery and sales has been approved by Terry L. Tucker, P.Geo. (APEGBC), Executive Chairman, and a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. Mr. Tucker has verified the production and sales records disclosed in this release. ON BEHALF OF SOUTHSTONE MINERALS LIMITED Terry L. Tucker, P.Geo. Executive Chairman For additional information, please contact Terry L. Tucker at info@southstoneminerals.com Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Capitalized terms used herein that have not been defined have the same meanings ascribed in the policies of the TSX.V.  Forward Looking Statements Disclaimer Certain statements in this news release may constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are not historical facts and include statements regarding expectations for continued production from the lower diamond-bearing gravel layer at Sandberg, the timing and results of future tenders, the characteristics of unsold diamond inventory, and ongoing operations at the Oena Diamond Mine. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied. These risks and uncertainties include, among others, fluctuations in global diamond prices and market demand, variations in the size, quality and quantity of recovered diamonds, contractor operational performance, the ability to obtain or maintain required permits, consents or authorizations, movements in the ZAR/USD exchange rate affecting tender value thresholds, the Company’s ability to raise capital to execute its business strategy, and the risks and uncertainties disclosed in the Company’s most recent Management’s Discussion and Analysis filed with Canadian securities regulators. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are made as of the date of this news release, and the Company undertakes no obligation to update or revise them except as required by applicable securities laws. Figure 1– Oena Diamond Mine Sandberg Special Size Diamonds sold in Q2 2026 (not to scale):       The post SOUTHSTONE REPORTS Q2 2026 DIAMOND SALES RESULTS: RECORD QUARTERLY GROSS SALES appeared first on Southstone Minerals Limited.