8 April 2013: Joint Venture with Randgold over Sangola Project

GoldStone entered into a joint venture agreement with Randgold in relation to the exploration, evaluation and, potentially, the development and mining of the Sangola project in Senegal (the "Joint Venture"). Randgold will hold 51% of the Joint Venture and GoldStone 49% and a committee comprising three representatives from Randgold and two from GoldStone will manage the project.

Under the terms of the Joint Venture, Randgold has agreed to undertake exploration over the Sangola permit and fund all work up to and including the completion of a pre-feasibility study ("PFS") on the project. The committed work includes the execution of at least 10,000 metres of reverse circulation (or equivalent) drilling per annum up to the completion of a PFS which indicates that mining of at least 1Moz of gold is economically feasible.

Subject to the PFS satisfying this condition, GoldStone will have the option to maintain its 49% interest through funding its share of the costs of a feasibility study (the "FS"). In the event that GoldStone elects not to fund its share of the FS, its interest in the Joint Venture would reduce to 35%. If, following completion of the FS, the decision is taken to develop a mine, GoldStone will have the right to retain its interest through funding its share of the costs.

If the PFS indicates that the mining of at least 1Moz of gold will not be economically and commercially feasible, the Joint Venture will cease to have effect. In addition, Randgold may terminate the Joint Venture at any time by giving GoldStone 90 days' notice.