Final Results

Goldstone Resources Ltd
26 August 2004


GOLDSTONE RESOURCES LIMITED
RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2004

Chief Executive's Statement

I am pleased to inform the shareholders of the Company's activities during the
year ended 29 February 2004.

During the preceding five years, the Company spent considerable funds developing
and enhancing its gold project in South America.  As result of this work, the
Company produced geological information that was highly encouraging and which
demonstrated the potential for finding a significant gold province in Guyana.
At this vital juncture, it became imperative that the Company procure further
finance with which to continue its exploration activities.  The objective was to
embark on a major drilling programme, seeking to intercept commercially viable
gold-bearing palaeoplacers potentially located in the Company's lease areas.
Consequently the Board took the decision to float the Company on AIM and engaged
Westhouse Securities LLP as Nominated Adviser and Broker.  As result, a placing
of 22,400,000 ordinary shares at 25p per share was carried out, raising £5.6
million from primarily institutional investors.  The Company was consequently
successfully admitted to AIM on 23 March 2004.

The Board is optimistic about the cumulative exploration results recovered to
date and believes the future holds significant promise.  The Company commenced
its gold drilling programme on 1 August 2004 in the northern parts of Lease Area
A and subsequently started drilling in Lease Area B at Parish's Hill, where a
gold-bearing palaeoplacer was previously intercepted.  Furthermore the bauxite
resource, previously identified in the Company's lease areas, was significantly
advanced in mid-2004 by means of field work done by our independent consultants.
The Board believes that the bauxite resource holds substantial potential for
successful commercialisation.

The Board expects to receive assay results on the majority of the gold
exploration drill holes before the end of 2004 and will simultaneously seek to
advance and commercialise the bauxite project.

Nico van der Hoven
Chief Executive Officer
23 August 2004

PROFIT AND LOSS ACCOUNTS                                 Note          Year ended 29 Year ended 28
                                                                            February      February 
                                                                                2004          2003
                                                                                   $             $

TURNOVER                                                                           -             -
Exploration expenses                                                       (130,607)     (162,406)

Gross loss                                                                 (130,607)     (162,406)


Other operating expenses                                                   (343,663)     (352,916)
Interest receivable                                                               27            44


OPERATING LOSS FOR THE FINANCIAL YEAR                                      (474,243)     (515,278)

Balance brought forward - (deficit)                                      (2,457,854)   (1,942,576)

Balance carried forward - (deficit)                                      (2,932,097)   (2,457,854)


Earnings per ordinary share
Basic (cents per share)                                  1                  (35,657)      (59,024)
Additional basic (cents per share)                       1                    (0.75)        (0.82)
Additional diluted (cents per share)                     1                    (0.79)        (0.86)


BALANCE SHEETS                                                          29 February   28 February
                                                                               2004          2003
                                                                                  $             $

FIXED ASSETS
Tangible assets                                                               8,426        22,311

CURRENT ASSETS
Debtors and prepayments                                                     318,938             -
Cash at bank                                                                  1,183         3,126

                                                                            320,121         3,126
CREDITORS: amounts falling due within one year
Amounts to be converted to share capital                                          -      (56,865)
Amounts due to parent company                                              (18,938)             -
Creditors and accruals                                                    (257,060)      (13,737)

                                                                          (275,998)      (70,602)

Net current assets / (liabilities)                                           44,123      (67,476)

TOTAL ASSETS LESS CURRENT LIABILITIES                                        52,549      (45,165)

CAPITAL AND RESERVES
Share capital                                                                 2,082         2,024
Share premium                                                             1,912,362     1,855,555
Capital contribution reserve                                              1,070,202       555,110
Profit and loss account - (deficit)                                     (2,932,097)   (2,457,854)

EQUITY SHAREHOLDERS' FUNDS /(DEFICIT)                                        52,549      (45,165)


NOTES

1.   Earnings per share

     Basic earnings per share is calculated by dividing the losses attributable 
     to ordinary shareholders by the weighted average number of ordinary shares 
     in issue after the placing on the AIM.  Diluted earnings per share is 
     calculated using the weighted average number of ordinary shares in issue as 
     adjusted to assume conversion of all dilutive potential ordinary shares.

     Additional earnings per share calculations have been given on the basis of
     taking account of the shares and potential shares in issue after the date 
     of the admission to AIM, as if they had been in issue throughout the period 
     of these financial statements.

     The company has one class of dilutive potential ordinary shares being the
     warrants issued at the time of the placing and admission to AIM.
                                                                   2004               2003

                                                                      $                  $

Earnings per share

Loss attributable to share holders                            (474,243)          (515,278)

                                                                    No.                No.

Weighted average number of ordinary shares                        1,330                873


Basic loss per share (cents)                                   (35,657)           (59,024)

Additional earnings per share                                       No.                No.

Weighted average number of ordinary shares (millions)              62.4               62.4
Effective of dilutive ordinary shares:
Warrants                                                          (2.2)               (2.2)

                                                                   60.2                60.2

Basic loss per share (cents)                                      (0.75)             (0.82)

Diluted loss per share (cents)                                    (0.79)             (0.86)
     
2.   The financial statements incorporated in the annual report and accounts for 
     the year ended 28 February 2004, from which the information in this 
     announcement has been extracted, have been prepared in United States 
     Dollars under the historical cost convention and in accordance with 
     accounting standards applicable in the United Kingdom.
     
3.   The annual report and accounts is expected to be posted to shareholders
     today.  Copies of the annual report and accounts will be available for a 
     period of one month from the offices of Westhouse Securities LLP, Clements 
     House, 14-18 Gresham Street, London  EC2V 7NN.


                      This information is provided by RNS
            The company news service from the London Stock Exchange