Progress Report

Goldstone Resources Ltd
20 February 2008

                             GOLDSTONE RESOURCES LTD

                                PROGRESS REPORT



The Directors of GoldStone Resources Ltd ('GoldStone' or the 'Company') wish to
provide the following update on the Company's activities.


APPOINTMENT OF EXPLORATION MANAGER


Dr. Hendrik Schloemann was appointed Exploration Manager of the Company with
effect from 1 February 2008.  Dr. Schloemann is a qualified geologist and has
thirteen years of exploration experience in Africa and South America.  During
2006 and 2007 Dr. Schloemann held the position of Exploration Manager for
Harmony Gold Mining Company Limited ('Harmony') and was responsible for
Harmony's exploration activities in Africa.  Prior to this Dr. Schloemann worked
for Aurelian Resources Inc. where he contributed significantly to the discovery
of the 14M oz Fruta del Norte gold deposit in Ecuador in 2006.  Dr. Schloemann
has responsibility for identifying and reviewing potential exploration projects
which may be of interest to the Company.



SWARTDORING DIAMOND PROJECT


In April 2007 GoldStone conditionally agreed to acquire a 70% interest in Xanadu
Mining (Pty) Ltd ('Xanadu') from GeoQuest Holdings Limited ('GeoQuest') (the
'Acquisition').  The interest comprises 70% of both the share capital of Xanadu
and inter-company loans owed by Xanadu to GeoQuest.

Xanadu, through its wholly owned subsidiaries, GrindStone Mining (Pty) Ltd and
Multidirect Mining (Pty) Ltd, holds prospecting rights over the Swartdoring
Diamond Project.

Completion of the Acquisition is conditional on:

•        The successful listing of GoldStone on the Alternative Exchange of the 
         JSE Limited ('ALTx'); and

•        The approval of the Acquisition by the South African Reserve Bank ('SARB').


The Directors are pleased to report that the outstanding SARB approvals have
been obtained and the listing of GoldStone on the ALTx is progressing.  It is
expected that the listing will occur during March 2008.  GoldStone and GeoQuest
have agreed to extend the long stop date for completion of the Acquisition to 31
March 2008.



FINANCING



The Company's cash resources are currently approximately US$2.5 million.



Enquiries:


GoldStone Resources Ltd                                        00 27 21 794 4004
Nico van der Hoven (Chief Executive Officer)


Hanson Westhouse Limited                                           0113 246 2610
Tim Feather / Matthew Johnson




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