Stellar Diamonds signs MOU to Explore DRC

Stellar Diamonds Limited, a subsidiary of Mano River Resources Inc., has signed a memorandum of understanding (”MoU”) with BHP Billiton over exploration licences covering 10,852km2 in the north of the Democratic Republic of Congo (”DRC”).

The Licences are subject to an existing Option Agreement between BHP Billiton and Socerdemi SPRL, a Congolese registered company which holds the Licences. The MoU entitles Stellar to earn 50% of the BHP Billiton entitlement in the project.

Under the Option Agreement, BHP Billiton has the right to either enter into a JV with Socerdemi and earn a 85% participating interest through funding exploration to completion of a feasibility study, or elect to purchase from Socerdemi 100% of the Licences at any time during the five year option period by paying to Socerdemi US$100,000. Socerdemi would then retain a 2% net profits royalty in any future diamond sales, which can equally be bought out by BHP Billiton for US$500,000.

This MoU will be conditional on a successful fund raising by Stellar.

The Socerdemi licences are located in close proximity to other licences covering 1,308km2 over which Stellar recently secured a MoU with Remec SPRL. The proximity of the two areas offers logistical benefits and synergies and helps to secure Stellar’s presence in the north of the DRC.

Separately Stellar announces that the planned IPO of the company is now scheduled for spring 2008.

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