Mano River updates Kono project

Mano River Resources Inc. announces a progress update on the Kono diamond project in Sierra Leone. The Kono project is a Joint Venture between Stellar Diamonds Ltd (Stellar) (49%) and Petra Diamonds Limited (”Petra”) (51%). Mano River is a 68.5% shareholder in Stellar, which plans to list on AIM in the spring of 2008.

Trial mining operations at the Kono project, a joint venture with Stellar Diamonds, continue with highly encouraging results at the Pol K and Bardu test shafts. A total of 8,640 diamonds (760 carats) have now been recovered at Kono (bottom cut 1 mm). A parcel of 581 carats has been shipped to South Africa and these are being cleaned, awaiting valuation.

At Pol K shaft, a total of 757.5 tonnes of in-situ fissure has now been extracted. Ore processing has yielded 5,603 diamonds totalling 479.5 carats, rendering a very satisfactory in-situ grade of 63 cpht, with the ten largest diamonds ranging in size from 1.1 carats to 10.55 carats. At the extraction depth of 32 metres, satisfactory mining conditions have been experienced. Shaft sinking will now be extended to a depth of 60 metres, at which point stope panels will be established to increase ore extraction.

At Bardu shaft, trial mining started in early December 2007. The limited amount of in-situ fissure tonnes extracted so far at a depth of 30 metres below surface yielded encouraging in-situ grades, however Petra is of the opinion that the scale of the work conducted is presently too limited to arrive at any representative in-situ grade. Test work will continue in order to obtain an in-situ grade and evaluate the quality of the diamonds. As previously stated, we expect to be in a position to make a development decision at Kono by mid 2008.

It is also worth noting the considerable exploration potential at Kono and Petra has, subject to successful contract negotiations, awarded a contract to Fugro Airborne Surveys to conduct a survey in the Kono area to prospect for potential kimberlite pipes and blows.

Karl Smithson, CEO of Stellar said, we are very encouraged by diamond results from the test mining at the Kono operation. Taking the Kono project into production is in line with Stellar’s core strategy of becoming a diamond producer. The project is making excellent progress under the management of Petra who continue to work in a very diligent and cost effective manner. I look forward to the opportunity of updating our shareholders on the progress being made across our portfolio in due course.

Luis da Silva, CEO of Mano, said, this is an extremely positive development for Mano as a 68.5% shareholder in Stellar. We are making good progress towards the planned listing of Stellar this spring, subject to market conditions, and are confident that once listed Stellar as a stand alone entity will unlock significant value for Mano’s shareholders.

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