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Firestone Diamonds

Capital Markets Day 6 October 2015

Capital Markets Day: Agenda

09:45 Introduction, welcome and Company overview

Stuart Brown – Chief Executive Officer

10:00 Construction update

Glenn Black – Chief Project Officer

10:25 Diamond Resource and Reserve & Mine plan Update

Paul Bosma – Mineral Resource Manager, COO

10:50 Coffee break

11:00 Financial overview

Grant Ferriman – Chief Financial Officer

11:25 Market overview

Stuart Brown – Chief Executive Officer

11:45 Closing comments

Lucio Genovese – Chairman

11:50 Q&A

12:30 Buffet lunch

2 Capital Markets Day October 2015

Disclaimer

The information contained in this presentation (“Presentation”) has been prepared by Firestone Diamonds plc (the “Company”) and has been prepared for the purpose of providing general information about, and an overview of, the Company and its operations. It is not meant to be a complete review of all matters concerning the Company. Whilst the Company has taken all reasonable care to ensure the information and facts contained in this Presentation are accurate and up-to-date, it does not make any representation or warranty, express or implied as to the accuracy or completeness of any information included in this Presentation.

This Presentation does not constitute an invitation or inducement to engage in investment activity in the ordinary shares of the Company nor does it form part of any offer or invitation to purchase, sell or subscribe for, or any solicitation of any such offer to purchase, sell or subscribe for, any securities in the Company nor shall this Presentation or any part of it, or the fact of its distribution, form the basis of, or be relied upon in connection with, making any such investment decisions. If you require any advice, please consult an authorised person specialising in advising on investments.

No reliance may be placed, for any purposes whatsoever, on the information, representations, estimates or opinions contained in this Presentation or on their completeness, fairness or accuracy thereof and this Presentation should not be considered a recommendation by the Company or any of their respective affiliates in relation to any purchase of the ordinary shares in the Company. While the information contained herein has been prepared in good faith, no representation or warranty, express or implied, is given by or on behalf of the Company, or any of their respective directors, partners, officers, employees, advisers or any other persons as to the completeness, accuracy or fairness of the information or opinions contained in this Presentation and none of the information contained in this Presentation has been independently verified or approved by any other person and is subject to updating, revision and further amendment. Save in the case of fraud, no liability or responsibility is accepted for any errors, omission or inaccuracies in such information or opinions.

This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and result and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward looking statements, including assumptions, opinions and views of the Company or cited from third party sources, contained in this Presentation are solely opinions and forecasts which are uncertain and subject to risks. A multitude of factors can cause actual events to differ significantly from any anticipated development. The Company offers no guarantee that the assumptions underlying such forward-looking statements are free from errors nor does the Company accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments.

This Presentation is confidential and must not be copied, reproduced, published, distributed, disclosed or passed to any other person at any time without the prior written consent of the Company.

Neither this Presentation nor any copy of it may be distributed, published or reproduced, in whole or in part, by you or any other person for any purpose. Neither these slides nor any copy of them may be taken or transmitted into the United States of America or its territories or possessions (the "United States"), or distributed, directly or indirectly, in the United States, or to any U.S. Person as defined in Regulation S under the Securities Act 1933 as amended, including U.S. resident corporations, or other entities organised under the laws of the United States or any state thereof or non‐U.S. branches or agencies of such corporations or entities or into Canada, Australia, Japan, the Republic of Ireland or the Republic of South Africa. Neither these slides nor any copy of them may be taken or transmitted into or distributed in Canada, Australia, Japan, the Republic of Ireland or the Republic of South Africa, or any other jurisdiction which prohibits the same except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of United States or other national securities laws. Any person who is not authorised to receive this Presentation must return it to the Company immediately.

Paul Bosma, (Pr. Sci. Nat. Reg. nr. 400259/04) who is the Company’s Mineral Resource Manager and holds a B.Sc. Hons degree in Geology and a MBA, has reviewed and approved the technical information contained within this presentation. Paul Bosma has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking and is a qualified person as defined in the AIM Rules.

By receiving this Presentation, you agree that you have read this notice and are bound by its terms.


Introduction and Company Overview Capital Markets Day

6 October 2015

• Firestone Diamonds a focused diamond mine developer – soon to join the short list of global diamond producers

• Liqhobong Diamond Mine, Lesotho

• Owned 75% by Firestone Diamonds plc, 25% by Government of Lesotho (GoL)

• Fully funded to production ramp up

• Initial production expected during Q4 2016, construction commenced in July 2014

• Target to treat 3.6 million tonnes of ore and recover 1 million carats per year

• Potential for large and fancy yellow stones

• H1 2014 – raised project financing package of US$140 million and project debt facility of US$82.4 million

• April 2015 – US$15 million standby facility in place

• Senior management and owners team in place, with extensive project, construction and diamond mining experience


Firestone Diamonds plc Key Facts

Liqhobong Diamond Mine Key Facts cont.

• Located in north-central Lesotho, a small country land-locked in eastern South Africa

• Comprises Satellite and Main pipes, with associates dykes, in the Maluti Mountains of northern Lesotho

• 8.6-hectare kimberlite pipe, contains a probable Diamond Reserve of 9.5Mct

• Ore bodies were discovered in the 1950s by De Beers

• Acquired by Firestone from Kopane Diamonds plc in 2010

• Started trial mining via Pilot Plant in 2011 – 1.18 Mt mined yielding over 325,000 carats; well understood

• Definitive Feasibility Study (DFS) completed in Oct 2012 and revised in November 2013. New Mine Plan completed in October 2015– 15-year open-pit mine and plant capable of producing 3.6 Mtpa

• 2013 DFS base case pre financing project NPV@8% US$379m, IRR 3o%

• October 2015 new base case post financing project NPV@8% US$389m, IRR 42%

• Mine plan is for open pit mining to 383 metres over 15 years


Liqhobong Diamond Mine Location


370km South of

Johannesburg

Location, location, location Kimberlite Bodies


• Satellite pipe 1.6 ha

• Main pipe 8.6 ha

• Discovery blow 0.15 ha

• Blow ~ 0.1 ha

• Dyke 2.5 km strike


• Zero lost time injuries with over 1.3 million man hours worked to end of September

• Total workforce currently 680 employees and contractors

• New road complete and preliminary compensation paid

• Water management critical in the community - improved water access and quality

• Compensation payments for loss of grazing land currently being finalised

• New fully staffed and equipped clinic for the mine employees, also open to Liqhobong and Pulane Village will be complete in 2016 • Relocation of 28 families progressing well, with construction of new houses well advanced and scheduled for completion end 2015

Safety, Health, Environment and Community

Liqhobong diamond examples Exceptional & large stone potential


Besides the potential for large stones,

Liqhobong has a high incidence of fancy yellow stones.

74 carat US$8,500/ct

Light yellow makeable


White makeable


Fancy yellow


Light yellow makeable

Construction update Capital Markets Day

6 October 2015

Project schedule and progress


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Bill

ions

Original Cost Current Cost Original Plan Current Plan

Original project cost R1.85 billion

Current project cost R2.1 billion

49% complete at end September, current expenditure R1 billion

Accelerated completion potential end October 2016


PROJECT COST ZAR PROJECT COST USD

R 2.1 Billion US$185 Million

Major Contracts ZAR Millions

Engineering, Procurement & Construction

Management (EPCM) (DRA Projects) 139

Residue Storage Facility (Turnkey Civils Lesotho) 362

Civils & EW (Stefanutti Stocks) 406

Structural, Mechanical, Platework & Piping (SMEI) 327

Electrical Supply 40

Mechanical 134

Buildings, Furniture & Fittings 63

Thickeners & Miscellaneous Steelwork 14

Grid power (Lesotho Steel Products) 189

Total 1,674

Project major contracts awarded

Construction progress Design and Engineering and Procurement


Design and engineering

90% complete

Procurement

90% complete

15 PROJECT OVERVIEW JUNE 2015

Aerial view of future mine layout


RoM

area

EMV

refuelling

EMV

workshop

Scrubber

and

crushing

DMS, X-

Ray and

Recovery

Sorthouse Thickener

500 Tonnes per hour

capacity

3.6 million Tonnes treated

per annum

1 million Carats per annum

recovered

Detailed plant layout


August 2015

July 2014

Primary

Crusher

Main Plant Terrace

Electrical

Terrace

Accommodation

Terraces

Scrubber / Plant

Workshop Area

Raw Water Dam

RSF

Construction progress Site overview

Construction progress Earthworks 76% complete


Critical path earthworks are complete

Construction progress Earthworks


Main plant terraces -6m, 0m and +8m September 2015

Main plant terrace February 2015

Topsoil stripped 100% complete 1,375,000 m2 Hard rock 88% complete 233,000 m3 Cut to fill/spoil/stockpile 89% complete 1,400,000 m3


Raw water dam September 2015

100,000 m3 storage capacity complete

Construction progress Earthworks

Construction progress - earthworks Residue Storage Facility - 82% complete


Construction progress Earthworks - Residue Storage Facility


Toe of new slimes dam wall September 2015

Toe of new slimes dam wall September 2014

Cut 100% complete 103,000 m3 Fill 85% complete 1,500,000 m3

Construction progress - earthworks New 5.8km access road – completed August 2015


New Overhead

Power line

Pulane Village

Construction progress Civils 21% complete


Construction progress Civil works


-6m Reinforced Earth Wall and Recovery Building Foundations August/September 2015

800 m3 concrete complete, 4,134 m3 to go

Construction progress Civil works


Recovery and thickener construction August to September 2015

Construction progress Civil works - thickener outer ring concrete pour


160 m3 concrete pour – September 2015

Construction progress Accommodation 41% complete


Construction progress Fabrication - Accommodation


13 of 24 accommodation units, 450 beds, offices, clinic, laundry, kitchen, recreation facility September 2015

Lower accommodation terrace January 2015

Lower

terrace

Construction progress Fabrication and laydown


Fabrication

73% complete

vs 67% target

Mine Access Road to Earthmoving Vehicle Workshop – Current laydown for Scrubber and Crusher Building

Construction progress SMPP Installation 2% complete


Construction progress Fabrication and Installation


Primary transfer tower September 2015

Primary crusher steelwork September 2015

Earthworks Total steelwork 2,861 tonnes Platework 555 tonnes Conveyor 431 tonnes, Piping 16,743 m



Apron feeder spillage conveyor and apron feeder Installation, September 2015



Primary jaw crusher installation and steel erection September 2015

Construction progress Grid Power Project complete 2 October


28 km 132kV Overhead line complete and energised 9 months ahead of schedule in October 2015

Substation terrace works September 2014

Project status Summary


Actual

(25 /09/15)

Revised

Baseline Comments

Overall Project

status 49% 50% The original baseline schedule required 61% complete

EPCM

Design &

Engineering 90% 92%

Mountain slippage close to main plant areas caused small delay in drawing

output

Procurement 90% 95% All equipment deliveries aligned to the revised schedule requirements

Bulk power -

Overhead line 100% 100% Power Line and Liqhobong Substation energised 2nd October

Project status Summary


Actual

(25/09/15)

Revised

Baseline

Construction

Residue Storage

Facility (TCL) 82.4% 81.0%

TCL are progressing well and will complete scope ahead of baseline

schedule

Earthworks

(Stefanutti Stocks) 75.8% 84.0%

Delayed due to late approval of work permits, inclement weather &

increased overburden

Civils (Stefanutti

Stocks) 20.5% 24.6%

Delay associated with late handover of Earthworks due to above and

requires planned acceleration

Fabrication

SMPP (SMEI) 73.0% 66.5% SMEI are ahead on fabrication but slightly behind schedule due to delayed

civil access

National &

Overseas 41.0% 57.1% Delay in accommodation units requires planned acceleration

Mine plan & Diamond Resource and Reserve Update Capital Markets Day

6 October 2015

Background 2009 Diamond Resource

39

• 2009 Diamond Resource estimate based on core drill holes, WDD holes, bulk samples

• Stated at a bottom cut off = 1mm

• Carats estimate included a boart factor derived from bulk samples

INDICATED

INFERRED

180m

320m

N S

2009 Diamond Resource at 1mm BCO

Main Pipe Tonnes Grade (cpht) Carats

Indicated Resource 38,556,000 31 12,041,600

Inferred Resource 51,471,000 34 17,655,000

Total Resource 90,027,000 33 29,696,800

Capital Markets Day October 2015

Background 2013 Revenue Estimate

40

• Firestone sold approximately 393,946 carats during the period December 2010 to December 2013 over 15 tenders. Size frequency and assortment data derived from the sale of these diamonds determine modelled prices

• Sample size from pilot plant production significantly larger than most diamond development projects

• Independent analysis of nine large stone fragments (30-40 ct stones) by First Element in Feb 2013 concluded that if these large stones were recovered unbroken and included in the revenue model, a range of values up to US$180 per carat could be expected. Three of these stones were calculated to have been 200 carats or larger

• Revenue estimate used in the 2013 DFS assumed a base case average price of US$107 per carat based on the following inputs:

- Modelled SFD’s derived from the surface bulk samples per facies collected in 2008

- Assortment $/ct data per sieve class based on pilot plant goods sold up to August 2013

- Expected and upside estimates of large stone potential based on extrapolation of the SFD and assortment curves

Base Case Average diamond price, including expected large stones,

modelled at US$107 per carat at a 1mm BCO

Upside Case Average diamond price, including upside large stones,

potentially US$156 per carat at a 1mm BCO

Besides the potential for large stones, Liqhobong has a high incidence of yellow and yellow fancy stones


41

Summary of changes compared to 2009 estimate

• Geology – due to detailed re-logging of core (59 drill holes, 10,1km) shifted facies boundaries

• Overall reduction in volume as a result of tapering at depth leading to ~ 8% reduction in ore, mainly in Inferred portion of pipe


2015 Diamond Resource Estimate

Summary of changes compared to previous estimate

• Density – 2009 estimates had sparse data – only one density value per facies. 338 new data points were collected during 2014, every 20m along boreholes where core quality allowed, resulting in a higher confidence local block estimate

• Bottom-cut-off – the new Treatment Plant will have an effective bottom-cut off (BCO) of 1.25mm. 2009 estimate had a BCO of 1mm leading to a reduction in carats but increase in US$/ct

• Boart factor – the 2015 estimate i.e. no boart factor will be applied as the boart component has negligible value. Boart factors applied as part of 2009 estimate – biggest impact on K5

42

Facies Boart in bulk samples

(%) Modifying factor

(%)

K2 7.2 +8

K4 6.1 +1

K5 14.3 +19

K6 6.6 +9


2015 Resource Estimate


Summary of changes compared to 2009 estimate:

• US$/ct Revenue

– Independent valuation requested in August 2014 to revalue Liqhobong parcels based on current market trends. New US$/ct/sieve class information used to update the 2013 Liqhobong revenue forecast, including an expectation of large stones up to 100 carats and at a BCO of 1.25mm

– Modelled SFD for each of the main pipe’s 4 facies derived from bulk sampling and focused mining. This combined with a single modelled assortment allows for a revenue estimate to be determined for each of the 4 facies as at August 2014

– Increased average US$/ct result of market price increase, assortment modelling, BCO adjustment, and large stone potential analysis. Weighted average unescalated diamond price for the new Mine Plan is US$131 /ct

– Upside diamond price was kept at US$156 /ct

– Given current state of the diamond market, deemed prudent to not escalate these values until January 2017 when production will commence in all earnest

43

K2 K4 K5 K6

Average price

(US$/ct) 134 115 133 115


Summary of changes compared to 2009 estimate

• Depletions – the new in-situ model was depleted against the latest (April 2014) surface topography to compensate for pilot plant mining conducted up to that date.



Net effect of changes compared to 2009 model:

• Higher confidence – geology, volume, density, grade and revenue models are at an Indicated level of confidence down to ~ 180m below surface

• Reduction in volume and tonnes due to pipe tapering and depletions

• Overall reduction in grade and carats due to BCO change (~3%), removal of boart factor (~11%) and volume (tonnes) reduction (~8%)

• Increase in average US$/ct due to application of August 2014 pricing info, change in BCO and including large stone potential

• Overall in situ US$/tonne increase of 9%

• Overall in-situ $ value almost identical at ~US$3B

45

Volume (m3) Tonnes SG (tonnes/m3) Carats $/tonne

Grand Total -8.3% -8% 0.4% -22.3% 9%



• To a depth of approx. 180m below surface, the extent of the majority of the WDD holes, the Liqhobong Indicated Diamond Resource is estimated to contain some 9.5 Mct in 35 Mt of kimberlite at an average grade of 27 cpht

• Additional drilling will have to be conducted in due course to convert Inferred to Indicated Resource below these depths

• Total in-situ value ~US$3 billion and in-situ US$/tonne value of around US$37

46

SAMREC Compliant Diamond Resource Statement for Liqhobong Main Pipe as at 30 September 2015 (including Reserves)

Diamond Resource Category Depth from and to Source

DIAMOND RESOURCE General Information

Volume in m3

(Millions) SG

(tonnes/m3)

Metric Tonnes

(Millions) Grade

(CPHT) Carats

(Millions)

Resource Bottom cut-

off (mm) Value

(US$/ct)

Indicated Surface (2650 masl) to 2467 masl

Main Pipe

13.547 2.61 35.364 27 9.533

1.25

132.0

Inferred 2467 masl to 2127 masl

Main Pipe

18.135 2.65 48.064 28 13.553 132.0

TOTAL Diamond Resource 31.681 2.63 83.428 28 23.086


2015 Diamond Resource Statement

• The 2012 DFS considered an open pit mine design recovering 55Mt of ore and 17.6 Mct over a 15 year LOM

• The updated DFS had the Pilot Plant production removed and therefore the mine plan was 53.7 Mt of ore recovering 17.1 Mct

• The difference between the Probable Reserve and total mine plan figures was made up by Inferred Resource

47

2012 Diamond Reserve at a 1mm BCO

Main Pipe Tonnes Grade (cpht) Carats

Probable Reserve 36,448,000 31 11,379,000


Background: 2012 Mine Plan

2015 Mine Plan

• Based on the latest Resource Model and Revenue estimate

• Whittle Pit optimisation process was undertaken to determine the optimal size of LoM pit based on all the relevant inputs and modifying factors

• Following mine designs were considered

1. Concentric design containing 4 cuts with 10 metre benches and a 20 metre double bench for the final cut

2. Split Shell design with 10 metre benches and a 20 metre double bench for the final cut

3. Split Shell design with a 14m bench and 28m double bench design

48

Surface elevation

Cut 1

Cut 3

Cut 2

Cut 4

East- West section through the concentric design


2015 Mine Plan

Pit design considerations to select optimal design

1. Split shell reduces ramp failure risk. Once two splits join then a concentric ramp results

2. Using the split shell design, waste has been deferred

3. More ramp construction and maintenance is needed

4. Capex cost for initial mining fleet expected to be lower for the split shell due to lower waste

5. Split shell has less in-pit traffic congestion with multiple ore and waste faces available

6. Split shell requires detailed planning and strict adherence to the plan to meet bottlenecks, some flexibility lost on ore face availability

7. Mining from one side of the pit first allows gathering of geo-tech data that can be applied to the other side

8. Split shell reduces blasting spillage on ramps (closing of ramps)

9. Letseng using same 14m kimberlite and 28m basalt bench designs in a split shell pit in same geological environment

10. Mine designs reviewed and signed off by SRK


2015 Mine Plan

• Split shell waste profile more favourable over the first 4 years

• Peak waste years deferred with split shell design

50

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

tonnes (million) Waste - Split shell vs Concentric

Split shell Final concentric


Surface elevation 2650

Indicated elevation 2467 m

Split Shell Pit - North South Section

Cut 3 North

Cut 3 South

Cut 1

Cut 2 North

Cut 2 South

2015 Mine Plan

Overall basalt slope angles range from 50 to 55 degrees. Kimberlite angles range from 40 to 46 degrees

51

383 m to pit bottom

14 m benches in kimberlite

with 28 m benches on

basalt

Ore: 52.1 mt

Waste: 105.1 mt

SR: 2

Carats: 14.2 m

Cut 1 will be

concentric design

at low SR of 0.5 for

3.5 yrs


2015 Mine Plan

52

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

-

2

4

6

8

10

12

14

16

18

20

Carats (millions)million tonnes Split shell design production profile

waste tonnes ore tonnes carats

• Waste stripping peak of 18.5 million tonnes for 2 years in years 8 and 9

• Total of 105 million tonnes in the 28m bench design compared to 117 million tonnes in the concentric design

• More importantly, the first 4 years waste total is 10.7 million tonnes compared to 15.3 million tonnes for the concentric design, resulting in a material cash flow saving

• The Split Shell strip ratio is 2 compared to 2.3 for the 2013 mine plan


Mine Plan variance summary

53 PROJECT OVERVIEW JUNE 2015

• The new mine plan shows reduced waste tonnes and stripping ratio

• Decrease in grade and carats largely as a result of boart removal, BCO change and volume reduction

• Overall LoM US$ per carat increase but reduced total US$ revenue due to carat reduction

• Large Rand revenue increase due to favourable US$/Rand exchange rate

Waste

Tonnes

(millions)

Stripping

Ratio

Ore Tonnes

(millions)

Grade

(cpht)

Carats

(millions)

LOM

Revenue

($/ct)

LOM

$/tonne

Exchange

rate (R/$)

LOM

R/ tonne

Overall $

revenue

(millions)

Overall R

revenue

(millions)

2013 Mine Plan 122.6 2.3 53.7 32.1 17.1 146 46.90 10 469.01 2,505.34 25,053.39

2015 Mine Plan 105.1 2.0 52.1 27.3 14.2 165 45.05 13.25 596.85 2,344.10 31,059.29

% Difference -14.2% -11.6% -3.0% -14.9% -17.1% 12.8% -4.0% 32.5% 27.3% -6.4% 24.0%

2015 Diamond Reserve Statement

• Over and above the Indicated Resource, the 2015 split

shell mine plan also assumes the mining of a portion

of the Inferred Diamond Resource totalling some 17

million tonnes and 4.7 Mct

• The latest total LoM plan considers the mining of 53.1Mt diluted ore at a grade of 26.8 cpht recovering 14.2Mct

54

RESOURCE TO RESERVE MODIFYING FACTORS

Factor name Units Values

Diamond price US$/ct 132.00

Diamond price escalation % 3.00

Production factors:

– Plant recovery factor % 100.00

– Mining dilution % 2.00

Financials:

– Discount rate % 8.00

– GOL royalty % 8.00

– R/US$ exchange rate 11.00

– Sales and marketing costs % 1.87

SAMREC Compliant Diamond Reserve Statement for Liqhobong Main Pipe as at 30 September

2015

Diamond

Reserve

Category Depth from and to Source

DIAMOND RESERVE General Information

Metric Tonnes

(Millions)

Grade

(CPHT)

Carats

(Millions)

Reserve

Bottom

cut-off (mm)

Value

(US$/ct)

Probable Surface (2650 masl) to

2467 masl Main Pipe 36.046 26.4 9.523 1.25 131.0

TOTAL Diamond Reserve 36.046 26.4 9.523


Financial Overview Capital Markets Day

6 October 2015

• Diamond Resource and Diamond Reserve updated

• New mine plan developed

• Revenue per carat calculated at 2014 rates unescalated until January 2017

• New zero based budgets developed

• Impact of funding included

October 2012 DFS NPV US$335 November 2013 NPV US$379 October 2015 NPV US$389

Project Model 2013 DFS

pre-financing 2015 Mine Plan

post-financing

Net Present Value @ 8% US$ 379 389

IRR 30% 42%

Revenue US$ per carat 146 165

Initial Capital cost ZAR' million 1,854 2,088

Exchange rate US$1: R 10.00 13.27

Payback period incl. construction 56 months 49 months


2015 Project economics update

(58)

(91) (14)

63

20

379 NPV (ungeared)

(10)

100

369 NPV (ungeared) 389 NPV (geared)

0

50

100

150

200

250

300

350

400

450

Nov 2013 NPV Cost escalation-3 years

Revenue Operating costincrease

Capital increase Reduction intaxes

Foreignexchange gains

2015 NPVungeared

Financing (net oftax)

2015 NPV

NP

V U

S$'m

illio

ns

2013 DFS US$379 (ungeared)

2015 update US$389 (geared)

October 2014 September 2015


NPV reconciliation

Key assumptions November 2013 DFS October 2015 Mine Plan

unit

Ore Mined mt 53.7 52.1

Average strip ratio Waste/ore 2.3 2.0

Plant capacity mtpa 3.6 3.6

In-situ grade cpht 32.1 27.3

Average annual production mcts pa 1.1 1.0

Opex cost1 ZAR/t processed 151.0 192.1

Opex cost1 US$/t processed 15.1 14.5

Steady state operating exp US$/carat 45.8 53.3

Royalty % 8% 8%

Project capital ZAR’ million 1,854 2,088

Project capital US$’ million 185 185

Revenue US$/carat 146 165

Total carats Million 17.2 14.2

Life of open pit mine Years 15 15


Key economic Assumptions

1 – Operating costs for the November 2013 DFS have been adjusted to include costs allocated to stay in business capital

2015 NPV sensitivity -20% -15% -10% -5% Base 5% 10% 15% 20%

Rank $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

1 Revenue (154 070) (115 330) (76 878) (38 435)

389 413

38 429 76 851 115 013 153 129

2 fx (77 392) (54 690) (34 606) (16 636) 14 169 27 472 39 560 50 499

3 Operational cost * (53 383) (40 037) (26 691) (13 346) 13 346 26 691 40 037 53 383

4 Waste * (19 482) (14 612) (9 741) (4 871) 4 871 9 741 14 612 19 482

5 Capital overrun * (9 990) (7 492) (4 995) (2 497) 2 497 4 995 7 492 9 990

* increase in negative factor illustrated with decrease in positive factors


Sensitivity analysis

0

100

200

300

400

500

600

80% 85% 90% 95% 100% 105% 110% 115% 120%

NP

V (

US

D)

mil

lio

n)

2015 NPV sensitivity analysis at 8% discount

Revenue Waste capital Ops cost fx

91011121314151617181920

1U

S$:Z

AR

US$: ZAR exchange rate

USD/ZAR rate supplied by OANDA Forward rate supplied by FACTSET

Unit Total 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

Ore mt 52 1.2 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6 0.5

Waste mt 105 0.1 1.1 2.3 4.2 11.1 14.5 15.2 17.3 18.5 14.4 4.0 1.6 0.8 - - -

Total tonnes mt 157 1 5 6 8 15 18 19 21 22 18 8 5 4 4 4 0

Strip ratio 2.0 0.1 0.3 0.6 1.2 3.1 4.0 4.2 4.8 5.1 4.0 1.1 0.5 0.2 - - -

Average grade cpht 27.3 25.5 26.5 29.7 32.2 31.1 22.6 25.6 25.6 28.6 26.6 23.8 26.2 27.3 27.9 28.9 29.6

Carats million 14 0.3 1.0 1.1 1.2 1.1 0.8 0.9 0.9 1.0 1.0 0.9 0.9 1.0 1.0 1.0 0.1

Average price US$/carat 165 126 133 139 144 148 151 158 162 165 171 179 184 189 196 202 205

Revenue US$’million 2,344 38 127 148 167 166 123 146 149 170 163 153 173 185 197 209 30

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Str

ip r

ati

o

Pro

du

cti

on

to

nn

ag

e

LOM Production and strip ratio

Total clean ore tonnes Total Waste Tonnes Stripping ratio


Production and revenue

Operating costs per tonne processed ZAR / tonne US$ / tonne

DFS 2013 DFS 2015 Mine Plan 2013 DFS 2015 Mine Plan

Mining 91.35 107.51 9.13 8.10

Processing 31.45 43.17 3.15 3.25

Energy 5.77 10.40 0.58 0.78

Overheads 22.41 31.03 2.24 2.34

Total operating cost per tonne processed 150.98 192.11 15.10 14.47


Operating costs

56% 23%

5%

16%

ZAR/t processed

MiningProcessingElectricityOverheads

Physical completion:

• 31 August 2015 42.5%

• 30 September 2015 49%

CAPITAL BUDGET Original Budget Revised Budget Spend 31Aug 2015 Remaining

Currency ZAR 'million

Main plant project capital 1,704 1,710 940 770

Project cost increase as announced June 2015 - 156 - 156

Operational readiness - 81 - 81

Power Line 150 74 74 -

Conveyor system - 67 - 67

Total start up capital 1,854 2,088 1,014 1,074

-

500

1,000

1,500

2,000

2,500

ZAR

M

ILLI

ON

S

Project expenditure to 31 August 2015

Project spend to 31 Aug 2015 Forecast Project expenditure

49% spend

Capital costs


Key terms of facilities:

US$’ m Term Eff. int.

rate

ABSA 82.40 6.5 years 10%

Eurobond 30.00 7 years 8%

Standby 15.00 3 years 8%

Total Funding available at 31 August 2015 US$ 'm

Cash balance on 31 August 2015 21.6

Undrawn debt facilities

Eurobond (8%) 10.0

ABSA Project facility(10%) 82.4

114.0

Standby facility 15.0

Total funding available 129.0

Expenditure to Project completion

Project capital 69.0

Project cost increase 11.7

Operational readiness 6.6

Conveyor system 5.1

Total project capital 92.4

Finance fees 12.0

Group working capital 6.0

Total expenditure 110.4

Headroom (excluding standby facility) 3.6

Headroom (including standby facility) 18.6

Total Funding US$ 'm

Equity 113.0

RCF and Pac Road 70.0

New and existing shareholders 40.0

Retail open offer 3.0

Debt 112.4

ABSA Project facility 82.4

Eurobond facility 30.0

Project funding excl. standby facility 225.4

Standby facility 15.0

Project funding incl. standby facility 240.4

Funding and use of proceeds


Market Overview Capital Markets Day

6 October 2015

Supply and demand Production trend


Source: Bain 2014

Supply and demand Price growth


Source: Bain 2014

Closing comments Capital Markets Day

6 October 2015

• Project construction 49% complete, as at end of September 2015 and on track for initial production in Q4 2016

• Zero lost time injury record maintained, with over 1.3 million man hours worked to end of September 2015

• Capital budget to commencement of production of ZAR2.1 billion, remains within the original US$185.4 million budget

• Grid power project complete for Liqhobong significantly ahead of schedule and within budget

• Diamond Resource and Diamond Reserve updated

• Base case life of mine US$ per carat increased by 13% from a escalated average of US$146/ct to US$165/ct

• New mine plan completed and strong base case project economics reconfirmed, with a base case post financing NPV of US$389 million and improved Project IRR of 42%


Summary

Appendix

Capital Markets Day

Diamond processing plant

• Tried and tested processing facility with design capacity to process 3.6 Mtpa

• Strong design focus on large diamond recovery (to recover sizes up to 400 carats)

• Best practice comminution design aimed at reduced diamond damage

• Hands-off and secure diamond handling

• Only proven process technologies selected in 2012

• Process design focused on workability and cost-effectiveness

• Process flow incorporates:

• Combination of jaw and cone crushers;

• Scrubbing and conventional screening;

• Coarse and fines dense medium separation; and

• Final concentration by X-ray fluorescence technology.


Process flow schematic

71 Capital Markets Day October2015

LIQHOBONG MINE PROCESS FLOW SCHEMATIC

Tertiarycrusher sizing screen

-1.25mm effluent to scrubber sizing screen

500tph by direct truck tipping or by

front end loader feed

Headfeed reception bin static grizzly (800mm2)

Vibrating grizzly feeder

Apron feeder Jaw crusher

Scrubbers (2 off)

+130mm

-130mm-200mm

Scrubber sizing screens (2 off)

+40mm

COARSEDMS

(2 off)

4-40mm

4-40mm

+40mm

FINES DMS (2 off)

1.25-4mm

Secondary cone crushers (2 off)

Secondary crusher sizing

screen

Final Recovery system with Sizing, X-ray sorting and Drying, followed by hand sorting

De-sliming screens (2 off)

10-40mm

-1.25mm effluent to scrubber sizing screen

+1.25mm

+10mm

1.25-10mm

-1.25mm effluent

-1.25mm effluent

Degrit and thickener circuit)

Process water supply tank

-1.25-10mm Fines DMS tailings conveyed to slimes dam wall

Thickened slimes pumped to slimes dam

-1.25-10mm floatsconveyed to

slimes dam wall

Slimes dam with waterreclamation system

Slimes reclamation water for re-use

Tertiary cone crushers (3 off)

Tertiary crusher de-watering screens (3 off)

Secured Recovery tailings storage area

Fines DMS concentrate

Coarse DMS concentrate

Project schedule for Liqhobong Based on construction mobilisation July 2014


Activity 2012 2013 2014 2015 2016 2017

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H

ESIA (Complete)

DFS Feasibility study (Complete)

Project Financing (Complete)

Detailed Engineering

Site Construction

Access road Construction

(Complete)

Commissioning and Ramp-up

Ramp-up of commercial Production

Liqhobong Diamond Project Ownership structure

Firestone Diamonds plc

Kopane Diamonds Limited

Liqhobong Mining Development Company (Pty) Ltd

Government of The Kingdom of Lesotho

100%

75%

25%

Capital Markets Day October 2015 73


Share price performance since October 2014

Significant Shareholders (as at June 2015)

Pacific Road Resources 23.0%

Resource Capital Fund VI L.P. 23.0%

Edwards Family Holdings Ltd 9.2%

FIL Ltd 5.0%

Sustainable Capital Ltd 5.0%

Julian Treger 4.5%

Advisers

Nomad Strand Hanson

Joint Broker Mirabaud Securities LLP

Joint Broker GMP Securities LLP

Auditor BDO LLP

Financial PR Tavistock Ltd

Source: Factset

London Listed AIM: FDI

Current Share Price (02/10/15) 23.5p

Issued Shares 308,992,814

Market Capitalisation (£) 72.6m

Analyst forecasts Target Price

GMP Securities – June 2015 60p

FinnCap –September 2015 81p

Macquaire – March 2015 30p

Panmure Gordon – June 2015 42p

RBC Capital Markets – January 2015 40p

SP Angel – December 2014 40p

Stifel Securities – September 2015 60p

Company overview

Firestone Diamonds Capital structure


Share Price 2 October 2015 23.5 p

52 week high-low 37.0 -23.5 p

Average daily volume last 12 months 126 k

Total shares outstanding 309m

Market capitalisation US$ 110.2m

Warrants outstanding 49m

Options outstanding 12m

Consolidated cash end August 2015 US$ 21.6m

Undrawn debt facilities end August 2015

ABSA project facility US$ 82.4m

Eurobond (series A) US$ 10.0m

Standby facility US$ 15.0m

Firestone Diamonds Board of Directors & Officers


Lucio Genovese Non-Executive Chairman

Stuart Brown Chief Executive Officer

Paul Sobie Non-Executive Director

Braam Jonker Non-Executive Director

Mike Wittet Non-Executive Director

Ken Owen Non-Executive Director

Niall Young Non-Executive Director

Keith Johnson Non-Executive Director

Grant Ferriman Chief Financial Officer

Highly experienced Board with proven track record

Firestone Diamonds Board of Directors & Officers - Biographies


Lucio Genovese Non-Executive Chairman

Mr Genovese has over 25 years of experience in both the merchant and financial sector of the metals and mining Industry, He is a qualified Chartered Accountant and has a B.Comm and B.Acc from the University of Witwatersrand, Johannesburg (South Africa).


Mr Brown has over 24 years of experience in the diamond industry, most of which was spent with De Beers where he held the positions of Group CFO for 5 years before being appointed Joint Acting CEO. Mr Brown holds a Bachelor of Accounting Science (BCompt) from the University of South Africa (UNISA) and is a member of the South African Institute of Chartered Accountants.

Grant Ferriman Chief Financial Officer

Mr Ferriman is a Chartered Accountant with 15 years of experience, including 7 years in the mining industry and has extensive experience in public company reporting in the United Kingdom and the development and implementation of control systems for companies with assets based in Southern Africa.

Keith Johnson Non-Executive Director

Mr Johnson has over 25 years of experience in the natural resources sector, 18 of which were in the mining industry. Mr Johnson previously served on the Executive Committee of Rio Tinto plc where he was responsible for Rio’s US$1 billion global diamond business across three continents. Mr Johnson holds an MBA in Finance and a BSc degree in Mathematics and Operational Research and is also a Fellow of the Royal Statistical Society. Mr Johnson is Resource Capital Fund VI L.P.’s nominated Non-Executive Director of the Company.

Paul Sobie Non-Executive Director

Mr Sobie is a graduate of Laurentian University, Canada and is an economic geologist specializing in the exploration and evaluation of diamond deposits, which included the initial economic evaluations of the Liqhobong kimberlites in Lesotho. Mr Sobie has over 20 years of professional experience and is a practising member of the Association of Professional Geoscientists of Ontario.

Braam Jonker Non-Executive Director

Mr Jonker has over 20 years of extensive accounting and corporate finance experience mostly in the mining industry. He is a Chartered Accountant (South Africa, England and Wales) and holds a Masters Degree in South African and International Tax from the Rand Afrikaans University.

Niall Young Non-Executive Director

Mr Young has over 30 years of experience in the mining industry and was previously General Manager of Mineral Resource Management at De Beers. Mr Young holds a B.Sc. (Hons) in Mineral Exploitation from University College Cardiff and is also a Fellow of the Geological Society of London. Mr Young is Pacific Road Capital’s nominated Non-Executive Director of the Company.

Ken Owen Non-Executive Director

Mr Owen has over 35 years of experience in the mining industry, having worked as General Manager of De Beers’s Premier Diamond Mine in South Africa and as Senior Vice President of Anglo American South Africa. Mr Owen holds a M.Sc. in Minerals Production Management from Imperial College, London.

Mike Wittet Non-Executive Director

Mr Wittet has over 40 years of experience in mining, the majority of which were spent in the diamond industry where he held positions including General Manager of Jwaneng, Orapa and Namdeb diamond mines. Mr Wittet holds an Honours Degree in Chemical Engineering from Edinburgh University in Scotland.

Liqhobong Diamonds Owner’s team



Gideon Scheepers Metallurgical Lead

Paul Bosma Mineral Resource Manager, COO

Ernst du Plessis Mechanical Lead

Shane Hunter Mining Lead

Stuart Heggie Project Services Coordinator

Patrick Fountain Electrical Lead

Philip de Bourbon Control & Instrumentation Lead

Richard Stopford Project Planner

Glenn Black Chief Project Officer

79

Contact Us Firestone Diamonds plc The Triangle 5-17 Hammersmith Grove London W6 0LG Tel: +44 (0)20 8741 7810 Fax: +44 (0)20 8748 3261 [email protected]

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