Southstone sells 803.58 carats in Q4

Mr. Terry Tucker reports OENA SALES RESULTS Q4 2025, BOTSWANA AND CORPORATE UPDATE Southstone Minerals Ltd. has released fourth quarter 2025 (June to August) diamond production and sales results from its majority-owned Oena diamond mine in South Africa. The Sandberg section delivered strong operational performance with several high-value special diamonds sold. Through its 43-per-cent-owned subsidiary, African Star Minerals Pty. Ltd., Southstone has an agreement entitling it to 20 per cent of gross diamond sales revenue (net of tender costs), providing the company with an 8.6-per-cent effective interest in sales while maintaining a lean operating structure. Q4 2025 highlights (June to August, 2025): 803.58 carats sold (increase of 31 per cent versus third quarter) from Sandberg section; Average price: $1,839 (U.S.) per carat (increase of 23 per cent versus third quarter); Revenue: $1.48-million (U.S.) (increase of 61 per cent versus third quarter); Eight specials (greater than 10.8 carats, average of 19.7 carats): sold for $833,976 (U.S.), including three stones greater than $5,000 (U.S.) per carat; 14 mid-size (5.3 to 9.6 carats): sold for $334,659 (U.S.); Additional 124.50 carats produced in late August, including an 18.8-carat special, to be sold in September tender. In first quarter 2026 (September to November, 2025), mining will continue to exploit basal gravels at the Sandberg section. Since acquiring Oena in 2014, the company has sold 11,048 carats with an average stone size of 2.06 carats and an average price of $1,631 (U.S.) per carat, generating total sales of $18.0-million (U.S.). Southstone manages Oena directly, overseeing diamond sales, mining and contractor consultation, licence reporting, and site security. The company maintains a management and security team in South Africa, including the chief executive officer of African Star and the Oena site manager. The executive chairman, with external geological support, contributes technical and geological oversight, and ensures accurate internal reporting of operations. Botswana uranium acquisition update Further to the news releases of Feb. 18 and July 21, 2025, Southstone announces that it has entered a second addendum to the binding term sheet with Afrium Energy Pte. Ltd. The second addendum, effective Sept. 12, 2025, extends the end date of the acquisition agreement to March 12, 2026, to allow additional time for the renewal of the three prospecting licences in the Republic of Botswana. All other terms of the agreement remain unchanged and in full force. Southstone recognizes that licence renewals in Botswana can be a lengthy administrative process. The company, together with Afrium, is actively working with the relevant authorities to ensure the renewals are completed in due course. The company remains committed to advancing this strategic transaction while continuing to focus on its core operations at the Oena diamond mine. Corporate update The company confirms it is not currently in compliance with exchange Policy 3.1 and 3.2 requirements regarding the composition of the board and appointment of officers, but is acting in good faith and continues to operate responsibly while working toward full compliance, which will be restored upon closing of the Afrium transaction. At that time, the company will: Appoint a chief financial officer separate from the chief executive officer; and Appoint at least one additional independent director, enabling the formation of a fully compliant audit committee. These appointments will bring the company into compliance with TSX Venture Exchange requirements. The technical disclosure in this news release has been approved by Terry L. Tucker, PGeo, executive chairman of the company, a qualified person as defined by National Instrument 43-101 of the Canadian Securities Administrators. We seek Safe Harbor.