Southstone Minerals sells 2,132.33 carats in fiscal Q3

• Q3 2026 Diamond Sales: Reported gross proceeds of $4,733,181 USD from 2,132.33 carats sold across 723 diamonds.
• Average Price Realized: $2,220 USD per carat for the quarter.
• Special Diamonds Performance: 32 special diamonds (>10.8 carats) generated ~63% of total Q3 gross sales value ($2,964,863).
• Operational Update: Mining pit at Sandberg S7 Basal section is nearing its limit; contract miner requires six to eight weeks of overburden stripping before production resumes in that area.
• Pending Production: 434.55 carats recovered on May 24-25, 2026 (including nine special diamonds) pending sale in Q4 2026 tender.
• Debt Repayment: Final payment of $55,350.24 USD remitted to CC Mining Ltd., discharging the loan agreement dated Jan. 29, 2024.
• Corporate Governance Appointments: Kevin Ma appointed as independent director and audit committee chair; Derek Sobel appointed as Chief Financial Officer effective May 25, 2026.
• Regulatory Compliance: Appointments address TSX-V Policy 3.1 deficiencies regarding board composition and officer separation identified in a notice dated May 15, 2025.

• Revenue Trend Continuation: The $4.73M Q3 result continues the upward trajectory from Q1 ($1.90M) and Q2 ($3.71M), though growth rate slowed compared to the 95% surge in Q2. This indicates stable but incremental operational performance rather than a sudden breakthrough.
• Governance Remediation: The appointment of a CFO and independent director resolves a compliance issue that has been pending since May 2025. While critical for exchange listing status, this was an anticipated step given the prior notice, reducing its "newness" factor.
• Operational Pause Risk: The six to eight-week stripping requirement introduces a near-term production gap. This is standard mining maintenance but will likely impact Q4 revenue recognition compared to the strong Q3 finish.
• Market Reaction Disconnect: Despite generating nearly $5M in quarterly sales, the stock price has remained stagnant at $0.01 throughout the entire 2025-2026 period provided. This suggests the market views the company as high-risk or illiquid despite fundamental improvements.
• Loan Clearance: Repaying the CC Mining loan removes a specific debt overhang but is immaterial relative to the scale of quarterly sales ($4.7M vs $55k).

• Company Name: Southstone Minerals Ltd. (SML - TSX Venture Exchange).
• Flagship Project: Oena Diamond Mine, Northern Cape Province, South Africa.
• Project Status: Alluvial diamond property; currently in production phase with ongoing exploration/evaluation.
• Secondary Assets: Moquita Project (Angola) is terminated; Service contracts for thermal coal and metallurgical processing are ongoing in South Africa.
• Operational Focus: Shifted mining focus to the high-grade Sandberg section of Oena since Feb 2025, resulting in higher average stone sizes and prices.
• Revenue Model: Sales via tenders (e.g., Tender 277) with revenue split arrangements involving African Star Minerals and Rietput Delwery BK.