Southstone shares resume trading on TSX-V

Mr. Terry Tucker reports SOUTHSTONE PROVIDES FINANCIAL AND CORPORATE UPDATE Southstone Minerals Ltd. has provided a financial and corporate update, including the resumption of trading in its common shares on the TSX Venture Exchange and a correction to the earnings per share figures presented in its condensed consolidated interim financial statements for the nine months ended May 31, 2026. Resumption of trading Trading in the company's common shares resumed on the TSX Venture Exchange on July 27, 2026, following completion of the steps previously announced to address the TSX Venture Exchange Policy 3.1 deficiencies underlying the trading halt that had been in place since Jan. 10, 2024, including the appointment of an additional independent director and chair of the audit committee and the appointment of a chief financial officer separate from the chief executive officer (see the company's news releases of May 27, 2026, and July 7, 2026). Correction of earnings per share The company advises that the earnings per share figures presented in its condensed consolidated interim financial statements for the nine months ended May 31, 2026, filed on SEDAR+ on July 22, 2026, were calculated using total consolidated net income, which includes the 57-per-cent interest in the company's subsidiary, African Star Minerals Pty. Ltd., that is held by parties other than Southstone. The company holds a 43-per-cent ownership interest in ASM but consolidates 100 per cent of ASM's results, having been determined to have control of ASM notwithstanding its minority ownership interest (see Note 3.3 to the company's audited annual and interim financial statements). The company's effective economic interest in net tender proceeds is accordingly 8.60 per cent, where the 80/20 split applies, and 6.45 per cent, where the 85/15 split applies (see revenue split section below). In accordance with IAS 33 (Earnings per Share), however, basic and diluted earnings per share should be calculated using net income attributable to owners of the company only, not total consolidated net income. On a corrected basis, net income attributable to Southstone shareholders was $195,498 for the nine months ended May 31, 2026, and $108,236 for the three months ended May 31, 2026. The originally reported and corrected basic and diluted earnings (loss) per share for each affected period are summarized below. This correction affects only the presentation of earnings per share. Net income, the allocation of net income between Southstone and the 57-per-cent outside interest in ASM, total assets, total liabilities, and total equity are unaffected. The company has filed amended and restated condensed consolidated interim financial statements for the nine months ended May 31, 2026, on SEDAR+, together with the required certifications. The amended and restated financial statements replace and supersede the statements originally filed on July 22, 2026. The company's management's discussion and analysis quarterly highlights for the period do not present earnings per share figures and have not been refiled. The corrected earnings per share figures for the first and second quarters of fiscal 2026 and for the comparative annual periods will be reflected in the company's annual financial statements for the year ending Aug. 31, 2026. Oena diamond mine Revenue split: the contract mining and diamond recovery agreement dated Jan. 31, 2025, between the company's subsidiary, African Star Minerals, and its contract miner, Rietput Delwery BK, as amended with effect from July 1, 2025 Tender sale proceeds are shared 80 per cent to Rietput and 20 per cent to ASM (net of tender costs) where the gross selling price of a tender sale is 10 million South African rand or more. Where the gross selling price of a tender sale is less than 10 million South African rand, the split changes to 85 per cent to Rietput and 15 per cent to ASM. There can be no assurance that future tenders will meet or exceed that threshold, and any tender priced below 10 million South African rand will be subject to the 85/15 split. Cautionary note regarding financial information Revenue in the company's consolidated financial statements is reported on a gross basis and includes 100 per cent of ASM's diamond tender sales, notwithstanding that the contract miner is entitled to the majority share of tender proceeds under the contract mining and diamond recovery agreement described above and that Southstone holds a 43-per-cent interest in ASM. Consolidated revenue is therefore not indicative of the amounts attributable to Southstone shareholders. In addition, revenue reported by the company for earlier financial years is not directly comparable with current periods: prior periods included revenue from business segments that the company no longer owns or operates, and reflect contract mining and revenue-sharing arrangements that differ from those currently in place. Shareholders and investors are cautioned to rely only on the company's continuous disclosure record filed under its profile on SEDAR+ and on news releases issued by the company, read in their full context. We seek Safe Harbor.