Corporate Update

GoldStone Resources Limited (AIM: GRL) announces, further to its announcements of 19 September 2023 and 2 October 2023, that the Board continues to actively pursue funding proposals and/or similar potential solutions to enable the Company to seek to extend, renegotiate or refinance the outstanding secured Gold Loan from its principal creditor (the "Secured Creditor") which is currently due for repayment on 10 November 2023. The Board is in discussions with its Secured Creditor and, until those discussions have been concluded, the Company's auditors are not in a position to finalise their audit opinion in respect of the Company's final results for the 12 months to 31 December 2022 (the "2022 Accounts") and thus sign off on the 2022 Accounts. The Company will therefore not be able to publish its accounts in advance of a suitable solution being reached.

Whilst the Board is in active discussions with stakeholders to achieve an appropriate solution with respect to the Gold Loan and the provision of additional working capital for the Company, there can be no guarantee that such an agreement can be reached or additional working capital provided. The Board is taking appropriate professional advice, but in the event that a solution cannot be achieved and the outstanding principal amount of the Gold Loan and accrued interest thereon (which as of 30 September 2023 amounted to, in aggregate, 2,354 ounces of gold) cannot be repaid or rescheduled prior to 10 November 2023, security over the Company's primary assets could potentially be enforced.

The Company's Ordinary Shares will remain suspended from trading on AIM until such time as it has satisfied the requirements of AIM Rule 19 with respect to publication of its 2022 Accounts and AIM Rule 18 with regard to publication of its interim results for the six-month period to 30 June 2023, which were required to be published by 30 September 2023. In the event that both such accounts cannot be published by 31 December 2023, admission of the Company's Ordinary Shares to trading on AIM may be cancelled in accordance with the provisions of AIM Rule 41.

The Company has recently completed a gold pour of 376 ounces at its Homase mine thereby providing cashflow of approximately $0.65m. As at 30 September 2023, the Company's consolidated unaudited cash position was approximately $0.2m, with consolidated total liabilities estimated at $10.7m, comprising $7.8m of current liabilities (including $4.4m in relation to the Gold Loan referred to above) and the convertible loan note issued to Blue Gold International Limited in January 2023 (approximately $2.9m).

The Company will provide a further update(s) in due course as appropriate.

Unless otherwise defined herein, all capitalised terms in this announcement shall have the meanings assigned to them in the Company's announcements of 2 October 2023.