Mano River Resources Inc: Stellar Diamonds Closes a Pounds Sterling 3.05 Million Pre-IPO Non-Brokered Placement and Operations U

Mano River Resources Inc (TSX VENTURE:MNO)(AIM:MANA) the TSX-V and AIM-listed
exploration and development company focused on iron ore, diamonds and gold in
west Africa, is pleased to announce that its majority owned subsidiary Stellar
Diamonds Ltd ("Stellar" or "the Company") has completed a pre-IPO non-brokered
placing of 15,248,490 new ordinary shares (the "Placing Shares") of 1 pence each
in Stellar at 20 pence per share raising gross proceeds of Pounds Sterling 3.05
million (the "Placing"). In addition the company settled debt of Pounds Sterling
678,192 through the issue of 3,390,961 shares at the same price of 20 pence per
share.


Placing Highlights:

- Stellar raises Pounds Sterling 3.05 million to continue development of key
near term production projects to achieve cash flow


- Stellar converts Pounds Sterling 678,192 in debt to equity, primarily owed to
Mano River and the Board and Management


- Non-Executive Chairman Lord Daresbury purchased 550,000 shares for Pounds
Sterling 110,000


- Mano purchased 6,920,220 shares for Pounds Sterling 1,384,044 and converted
Pounds Sterling 622,356.20 debt for a further 3,111,781 shares and remains
largest shareholder in Stellar with 59.62% of the enlarged issued capital


- Placing Shares represent 21% of Stellar's enlarged issued share capital

The proceeds from the Placing will be used to continue development of near term
production projects at the Kono underground trial mining project in joint
venture with Petra Diamonds in Sierra Leone and the 100% owned Mandala alluvial
diamond project in Guinea. Additionally, the proceeds will be used for general
working capital purposes.


The Placing Shares and shares for debt were issued together with warrants on the
basis of one warrant for every Placing Share subscribed, each warrant entitling
the holder to subscribe for one ordinary share in the Company at 25 pence per
share, exercisable until 30 June 2010 ("Warrants").


Following the Placement, Stellar has an enlarged issued share capital of
49,097,755 ordinary shares with 21,920,308 warrants, 260,390 adviser's options
in issue and 2,992,500 share options in issue.


Operational Update

Kono Project, Sierra Leone

From 1st January 2009 Stellar has elected to sole fund the Kono project for 2009
(Budget $2.8 million) and will reinvest all diamond sales revenues in the
continued development of the project. At the end of 2009 the Company's joint
venture partner Petra Diamonds will have the option to reimburse Stellar 51% of
the project costs to maintain its 51% equity in the project, or dilute. The
current technical team will remain on the project and Petra will continue to
offer technical advice as required.


Trial stope mining at the Pol-K shaft is ongoing at the 65 metre level below
surface level and shaft sinking is continuing to the 96 metre level where new
stope faces will be opened by April 2009, thus increasing the production
tonnage. Some 3,159 carats have been produced to date and an export of 1,892
carats is being prepared for shipment to Antwerp for valuation and possible sale
in March 2009 to test market conditions. Diamonds of 11.95 carats and 11.40
carats are included in this parcel. The in-situ grade of the Pol-K kimberlites
remains encouraging at 61 carats per hundred tons.


Mandala Project, Guinea

Project development continues on track. Construction of a 50km stretch of gravel
access road has been completed and the 100 ton per hour DMS processing plant is
currently being trucked to site. Construction and commissioning of the plant is
scheduled for end of March-09, after which commercial production is expected to
commence. 


Exploration

The Company has made significant progress at its various exploration projects
and continues to build a strong pipeline of projects with significant potential
to create additional value for the Company. However, the Company's Board has
deemed it prudent to place Stellar's current exploration projects on care and
maintenance in the short term until the Company is generating cash revenues and
is self-financed. Stellar remains committed to strengthening its portfolio
through the development of its portfolio of exploration projects in the mid to
long term.


Karl Smithson, CEO of Stellar commented:

"We are very encouraged by the continued support demonstrated by our
shareholders for the Company despite these difficult market conditions. The
proceeds from the Pounds Sterling 3.0 million financing will enable Stellar to
realise its near term objectives of generating cash flow from diamond revenues
from two of our key projects in 2009 and beyond.

 
"The Company's resources are now focused on our development projects at Kono in
Sierra Leone and Mandala in Guinea. Both projects have made significant progress
in the past few months and Stellar is now on the threshold of becoming a
self-financing company which will be a very significant milestone. This will
allow the Company the flexibility to continue to enhance our portfolio of
projects and establish Stellar as a leading explorer and producer in West
Africa."


For further information on Mano River Resources and its exploration programme,
you are invited to visit the Company's website at www.manoriver.com.
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