Frontier Diamonds Limited provided an operational update and progress report on the establishment of production stopes utilising the newly introduced and more mechanised Sub Level Retreat (SLR) mining method at its South African diamond mines. Highlights: Newly implemented SLR mining method is showing encouraging results at Sedibeng with development work on four converted stopes to be completed over the next two months. Independent Rock Engineer's Report confirms that ground conditions on fissure drives behave better than expected and fissure width, strike and side walls are highly suitable for SLR mining. The two new stopes at Star (17 Level) are also now well established to drive consistent production utilising the SLR mining method in combination with water jetting. Simultaneous commissioning of all new and converted production stopes at Sedibeng and Star under SLR mining is planned over the next two months. This is expected to deliver a sharp production increase targeted to put both operations into a positive cash flow position; Sedibeng from September 2018 and Star from October 2018. Introduction of the more mechanised SLR method should also see both mines benefit from: Increase in average head grade (up to 25%) due to less waste dilution from side walls; Strong improvement in the stope safety environment; Higher product assurance due to limited access to broken fissure; Higher production per stope (up to 50% more); and greater flexibility in handling poorer sections of ground condition.