Gemfields Grou. Regulatory News (GEM)

1 Sep 2008 07:00

Gemfields Resources plc

Gemfields completes Fabergĩ branding arrangements

1 September 2008

Gemfields Resources plc ("Gemfields" or "the Company", Ticker "GEM") is pleased to announce that it has completed the arrangements granting it an exclusive worldwide licence to use the Fabergĩ brand name in respect of coloured gemstones (excluding diamonds).

Gemfields intends that the Fabergĩ name be reserved for high-end, conflict-free and ethically mined gemstones of guaranteed provenance. In addition, Fabergĩ gemstones will be individually numbered and certificated to ensure traceability.

Rajiv Gupta, founder and Executive Vice Chairman of Gemfields, said: "This is about doing justice to the most remarkable and special coloured gemstones in the world. The Fabergĩ name, one of the most revered in history, captures brilliantly how exclusive such coloured gemstones are. Importantly, Fabergĩ-branded gemstones will be available to a number of carefully selected partners and customers. We expect that the first Fabergĩ colour gemstones will be available in 2009".

Gemfields CEO Sean Gilbertson said: "Coloured gemstones were a key theme in the remarkable works of Peter Carl Fabergĩ. Gemfields' ability to deploy the Fabergĩ name on coloured gemstones continues that association and adds yet another compelling layer to Gemfields' vision of bringing high grade, ethically produced, conflict-free gemstones of certified provenance directly from the mine to the market on an integrated basis

The licence, granted pursuant to an option which Gemfields acquired in June 2008, covers an initial 15 year term.

For more information: www.gemfields.co.uk

Richard James, CFO richard.james@gemfields.co.uk

Gemfields Resources plc Tel: +44 (0)20 7016 9416

Mike Jones/Tarica Mpinga +44 (0)20 7050 6500

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ABOUT GEMFIELDS:

Gemfields, the brainchild of Executive Vice Chairman Rajiv Gupta, is a leading international coloured gemstone producer with assets in Zambia, Madagascar and India. Gemfields seeks to become the leading source of premium coloured gemstones through consolidation and vertical integration on an international scale. Gemfields' key producing asset is the 75% owned Kagem emerald mine in Zamia. Kagem is the largest non-diamond gemstone mine in the world.

In June 2008, Rox Limited (a portfolio company of Pallinghurst Resources) acquired some 55% of Gemfields' issued share capital. Pallinghurst Resources is chaired by Brian Gilbertson, the former CEO of BHP-Billiton plc.

In August 2008, Gemfields officially opened a wholly-owned cutting and polishing facility in Jaipur India, marking a significant step in vertically integrating the gemstone supply chain. Gemfields is presently uniquely positioned to bring high grade, ethically produced, conflict-free emeralds of certified provenance directly from the mine to the market on an integrated basis.

ABOUT FABERGĉۡ:

Fabergĩ Ltd (an independent portfolio company of Pallinghurst Resources) acquired Unilever plc's worldwide portfolio of trademarks, licences and associated rights relating to the Fabergĩ brand name in January 2007. Unilever had owned the brand since 1989, when it purchased Fabergĩ Inc (then a leading cosmetics company) for US$ 1.55 billion.

Fabergĩ Ltd's goal is to honour Faberge's original standards of exclusivity, design and craftsmanship and to focus on highly exclusive objects of art, jewellery and other treasures.

Fabergĩ underwent two dramatic setbacks in the first half of the 20th century. The first was the Bolshevik revolution of 1917 which resulted in the scattering of the Fabergĩ family, a violent end to production from the Fabergĩ workshops and the loss of many treasures. As a result, the Fabergĩ family has not been significantly involved in the production of Fabergĩ-branded items for almost 90 years.

Secondly, in 1951 the Fabergĩ family effectively lost the rights to use their family name in marketing Fabergĩ-branded designs when protracted and expensive litigation forced on them a settlement that ceded the rights to an American corporation in return for only US$ 25,000.

These setbacks came full circle in October 2007 when Fabergĩ Ltd announced the reunification of the Fabergĩ brand with the Fabergĩ family. The announcement set the stage for a new generation of authentic Fabergĩ designs.

Mr Mark Dunhill, the former President of Alfred Dunhill Ltd, was appointed as the CEO of Fabergĩ Ltd on 1 November 2007. Mr Dunhill has since selected and appointed a top tier team of luxury sector specialists.

Tatiana and Sarah Fabergĩ, together with Mr John Andrew (a long-standing friend of the Fabergĩ family), make up the founding members of the Fabergĩ Heritage Council which counsels the unified Fabergĩ in its pursuit of excellence and exclusivity. Theo Fabergĩ became a member shortly before he died and now holds a Memorial Seat on the Council. Dr Gĩza von Habsburg, one of the world's leading Fabergĩ experts, has been appointed as Curatorial Director.

Fabergĩ is expected to launch its first new collection in 2009.