Gemfields Grou. Regulatory News (GEM)

8 Sep 2008 07:00

Gemfields Resources plc

Gemfields exercises option to acquire Oriental Mining s.a.r.l.

8th September 2008

The Board of Gemfields Resources plc ("Gemfields" or "the Company", Ticker "GEM") is pleased to announce that the Company has exercised its option to acquire the entire issued share capital of Oriental Mining s.a.r.l., a company incorporated in Madagascar ("Oriental"). Gemfields was granted the option by Rox Limited ("Rox") pursuant to the agreement between Gemfields and Rox dated 18th December 2007.

Oriental has the rights to fifteen exploration licences covering emeralds, rubies, sapphires, tourmalines and garnets in the Antananarivo, Fianarantsoa and Toliara provinces of Madagascar. In addition, Oriental has the right to five exploration licences that are pending approval from the Madagascan Ministry of Energy and Mines.

Rajiv Gupta, founder and Executive Vice Chairman of Gemfields, said: "This is an important step in expanding Gemfields' geographic footprint and gemstone portfolio".

Gemfields CEO Sean Gilbertson said: "Madagascar is recognised as one of the most exciting colour gemstone provinces in the world today, with several key discoveries having been made there during the last decade. Madagascar recently made world headlines after the disputed export of an exceedingly rare 536 kilogram emerald specimen, which was on display at the BaoQu Tang Modern Art Gallery in Hong Kong until the 31st August 2008".

For more information: www.gemfields.co.uk

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

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

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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.