Shefa Gems Regulatory News (SEFA)

B"H

18 December 2017

Shefa Yamim (A.T.M.) Ltd

("Shefa Yamim" or the "Company")

First Day of Dealings on the Official List of the London Stock Exchange

Shefa Yamim, a minerals company focused on the exploration for precious stones in Northern Israel, is pleased to announce that trading in its ordinary shares will commence on the Official List of the London Stock Exchange at 8 a.m. today, under the ticker SEFA ("Admission") and with the ISIN number IL0011101057. VSA Capital are acting as the Company's financial adviser, broker and placing agent.

Prior to Admission, the Company was the 75% owned subsidiary of Shefa Yamim Ltd, which is itself listed on the Tel Aviv Stock Exchange. On Admission, the shareholding of Shefa Yamim Ltd reduces to 48.9%.

The Company successfully raised gross proceeds of £4.15 million, before expenses, through the conversion of existing loans and a placing and subscription at 110p per Ordinary Share ("Placing Price"). Based on the Placing Price, the market capitalisation of the Company at Admission is approximately £15.3 million. Following admission, the Company has 13,905,056 Ordinary Shares in issue.

The Company will use the net proceeds to advance exploration in the Kishon Mid Reach project, its priority target, including the completion of a pre-feasibility study and advance its strategy to grow the business organically with a view to generating value for Shareholders through the development of the Kishon Mid Reach project, as well as potentially through the development of additional projects.

Avi Taub, Chief Executive Officer of Shefa Yamim said:

"We are delighted to be listing in the London market. We believe that Shefa Yamim's diverse assemblage of gemstones makes it unique. The monies raised will allow the Company to accelerate exploration on its priority target, the Kishon-Mid Reach, with the view of commencing production by 2020. We would like to take the opportunity to thank our existing shareholders for their continued support and welcome our new London investors, and we look forward to updating the market on our progress."

Key Strengths

The Directors believe that the key strengths of the Company include:

· unique assemblage of precious stones, including the Carmel Sapphire™, Sapphire, Ruby, Moissanite, Hibonite and Diamond;

· target to commence initial production at the Kishon Mid Reach alluvial placer within the next 24 months;

· the Directors believe that it is the only company in the world to find large quantities, single crystals to >4mm, of naturally occurring moissanite, a rare mineral currently only produced artificially and used in jewellery. Moissanite is more brilliant than diamonds and almost as hard;

· discovery and registered the brand for the Carmel Sapphire™, a new type of corundum, with significant potential as a gemstone;

· well positioned to take advantage of the increased demand for coloured precious stones - a market that has grown by 145% in the last 5 years and will focus on selling to wholesalers, retailers and directly to consumers; and

· the Board of Directors includes members with many years of experience in the gemstones and diamond industry and geology with a network of contacts internationally.

Assets and Exploration Focus

Shefa Yamim is the only coloured gemstone exploration company in northern Israel. The Company's principal assets are an exploration permit and two prospecting permits covering an area of more than 600km2, where the Company has carried out an extensive exploration programme, and has delineated several potential primary sources and secondary deposits that host gemstones. Currently the Company is focusing on mapping, drilling of boreholes and taking bulk samples at the Kishon Mid Reach placer, the Company's priority target. The Company intends to continue its exploration programme with the aim of delineating a mineral resource that is compliant with the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (the "SAMREC").

To date, the Company has spent US$28 million on its exploration activities. In total, the Company has carried out over 11kt of bulk sampling and has recovered a variety of different precious stones. Findings include dark blue sapphires, the Carmel Sapphire™, as well as deep red rubies, large natural moissanite crystals and hibonite.

Mid Reach Potential

The Company is at an advanced stage in completing an inferred mineral resource on the Mid Reach of its Mount Carmel precious stone project. This potential resource of 1.1mnt covers only a portion of the identified exploration target of the alluvial placer. The Company believes that there is further potential for the expansion of the resource within the existing exploration target.

The Company through its sampling and drilling has discovered stones of significant weight and size. The largest ruby found to date was 1.7ct, the largest sapphire was 5.72ct and the largest Carmel Sapphire™ was 33.3ct. The Company believes that there is potential for future exceptional finds.

The Company's current drilling and bulk sampling campaign has focused on a portion of the targeted acreage, which covers only a portion of the Mid Reach target area. The Company believes that there is further value potential that remains to be unlocked via the easily accessible, lower risk targets that the Company has identified.

International Consulting Team

Shefa Yamim is collaborating with geological and exploration consultants that specialise in a wide spectrum of Earth Science fields e.g. geochemistry, exploration of alluvial deposits, and geophysics. On the primary source investigations, Shefa Yamim has been collaborating with Prof. Bill Griffin and his research team from Macquarie University, Australia since January 2014. Mr. Dave (David) Apter, ex-De Beers Africa geochemist and currently an independent geological consultant to Shefa Yamim, has been collaborating with the Company since 2004.

Enquiries

Notes to Editor

Overview

The Company's principal assets are an exploration permit and two prospecting permits where the Company has carried out an extensive exploration programme, and has delineated several potential primary sources and secondary deposits that host gemstones. Currently the Company is focusing on mapping, drilling of boreholes and taking bulk samples at the Kishon Mid Reach placer, the Company's priority target. The Company intends to continue its exploration programme with the aim of delineating a mineral resource that is compliant with the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (the "SAMREC"). The CPR highlights the fact that currently the Kishon Mid Reach project has an exploration target of 1.1Mt of precious stones with significant upside potential. In total, the Company has carried out over 11kt of bulk sampling and has recovered a variety of different precious stones. Findings include dark blue sapphires, the Carmel Sapphire™, as well as deep red rubies, large natural moissanite crystals and hibonite.

The Board

Abraham 'Avi' Taub (Chief Executive Officer), age 66

Avi Taub, Chief Executive Officer, served in the Israeli Defence Forces for four years, compulsory in Israel, later becoming a commander in an elite unit. He has over 45 years' experience in all stages of the gemstone industry, including treatment of raw diamonds, polishing and cutting at his family-owned business, one of the supplier of diamonds to the illustrious Israeli diamond industry. He later diversified his professionalism from diamonds to precious stones and jewellery design providing him with invaluable experience and contacts within the jewellery industry.

A scholar of Gemmology and Mineralogy, Mr Taub embarked in a number of ventures within the gemstone industry becoming the first person to establish an innovative and highly effective central marketing system in Israel which facilitated the sale of gemstones to the end user.

In 1999, he became one of the founders of Shefa Yamim (A.T.M.) Ltd and has been instrumental in its evolvement and development to date.

James AH Campbell (Independent Non-Executive Director), age 53

James AH Campbell, Independent Non-Executive Director, graduated as a geologist from the Royal School of Mines (Imperial College, London University) in 1985 and completed an MBA at Durham University in 1998. He has over 30 years' experience in the diamond industry having spent over 20 years' with De Beers' Global Mining and Exploration Group before becoming Managing Director of African Diamonds plc in 2006.

Mr Campbell has extensive board and sector experience and has served on several UK and Canadian boards including African Diamonds plc, West African Diamonds, Stellar Diamonds plc and Rockwell Diamonds Inc. He is currently Managing Director of Botswana Diamonds plc.

Mr Campbell is a Fellow of the Institute of Mining, Metallurgy & Materials, a Fellow of the South African Institute of Mining, a Fellow of the South African Institute of Mining, Metallurgy & Materials, a Fellow of the South African Institute of Mining & Metallurgy, Chartered Engineer (UK), Chartered Scientist (UK), a Professional Natural Scientist (RSA) and a Fellow of the Institute of Directors South Africa.

Michael Rosenberg, OBE (Independent Non-Executive Director), age 78

Michael Rosenberg, Independent Non-Executive Director, spent his early business years with the merchant bank, Samuel Montagu and Co. Ltd and joined the board in 1971 as Director of Corporate Finance. In 1974, he left the bank to co found a healthcare business which became a global business over the next 10 years.

From 1987 to 1999 he was a shareholder, director and later chairman of Raphael Zorn Helmsley Holdings Ltd (now Numis Corporation). During that period, he was instrumental in bringing Israeli companies to the AIM market.

He served on a number of Israeli boards both as an external director and as chairman including: Amiad WaterSystems Ltd, Dori Media Ltd, Pilat Global Media Plc and more recently Starcom plc, where he is Non-Executive Chairman. He is a Non-Executive Chairman of Catalyst Media Group plc. He is also a Non- Executive Director of Ion Pacific (UK) Ltd, an FCA regulated company.

Mr Rosenberg chaired a DTI committee on trade with Hong Kong for several years and also served on the board of the China British Business Council. He was awarded the OBE for services to exports in 1994. He is a published author of children's books and mentor to the Princes Trust, helping young people to start new businesses.

Nathalie Schwarz (Independent Non-Executive Director), age 47

Nathalie Schwartz, Independent Non-Executive Director, a graduate from the University of Manchester and a qualified lawyer, started her career at leading global law firm Clifford Chance focusing on cross-border mergers and acquisitions, corporate restructurings, IPOs and private equity. Ms Schwartz has operated as an Executive Director on the Boards of two of the UK's leading public companies in the media and digital technology sector, namely as Group Commercial Director at Channel 4 Television Corporation and as Group Strategy and Development Director at Capital Radio PLC.

She also served as a Non-Executive Director on the Board of Matomy Media PLC (digital advertising services), which listed on the London Stock Exchange in 2014 and as a Non-Executive Director on the Board of publicly listed companies Amiad Water Systems PLC (water filtration) and Photon Kathaas (Indian film production and distribution). She is currently a Non-Executive Director on the Board of UK publicly listed companies Wilmington Group PLC (digital data, publishing and training).

Ms Schwartz specialises in growing businesses, strategy, operational management, developing new commercial and technological opportunities and mergers and acquisitions.

Gershon Fraenkel (Independent Non-Executive Director), age 65

Gershon Fraenkel, Independent Non-Executive Director, is a British Citizen and founder of WST Charity Ltd, in North West London which focuses on alleviating poverty within the Jewish Community in the area. He has successfully launched many international businesses in the last 25 years, including SEACO Group of Companies and Linkedell Ltd, as result he acts as an intermediary and adviser of international transactions to companies in Israel and the UK. Mr Fraenkel is fluent in English, Hebrew and Yiddish.

David Nachson (Independent Non-Executive Director), age 69

Israel David Nachshon, Independent Non-Executive Director, a graduate in Rabbinical Ordination, Mr Nachshon has extensive ties within the Jewish community worldwide as well as establish government relations in Israel. He has been on the board of Shefa Yamim (A.T.M.) Ltd and Shefa Yamim Ltd since 1999, when the company was founded. Mr Nachshon is a Board member of the Jewish community institution in Kiev, Ukraine, Chairman of the Chabad Jewish Mobil Mitzva Centre, Chabad Youth Movement Tzivos Hashem and Chabad Educational Institutions.

Hanoch Ehrlich (Independent Non-Executive Director), age 52

Hanoch Ehrlich, Independent Non-Executive Director, is a qualified lawyer and has held an Israel Bar Association license since May 1994. Mr Ehrlich is specialised in contract law, company law and all aspects of commercial law. He has worked on several international M&A transactions, including advising companies in Central and Eastern Europe. He is experienced in litigation, having represented various entities such as the Israel Military Industries Ltd., the Shikun U'binui Group (the largest construction conglomerate in Israel), the Ofer Brothers Group, the Yitzhak Tshuva Group, Bank HaPoalim, the Israel Discount Bank, the Industrial Development Bank, the Israel Shipping Bank, Amdocs (Israel) and the Israel Citrus Marketing Board.