Analysts Presentation

 News Release 5th September 2011

GEM DIAMONDS LIMITED

"Gem Diamonds" or "the Company"

Analysts Presentation on Gem Diamonds Growth Profile

Gem Diamonds, the FTSE 250 listed diamond company, is today giving a presentation to analysts on the Letšeng Mine Expansion in Lesotho and the Ghaghoo project in Botswana.

The presentation will be available on the Gem Diamonds website www.gemdiamonds.com from 11am (BST).

For further information:

Gem Diamonds Limited

Richard Chetwode, Investor Relations

Tel: +44 (0) 203 043 0280

Mob: +44 (0) 759 0064 883

Gem Diamond Technical Services (Pty) Ltd

Sherryn Tedder, Corporate Affairs

Tel: +27 (0) 11 560 9600

Mob: +27 (0) 83 943 4505

Pelham Bell Pottinger

James Henderson / James MacFarlane / Hanna Smith

Tel: +44 (0) 207 861 3232

About Gem Diamonds:

Gem Diamonds Limited (LSE: GEMD) is a global diamond company that has been pursuing a long term growth strategy through the development of existing assets and targeted acquisitions. Under current market conditions, the Company is focused on the development of its cash generating assets.

The Company's portfolio comprises producing kimberlite and lamproite mines, development projects and exploration assets, as well as diamond beneficiation centers. Operations and projects are situated in Angola, Australia, Belgium, Botswana, Lesotho and Indonesia.

With Letšeng's production of the world's most remarkable white diamonds and Ellendale's production of rare fancy yellow diamonds, Gem Diamonds is focused towards higher value diamonds. This segment of the market is expected to deliver attractive returns.