Exercise of Options

5 May 2015

GEM DIAMONDS LIMITED

("Gem Diamonds" or "the Company")

Exercise of Options

Gem Diamonds, LSE: GEMD announces that following an exercise of options awarded under the Gem Diamonds Long Term Incentive Plan 2007, a total of 16,240 ordinary shares of $0.01 each ranking pari passu with the shares currently in issue, were allotted on 1 May 2015.

Following this allotment of shares the total issued share capital of the Company is 138,296,460 ordinary shares of $0.01 each.

For further information:

Gem Diamonds Limited

Sherryn Tedder, Assistant Company Secretary

Tel: +44 (0) 20 3043 0280