Exercise of Options

23 April 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 10,414 ordinary shares of $0.01 each ranking pari passu with the shares currently in issue, have been allotted.

Following this allotment of shares the total issued share capital of the Company is 138,280,220 ordinary shares of $0.01 each.

For further information:

Gem Diamonds Limited

Sherryn Tedder, Assistant Company Secretary

Tel: +44 (0) 20 3043 0280