Preferred Supply Strategy

3 Feb 2005 10:00

Tanzanite One Limited03 February 2005 Tanzanite One Limited TANZANITEONE OUTLINES ITS 'PREFERRED SUPPLY STRATEGY' Tanzanite One Limited (TanzaniteOne), the AIM quoted mine to market tanzanitebusiness, today outlined its Preferred Supply Strategy at the Tucson Trade Show,in Arizona. The strategy, which is a world first in the coloured gemstoneindustry, seeks to grow the global market for tanzanite through strategiccollaborative relationships with selected customers (sightholders), selectedfrom the world's leading gemstone houses and jewellery manufacturers. Thesesightholders will exclusively attend TanzaniteOne viewings of parcels of roughtanzanite (sights), which are initially planned to occur six times per annum. TanzaniteOne sightholders can expect to benefit significantly from the PreferredSupply Strategy. These benefits will be both on the supply and demand side. Onthe supply side sightholders will have the assurance of an exclusive andconsistent supply of rough tanzanite, which will make significant progresstowards addressing historically erratic supply and consequential pricevolatility. On the demand side, sightholders will benefit from the initiativesof the Tanzanite FoundationTM to promote standardisation across the industry andto stimulate consumer demand. In particular, the introduction of the use of theTanzanite Foundation's Mark of RarityTM and the Tanzanite Quality ScaleTM, whichwill be supported by a focused advertising and marketing campaign aimed atincreasing the awareness of and demands for these assurances and the demandthereof. TanzaniteOne is in the process of confirming the appointment of its firstsightholders. It is expected that initially six sightholders will be appointed.Further sightholders may be appointed as and when TanzaniteOne's supply profileexceeds its current sightholders manufacturing needs. TanzaniteOne's sightholder selection process is based on seven key criteria: • A tanzanite focused business;• Proven financial strength;• An ability to make a long-term commitment;• Distribution capabilities in tanzanite's primary markets;• An understanding of the need for vertical integration in the gemstone industry;• Commitment to, support and membership of the Tanzanite FoundationTM; and• Operational standards of the highest integrity, thus ensuring an ethical route to market. TanzaniteOne's sightholders will have a commitment to driving demand fortanzanite, a desire to protect the integrity and the ethical route to market ofthis rare gemstone, a shared vision regarding the future of the industry and atrack record of achievement. Commenting on this announcement, Candice Nunn, President of TanzaniteOneMarketing said: "We are looking forward to working with our sightholders in away that will transform the entire tanzanite industry. Ultimately we all have acommon goal of stimulating and sustaining consumer demand. This initiative willshape the primary market for tanzanite, laying the foundation for a longstanding appreciation of this symbol of true rarity in generations to come". Adding to this, Sunil Agrawal, CEO of STS Jewels, one of the world's largestmanufacturers and distributors of tanzanite jewellery, commented: "Ourcollective goal is to grow consumer demand ethically. There is a hugeopportunity for us as an industry to work together more effectively to thebenefit and ultimately improved success of the whole tanzanite market." www.tanzaniteone.com For further information please contact: Angela ParrGroup Corporate Affairs - TanzaniteOne SA LimitedTel: +27 11 214 1000Fax: +27 11 214 1010Mobile: +27 83 578 3885angela@tanzaniteonesa.com Leesa Peters/ Amanda HarrisConduit PRTel: + 44 20 7618 8760Mobile: +44 781 215 9885leesa@conduitpr.com This information is provided by RNS The company news service from the London Stock Exchange