PRESENTATION AT THE RBC DIAMOND CONFERENCE

25 May 2011 Announcement

GEM DIAMONDS LIMITED

GEM DIAMONDS PRESENTING AT THE RBC DIAMOND CONFERENCE

Gem Diamonds Limited (LSE: GEMD) will be presenting at the Royal Bank of Canada's (RBC) Diamond Conference in London on 25 May 2011. A copy of the presentation will be available on Gem Diamonds' website www.gemdiamonds.com.

Gem Diamonds Limited

Clifford Elphick, Chief Executive Officer

Glenn Turner, Chief Commercial and Legal Officer

Tel: +44 (0) 203 043 0280

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

Charles Vivian

Tel: +44 (0) 207 861 3126

Mob: +44 (0) 7977 297 903

James MacFarlane

Tel: +44 (0) 207 861 3864

Mob: +44 (0) 7841 672 831

About Gem Diamonds:

Gem Diamonds is an international diamond mining company that has pursued a long term growth strategy through targeted acquisitions and the development of its existing assets. Following the recovery in diamond prices in 2010 the Company's focus has been to place itself in a position to take advantage of long term growth opportunities.

The Company's mining portfolio comprises producing kimberlite and lamproite mines in Lesotho and Australia, as well as development projects in Angola and Botswana.

With Letšeng's production of the world's most sought after remarkable white diamonds and Ellendale's production of rare fancy yellow diamonds, Gem Diamonds remains focused on higher value diamonds. This segment of the market is likely to deliver attractive long term returns.

www.gemdiamonds.com