December 2018

Singapore Ruby Auction Results

Gemfields is pleased to announce the results of an auction of rough rubies in Singapore from 10 – 14 December 2018. The rough rubies were extracted from the licence held and operated by Montepuez Ruby Mining Limitada (“MRM”), which is 75% owned by Gemfields and 25% by local partner Mwiriti Limitada. Highlights – Ruby Auction Auction revenues of USD 55.3 million; Of the 90 lots offered, 88 were sold (98%); Average price of USD 84.32 per carat; 655,623 carats sold out of the 685,363 carats offered (96%); and The eleven Gemfields auctions of MRM rubies held since June 2014 have generated USD 462.6 million in aggregate revenues.

Zambian Revenue Authority Clears Kagem

Gemfields advises that the Zambian Revenue Authority (“ZRA”) has now cleared Kagem Mining Limited (“Kagem”) following its recent tax investigation. The investigation commenced on 16 August 2018 when the ZRA served two search warrants during an unannounced visit to Kagem. The search warrants authorised the ZRA to take wide‐ranging documents and files including those allegedly “used by Kagem Mining Ltd / Limpopo Polygraphs CC to evade the payment of value added tax, income tax, withholding tax and other taxes”.

Kariba Update & MRM Monthly Operational Market Data to 31 August 2018

On 9 November 2018, Gemfields Canada Inc. (a 100% subsidiary of Gemfields) agreed to sell its 50% stake in Kariba Minerals Ltd (“Kariba”), the Zambian amethyst mine, to ZCCM Investments Holdings plc (“ZCCM”). The Company is set to receive USD 2,500,000 in consideration for the disposal of its shares to ZCCM. The transaction is subject to various administrative steps and regulatory approvals, including from the Zambian Competition and Consumer Protection Commission and the Zambian Ministry of Mines. The transaction is currently expected to complete early in Q1 2019. As part of the agreement, Gemfields has agreed to discharge all outstanding sums owed by Kariba to the Company.