Business Update

Completion of disposal of 50% interest in Kariba Minerals Limited

On 10 December 2018, Gemfields announced that Gemfields Canada Inc. (a 100% subsidiary of Gemfields) had agreed to sell its 50% stake in Kariba Minerals Ltd (“Kariba”), the Zambian amethyst mine, to ZCCM Investments Holdings plc (“ZCCM”). That transaction was subject to assorted administrative steps and regulatory approvals, including from the Zambian Competition and Consumer Protection Commission and the Zambian Ministry of Mines.

Gold Exploration Joint Venture in Mozambique

Gemfields is pleased to announce that it has agreed to establish a joint venture company with Mwiriti Limitada (‘Mwiriti’), a Mozambican registered company, in order to explore and progress opportunities arising from 12 greenfield licences presently held by Mwiriti. The new joint venture company will be incorporated in Mozambique with Gemfields owning 75% and Mwiriti 25%. Mwiriti is Gemfields’ existing partner in Montepuez Ruby Mining Limitada (“MRM”) where Mwiriti also owns 25%.

Singapore Ruby Auction Results

Gemfields is pleased to announce the results of an auction of rough rubies in Singapore from 11 – 15 June 2019. 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.

Gemfields commences share buy-back

Shareholders are advised that Gemfields has commenced a share repurchase programme of the Company’s ordinary shares. The share repurchase programme has been implemented by the Company in accordance with the general authority received by way of shareholders’ resolutions passed at the annual general meeting held on 10 May 2019.

Singapore Emerald Auction Results

Gemfields is pleased to announce the results of an auction of higher quality rough emeralds held in Singapore from 14 – 17 May 2019. The emeralds were extracted by Kagem Mining Ltd in Zambia (“Kagem”, which is 75% owned by Gemfields and 25% by the Industrial Development Corporation of Zambia). The proceeds of this auction will be fully repatriated to Kagem in Zambia, with all royalties due to the Government of the Republic of Zambia being paid on the full sales prices achieved at the auction.

Results of Annual General Meeting

Shareholders are advised that at the Company’s Annual General Meeting (“AGM”) held on Friday 10th May 2019, all of the binding resolutions set out in the notice and proposed at the meeting were passed by the requisite majority of shareholders.

Increased illegal mining activity in MRM’s concession at Montepuez

Montepuez Ruby Mining (MRM) has observed increasing numbers of illegal miner pit collapse incidents in 2019, resulting in the loss of multiple lives. MRM has responded by providing humanitarian assistance in rescue and recovery operations, as well as increasing on-site signage warning of the dangers of illegal mining and campaigning to raise awareness among the local communities and government officials to assist in tackling the issue.

Amended Proxy Forms for 2019 AGM

Gemfields wishes to advise that, in relation to its Annual General Meeting (“AGM”) to be held on 10th May 2019 at 10 a.m. (BST), the proxy forms originally sent to shareholders on 10th April 2019 inadvertently omitted two non-binding advisory votes shown on the Notice of AGM, as follows: Endorsement of the Company’s Remuneration Policy; and Endorsement of the Company’s Remuneration Implementation Report.

Disclosure of beneficial interests in securities

In compliance with paragraph 3.83(b) of the JSE Listings Requirements, the Company hereby discloses the acquisition of a beneficial interest of 0.1226% in the Company’s securities by Investec Limited (“Investec”). The acquisition resulted in Investec’s percentage holding in the Company’s securities increasing from 4.9538% to 5.0764%. Following the acquisition, Investec held a total of 72,677,822 ordinary shares in the Company.

Conditional Sale of Shares in Jupiter Mines Ltd (“Jupiter”) and Intention to Declare Special Dividend

The Board of Directors of Gemfields (the “Board”) is pleased to announce that it has entered into a conditional sale and purchase agreement with AMCI Euro Holdings B.V. (“AMCI”), pursuant to which Gemfields (through its wholly owned subsidiary, Pallinghurst Consolidated (Cayman) Ltd (“PCCL”)) has agreed to sell, and AMCI has agreed to purchase, 145,845,372 ordinary shares (the “Transaction”) in ASX-listed Jupiter (the “Jupiter Shares”), such shares constituting Gemfields’ entire remaining holding in Jupiter following its participation in Jupiter’s IPO last year.