Business Update

Gemfields PLC (“Gemfields” or “the Company”, AIM:GEM) today announces the discovery of a 6,225 carat rough emerald at its Kagem mine in Zambia. The emerald was recovered during normal mining operations on 5 February 2010 and is being examined by Gemfields’ experts to establish a clearer understanding of its value and significance. They will continue to evaluate the gem before any final decision is taken in terms of its future.

As announced in its last operation update dated 28 January 2010, Gemfields PLC (“Gemfields” or “the Company”, AIM:GEM) initiated a trial underground mining project that, if successful, could provide a number of opportunities for expansion into areas that have a history of high quality production at its Kagem mine in Zambia. The Company is pleased to announce, today, the first production from its trial underground mining operation. This innovation has the potential to transform Zambian emerald mining by allowing mining operations to follow the ore zone efficiently.

Gemfields PLC (“Gemfields” or “the Company”, Ticker “GEM”) is pleased to present a market update for the three month period ending 31 December 2009. All figures are unaudited.

Further to Gemfields’ results announcement of 7 December 2009 and posting of such together with notification of the Company’s annual general meeting (“AGM”) to shareholders, the Company’s AGM will be held at 10:00 a.m. on 30 December 2009 at the Company’s offices: 8th Floor, 54 Jermyn Street, London, SW1Y 6LX, UK.

Gemfields PLC (“Gemfields” or “the Company”, Ticker “GEM”) provided a market update on 5 August 2009 containing production data to 30 June 2009. Gemfields now presents a further market update for the three month period ending 30 September 2009. All figures are unaudited.