News and Announcements

Market Update – January 2010

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.

Annual General Meeting Result and Directorate Change

Gemfields is pleased to announce that at the Company’s Annual General Meeting held on 30 December 2009, all resolutions proposed to shareholders were duly passed save for the resolution proposing the re-election of Mr Richard James as a director of the Company.

Holdings in Company

Gemfields Plc (“Gemfields” or “the Company”, Ticker “GEM”) received notification on 15 December 2009 from QVT Financial LP (“QVT”) that on 11 December, QVT through shareholdings of QVT Fund LP, Quintessence Fund L.P. and Deutsche Bank AG London purchased 12,500,000 of the Company’s ordinary 1p shares. Following this transaction, QVT has an interest through direct ownership in a total of 25,264,875 shares.

Notification of Annual General Meeting

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.

Holdings in Company

Gemfields Plc (“Gemfields” or “the Company”, Ticker “GEM”) received notification on 11 December 2009 from Goldrock International Corp. (“Goldrock”) that on 11 December Goldrock disposed of 12,500,957 of the Company’s ordinary 1p shares. Following this transaction, Goldrock has an interest through direct ownership in a total of 12,029,000 shares which represents 3.71% of the ordinary shares of 1p in the Company.