Proposed Acquisition Of Greentop International Inc. and Krinera Group S.A.

As announced by the Company on 18 December 2007, Gemfields has conditionally agreed to purchase from Rox, a company controlled by Pallinghurst Resources, a 75 per cent. interest in Kagem, the holder of the licence for the Kagem Emerald Mine located in the Zambian Fwaya-Fwaya belt adjacent to Gemfields’ existing emerald mining operations and close to its exploration operations. This will be achieved via the purchase from Rox of the entire issued share capital of Greentop and Krinera, the indirect holders of a 75 per cent. interest in Kagem. The consideration for the acquisition of Greentop and Krinera will be satisfied by the issue to Rox of 137,910,340 new Ordinary Shares in Gemfields which, at the Issue Price, implies a price of approximately £62.06 million.