Gemfields plc (AIM: “GEM”) is pleased to announce the results of its auction of (predominantly lower quality) rough emeralds and beryl held in Jaipur, India, from 21 25 November 2011.

Highlights

·         Record revenues of USD 11.0 million for an auction of 9.8 million carats of lower quality rough mined by Gemfields at the Kagem mine (versus USD 9.9 million for 12.98 million carats from the previous lower quality emerald auction in March 2011)

·         Five months into the current financial year (ending 30 June 2012), Gemfields has, from two auctions, already exceeded the prior financial year’s total annual revenues (of USD 40.2 million) by USD 2.4 million

·         A 46% increase (from USD 0.77 per carat to USD 1.12 per carat) in realized quality-for-quality per carat prices since March       2011

·         Eight auctions held since July 2009 have generated revenues totaling USD 98.5 million

·         Auction results underscore continuing robust global demand for Gemfields’ ethical Zambian emeralds

·         Next auction of (predominantly higher quality) rough emeralds is scheduled for March 2012

Gemfields held an auction of (predominantly lower quality) rough emeralds in Jaipur, India, from 21 to 25 November 2011. Thirty eight companies were invited to attend the auction, with twenty seven of these placing bids for the material on offer.

The auction saw 10.8 million carats of rough emeralds mined by Gemfields placed on offer, with 9.8 million carats being sold, generating record sales of USD 11.0 million for an auction of rough emeralds of this quality bracket.

When compared with the last lower quality auction held in March 2011, average quality-for-quality per carat prices showed a 46% increase from USD 0.77 per carat to USD 1.12 per carat. This further underscores the robust growth in both prices and demand for emeralds in general, and for Gemfields’ ethical emeralds in particular.

This was the first auction of lower quality material during the current financial year, the only other auction in this financial year having been the higher quality auction held in Singapore in July 2011. These two auctions have generated combined sales of USD 42.6 million, already exceeding last year’s total annual revenues of USD 40.2 million by USD 2.4 million. The eight auctions held since July 2009 have generated USD 98.5 million in aggregate revenues.

The Jaipur auction was also used as a platform to further trial the sale of rough emerald and beryl acquired or made available to the market from other sources of supply (i.e. not certified as having been mined by Gemfields, and therefore referred to as “Traded Material”), a trial which began at the Singapore auction in July 2011.

Ian Harebottle, CEO of Gemfields, commented:

“Gemfields is yet again delighted to announce robust sales from our most recent auction of rough emeralds from our Kagem emerald mine in Zambia. We are particularly pleased with the fact that today’s results have once again beaten the previous record set in March’s lower quality rough auction. The revenues of USD42.6

million generated from our last two auctions have now exceeded the revenues from our entire prior financial year, demonstrating the continued rising demand for Gemfields’ rough emeralds and beryl.

Our integrated approach combines industry-leading performance in three core areas: mining, consistency of gemstone quality and volumes of supply, and pioneering coloured gemstone marketing and promotion to both consumers and retailers alike. With each auction it becomes increasingly clear that our team and our industry partners are making significant progress in delivering on our vision of ensuring that coloured gemstones take their place alongside diamonds and other luxury goods”