Gem Diamonds Limited (LSE: GEMD) is pleased to announce the sale of the two +160 carat diamonds which, as previously announced, were recovered from the Letšeng mine at the end of January 2014.

These two rough diamonds (a 162.02 carat diamond and a 161.31 carat diamond) both achieved top prices, in accordance with their respective colour, clarity and expected polished yield, at Letšeng’s February tender. The 162.02 carat diamond sold for US$11.1 million (US$68 687 per carat) and the 161.31 carat sold for US$2.4 million (US$14 636 per carat).

For further information:
Gem Diamonds Limited

Sherryn Tedder, Investor Relations
Tel: +27 (0) 11 560 9600
Mob: +27 (0) 83 943 4505

Bell Pottinger

Charles Vivian
Tel: +44 (0) 20 7861 8555

Joanna Boon
Tel: +44 (0) 20 7861 3867

About Gem Diamonds:

Gem Diamonds is a leading producer of high value diamonds. The Company owns 70% of the Letšeng mine in Lesotho as well as the Ghaghoo mine, currently in development in Botswana. The Letšeng mine is famous for the production of large, top colour, exceptional white diamonds, making it the highest dollar per carat kimberlite diamond mine in the world. Since Gem Diamonds’ acquisition of Letšeng in 2006, the mine has produced four of the top twenty largest white gem quality diamonds recorded.

Gem Diamonds has a growth strategy based on the expansion of the Letšeng mine and the development of the Ghaghoo mine, while maintaining its strong balance sheet. The Company seeks to maximise revenue and margin from its rough diamond production by pursuing cutting, polishing and sales and marketing initiatives further along the diamond value chain. With favourable supply/demand dynamics expected to benefit the diamond industry over the medium to long term, particularly at the high end of the market, this strategy positions the Company well to generate attractive returns for shareholders in the coming years.