GEMFIELDS PLC - Results - Singapore Rough Emerald and Beryl Auction

- Pleasing increase in achieved quality-for-quality per carat prices;

- The auction saw 0.925 million carats of emerald and beryl mined by Gemfields placed on offer, with 97% (0.902 million carats) being sold;

- Solid overall demand continues for Gemfields ethical Zambian emeralds across all major consumer markets; and

- Eleven auctions held since July 2009 have generated USD 160.5 million in total revenue.

Thirty seven companies attended the auction, with thirty five of these placing bids. The auction saw 0.925 million carats of emerald and beryl mined by Gemfields from its Kagem Mine in Zambia placed on offer, with 0.902 million carats sold, generating auction revenues of USD 26.8 million. While this auction was the Company's first for the current financial year (which ends on 30 June 2013), the Company's eleven auctions held since July 2009 have generated USD 160.5 million in aggregate revenues.

The Singapore auction yielded an overall average of USD 29.71 per carat for the lots sold, slightly lower than that which was achieved at the previous higher quality emerald auction held in March 2012 in Singapore (which achieved an overall average of USD 38.25 per carat for the lots sold). However, as the overall quality characteristics (product mix) of the gems placed on offer at this auction were somewhat different to those placed on offer at the earlier auction, the results reflect a pleasing increase in per carat prices when looking at the underlying lots on a quality-for-quality basis and the historic prices achieved for goods of a similar nature.

Given the Company's belief in the long term fundamentals of the emerald market and its strong cash position, Gemfields does not sell lots where the bids do not meet its pre-determined minimum reserve prices. The Company maintained this strategy at the auction resulting in three lots being unsold.

The results of the six higher quality auctions held to date are summarised
below:

AUCTION RESULTS
    (HIGHER      JUL '09      NOV '09     JUL '10      DEC '10     JUL '11  MAR ` 12   NOV '12
   QUALITY)      AUCTION      AUCTION     AUCTION      AUCTION     AUCTION   AUCTION   AUCTION

Dates             20-24        23-27       19-23        6-10        11-15     19-23   29 Oct - 2
                 Jul `09      Nov `09     Jul `10      Dec `10     Jul `11   Mar `12   Nov `12

Location        London, UK Johannesburg, London, UK Johannesburg, Singapore Singapore Singapore
                                SA                       SA
Type              Higher      Higher       Higher      Higher      Higher    Higher     Higher
                 Quality      Quality     Quality      Quality     Quality   Quality   Quality

Carats offered     1.36        1.12         0.85        0.87        1.07      0.77       0.93
                 million      million     million      million     million   million   million

Carats Sold        1.36        1.09         0.80        0.75        0.74      0.69       0.90
                 million      million     million      million     million   million   million

No. of              23          19           37          32          38        29         35
companies
placing bids

Average no. of      10          13           18          16          16        11         11
bids per lot

No. of lots         27          19           27          19          25        23         19
offered

No. of lots         26          14           24          18          18        20         16
sold

Percentage of      96%          74%         89%          95%         72%       87%       84%
lots sold

Percentage of     99.8%         97%         94%          86%         69%       89%       98%
lots sold by
weight

Percentage of      82%          76%         87%          99%         91%       94%       90%
lots sold by
value

Total sales      USD 5.9      USD 5.6     USD 7.5     USD 19.6    USD 31.6  USD 26.2   USD 26.8
realised at      million      million     million      million     million   million   million
auction

Average per      USD 4.40    USD 5.10     USD 9.35    USD 26.20   USD 42.71 USD 38.25 USD 29.71
carat sales       /carat      /carat       /carat      /carat      /carat    /carat     /carat
value

For ease of reference, the results of the four lower quality rough emerald auctions held to date are summarised below:

  AUCTION RESULTS      MARCH '10      MARCH '11     NOVEMBER '11      JUNE '12
  (LOWER QUALITY)       AUCTION        AUCTION         AUCTION        AUCTION

Dates                 11-15 March    10-14 March   21-25 November  9-13 June 2012
                          2010           2011           2011

Location             Jaipur, India  Jaipur, India   Jaipur, India  Jaipur, India

Type                 Lower Quality  Lower Quality   Lower Quality  Lower Quality

Carats offered*      28.90 million  16.83 million   10.83 million  10.85 million

Carats Sold          22.80 million  12.98 million   9.82 million    3.47 million

No. of companies           25             44             27              20
placing bids

Average no. of bids        8              14              9              3
per lot

No. of lots offered        56             35             26              33

No. of lots sold           49             34             19              17

Percentage of lots        88%            97%             73%            52%
sold

Percentage of lots        79%            77%             91%            32%
sold by weight

Percentage of lots        89%            99%             80%            60%
sold by value

Total sales realised    USD 7.2        USD 9.9        USD 11.0        USD 9.0
at auction              million        million         million        million

Average per carat USD 0.31/carat USD 0.77/carat USD 1.12/carat USD 2.61/carat sales value

* A larger volume of material was placed on offer in March 2010 following Gemfields extensive inventory building exercise during 2008 and 2009.

The specific auction mix and the exact quality of the lots offered at each auction vary in characteristics such as size, colour and clarity on account of mined production and market demand. Each auction is thus made up of somewhat differing overall quality compositions.

Ian Harebottle, CEO of Gemfields, commented:

"Gemfields is delighted with the results of the Singapore auction announced today. The figures provide further evidence that the general global economic uncertainty has not affected the achievable per carat emerald rough prices on a quality-for-quality basis. The higher quality material is often regarded as a store of value in times of uncertainty and we remain confident in the long term value of these gemstones, the consistency of global demand and our ability to ensure a stable supply of high-quality ethically sourced emeralds from our Kagem mine in Zambia. During the coming year we will also begin to focus on new marketing initiatives aimed at increasing the market visibility and profile of emeralds, rubies and other premium coloured gems. We look forward to adding the sale of rough rubies from the Montepuez ruby mine in Mozambique to our auctions in 2013."

Enquiries:

Gemfields dev.shetty@gemfields.co.uk
Dev Shetty, COO                                        +44 (0)20 7518 3402

Canaccord Genuity Limited                              +44 (0)20 7523 8000
Nominated Adviser and Joint Broker to Gemfields
Tarica Mpinga/Andrew Chubb

JP Morgan Cazenove                                     +44 (0)20 7155 8630
Neil Passmore

Tavistock Communications                               +44 (0)20 7920 3150

Jos Simson/Emily Fenton/Jessica Fontaine

Notes to Editors:

Gemfields plc is a leading gemstone miner listed on the AIM market of the London Stock Exchange (ticker: `GEM'). The Company's principal asset is the 75% owned Kagem emerald mine in Zambia, the world's single largest emerald mine. In addition to the Kagem emerald mine, Gemfields has a 50% interest in the Kariba amethyst mine in Zambia.

The Company also owns controlling stakes in a highly prospective ruby deposit in Mozambique and licences in Madagascar including ruby, emerald and sapphires deposits.

In July 2009 Gemfields commenced a formal auction programme for its Zambian emeralds. To date, the Company has held eleven auctions which have generated revenues totalling USD 160.5 million.