NOTICE OF EXTRAORDINARY GENERAL MEETING

Back

01 Oct 2007

Further to the announcement on 19 July 2007 regarding the proposed acquisition of Kimberley Diamond Company NL (the "Acquisition"), the Board of Gem Diamonds announces that a shareholder circular, convening an extraordinary general meeting to be held on 16 October 2007 to approve the Acquisition, was posted to holders of ordinary shares in Gem Diamonds on Friday 28 September 2007.

The shareholder circular will shortly be available to the public for inspection during normal business hours on any weekday (Saturdays, Sundays and public holidays excepted) at the Document Viewing Facility at the Financial Services Authority, 25 The North Colonnade, London, E14 5HS.

Definitions used in this announcement shall have the meanings given to them in the announcement dated 19 July 2007, except where context requires otherwise.

For further information:
Gem Diamonds Limited

Clifford Elphick
Tel: +44 203 043 0280

Gem Diamond Technical Services (Pty) Limited

Stephen Wetherall
Tel: +27 82 418 8735

Pelham PR

Candice Sgroi
Tel: +44 207 743 6376

About Gem Diamonds:

Gem Diamonds is a diamond mining company with a balanced portfolio of a producing kimberlite mine, two producing alluvial mines, development projects and long‐term prospects. Established in July 2005, Gem Diamonds is pursuing an accelerated growth strategy and aims to become one of the worldʹs leading diamond companies. Gem Diamonds currently has one producing kimberlite mine, Letšeng, in Lesotho, two producing alluvial mines ‐ Cempaka in Indonesia and Mbelenge in the Democratic Republic of Congo (DRC), a kimberlite development project in Botswana, two development projects in the DRC, one in the Central African Republic and an option to develop the Chiri kimberlite concession in Angola.

The Company recently made an offer to Kimberley Diamond Company's shareholders to acquire their shares in this company, which owns the Ellendale Mine in north Western Australia, and which was approved by Gem Diamonds' shareholders at an Extraordinary General Meeting on 16 October 2007.

Gem Diamonds currently has a specific focus towards higher value diamonds, a segment of the market that its management believes will deliver superior long term returns.

For further information about Gem Diamonds visit www.gemdiamonds.com.