ALLOTMENT AND ISSUE OF ORDINARY SHARES TO NON-EXECUTIVE DIRECTORS

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13 Feb 2008

On 19th February 2008, the Board of Directors of Gem Diamonds Limited ("Gem Diamonds" or the "Company") met and formally approved the allotment and issue of 506,322 ordinary shares in the capital of the Company ("Ordinary Shares") to four of the Company's Non-Executive Directors on the terms set out in the Prospectus published by the Company on 14 February 2007 and outlined in more detail below. The Ordinary Shares will be subscribed for at a nominal value of US$0.01 each.

Application has been made to the FSA and the London Stock Exchange for listing and trading of the shares as at 25th February 2008.

Non-Executive Director   Number of Ordinary Shares
Roger Davis   (2nd tranche) 289,326
Gavin Beevers   (2nd tranche) 72,332
Dave Elzas   (2nd tranche) 72,332
Mike Salamon   (1st tranche) 72,332
For further information:
Gem Diamonds Limited

André Confavreux
Company Secretary
Tel: 020 3043 0280