RECOMMENDED CASH OFFER BY GEM DIAMONDS LIMITED FOR BDI MINING CORP OFFER PERIOD EXTENDED

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14 May 2007

Not for release, publication or distribution, in whole or in part, in, into or from Australia, New Zealand, Canada or Japan or any Restricted Jurisdiction

Summary

On 20 April 2007, Gem Diamonds Limited (LSE: GEMD) ("Gem Diamonds") made a recommended cash offer (the "Offer") for the entire issued and to be issued share capital of BDI Mining Corp (AIM: BMG) ("BDI Mining") not already owned by Gem Diamonds.

Gem Diamonds has acquired, or received valid acceptances in respect of, 85,005,804 BDI Mining Shares representing approximately 79.0 per cent. of the issued BDI Mining Shares

In addition, Gem Diamonds believes that acceptances in respect of a further 9,072,500 BDI Mining Shares or approximately 8.4 per cent. of the issued BDI Mining Shares have been or will be submitted and processed in due course

The Offer period has been extended until 25 May 2007

  1. Acceptances

    Gem Diamonds announces that, as at 1.00 p.m. on 11 May 2007, being the first closing date of the Offer, valid acceptances of the Offer had been received in respect of 54,005,804 BDI Mining Shares, representing approximately 50.2 per cent. of the issued BDI Mining Shares. Including the 31,000,000 BDI Mining Shares acquired by Gem Diamonds in April 2007, Gem Diamonds has acquired, or received valid acceptances of the Offer in respect of, 85,005,804 BDI Mining Shares in aggregate, representing approximately 79.0 per cent. of the issued BDI Mining Shares.

    As at the date of the Offer, Gem Diamonds had received irrevocable undertakings and a letter of intent to accept the Offer in respect of 51,397,157 BDI Mining Shares representing, in aggregate, approximately 49.1 per cent. of the issued BDI Mining Shares (or 47.8 per cent. as at the date of this announcement as a result of issues of shares since the date of the Offer). Gem Diamonds has received valid acceptances in respect of the BDI Mining Shares which were the subject of the letter of intent and the irrevocable undertakings, other than those irrevocable undertakings representing 9,072,500 BDI Mining Shares or approximately 8.4 per cent. of the issued BDI Mining Shares in aggregate. Gem Diamonds believes that acceptances in respect of these BDI Mining Shares have been or will be submitted and processed in due course.

  2. Extension of the Offer

    The Offer, which remains subject to the terms set out in the Offer Document, has been extended for a period of 14 days and therefore the next closing date will be 1.00 p.m. on 25 May 2007.

    BDI Mining Shareholders who wish to accept the Offer and who have not already done so should:

    (i) in respect of BDI Mining Shares held in certificated form, complete and return the Form of Acceptance in accordance with the instructions set out in the Offer Document and on the Form of Acceptance so as to be received as soon as possible and, in any event, by no later than 1.00 p.m. on 25 May 2007; or

    (ii) in respect of BDI Mining Shares represented by depository interests in uncertificated form, withdraw their BDI Mining Shares represented by depository interests into their own name electronically through CREST by sending a CREST withdrawal instruction to CRESTCo as soon as possible and, in any event, so that the CREST withdrawal instruction settles by no later than 1.00 p.m. on 24 May 2007 and simultaneously complete and return the Form of Acceptance in accordance with the instructions set out in the Offer Document and on the Form of Acceptance so as to be received by no later than 1.00 p.m. on 25 May 2007.

    Defined terms used in this announcement have the same meanings as in the Offer Document dated 20 April 2007.

Enquiries:
Gem Diamonds

Stephen Wetherall
Tel: +27 82 418 8735
Angela Parr
Tel: +27 83 578 3885

Strata Capital

Oliver Corner, (Financial Adviser to Gem Diamonds)
Tel: +44 (0) 20 7399 1102

JPMorgan Cazenove

Ian Hannam
Jonathan Walker
Neil Passmore, (Corporate Brokers to Gem Diamonds)
Tel: + 44 (0) 20 7588 2828

BDI Mining

Martin Horgan
Tel: +44 (0) 20 7016 5106
Reg Spencer
Tel: +61 (0) 448812128

Ruegg & Co

Brett Miller, (Financial Adviser to BDI Mining)
Tel: +44 (0) 20 7584 3663

Strata Capital UK LLP, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Gem Diamonds and no one else in connection with the Offer and this announcement and will not be responsible to anyone other than Gem Diamonds for providing the protections afforded to clients of Strata Capital UK LLP or for providing advice in connection with the Offer or this announcement or any matter referred to herein.

JPMorgan Cazenove Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Gem Diamonds and no one else in connection with the Offer and this announcement and will not be responsible to anyone other than Gem

Diamonds for providing the protections afforded to clients of JPMorgan Cazenove Limited or for providing advice in connection with the Offer or this announcement or any matter referred to herein.

Ruegg & Co Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for BDI Mining and no one else in connection with the Offer and this announcement and will not be responsible to anyone other than BDI Mining for providing the protections afforded to clients of Ruegg & Co Limited or for providing advice in connection with the Offer or this announcement or any matter referred to herein.

This announcement is for informational purposes only and does not constitute an offer to sell or invitation to purchase any securities or the solicitation of any vote for approval in any jurisdiction, nor shall there be any sale, issue or transfer of the securities referred to in this announcement in any jurisdiction in contravention of applicable law. The Offer will be made solely by the Offer Document and the Form of Acceptance accompanying the Offer Document, which will contain the full terms and conditions of the Offer, including details of how the Offer may be accepted.

The Offer will not be made, directly or indirectly, in, into or from a Restricted Jurisdiction where to do so would violate the laws in that jurisdiction, and the Offer is not capable of acceptance from or within a Restricted Jurisdiction. Accordingly, copies of this announcement and all documents relating to the Offer are not being, and must not be, directly or indirectly, mailed or otherwise forwarded, distributed or sent in, into or from a Restricted Jurisdiction where to do so would violate the laws in that jurisdiction, and persons receiving this announcement and all documents relating to the Offer (including custodians, nominees and trustees) must not mail or otherwise distribute or send them in, into or from such jurisdictions as doing so may invalidate any purported acceptance of the Offer. The availability of the Offer to BDI Mining Shareholders who are not resident in the United Kingdom may be affected by the laws of the relevant jurisdictions in which they are resident. Persons who are not resident in the United Kingdom should inform themselves of, and observe, any applicable requirements.

In accordance with normal UK market practice, Gem Diamonds or its nominees or brokers (acting as agents) may from time to time make certain purchases of, or arrangements to purchase, BDI Mining Shares outside the United States, other than pursuant to the Offer, before or during the period in which the Offer remains open for acceptance. These purchases may occur either in the open market at prevailing prices or in private transactions at negotiated prices. Any information about such purchases will be disclosed as required in the UK.