16 Sep 2010

Gem Diamonds Limited (LSE: GEMD) (Gem Diamonds) and the Government of the Kingdom of Lesotho are pleased to announce that their flagship mine, Letšeng Diamonds, is now in the process of implementing its new sales and marketing strategy for its production of rough diamonds.

Letšeng Diamond's existing arrangements for the sale and marketing of its diamond production in Antwerp, Belgium, concluded with the September 2010 tender. From October 2010, Letšeng Diamonds' production will be sold in Antwerp in accordance with the new strategy.

Should you wish to be considered to participate in future Letšeng Diamonds' production tenders in Antwerp, please follow the link on the www.letsengdiamonds.co.ls or visit the marketing page and provide your details requested. Alternatively, you can email Stephen Wetherall on swetherall@gemdiamonds.com. You will be contacted directly thereafter to complete the relevant information requirements and registration procedures in advance of the next tender in October.

For further information:
Gem Diamonds Limited

Clifford Elphick, Chief Executive Officer
Glenn Turner, Chief Commercial Officer
Tel: +44 (0) 203 043 0280

Richard Chetwode, Investor Relations
Tel: +44 (0) 203 043 0280
Mob: +44 (0) 759 0064 883

Gem Diamond Technical Services Ltd

Stephen Wetherall, New Business Development
Tel: +27 (0) 11 569 5600
Mob: +27 (0) 82 418 8735

Sherryn Tedder, Media
Tel: +27 (0) 11 560 9618
Mob: +27 (0) 83 943 4505

Pelham Bell Pottinger

James MacFarlane
Tel: +44 (0) 207 861 3864 / +44 (0) 7841 672 831

James Henderson
Tel: +44 (0) 207 861 3160 / +44 (0) 7774 444 163

Charles Vivian
Tel: +44 (0) 207 861 3126 / +44 (0) 7977 297 903

About Gem Diamonds

Gem Diamonds is an international diamond mining company that has pursued a long term growth strategy through targeted acquisitions and the development of its existing assets. Due to the recovery in diamond prices in 2010 the Company's focus has been to place itself in a position to take advantage of long term growth opportunities.

The Company's mining portfolio comprises producing kimberlite and lamproite mines in Lesotho and Australia, as well as development projects in Angola and Botswana. The Company also owns a diamond cutting technology company.

With Letšeng's production of the world's most sought after remarkable white diamonds and Ellendale's production of rare fancy yellow diamonds, Gem Diamonds remains focused on higher value diamonds. This segment of the market is likely to deliver attractive long term returns.