16 Oct 2007

Further to the announcement by Gem Diamonds, on 19 July 2007 of its proposed cash offer for 100 per cent of the issued share capital of Kimberley Diamond Company NL ("Kimberley"), the Board of Gem Diamonds announces that at its Extraordinary General Meeting, convened and held Linklaters LLP, One Silk Street, London EC2Y 8HQ today, the 16th October 2007 at 3.30 p.m, the resolution to approve the acquisition of Kimberley, as outlined in the circular to shareholders dated 27 September 2007, was passed unanimously with 68.34% of the Company's register voting.

The voting on the resolutions was as follows:
Vote for   42,645,038
Votes against   NIL
Total Votes   42,645,038

Copies of the resolution will shortly be available for inspection at the UKLA Document Viewing Facility situated at: the Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS.

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