RECOMMENDED CASH OFFER BY GEM DIAMONDS LIMITED FOR BDI MINING CORP

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20 Apr 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

Further to the announcement made on 11 April 2007 of a recommended cash offer by Gem Diamonds Limited (LSE: GEMD) ("Gem Diamonds") for BDI Mining Corp (AIM: BMG) ("BDI Mining") (the "Offer"), Gem Diamonds announces that the offer document containing the full terms and conditions of the Offer (the "Offer Document") is being posted to BDI Mining Shareholders today.

Copies of the Offer Document and the Form of Acceptance will be available for collection by BDI Mining Shareholders from Capita Registrars, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU during normal business hours on any weekday (Saturdays and public holidays excepted) while the Offer remains open for acceptance.

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.