RESULT OF GENERAL MEETING

Back

22 Apr 2009

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN, INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR SWITZERLAND

Further to its announcement on 1 April 2009 of a Placing of 75 million New Shares in the Company, Gem Diamonds (LSE: GEMD) announces that at its General Meeting held on 20 April 2009, each of the resolutions set out in the circular and notice of general meeting to shareholders dated 3 April 2009 was duly passed by way of a poll in accordance with the Company's Articles of Association.

Copies of the resolutions have been submitted to the UK Listing Authority (the "UKLA") in accordance with paragraph 9.6.2 of the Listing Rules and will shortly be available for inspection at the UKLA's Document Viewing Facility, which is situated at:

The Financial Services Authority

25 The North Colonnade
Canary Wharf
London E14 5HS

The results of the poll on each resolution are as follows:

Resolution   For % Against % Withheld
1 Increase to number of authorised shares   49,891,901 99.93 32,812 0.07 104,300
2 Authority to allot shares   49,432,408 99.01 492,305 0.99 104,300
3 Disapplication of pre-emption rights   49,430,164 99.01 492,305 0.99 105,544
4 Approval of Placing   49,517,108 99.18 407,705 0.82 104,200
5 Approval of related party transaction   49,516,908 99.18 407,705 0.82 104,400
6 Waiver of mandatory bid requirement   49,432,308 99.01 492,305 0.99 104,400

It is expected that the 75 million New Shares will be admitted to the Official List of the UKLA and to trading on the main market of the London Stock Exchange at 8.00 a.m. on 22 April 2009.

Words and expressions defined in the prospectus dated 3 April 2009 have the same meaning when used in this announcement unless the context requires otherwise.

Notes

1. Resolutions 1 and 3 were special resolutions and Resolutions 2, 4, 5 and 6 were ordinary resolutions.

2. A vote "withheld" is not a vote in law and is not counted in the calculation of the proportion of the votes "for" and "against" a resolution.

3. The issued share capital as at 20 April 2009 is 62,977,853 Ordinary Shares.

For further information, please contact:
Gem Diamonds Limited

Richard Chetwode, Investor Relations Manager
Tel: +44 (0)20 3042 0280

Pelham PR

Candice Sgroi
Tel: +44 (0)20 7337 1533

J.P. Morgan Cazenove

Patrick Magee/Neil Passmore
Tel: +44 (0)20 7588 2828

The information in this press release is not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Japan, Australia, the Republic of South Africa or Switzerland or any other jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction.

The information in this press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would require preparation of further prospectuses or other offer documentation, or be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction.

The information in this press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933 (the "Securities Act"). The securities mentioned herein may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act. There will be no public offer of securities in the United States.

The information in this press release may not be forwarded or distributed to any other person and may not be reproduced in any manner whatsoever. Any forwarding, distribution, reproduction, or disclosure of this information in whole or in part is unauthorized. Failure to comply with this directive may result in a violation of the Securities Act or the applicable laws of other jurisdictions.