Borehole Drilling Programme for Residents of the Central Kalahari Game Reserve Commences

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20 Jun 2011

Gem Diamonds Limited (Gem Diamonds or "the Company") is pleased to announce that it has successfully established a partnership with the non-profit organisation VOX United, to drill four boreholes in the Central Kalahari Game Reserve (CKGR) in Botswana to provide the residents of the CKGR with water. Gem Diamonds will provide technical and financial assistance.

The borehole drilling programme follows discussions and consultations with the local communities and will be conducted in two phases. Phase One will begin with the drilling of the first borehole, at Mothemelo, in early July 2011, and will be followed by Metsimanong, Molapo and Gope.

The borehole drilling programme is a part of Gem Diamonds' continual corporate social responsibility and sustainability programme aimed at the development of a lasting positive legacy for project-affected communities through regular, sustained and participative communication and collaboration. The programme will also benefit the local ecosystem as it will provide multiple sources of water at the various CKGR settlements to prevent the concentration of people around a single water source.

Clifford Elphick, the CEO of Gem Diamonds, commented:

"We are pleased to announce that Gem Diamonds is assisting with the borehole drilling programme. Gem Diamonds remains committed to implementing sustainable solutions to the environmental and community-related issues in the Central Kalahari Game Reserve and embraces the opportunity to continue our work with the local communities and other interested parties to ensure that the benefits of the Gope Diamond mine are realised for the community as a whole."

For further information:
Gem Diamonds Limited

Haile Mphusu, Managing Director, Gope Exploration Company
Tel: +267 318 27 96

Gem Diamond Technical Services (Pty) Ltd

Sherryn Tedder, Corporate Affairs
Tel: +27 (0) 11 560 9600
Mob: +27 (0) 83 943 4505

Pelham Bell Pottinger

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

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

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. Following 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 a development project in Botswana.

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.