Holding(s) in Company

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARESi

1. Identity of the issuer or the underlying issuerof existing shares to which voting rights areattached: ii

Gem Diamonds Limited

2 Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights

x

An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments

An event changing the breakdown of voting rights

Other (please specify):

3. Full name of person(s) subject to thenotification obligation: iii

FMR LLC

4. Full name of shareholder(s)  (if different from 3.):iv

See attached schedule

5. Date of the transaction and date onwhich the threshold is crossed orreached: v

22 February 2011

6. Date on which issuer notified:

24 February 2011

7. Threshold(s) that is/are crossed orreached: vi, vii

5%

8. Notified details:

A: Voting rights attached to shares viii, ix

Class/type ofshares

if possible usingthe ISIN CODE

Situation previousto the triggeringtransaction

Resulting situation after the triggering transaction

NumberofShares

NumberofVotingRights

Numberof shares

Number of votingrights

% of voting rights x

Indirect

Direct xi

Indirect xii

Direct

Indirect

6,044,056

6,044,056

6,921,400

6,921,400

5,00

 VGG379591065

B: Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financialinstrument

Expirationdate xiii

Exercise/Conversion Period xiv

Number of votingrights that may beacquired if theinstrument isexercised/ converted.

% of votingrights

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments xv, xvi

Resulting situation after the triggering transaction

Type of financialinstrument

Exercise price

Expiration date xvii

Exercise/Conversion period xviii

Number of voting rights instrument refers to

% of voting rights xix, xx

Nominal

Delta

Total (A+B+C)

Number of voting rights

Percentage of voting rights

6,921,400

5,00

9. Chain of controlled undertakings through which the voting rights and/or thefinancial instruments are effectively held, if applicable: xxi

See attached schedule

Proxy Voting:

10. Name of the proxy holder:

FMR LLC

11. Number of voting rights proxy holder will ceaseto hold:

877,344

12. Date on which proxy holder will cease to holdvoting rights:

22 February 2011

13. Additional information:

None.

14. Contact name:

Shaheen Hussain

15. Contact telephone number:

[email protected], 01737 837149

FMR

Issuer name:

GEM DIAMONDS LTD

Current ownership percentage:

5.00%

Total shares held:

6,921,400

Issued share capital:

138,267,181

SHARES HELD

NOMINEE

MANAGEMENT COMPANY

FMR LLC is the parent

holding company of Fidelity Management & Research Company (FMRCO), investment manager for US mutual funds, FIL Management Trust Company (FMTC), Pyramis Global Advisors Trust Company (PGATC), a US stale chartered bank which acts as a trustee or investment manager of various pension and trust accounts Pyramis Global Advisors LLC (PGALLC) and Pyramis Trust Company (PTC).

1,955,500

3,965,900

1,000,000

JO MORGAN CHASE BANK

NORTHERN TRUST CO

STATE STREET BANK AND TR CO

FMRCO

FMRCO

FMRCO