Holding(s) in Company

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARESi

1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached: 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 the notification obligation: iii

FIL Limited.

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

See schedule below

5. Date of the transaction and date on which the threshold is crossed or reached: v

30 September 2010

6. Date on which issuer notified:

04 October 2010

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

5%

8. Notified details:

A: Voting rights attached to shares viii, ix

Class/type of shares

if possible using the ISIN CODE

Situation previous to the triggering transaction

Resulting situation after the triggering transaction

Number of Shares

Number of Voting Rights

Number of shares

Number of voting rights

% of voting rights x

Indirect

Direct xi

Indirect xii

Direct

Indirect

6,903,105

6,903,105

7,547,959

7,547,959

5.45

Ordinary

(VGG379591065)

B: Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financial instrument

Expiration date xiii

Exercise/ Conversion Period xiv

Number of voting rights that may be acquired if the instrument is exercised/ converted.

% of voting rights

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

Resulting situation after the triggering transaction

Type of financial instrument

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

7,547,959

5.45

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

See schedule below

Proxy Voting:

10. Name of the proxy holder:

FIL Limited

11. Number of voting rights proxy holder will cease to hold:

644,854

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

30 September 2010

13. Additional information:

None

14. Contact name:

Andre Confavreux, Company Secretary, Gem Diamonds

15. Contact telephone number:

0203 043 0280

FIL

Issuer name:

GEM DIAMONDS LTD

Current Ownership percentage

5.45%

Total shares held:

7,547,959

Issued share capital:

138,267,181

SHARED HELD

NOMINEE

MANAGEMENT

COMPANY

FIL Limited (FIL) is the parent holding company for various direct and indirect subsideries, including FIL Fund Management Limited ( FFML), FIL Investment Services Ltd (FISL), FIL Gestion (FILGEST), FIL Asset Management

(Korea) Limited (FIAKL), FIL, Investments Management (Hong Kong) Limited (FIMHK) FIL Pension Management (FPM), Fidelity Investments Japan (FIJ) and FIL Investments International (FII), investment managers for various non-US investment companies and institutional clients.

782,585

JP MORGAN, BOURNEMOUTH

FII

5,750

JP MORGAN, BOURNEMOUTH

FIL

6,759,624

JP MORGAN, BOURNEMOUTH

FISL