Notification of Major Interest in Shares

For filings with the FSA include the annex

For filings with issuer exclude the annex

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 Ltd

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

An acquisition or disposal of voting rights

ü

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

FIL Limited

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

See schedule below

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

28 February 2012

6. Date on which issuer notified:

29 February 2012

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

VGG379591065

6,926,546

6,926,546

6,907,242

6,907,242

4.99

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

6,907,242

4.99

9. Chain of controlled undertakings through which the voting rights and/or thefinancial 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 dispose:

19,304

12. Date on which proxy holder will dispose of voting rights:

28 February 2012

13. Additional information:

None

14. Contact name:

Sally-Ann Hatton

15. Contact telephone number:

[email protected], 01737 837148

Schedule

SHARES HELD

NOMINEE

MANAGEMENT COMPANY

FIL Limited (FIL) is the parent

792,055

JP MORGAN, BOURNEMOUTH

FII

holding company for various direct and indirect

6,033,830

JP MORGAN, BOURNEMOUTH

FISL

subsidiaries, including FIL Fund Management

1,646

BROWN BROS HARRIMN LTD LUX (C)

FIL

Limited (FFML), FIL Investment Services Ltd

79,711

JP MORGAN, BOURNEMOUTH (C)

FIL

(FISL), FIL Gestion (FIGEST), 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.