Recovery of 138 carat diamond

15 August, 2018

GEM DIAMONDS LIMITED

("Gem Diamonds" or "the Company")

Recovery of 138 carat diamond

Gem Diamonds Limited (LSE: GEMD) is pleased to announce the recovery of a 138 carat, top white colour Type IIa diamond from the Letšeng mine in Lesotho, the highest dollar per carat kimberlite diamond mine in the world.

This recovery is now the twelfth diamond of over 100 carats in 2018, and a record for the Company in terms of the number of diamonds of over 100 carats recovered in a year. A photograph of the diamond can be found on the Company's website, www.gemdiamonds.com

The Gem Diamonds Limited LEI number is 213800RC2PGGMZQG8L67

For further information:

Gem Diamonds

Susan Wallace, Company Secretarial department

[email protected]

Celicourt Communications

Mark Antelme / Joanna Boon

Tel: +44 (0) 207 520 9261

About Gem Diamonds:

Gem Diamonds is a leading global diamond producer of high value diamonds. The Company owns 70% of the Letšeng mine in Lesotho and 100% of the Ghaghoo mine in Botswana. The Letšeng mine is famous for the production of large, top colour, exceptional white diamonds, making it the highest dollar per carat kimberlite diamond mine in the world. www.gemdiamonds.com