Results - Jaipur Auction of Traded Rough Emeralds

Gemfields plc

("Gemfields" or the "Company")

Gemfields plc (AIM: GEM) announces the results of its auction of traded rough emeralds held in Jaipur from 28 April to 2 May 2014. The emeralds sold at the auction (predominantly of higher quality) comprised Zambian and Brazilian emeralds obtained by Gemfields in the open market from various sources.

Highlights

· Gross auction revenues of USD 13.5 million, a 59% increase over the prior auction of traded emeralds, held in September 2013;

· Average realised price of USD 50 per carat;

· Of the 41 lots offered, 21 were sold, representing approximately 86% of the market value; and

· Healthy market conditions underpinned robust prices for the higher quality emeralds offered.

A total of 40 companies attended and placed bids at the auction. The auction saw 0.764 million carats of traded emeralds placed on offer, with 0.268 million carats (representing the majority of the value offered) being sold, and generating gross auction revenues of USD 13.5 million.

Gemfields first offered traded emeralds at its auction held in Singapore in July 2011. The traded emeralds were at first offered concurrently with the material mined, processed, graded and exported by, or belonging to Kagem. Traded emeralds and beryl were also offered in this manner at subsequent Gemfields auctions held in November 2011 (Jaipur), March 2012 (Singapore) and June 2012 (Jaipur). Material mined, processed, graded and exported by, or belonging to Kagem thereafter has been offered exclusively in Lusaka, Zambia, with traded emeralds and beryl being offered on a standalone basis in September 2013 and May 2014 in Jaipur.

The Jaipur auction yielded an overall average value of USD 50 per carat. While lower than the USD 58 per carat realised in the September 2013 auction, the composition of the two auctions was considerably different given variations in the qualities available in the open market. The auction results are summarised below:

The specific auction mix and the quality characteristics of the lots offered at the traded auction can vary quite considerably from those auctions made up solely of lots derived from Kagem's mined production. As a result, direct comparisons between traded auctions and Kagem auctions cannot be reliably drawn.

Gemfields' next auction of mined rough emeralds and beryl is scheduled to take place in Lusaka, Zambia during the second half of calendar 2014. The auction, of predominantly lower quality emerald and beryl, will be made up only of material mined, processed, graded and owned by Kagem.

Gemfields' first auction of rough rubies and corundum from its 75%-owned Montepuez ruby deposit in Mozambique is scheduled to take place in Singapore in mid June 2014.

Ian Harebottle, CEO of Gemfields, commented:

"Gemfields' second standalone auction of traded rough emeralds, again held in Jaipur, demonstrates considerable growth in our vision of being able to deliver gems from various sources to our valued customers within the framework of our transparent and well proven auctions.

We're pleased with the auction revenue of USD 13.5 million which saw increased bidder numbers as well as significant growth in both the quantity of emeralds offered and sold. Thanks to favourable market conditions and strong demand for higher quality emeralds, we have generated another solid trading profit and it was pleasing to see the contribution made by Brazilian emeralds. We will continue the expansion of our international trading and sourcing activities accordingly.

Sales during the current financial year of rough emerald and beryl have now reached USD 109.9 million and we look forward to our first auction of rough rubies and corundum in Singapore in June 2014 from our Mozambique operations."

ENQUIRIES:

Notes to Editors:

Gemfields plc is the leading coloured gemstone miner listed on the AIM market of the London Stock Exchange (ticker: GEM). The Company's principal asset is the 75% owned Kagem emerald mine in Zambia, the world's single largest emerald mine. In addition to the Kagem emerald mine, Gemfields has a 50% interest in the Kariba amethyst mine in Zambia.

In July 2009, Gemfields commenced a formal auction programme for Zambian emeralds mined at Kagem. To date, the Company has held 15 auctions of emerald and beryl produced from Kagem which have generated revenues totalling US$260 million. The Company has also held two traded emerald auctions (not obtained directly from the Company's own mining operations) which generated revenue of US$22.0 million.

The Company also owns a 75% stake in the highly prospective Montepuez ruby deposit in Mozambique and licences in Madagascar including ruby, emerald and sapphire deposits.

Gemfields acquired the Fabergé brand in January 2013 with a view to creating a globally recognised coloured gemstone champion. Fabergé provides Gemfields with direct control over a high-end luxury goods platform and a global brand with exceptional heritage.