Results - Lusaka Emerald and Amethyst Auctions

Gemfields plc

("Gemfields" or "the Company")

Results - Lusaka Emerald and Amethyst Auctions

4 April 2016

Gemfields plc (AIM: GEM) is pleased to announce the results of its auction of predominantly higher quality rough emerald extracted by Kagem Mining Ltd (which is 75% owned by Gemfields and 25% by the Government of the Republic of Zambia) in Zambia.

The auction also included higher quality amethyst from Kariba Minerals Ltd in which Gemfields has a 50% interest, with the balance also belonging to the Government of the Republic of Zambia.

The auction was held in Lusaka, Zambia from 30 March until 3 April 2016.

Highlights: The Emerald Auction

· Auction revenues of USD 33.1 million;

· New record of USD 70.68 per carat for higher quality auctions;

· Of the 558k carats offered for sale, 469k carats were sold (84%); and

· 21 Kagem auctions held since July 2009 have generated USD 412 million in total revenues.

Highlights: The Amethyst Auction

· Auction revenues of USD 0.22 million;

· The average realised price was USD 3.26 per carat; and

· Of the 9.4 million carats offered for sale, 6.6 million carats were sold (70%).

The Kagem Emerald Auction

A total of 33 companies placed bids in Gemfields' third auction of Kagem production in the current financial year.

The auction saw 558k carats of higher quality emerald extracted from Kagem placed on offer, with 16 of the 18 lots offered being sold, generating auction revenues of USD 33.1 million. The auction realised an overall average value of USD 70.68 per carat, a new record for higher quality auctions.

The Company's 21 auctions of emeralds and beryl mined at Kagem since July 2009 have generated USD 412 million in total revenues.

The results of the six most recent higher quality Kagem auctions are summarised in the table below. Additional historic information regarding higher quality auctions can be found in the 'Further Information' section of this announcement:

The specific auction mix and the exact quality of the lots offered at each auction vary in characteristics such as size, colour and clarity on account of variations in mined production and market demand. Each auction naturally contains a degree of variation in overall quality composition, which is typically reflected in the average per carat sales value and means that the results of each auction are not always directly comparable.

The Kariba Amethyst Auction

In addition to the auction of gemstones mined by Gemfields at Kagem, the Lusaka event was also used to host an auction of higher quality amethyst mined by Kariba Minerals Ltd (in which Gemfields has a 50% interest).

The Lusaka amethyst auction saw 9.4 million carats of higher quality amethyst extracted from Kariba placed on offer, with 8 of the 14 lots offered being sold, generating auction revenues of USD 0.22 million from the 6.6 million carats sold. The amethyst auction realised an overall average value of 3.26 US cents per carat.

Gemfields has hosted only three prior rough amethyst auctions which took place in Jaipur in March 2011, Lusaka in February 2015 and Singapore in September 2015.

Next Auction

Gemfields' next auction is expected to take place in May 2016 in Jaipur, India and is anticipated to be predominantly comprised of lower quality emerald and beryl from the Kagem emerald mine in Zambia.

Ian Harebottle, CEO of Gemfields, commented:

"Our return to Lusaka has delivered another strong - and indeed record - result at a time when global commodity and diamond prices remain volatile and uncertain. Demand for - and prices of - emeralds clearly remain as robust as ever and gemstone mining represents one of the healthier segments of the sector. We're delighted that, in collaboration with our partners, the Government of the Republic of Zambia, the Kagem and Kariba operations continue to perform strongly."

ENQUIRIES:

Notes to Editors:

Gemfields plc is the world's leading supplier of responsibly sourced coloured gemstones and is quoted on the AIM division of the London Stock Exchange (ticker: GEM) where it is a constituent of the AIM50 index.

Gemfields is the operator and 75% owner of both the Kagem emerald mine in Zambia (believed to be the world's single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world). In addition Gemfields also holds a 50% interest in the Kariba amethyst mine in Zambia, as well as controlling interests in various other gemstone mining and prospecting licenses in Zambia, Mozambique, Colombia, Ethiopia, Madagascar and Sri Lanka.

Gemfields' outright ownership of Fabergé - an iconic and prestigious brand of exceptional heritage - enables Gemfields to optimise positioning, perception and consumer awareness of coloured gemstones, advancing the wider group's "mine and market" vision.

Gemfields has developed a proprietary grading system and a pioneering auction and trading platform to provide a consistent supply of quality coloured gemstones to the global downstream markets. This is a key component of the Company's business model which the Directors believe has played an important role in the appropriate distribution and associated resurgence of the global coloured gemstone sector.

www.gemfields.co.uk

Further Information:

The results of earlier higher quality Kagem auctions are summarised below: