Results - Singapore Rough Ruby Auction

Gemfields plc

("Gemfields" or "the Company")

Results - Singapore Rough Ruby Auction

15 June 2017

Gemfields plc (AIM: GEM) is pleased to announce the results of its auction of rough ruby extracted by Montepuez Ruby Mining Limitada (which is 75% owned by Gemfields and 25% by local partner Mwiriti Limitada) from the Montepuez ruby deposit ("Montepuez") in Mozambique. The auction was held in Singapore from 10 to 14 June 2017 and was the second ruby and final auction of this financial year.

Highlights

· Record auction revenues of USD 54.8 million, an all-time high for any Gemfields auction;

· Of the 83 lots offered, 78 were sold;

· Average realised price of USD 61.13 per carat;

· 895,848 carats sold (85% by weight or 98% by market value) out of the total of 1,048,687 carats offered; and

· The eight Montepuez auctions held since June 2014 have generated USD 280.5 million in aggregate revenues.

Montepuez Ruby Auction

Gemfields' eighth auction of rough rubies and corundum from Montepuez saw 54 companies placing bids. The auction offered high and commercial grade rough rubies in both untreated and treated form. All treated lots were offered using industry-accepted treatment techniques and on a fully disclosed basis.

The quality and quantity of the goods placed on offer were once again refined in response to market feedback which showed growing demand for rough rubies suited to the production of high quality jewellery as well as larger volume production runs, thereby allowing a broad cross-section of product to be placed on offer. The improved reliability of supply and the consistency of the Gemfields grading system continues to be well received by the Company's clients as it facilitates reduced risk, improved manufacturing efficiencies and an increased ability to meet consumer demand.

The auction generated total revenues of USD 54.8 million at an average realised price ofUSD 61.13 per carat. Given that the quality mix offered at this auction comprised a blend of varying qualities and sizes of material, a direct top-line comparison with the results of previous auctions is not feasible. On a quality-for-quality basis however, the per carat prices reflected positive demand and were in line with the Company's experiences at recent global trade events.

The auction results, which saw 78 of the 83 lots offered being sold, provided a high level of comfort in respect of the Company's understanding of the current market demand profile, which was further supported by customer feedback received during the auction.

The results of the five most recent Montepuez auctions held to date are summarised below (and the prior auction results can be found in the 'further information' section at the end of this announcement):

The proceeds of this auction will be repatriated to Montepuez Ruby Mining Limitada in Mozambique, with the production tax due to the Government of Mozambique being paid on the full sales price achieved at the auction.

Gemfields' aggregate consolidated revenues from all rough gemstone auctions for the financial year to date stands at approximately USD 132.7 million. Gemfields' auctions of rough gemstones from the Kagem emerald mine in Zambia and from the Montepuez ruby deposit in Mozambique have now generated USD 754.5 million in total revenues.

Ian Harebottle, CEO of Gemfields, commented:

"We are thrilled with the results of Gemfields' eighth Montepuez ruby auction. Achieving revenues of USD 54.8 million is an all-time high for any Gemfields auction and a pleasingly 24% increase to our prior auction revenue record. The prices achieved at this auction, combined with the high percentage of goods sold, highlight our belief in the ongoing increase in demand for responsibly sourced Mozambican rubies across key markets and jewellery categories. The response received from our customers was very encouraging and they share our excitement about the future potential for the ruby industry.

As always, we thank our customers, our business partners, our host government and give credit to every member of our loyal and hard-working global team."

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).

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, 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 the first three Montepuez auctions are summarised below: