Gemfields Singapore Rough Emerald Auction - March 2012

RESULTS - GEMFIELDS SINGAPORE ROUGH EMERALD AUCTION

27 March 2012

Gemfields plc (AIM: “GEM”) is pleased to announce the results of the auction of (predominantly medium to higher quality) rough emeralds held in Singapore from 19-23 March 2012.

Highlights

 Robust auction revenues of USD 26.2 million

 Results reflect a significant increase of 46% over the 15 month period in achievable quality-for-quality per carat prices

 Third auction of the current financial year generating aggregate sales of USD 68.9 million

 Nine auctions held since July 2009 generating revenues totalling USD 124.7 million

 Auction results underscore the continued strong growth in global demand for Gemfields’ ethical Zambian emeralds across all quality grades

 Next auction of (predominantly lower quality) rough emeralds scheduled for June 2012 in Jaipur

Ian Harebottle, CEO of Gemfields, commented: 

"Gemfields is delighted to announce another set of very encouraging auction results, testament to the success of our marketing initiatives and the consistency of the emeralds produced at our Kagem mine. Today’s results demonstrate that Gemfields is consistently delivering on its integrated approach of combining industry-leading performance in three core areas: mining, the consistent supply of good quality well graded ethical gemstones, and pioneering coloured gemstone marketing and promotion. We have achieved record auction revenues for the financial year and will look to use this positive momentum to deliver continued growth in each of these core areas into the foreseeable future.”

Gemfields held an auction of (predominantly medium to higher quality) rough emeralds in Singapore from 19 to 23 March 2012. Thirty two companies attended the auction, with twenty nine of these placing bids. The auction saw 0.77 million carats of emeralds mined by Gemfields placed on offer, with 0.69 million carats being sold and generating auction sales of USD 26.2 million.

While the Singapore auction of July 2011, which comprised of generally superior quality material overall, yielded USD 42.71 per carat, the overall quality characteristics of the emeralds placed on offer at last week’s auction were more similar to those offered in the December 2010 auction in Johannesburg. The resultant average prices of USD 38.25 per carat achieved at the most recent auction thus demonstrates a quality-for-quality increase of some 46% over the 15 month period and provides a clear indication of robust growth in both achievable prices and demand for emeralds in general, and Gemfields ethical emeralds in particular.

Last month's auction was the third auction of the current financial year, ending 30 June 2012. The three auctions, one of which was for lower quality material, have generated aggregate sales of USD 68.9 million while the nine auctions held since July 2009 have generated USD 124.7 million in aggregate revenues.