GEMFIELDS PLC – July 2010 Auction Results and Operational Update

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Jul. 28, 2010 (PR Newswire UK Disclose) -- Gemfields PLC
July 2010 Auction Results and Operational Update

London: Gemfields PLC ("Gemfields" or "the Company", Ticker "GEM") is pleased to present the results of its July 2010 rough emerald auction as well as an

operational update for the three month period ending 30 June 2010. All figures are unaudited. Highlights July 2010 rough emerald auction realises sales of USD 7.5 million, the highest auction revenue to date. Demand for Zambian emeralds, and more specifically Gemfields' Kagem emeralds, has seen a steady increase across all sectors over the past year. Per carat prices improved 83% over the last auction of higher quality material held in November 2009. Four auctions held since July 2009 generated revenues totalling USD 26.2 million. Quarter ending 30 June 2010 saw solid production volumes, good grades and the lowest quarterly unit production costs achieved to date. The year ending 30 June 2010 saw Kagem's operating costs fall 42%, with gemstone production down just 38%, representing real achieved economies of scale. Graphical production update available at http://www.gemfields.co.uk

Emerald and Beryl Auctions
Gemfields held an auction of (predominantly higher quality) rough emeralds in London from 19 to 23 July 2010. The auction was attended by 37 companies drawn
from India, Israel, Germany and the United States. The auction saw 0.85 million carats offered, with 0.80 million carats being sold, raising USD 7.5 million.
Gemfields has now completed 4 auctions in the past 13 months, realising revenues totalling USD 26.2 million.
The results of the July 2010 auction are summarised below, together with those from the previously published auctions held in London, Johannesburg and Jaipur:

   AUCTION RESULTS      JULY '09     NOVEMBER '09     MARCH '10     JULY '10  
       SUMMARY          AUCTION         AUCTION        AUCTION      AUCTION   

Dates                  20-24 July   23-27 November   11-15 March   19-23 July 
                          2009           2009            2010         2010    

Location                London,      Johannesburg,     Jaipur,      London,   
                        England      South Africa       India       England   

Type                     Higher     Higher Quality      Lower        Higher   
                        Quality                        Quality      Quality   

Carats offered        1.36 million   1.12 million       28.90     0.85 million
                                                       million                

Carats Sold           1.36 million   1.09 million       22.80     0.80 million
                                                       million                

No. of companies           23             19              25           37     
placing bids                                                                  

Average no. of bids        10             13              8            18     
per lot                                                                       

No. of lots offered        27             19              56           27
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