Issue of shares to Directors

Gem Diamonds Limited
20 February 2008

Gem Diamonds Ltd

Allotment and Issue of Ordinary Shares to Non-Executive Directors


On 19th February 2008, the Board of Directors of Gem Diamonds Limited ('Gem
Diamonds' or the 'Company') met and formally approved the allotment and issue of
506,322 ordinary shares in the capital of the Company ('Ordinary Shares') to
four of the Company's Non-Executive Directors on the terms set out in the
Prospectus published by the Company on 14 February 2007 and outlined in more
detail below. The Ordinary Shares will be subscribed for at a nominal value of
US$0.01 each.



Application has been made to the FSA and the London Stock Exchange for listing
and trading of the shares as at 25th February 2008.





Non-Executive Director                        Number of Ordinary Shares

Roger Davis       (2nd tranche)                                289,326

Gavin Beevers     (2nd tranche)                                 72,332

Dave Elzas        (2nd tranche)                                 72,332

Mike Salamon      (1st tranche)                                 72,332



For further information:



Gem Diamonds Limited



Tel: [phone]



Andre Confavreux

Company Secretary






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