Offer Period Extended

Gem Diamonds Limited
14 May 2007


 Not for release, publication or distribution, in whole or in part, in, into or
                                from Australia,
          New Zealand, Canada or Japan or any Restricted Jurisdiction

14 May 2007

                             Recommended cash offer

                            by Gem Diamonds Limited

                                      for

                                BDI Mining Corp

                             Offer Period Extended

Summary

On 20 April 2007, Gem Diamonds Limited (LSE: GEMD) ('Gem Diamonds') made a
recommended cash offer (the 'Offer') for the entire issued and to be issued
share capital of BDI Mining Corp (AIM: BMG) ('BDI Mining') not already owned by
Gem Diamonds.

Gem Diamonds has acquired, or received valid acceptances in respect
of, 85,005,804 BDI Mining Shares representing approximately 79.0 per cent. of
the issued BDI Mining Shares

In addition, Gem Diamonds believes that acceptances in respect of a
further 9,072,500 BDI Mining Shares or approximately 8.4 per cent. of the issued
BDI Mining Shares have been or will be submitted and processed in due course

The Offer period has been extended until 25 May 2007

1. Acceptances

Gem Diamonds announces that, as at 1.00 p.m. on 11 May 2007, being the first
closing date of the Offer, valid acceptances of the Offer had been received in
respect of 54,005,804 BDI Mining Shares, representing approximately 50.2 per
cent. of the issued BDI Mining Shares. Including the 31,000,000 BDI Mining
Shares acquired by Gem Diamonds in April 2007, Gem Diamonds has acquired, or
received valid acceptances of the Offer in respect of, 85,005,804 BDI Mining
Shares in aggregate, representing approximately 79.0 per cent. of the issued BDI
Mining Shares.

As at the date of the Offer, Gem Diamonds had received irrevocable undertakings
and a letter of intent to accept the Offer in respect of 51,397,157 BDI Mining
Shares representing, in aggregate, approximately 49.1 per cent. of the issued
BDI Mining Shares (or 47.8 per cent. as at the date of this announcement as a
result of issues of shares since the date of the Offer). Gem Diamonds has
received valid acceptances in respect of the BDI Mining Shares which were the
subject of the letter of intent and the irrevocable undertakings, other than
those irrevocable undertakings representing 9,072,500 BDI Mining Shares or
approximately 8.4 per cent. of the issued BDI Mining Shares in aggregate. Gem
Diamonds believes that acceptances in respect of these BDI Mining Shares have
been or will be submitted and processed in due course.

2. Extension of the Offer

The Offer, which remains subject to the terms set out in the Offer Document, has
been extended for a period of 14 days and therefore the next closing date will
be 1.00 p.m. on 25 May 2007.

BDI Mining Shareholders who wish to accept the Offer and who have not already
done so should:

(i) in respect of BDI Mining Shares held in certificated form, complete and
return the Form of Acceptance in accordance with the instructions set out in the
Offer Document and on the Form of Acceptance so as to be received as soon as
possible and, in any event, by no later than 1.00 p.m. on 25 May 2007; or

(ii) in respect of BDI Mining Shares represented by depository interests in
uncertificated form, withdraw their BDI Mining Shares represented by depository
interests into their own name electronically through CREST by sending a CREST
withdrawal instruction to CRESTCo as soon as possible and, in any event, so that
the CREST withdrawal instruction settles by no later than 1.00 p.m. on 24 May
2007 and simultaneously complete and return the Form of Acceptance in accordance
with the instructions set out in the Offer Document and on the Form of
Acceptance so as to be received by no later than 1.00 p.m. on 25 May 2007.

Defined terms used in this announcement have the same meanings as in the Offer
Document dated 20 April 2007.

Enquiries:

Gem Diamonds
Stephen Wetherall                                            [phone]

Angela Parr                                                  [phone]

Strata Capital                                               [phone]
(Financial Adviser to Gem Diamonds)
Oliver Corner

JPMorgan Cazenove                                            [phone]
(Corporate Broker to Gem Diamonds)
Ian Hannam
Jonathan Walker
Neil Passmore

BDI Mining
Martin Horgan                                                 [phone]
Reg Spencer                                                   [phone]     

Ruegg & Co                                                    [phone]
(Financial Adviser to BDI Mining)
Brett Miller



Strata Capital UK LLP, which is authorised and regulated in the United Kingdom
by the Financial Services Authority, is acting exclusively for Gem Diamonds and
no one else in connection with the Offer and this announcement and will not be
responsible to anyone other than Gem Diamonds for providing the protections
afforded to clients of Strata Capital UK LLP or for providing advice in
connection with the Offer or this announcement or any matter referred to herein.

JPMorgan Cazenove Limited, which is authorised and regulated in the United
Kingdom by the Financial Services Authority, is acting exclusively for Gem
Diamonds and no one else in connection with the Offer and this announcement and
will not be responsible to anyone other than Gem Diamonds for providing the
protections afforded to clients of JPMorgan Cazenove Limited or for providing
advice in connection with the Offer or this announcement or any matter referred
to herein.

Ruegg & Co Limited, which is authorised and regulated in the United Kingdom by
the Financial Services Authority, is acting exclusively for BDI Mining and no
one else in connection with the Offer and this announcement and will not be
responsible to anyone other than BDI Mining for providing the protections
afforded to clients of Ruegg & Co Limited or for providing advice in connection
with the Offer or this announcement or any matter referred to herein.

This announcement is for informational purposes only and does not constitute an
offer to sell or invitation to purchase any securities or the solicitation of
any vote for approval in any jurisdiction, nor shall there be any sale, issue or
transfer of the securities referred to in this announcement in any jurisdiction
in contravention of applicable law. The Offer will be made solely by the Offer
Document and the Form of Acceptance accompanying the Offer Document, which will
contain the full terms and conditions of the Offer, including details of how the
Offer may be accepted.

The Offer will not be made, directly or indirectly, in, into or from a
Restricted Jurisdiction where to do so would violate the laws in that
jurisdiction, and the Offer is not capable of acceptance from or within a
Restricted Jurisdiction. Accordingly, copies of this announcement and all
documents relating to the Offer are not being, and must not be, directly or
indirectly, mailed or otherwise forwarded, distributed or sent in, into or from
a Restricted Jurisdiction where to do so would violate the laws in that
jurisdiction, and persons receiving this announcement and all documents relating
to the Offer (including custodians, nominees and trustees) must not mail or
otherwise distribute or send them in, into or from such jurisdictions as doing
so may invalidate any purported acceptance of the Offer. The availability of the
Offer to BDI Mining Shareholders who are not resident in the United Kingdom may
be affected by the laws of the relevant jurisdictions in which they are
resident. Persons who are not resident in the United Kingdom should inform
themselves of, and observe, any applicable requirements.

In accordance with normal UK market practice, Gem Diamonds or its nominees or
brokers (acting as agents) may from time to time make certain purchases of, or
arrangements to purchase, BDI Mining Shares outside the United States, other
than pursuant to the Offer, before or during the period in which the Offer
remains open for acceptance. These purchases may occur either in the open market
at prevailing prices or in private transactions at negotiated prices. Any
information about such purchases will be disclosed as required in the UK.






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