Result of EGM - Replacement

Gem Diamonds Limited
16 October 2007

The following press release replaces Gem Diamonds RNS statement number 8174F
released at 15.52 today.  The change in this reissued release relates to the
date of the  announcement of the proposed cash offer mentioned in the first
line.




16th October, 2007


                              GEM DIAMONDS LIMITED
                       ('Gem Diamonds' or the 'Company')


                                 Result of EGM


Further to the announcement by Gem Diamonds, on 19 July 2007 of its proposed
cash offer for 100 per cent of the issued share capital of Kimberley Diamond
Company NL ('Kimberley'), the Board of Gem Diamonds announces that at its
Extraordinary General Meeting, convened and held Linklaters LLP, One Silk
Street, London EC2Y 8HQ today, the 16th October 2007 at 3.30 p.m, the resolution
to approve the acquisition of Kimberley, as outlined in the circular to
shareholders dated 27 September 2007, was  passed unanimously with 68.34% of the
Company's register voting.



The voting on the resolutions was as follows:

Votes for                            42,645,038

Votes against                        NIL

Total Votes                          42,645,038



Copies of the resolution will shortly be available for inspection at the UKLA
Document Viewing Facility situated at: the Financial Services Authority, 25 The
North Colonnade, Canary Wharf, London E14 5HS.



For further information:

Gem Diamonds Limited
Clifford Elphick
Tel:  [phone]


Gem Diamond Technical Services (Pty) Limited
Stephen Wetherall
Tel:  [phone]


Pelham PR
Candice Sgroi
Tel: [phone]



About Gem Diamonds


Gem Diamonds is a diamond mining company with a balanced portfolio of a
producing kimberlite mine, two producing alluvial mines, development projects
and long-term prospects. Established in July 2005, Gem Diamonds is pursuing an
accelerated growth strategy and aims to become one of the world's leading
diamond companies. Gem Diamonds currently has one producing kimberlite mine,
Letseng, in Lesotho, two producing alluvial mines - Cempaka in Indonesia and
Mbelenge in the Democratic Republic of Congo (DRC), a kimberlite development
project in Botswana, two development projects in the DRC, one in the Central
African Republic and an option to develop the Chiri kimberlite concession in
Angola.



The Company recently made an offer to Kimberley Diamond Company's shareholders
to acquire their shares in this company, which owns the Ellendale Mine in north
Western Australia.



Gem Diamonds currently has a specific focus towards higher value diamonds, a
segment of the market that its management believes will deliver superior long
term returns.



For further information about Gem Diamonds visit www.gemdiamonds.com.




                      This information is provided by RNS
            The company news service from the London Stock Exchange