Stabilisation Notice

Gem Diamonds Limited
14 February 2007



                                                                14 February 2007



The London Stock Exchange
10 Paternoster Square
London, EC4M 7LS



Dear Sirs


Gem Diamonds Limited - Offering of 31.285 Ordinary Shares


Stabilisation Notice


Pursuant to Core Dealing Rule 3060-3061, JPMorgan Cazenove Limited hereby
notifies the London Stock Exchange that it and its affiliates may stabilise the
offering of the Ordinary Shares of US$0.01 of Gem Diamonds Limited:


1.      Security to be stabilised:  Ordinary Shares of US$0.01 of Gem Diamonds
        Limited;

2.      Security Identifier:  VGG379591065;

3.      Stabilising Manager:  JPMorgan Cazenove Limited (a member firm) (Contact
        - Greg Bennett - 020 7588 2828);

4.      Stabilisation period commences: 14 February 2007 at approximately 
        08:00am London time;

5.      Stabilisation period ends: Close of business on 15 March 2007;

6.      Offer price:  950 pence per share; and

7.      Over-allotment option is equivalent to approximately 13.1% of the
        offering.


Yours faithfully





JPMorgan Cazenove Limited.






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