Gemfields plc

('Gemfields' or 'the Company')

Results - Singapore Rough Ruby Auction

20 June 2016

Gemfields plc (AIM: GEM) is pleased to announce the results of its auction of rough ruby extracted by Montepuez Ruby Mining Limitada (which is 75% owned by Gemfields and 25% by local partner Mwiriti Limitada) from the Montepuez ruby deposit ('Montepuez') in Mozambique. The auction was held in Singapore from 13 to 19 June 2016 and was the last auction the Company has planned for this financial year.

Highlights

· New record auction revenues of USD 44.3 million;

· Average realised price of USD 29.21 per carat;

· 1,516,459 carats sold (95% by weight or 98% by market value) out of the total of 1,601,145 carats offered;

· The six Montepuez auctions held since June 2014 have generated USD 195.1 million in aggregate revenues.

Montepuez Ruby Auction

Gemfields' sixth auction of rough rubies and corundum from Montepuez saw 44 companies placing bids.

The auction offered high and commercial grade rough rubies in both untreated and treated form. All treated lots were offered using industry accepted treatment techniques and on a fully disclosed basis.

The quality and quantity of the goods placed on offer was developed in response to market feedback. Growing demand for rough rubies suited to the production of high quality jewellery through to larger volume pieces. The improved reliability of supply and the consistency of the grading system introduced and applied by Gemfields continues to be well received by the Company's clients as it allows for reduced risks, improved manufacturing efficiencies and increased ability to meet consumer demand.

The auction generated record total revenues of USD 44.3 million at an average realised price of
USD 29.21 per carat. Given the quality mix offered at this auction comprised a blend of varying qualities and sizes of material, a direct comparison with previous auction results is not possible. On a quality for quality basis, however, the per carat prices achieved were indicative of improved overall global demand when compared to previous auctions.

The auction results, which saw 71 of the 75 lots offered being sold, provided a high level of support for the Company's analysis and understanding of the current market conditions and demand profile. This was further supported by customer feedback received during the auction.

The results of the six Montepuez auctions held to date are summarised below:

The proceeds of this auction will be repatriated to Montepuez Ruby Mining Limitada in Mozambique, with the royalties due to the Government of Mozambique being paid on the full sales price achieved at the auction.

At 31 March 2016, when Gemfields' provided its latest quarterly production update, total ruby and corundum extracted at Montepuez since commencement of the project stood at 20.8 million carats.

Gemfields' aggregate consolidated revenues from all rough gemstone sales for the financial year to date stands at approximately USD 174.4 million. Gemfields' auctions of rough gemstones from Kagem, the world's largest producing emerald mine, located in Zambia, and Montepuez have now generated USD 621 million in total revenues.

Ian Harebottle, CEO of Gemfields, commented:

'We are pleased with the results of Gemfields' sixth Montepuez ruby auction. The prices achieved and the high percentage of goods sold fully support our analysis of the market conditions, the quality of Mozambique's rubies and the increasing levels of demand across various markets and categories.

Our commitment to further building the coloured gemstone sector continues with the launch of a new global marketing campaign focussing on Mozambican rubies. The auction attendees were given a brief preview of the campaign, to be launched in London on the 22 June. The overwhelmingly positive response underpinned the clients' confidence in Gemfields marketing efforts and is further supported in the Company's ongoing success in growing demand for Zambian emeralds.

The five ruby and emerald auctions Gemfields has hosted so far this financial year have yielded aggregate revenues of USD 174.4 million. A superb performance by the Company with credit due to every member of its devoted and hard-working global team as well as its respective business partners in each of its host operating nations.'

ENQUIRIES:

Notes to Editors:

Gemfields plc is the world's leading supplier of responsibly sourced coloured gemstones and is quoted on the AIM division of the London Stock Exchange (ticker: GEM) where it is a constituent of the AIM50 index.

Gemfields is the operator and 75% owner of both the Kagem emerald mine in Zambia (believed to be the world's single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world). In addition Gemfields also holds a 50% interest in the Kariba amethyst mine in Zambia, as well as controlling interests in various other gemstone mining and prospecting licenses in Zambia, Mozambique, Colombia, Ethiopia, Madagascar and Sri Lanka.

Gemfields' outright ownership of Fabergé an iconic and prestigious brand of exceptional heritage enables Gemfields to optimise positioning, perception and consumer awareness of coloured gemstones, advancing the wider group's 'mine and market' vision.

Gemfields has developed a proprietary grading system and a pioneering auction and trading platform to provide a consistent supply of quality coloured gemstones to the global downstream markets. This is a key component of the Company's business model which the Directors believe has played an important role in the appropriate distribution and associated resurgence of the global coloured gemstone sector.

www.gemfields.co.uk