12 April 2022

GEM DIAMONDS LIMITED

 ("Gem Diamonds" or "the Company")

Share Buyback Programme

Gem Diamonds Limited (LSE: GEMD) ("Gem Diamonds" or the "Company" or the "Group") is pleased to announce the initiation of a share buyback programme to purchase up to US$2.0 million of the Company's ordinary shares of US$0.01 each ("Ordinary Shares") commencing on 12 April 2022 (the "Programme"). Gem Diamonds has entered into an agreement with Liberum Capital to carry out on-market purchases of its Ordinary Shares pursuant to the Programme.

Purchases pursuant to the Programme will be made under the authority the Company has in place to purchase, redeem or otherwise acquire Ordinary Shares following the Company's Annual General Meeting on 2 June 2021 (the "Existing Authority"). The Existing Authority permits the purchase of a maximum of 14,016,955 Ordinary Shares and expires on the date of the Company's next Annual General Meeting on 8 June 2022.

The sole purpose of the Programme is to reduce the capital of the Company and the Company intends to hold those Ordinary Shares purchased under the Programme in treasury. Such treasury shares are not entitled to dividends and have no voting rights.

Purchases will be carried out in compliance with the relevant conditions for trading, restrictions regarding time and volume, disclosure and reporting obligations, and price conditions. The Ordinary Shares will be repurchased at a price, excluding expenses, that does not exceed the higher of (i) the last independent trade or the highest current independent bid on the relevant trading platform; and (ii) 105% of the average of the closing price of the Company's ordinary share as derived from the London Stock Exchange Daily Official List during the five business days immediately prior to the date of purchase.

Details of the any purchases made under the Programme will be provided via RNS announcements and published on the Company's website.

The Programme will be conducted in compliance with the Market Abuse Regulation (EU) No. 596/2014 and Commission Delegated Regulation (EU) No. 2016/1052, as they form part of UK law by virtue of the European Union (Withdrawal) Act 2018.

Clifford Elphick, CEO of Gem Diamonds, said:

"We are of the view that the value of Gem Diamonds is not reflected in its current share price. We remain confident about the future and, coupled with our recently proposed US$3.8 million dividend (subject to approval at the AGM on 8 June 2022), we believe that this buyback represents an important mechanism by which to return further capital to shareholders."

The Gem Diamonds Limited LEI number is 213800RC2PGGMZQG8L67.

For further information:

Gem Diamonds

Susan Wallace, Company Secretarial department

[email protected]

Celicourt Communications

Mark Antelme / Felicity Winkles

Tel: +44 (0) 208 434 2643

About Gem Diamonds:

Gem Diamonds is a leading global diamond producer of high value diamonds. The Company owns 70% of the Letšeng mine in Lesotho. The Letšeng mine is famous for the production of large, top colour, exceptional white diamonds, making it the highest dollar per carat kimberlite diamond mine in the world. www.gemdiamonds.com