9 June 2022

       GEM DIAMONDS LIMITED

            ("Gem Diamonds" or "the Company")

 Pausing of Draft Lesotho VAT Amendment Bill

Gem Diamonds Limited ("Gem Diamonds") notes recent comments from industry peers regarding possible legislation introduced by the Lesotho Revenue Authority (LRA) in the form of a potential VAT Amendment Bill.

The VAT Amendment Bill, if it were to become law in its current form, would impact the ability of the diamond industry in Lesotho to claim back their Input VAT, currently paid on affected goods, services and capital items procured for day-to-day operations.

The Lesotho Chamber of Mines has been advised by the Ministry of Mining that the VAT Amendment Bill process has been paused pending further consultations between the relevant key parties.

A further announcement will be made if appropriate.

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