Director's Sale of Shares

26 March 2010

GEM DIAMONDS LIMITED

("Gem Diamonds" or the "Company")

Director's Sale of Shares

Gem Diamonds, LSE: GEMD, the FTSE 250 listed diamond producer, announces that it was notified by Mr Glenn Turner, a Director and Group Commercial and Legal Officer of the Company, that he sold 200,000 ordinary shares at a price of 251.77 pence per share for a total net sales consideration of £502,534.32 on the 26th March, 2010.

His holding of ordinary shares in the Company is now 400,000 shares, representing approximately 0.29% of the Company's issued share capital.  The sale is to fulfil certain personal financial commitments.

Enquiries

Gem Diamonds Limited

Andre Confavreux

Tel: +44 203 043 0280