Gemfields Quarterly Released Today

Extract from the Ruby Division:

Rubies
· Production summary for 75%-owned Montepuez Ruby Mining Limitada ("Montepuez") in Mozambique for the quarter ending 31 December 2016:

§ Production of 1.1 million carats of ruby and corundum with an average grade of 12 carats per tonne (versus 1.6 million carats with an average grade of 22 carats per tonne in the quarter ending 31 December 2015) as a result of the lower grade, but higher value material being processed;

§ Total operating costs^(a) of USD 6.6 million (versus USD 6.9 million in the quarter ending 31 December 2015);

§ Unit operating costs^(b) of USD 6.00 per carat (versus USD 4.31 per carat in the quarter ending 31 December 2015) as a direct result of the decrease in carats produced. On a cash basis^(c), unit operating costs were USD 5.00 per carat (versus USD 3.31 per carat in the quarter ending 31 December 2015); and

§ Cash rock handling unit costs of USD 4.90 per tonne (versus USD 5.02 per tonne in the quarter ending 31 December 2015).

· A mixed quality auction of rough rubies and corundum extracted from Montepuez ruby mine was held in Singapore from 12 to 16 December 2016. The auction generated revenues of USD 30.5 million at an average realised value of USD 27.88 per carat; and

· The next mixed quality auction of rough rubies and corundum from the Montepuez ruby mine is expected to take place in June 2017 in Singapore.