Open Letter to the Board of Directors of T1

    RNS Number : 8945G
  Gemfields Resources PLC
  29 October 2008
   
     Gemfields Resources Plc ("Gemfields")

    29 October 2008

    Open Letter to the Board of Directors of TanzaniteOne Limited ("T1")

    South African Exchange Controls relating to the T1 B Shares

    On 27 October 2008, T1 announced that it has issued 83,739,976 nil paid issued and unlisted B shares in T1 to TanzaniteOne Mining Ltd, a
wholly owned subsidiary of TanzaniteOne (SA) Limited, which is in turn a wholly owned subsidiary of T1 (the "B Share Scheme"). The new B
shares represent 50.2 per cent. of the enlarged issued voting share capital of T1. 

    The board of Gemfields, having obtained two professional opinions on the B Share Scheme, believes that the B Share Scheme may contravene
the Exchange Control Regulations of South Africa. 

    We understand that a contravention may result in criminal sanctions being brought against TanzaniteOne (SA) Limited and its directors,
and more importantly place T1 shareholders' interests at risk.

    We urgently request that the board of T1 confirm by way of regulatory announcement that all South African Exchange Control Regulations
have been complied with in implementing the B Share Scheme.


    Yours faithfully 

    Sean Gilbertson 

    Chief Executive Officer 

    Gemfields Resources Plc 



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