Extension of Offer period

RNS Number:8154H
Gem Diamonds Limited
15 November 2007

15th November 2007

                              GEM DIAMONDS LIMITED

                       ("Gem Diamonds" or the "Company")

                        Extension of Offer for Kimberley





Further to the announcement by Gem Diamonds on 8 November 2007 of the decision
by the Company's Board to extend the Offer Period from the previously indicated
closing date of 16 November 2007 to 23 November 2007 for the cash offer for 100
per cent of the issued share capital of Kimberley Diamond Company NL ("Kimberley
"), the Board of Gem Diamonds has elected to further extend the Offer Period to
1 December 2007.



As at the close of business on 14 November 2007, Gem Diamonds Australia Pty
Limited (a 100% held subsidiary of the Company) held a relevant interest of
50.52% in Kimberley and had received acceptances in respect of a further 24.28%
of Kimberley under the Company's institutional acceptance facility, bringing the
total to 74.80%.  Gem Diamonds' Board remains committed to completing the Offer
in the shortest possible time frame.



As detailed in the announcement by Gem Diamonds on 8 November 2007, in the
interest of encouraging Kimberley shareholders to accept the Offer, Gem Diamonds
has undertaken that it will waive all outstanding conditions to the Offer, to
the extent that they have not already been met, when the minimum acceptance
condition is satisfied.



Definitions used in this announcement shall have the meanings given to them in
the shareholder circular posted 28 September 2007, except where context requires
otherwise.



For further information:



Gem Diamonds Limited
Clifford Elphick
Tel: [phone]

Gem Diamond Technical Services (Pty) Limited
Stephen Wetherall
Tel: [phone]

Pelham PR
Candice Sgroi
Tel: [phone]







About Gem Diamonds



Gem Diamonds is a diamond mining company with a balanced portfolio of a
producing kimberlite mine, two producing alluvial mines, development projects
and long-term prospects. Established in July 2005, Gem Diamonds is
pursuing an accelerated growth strategy and aims to become one of the world's
leading diamond companies. Gem Diamonds currently has one producing
kimberlite mine, Letseng, in Lesotho, two producing alluvial mines -
Cempaka in Indonesia and Mbelenge in the Democratic Republic of Congo (DRC), a
kimberlite development project in Botswana, two development projects in the DRC,
one in the Central African Republic and an option to develop the Chiri
kimberlite concession in Angola.



The Company recently made an offer to Kimberley Diamond Company's shareholders
to acquire their shares in this company, which owns the Ellendale Mine in north
Western Australia, and which was approved by Gem Diamonds' shareholders at an
Extraordinary General Meeting on 16 October 2007.



Gem Diamonds currently has a specific focus towards higher value diamonds, a
segment of the market that its management believes will deliver superior long
term returns.



For further information about Gem Diamonds visit www.gemdiamonds.com.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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