Offer Update

RNS Number:4378I
Gem Diamonds Limited
26 November 2007

26th November 2007

                              GEM DIAMONDS LIMITED
                       ("Gem Diamonds" or the "Company")



       Gem Diamonds Australia declares offer for Kimberley unconditional





Further to the announcement by Gem Diamonds on 15 November 2007 of the decision
to extend the Offer Period from the previously indicated closing date of 23
November 2007 to 1 December 2007 for the cash offer for 100 per cent of the
issued share capital of Kimberley Diamond Company NL ("Kimberley"), Gem Diamonds
Australia, a wholly owned subsidiary of Gem Diamonds, has elected to declare its
takeover Offer for Kimberley Diamond Company NL ("Kimberley") to be
unconditional.



Gem Diamonds Australia has a holding of 14.92% in Kimberley's shares and has now
received total acceptances in respect of 66.59% (subject to the processing of
the institutional acceptances) representing a total relevant interest of 81.51%.
Gem Diamonds Australia will immediately begin processing acceptances for payment
in line with its undertaking to pay the consideration within seven days of the
Offer being declared unconditional.



As the majority shareholder in Kimberley, Gem Diamonds Australia representatives
will be appointed to the Kimberley board promptly after the close of the Annual
General Meeting of Kimberley shareholders to be held on 26 November 2007.   Gem
Diamonds will accordingly obtain management control of Kimberley from 27
November 2007.  A management team from Gem Diamonds will be in place at
Kimberley from this date.



Once Gem Diamonds Australia has acquired 90% of the issued shares in Kimberley,
it intends to compulsorily acquire the remaining 10% of the shares in issue and
delist Kimberley from the Australian Stock Exchange and withdraw its admission
to trade on AIM.  Gem Diamonds remains committed to achieving this in the
shortest possible time frame.



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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