Bidder's Statement

Gem Diamonds Limited
17 August 2007

The information contained herein is restricted and is not for publication,
release or distribution, directly or indirectly, in or into the United States,
Canada or Japan or to residents or citizens of Canada or Japan.



                              GEM DIAMONDS LIMITED



 Gem Diamonds Limited subsidiary, Gem Diamonds Australia PTY Limited, publishes
  Bidder's Statement in relation to its offer for Kimberley Diamond Company NL



Gem Diamonds Australia PTY Limited ('Gem Diamonds Australia'), a wholly owned
subsidiary of Gem Diamonds Limited ('Gem Diamonds'), today published a Bidder's
Statement in relation to its offer (the 'Offer') for Kimberley Diamonds Company
NL ('Kimberley') on the Australian Stock Exchange. The Bidder's Statement sets
out the conditions and timetable to which the Offer is subject.  It will be
distributed to Kimberley shareholders along with Kimberley's Target Statement
which outlines Kimberley's Directors' reasons for their unanimous recommendation
that Kimberley shareholders accept the Offer.

Due to the transaction being classified as class 1 for Gem Diamonds under the UK
Listing Rules, the Offer is subject to the approval of Gem Diamonds'
shareholders in general meeting.  In this regard a circular to Gem Diamonds'
shareholders will be distributed in due course and the requisite Extraordinary
General Meeting of Gem Diamonds shareholders to approve the Offer is expected to
be convened in late October 2007.


A copy of the Bidder's Statement is available on Gem Diamond's website
www.gemdiamonds.com.



Enquiries:

Gem Diamond Technical Services (Pty) Ltd
Stephen Wetherall                                                [phone]
Angela Parr                                                      [phone]

Kimberley Diamond Company NL
Miles Kennedy, Karl Simich or Arran Gracie                       [phone]

Pelham PR
(Public Relations Adviser to Gem Diamonds Limited)
Candice Sgroi                                                   [phone]
                                                                [phone]
                                                                
Read Corporate (incorporating Jan Hope & Partners)
(Public Relations Advisers to Kimberley Diamond Company NL)
Nicholas Read                                                    [phone]
                                                                 [phone]
Gresham Advisory Partners Limited
(Financial Adviser to Gem Diamonds Limited)
Michael Ashforth                                                 [phone]

JPMorgan Cazenove
(Corporate Broker to Gem Diamonds Limited)
Ian Hannam                                                      [phone]
Neil Passmore

Argonaut and CIBC World Markets
(Joint Financial Advisers to Kimberley Diamond Company NL)
Charles Fear (Argonaut)                                          [phone]
Neil Johnson (CIBC World Markets)                                [phone]






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