Extension of Offer Period

Gem Diamonds Limited
08 November 2007

8th November 2007

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

                        Extension of Offer for Kimberley


Further to the announcement by Gem Diamonds on 25 October 2007 of the decision
by the Company's Board to extend the Offer Period from the previously indicated
closing date of 2 November 2007 to 16 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 23 November 2007.


As at the close of business on 7 November 2007, Gem Diamonds Australia Pty
Limited (a 100% held subsidiary of the Company) held a relevant interest of
49.42% in Kimberley and had received acceptances in respect of a further 23.12%
of Kimberley under the Company's institutional acceptance facility, bringing the
total to 72.54%.  Gem Diamonds' Board remains committed to completing the Offer
in the shortest possible time frame.


As outlined in the circular to shareholders dated 28 September 2007, the Offer
is subject to a number of conditions, certain of which have been met.  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.


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