Gope Update

Gem Diamonds Limited
25 October 2007






News Release
25 October 2007



                     GEM DIAMONDS' GOPE PROJECT IN BOTSWANA
                   HAS SUSPENSION OF RETENTION LICENSE LIFTED





•         Suspension of Gope Retention License lifted

•         Feasibility Study and Environmental Impact Assessment to be updated

•         All interested and affected parties to be consulted



Gope Exploration Company (Pty) Limited (Gope), a 100% held subsidiary of Gem
Diamonds Limited (Gem Diamonds), today announces that the Government of the
Republic of Botswana has lifted the suspension of the Retention License over the
Gope area.



Work has begun on the updating of the Feasibility Study, which was completed in
1998.  The Environmental Impact Assessment (EIA) and subsequent Environmental
Management Plan will commence shortly.  As part of the EIA process all
interested and affected parties will be consulted by Gope's independent advisors
Marsh Vikela (Pty) Limited.  Should the findings of this updated Feasibility
Study prove positive, an application for a Mining License will be made in due
course.



For further information:



Gem Diamonds Limited
Clifford Elphick
[phone]



Gem Diamond Technical Services (Pty) Limited
Angela Parr
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, Let
seng, 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.



About Gope

Gope was formed in 1985 when exploration work over the area first commenced.
Work on Gope was subsequently adjourned until the mid 1990's when a pre
feasibility study was undertaken.  A feasibility study was concluded thereafter.




Gope currently holds a Retention License over the concession area which is
located in the Central Kalahari Game Reserve (CKGR) in central Botswana.  The
Gope Retention License area is 35km2 relative to the size of the reserve which
is 52, 800km2. The Government of the Republic of Botswana has indicated its
intention to allow mining in the CKGR.






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