Notice of EGM

Gem Diamonds Limited
01 October 2007


01 October 2007

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

                    NOTICE OF EXTRAORDINARY GENERAL MEETING

Further to the announcement on 19 July 2007 regarding the proposed acquisition
of Kimberley Diamond Company NL (the 'Acquisition'), the Board of Gem Diamonds
announces that a shareholder circular, convening an extraordinary general
meeting to be held on 16 October 2007 to approve the Acquisition, was posted to
holders of ordinary shares in Gem Diamonds on Friday 28 September 2007.

The shareholder circular will shortly be available to the public for inspection
during normal business hours on any weekday (Saturdays, Sundays and public
holidays excepted) at the Document Viewing Facility at the Financial Services
Authority, 25 The North Colonnade, London, E14 5HS.

Definitions used in this announcement shall have the meanings given to them in
the announcement dated 19 July 2007, except where context requires otherwise.

For further information:

Gem Diamond Technical Services (Pty) Limited
Clifford Elphick
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,
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.

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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