Ruby pricesGemfields plc ("Gemfields" or "the Company") Results - Singapore Rough Ruby Auction 21 December 2015 Gemfields plc (AIM: GEM) is pleased to announce the results of its auction of higher and medium qualities of rough ruby extracted by Montepuez Ruby Mining Limitada (which is 75% owned by Gemfields and 25% by local partners Mwiriti Limitada) from the Montepuez ruby deposit ("Montepuez") in Mozambique. The auction was held in Singapore from 14 to 18 December 2015. Highlights Auction revenues of USD 28.8 million; Average realised price of USD 317.92 per carat; 90,642 carats sold (98% by weight or 95% by market value) out of the total of 92,136 carats offered; and The five Montepuez auctions held since June 2014 have generated USD 150.8 million in aggregate revenues. Montepuez Ruby Auction Gemfields' fifth auction of rough rubies and corundum from Montepuez saw 36 companies placing bids. The auction offered both higher and medium quality rough rubies in both untreated and treated form. All treated lots were offered using industry accepted treatment techniques and on a fully disclosed basis. The auction generated total revenues of USD 28.8 million at an average realised price of USD 317.92 per carat. The auction results, which saw 45 of the 49 lots offered being sold, provided a clear indication with respect to the level of demand for these goods and supported the Company's decision to place both higher and medium quality rough rubies on offer. Larger volumes of smaller size and mid-priced gems were placed on offer as a direct response to market feedback which indicated increased demand for rough rubies suited to the production of calibrated cut-and-polished gemstones. This demand is supported by the request of auction clients to undertake larger production runs, to improve their manufacturing efficiencies and to make the most of the broadening distribution networks available as new downstream customers join an industry now enjoying consistent and reliable supply. Given that the quality mix offered at this auction comprised a new blend of both higher and medium quality rubies, the results cannot be directly compared with prior Gemfields auctions. On a quality-for-quality basis, however, the per carat prices achieved remained broadly consistent with those achieved at previous auctions. The results of the five Montepuez auctions held to date are summarised below: AUCTION RESULTS (RUBY & CORUNDUM) JUNE '14 AUCTION DECEMBER '14 AUCTION APRIL '15 AUCTION JUNE '15 AUCTION DECEMBER '15 AUCTION Dates 12-17 June 2014 3-8 December 2014 17-22 April 2015 16-21 June 2015 14-18 December 2015 Location Singapore Singapore Jaipur, India Singapore Singapore Type Rough Ruby & Corundum (Higher and Lower Quality) Rough Ruby (Higher Quality) Rough Ruby & Corundum (Lower Quality) Rough Ruby (Higher Quality) Rough Ruby (Higher and Medium Quality) Carats offered 2.03 million 85,491 4.03 million 72,208 92,136 Carats Sold 1.82 million 62,936 3.96 million 47,451 90,642 No. of lots offered 62 41 64 46 49 No. of lots sold 57 35 57 28 45 Percentage of lots sold 92% 85% 89% 61% 92% Percentage of lots sold by weight 90% 74% 98% 66% 98% Percentage of lots sold by market value 79% 93% 81% 72% 95% Total sales realised at auction USD 33.5 million USD 43.3 million USD 15.9 million USD 29.3 million USD 28.8 million Average per carat sales value USD 18.43/carat USD 688.64/carat USD 4.02/carat USD 617.42/carat USD 317.92/carat The proceeds of this auction will be repatriated to Montepuez Ruby Mining Limitada in Mozambique, with the royalties due to the Government of Mozambique being paid on the full sales price achieved at the auction. At 30 September 2015, when Gemfields provided its latest quarterly production update, total ruby and corundum extracted at Montepuez since commencement of the project stood at 17.2 million carats. This auction was Gemfields' third auction of the current financial year ending 30 June 2016. The first and second auctions of the current financial year were of predominantly higher quality emerald (September 2015) and lower quality emerald and beryl (November 2015) from the Kagem emerald mine ("Kagem"), Zambia. Gemfields' aggregate consolidated revenues from rough gemstone sales for the financial year to date stands at approximately USD 82.7 million. Gemfields' 25 auctions of rough gemstones from Kagem and Montepuez have now generated USD 530 million in total revenues.