Gemfields PLC held an auction - Fine Rough Zambian Emeralds Auction, in London in July 2010, which achieved the highest auction revenue for the company to date, valuing USD 7.5 million. The sale, which took place between 19 to 23 July 2010, noted 83 percent increase in per carat prices of emeralds, over the last auction of higher quality material held in November 2009.

Of the 0.85 million carats offered, 0.80 million carats were bought. The auction drew 37 companies from India, Israel, Germany and the United States. Adrian Banks, Gemfields’ Product Director commented; “We are pleased with the positive response we have received at our July auction, providing a clear indication that demand for our emeralds is growing. All indications are that the market for emeralds is likely to continue to grow at a considerable pace, supported by strong Asian and worldwide demand, and into the foreseeable future.” Gemfields has noted a continued improvement in demand for Zambian emeralds, and more specifically Gemfields’ Kagem emeralds, where (Kagem mines) the company owns 75 percent. Kagem mine is presently Gemfields’ only operating emerald mine.

Through its four auctions held since July 2009, the company has generated revenues worth USD 26.2 million. Ian Harebottle, CEO of Gemfields, said: “Gemfields has enjoyed a very good production quarter, a robust year and a highly successful July 2010 auction. Gemfields is delivering solidly on our vision of bringing a regular and reliable supply of emeralds and beryl, from a responsible source, to the market.” The company is considering hosting its next auction of (predominantly higher quality) rough emeralds during December 2010.