Proactive Investors 12 January 2017 Gemfields Plc Gemfields: Mine - PowerPoint PPT Presentation

A leading supplier of responsibly sourced coloured gemstones Proactive Investors 12 January 2017 Gemfields Plc

Gemfields: Mine and market strategy Our vision is to become the global ‘Coloured Gemstone Champion’ Distribution Production Pioneering auction platform Market Exploration and mining Sorting and grading • Well established and reliable • Global leader in repositioning • A leading supplier of • Pioneered the world’s most auction platform the coloured gemstone industry responsibly sourced coloured comprehensive grading and alongside other luxury goods gemstones, and one of the sorting system for rough • Helps to formalise the market world’s largest emerald, ruby and emeralds and rubies • Owner of Fabergé , one of the • Delivering a consistent supply amethyst producers world’s most recognisable luxury • Supported by the commensurate • Targeted to achieve a best fit brands, enables Gemfields to • Experienced and well-regarded stock levels needed to ensure with each customer’s needs accelerate its vision and raise management team with a consistency of supply across all the international presence and proven track record of delivery size and quality scales perception of coloured • Unrivalled expertise in coloured gemstones gemstone mining and exploration • Championing industry • Scalable mines with substantial initiatives to enhance legitimacy, reserves transparency and integrity of the coloured gemstone sector 2 Gemfields Plc

Gemfields Locations World’s leading supplier of responsibly sourced rare coloured gemstones Key 75% owned Kagem Emerald Mine 1 50% owned Kariba Amethyst Mine 2 3 75% owned Montepuez Ruby Mine Prospective licences Gemfields and Fabergé global offices 1 2 3 3 Gemfields Plc

Market overview World records continue to be broken in the gemstone sector pushing up prices and demand • The market of worked emeralds, rubies and sapphires • European jewellery showed diverging dynamics – France’s continued to expand during 2015 imports of the top three coloured gemstones doubled with YoY growth of 116%, the indicator for the United Kingdom • The global emerald, ruby and sapphire market has grown went up by 7% YoY, while that of Italy and Switzerland 213% since 2009 (US$1.6bn) slowed by 13% and 6% YoY respectively • Global imports of the top three coloured gemstones reached • China, India and the USA remain the most significant US$5.9bn in 2015, representing an increase of 13% over 2014 emeralds, rubies and sapphire consumer market with their imports standing at around US$1.2bn per country per annum • The world’s top gemstone manufacturing hubs - India and Thailand - experienced major year-on- year (‘YoY’) growth in their exports of emeralds, rubies and sapphires in 2015 of 72% and 9% respectively 4 Gemfields Plc

Auction results Higher Quality Emerald Commercial Quality Emerald Rubies Total sales realised at auction (US$m) Total sales realised at auction (US$m) Total sales realised at auction (US$m) 19.2 36.5 34.9 34.7 33.1 44.3 43.3 15.2 16.4 15.5 14.5 31.6 31.5 14.3 33.5 26.2 26.8 30.4 29.3 10 11 28.8 10.7 19.6 9 7.2 15.9 5.9 5.6 7.5 Jun 14 Dec 14 Apr 15 Jun 15 Dec 15 Jun 16 Dec 16 Mixed HQ LQ HQ Mixed Mixed LQ Average per carat sales value (US$) Average per carat sales value (US$) Average per carat sales value (US$) 688.64 70.68 617.42 65.89 54 59.31 58.42 42.71 38.25 3.72 4.32 5.15 317.92 29.71 2.61 2.42 3.32 3.28 26.2 1.34 0.31 0.77 1.12 4.4 5.1 9.35 29.21 27.79 18.43 4.02 * * Jun 14 Dec 14 Apr 15 Jun 15 Dec 15 Jun 16 Dec 16 Mixed HQ LQ HQ Mixed Mixed LQ *Similar mix of goods offered in Jun 14 and Jun 16 5 Gemfields Plc

Operations 6 Gemfields Plc

Kagem emerald mine: an overview Believed to be the world’s single largest producing emerald mine (75% ownership) • Believed to be the world’s single largest producing emerald mine (75% ownership) SEMPALA VILLAGE DUMP POLICE CAMP DUMP RADIO TOWER PIT • Measured, Indicated and Inferred Mineral Resource of 1.8 PIT FIBOLELE DAM FIBOLELE PIT billion carats (“bct”) of emerald and beryl at an in -situ grade POLICE CAMP POLICE CAMP PIT of 281 carats per tonne (“ct/t”), inclusive of Proved and KANCHULE Probable reserve of 1.1bct at an in-situ grade of 291ct/t DABWISA PIT REPEATER TOWER POLICE PLANNED CAMP DUMP AREA PIT 2 SECURITY POST MAGAZINE SECURITY BOOM S P PIT-3 u t h B • Open pit mine plan to 2040 SECURITY POST e t o S PIT-4 b w e n L i LIBWENTE SOUTH BSP POLICE CAMP PIT-5 SECURITY POST BOOM B S P K U O I S H DUMP ISHUKO BSP CHAMA PIT-6 LAKE LAKE HOUSE CAMP U/G SHAFT GENSETS COLLAR • Chama Life of Mine (‘LoM’) of 25 years RADIO TOWER MUFULI VILLAGE KENNELS GATE -A DUMP m1e / F10 POLICE CAMP m1 m1 m2 m2 SUMP SECURITY POINT c2 c2 c1 c1 GATE -B m3 m3 m3b m3 m3 m3a POLICE CAMP LUSHINGWA DUMP PIT RIVER • Fibolele LoM of 7 years PUMP KAGEM MINING LIMITED Old working Pits PLAN SHOWING PIT LOCATIONS AND • LoM plan sees operations expand from 30mctpa to +40mctpa CAMP INFRASTRUCTURES Current working Pits LICENSE No. 14105_HQ_LGM Infrastructure LUFWANYAMA DISTRICT AREA : 43.00 Sq.Kms SCALE 1 : 10,000 in the next three years • Robust economics show a post-tax Net Present Value (“NPV”) of US$520 million (based on 10% base case discount rate) • A substantial exploration programme using proven techniques is planned for the next few years to determine the remaining resource potential within the Kagem licence 7 Gemfields Plc

Kagem emerald mine: FY16 results/FY17 outlook Target to increase production to more than 40mct per year over the next three years at Kagem FY2016 highlights Outlook • Increase in the consistency of production, supported by overall • Target of 30-35mct of emerald and beryl production for FY2017. increase in scale of operations Goal to increase production to more than 40mct per year over the next three years • 30.0mct of emerald and beryl (2015: 30.1mct), Chama pit extended by 2.2 kilometres strike length, producing 27.1mct and bulk • Total capex for the next three years is estimated to be US$30m. sampling pits 2.9mct Includes US$10m for sustaining capex and new mining fleet additions to support increase in mining activity in FY2017 • Doubled capacity at the Kagem wash plant • Target four emerald and beryl (two high and two commercial • Third phase of bulk sampling activities commenced at Fibolele quality) auctions for FY2017 alongside a further drilling programme during September 2015 • Continue aim of zero-harm (injury free) culture • Updated JORC code compliant proved and probable Mineral Reserve of 1.1bn at an in-situ grade of 291ct/t with a 25-year LoM open pit operation announced in September 2015 Kagem Quarterly Summary Units Sep -15 Dec - 15 Mar -16 Jun - 16 Full Year Gemstone Production (Emerald+Beryl) million ct 7.5 8.2 7.1 7.2 30 Ore Production (Reaction Zone) '000 tonnes 31.7 30.1 23.9 39.0 124.7 Grade (Emerald+Beryl/Reaction Zone) ct/t 237 272 297 185 241 million Waste Mined (including TMS) tonnes 4.0 2.8 2.6 3.1 12.5 million Total Rock Handling tonnes 4.1 2.8 2.6 3.1 12.6 Stripping Ratio 126 93 109 79 100 8 Gemfields Plc

Montepuez ruby mine: an overview Considered to be the world’s single largest producing ruby and corundum deposit (75% ownership) • Considered to be the world’s single largest producing ruby and corundum deposit (75% ownership) • Discovered in 2009. Gemfields completed acquisition in 2012 • Total concession area of 336km² - Approximately 20% of the license area • 27.1mcts produced to 30 June 2016 • Current production 8mctpa rising to 20mctpa within three years • Bulk sampling programme underway targeting: • Primary ruby mineralisation - Higher volumes / lower values • Second mineralisation - Lower volumes / Significantly higher values • Up to 30 June 2016, current total revenue of US$225.7m generated from only 7 auctions • Indicated and Inferred Mineral Resource of 467mcts at an in-situ ore grade of 62.3ct/t, inclusive of Proved and Probable Reserves of 432mcts at an in-situ grade of 15.7ct/t The Montepuez ruby project is located in Cabo Delgado province in Gemfields Plc * Includes acquisition cost, capital and operating expenditures north-eastern Mozambique, approximately 170km west of Pemba

Montepuez JORC Maiden Resource and Reserves Target to achieve 20mct annual production within the next three years at Montepuez • Indicated and Inferred Mineral Resource of 467mct at in-situ ore grade of 62.3ct/t • Projected 21-year LoM producing a total of 432mct over LoM • Projected real cash flow (no discount rate applied) over the LoM of approximately US$2.76bn • Robust economics shows a post-tax NPV of US$996m (based on 10% base case discount rate) • Total capital expenditure of US$305m over LoM Tonnage Grade Contained carats • Exploration programme to date has covered around 36km 2 Reserves (kt) (ct/t) (ct,000) out of the 350km 2 licence area Proved -- -- -- Probable 27,549 15.7 431,620 • Substantial exploration programme planned for the next few Total 27,549 15.7 431,620 years at Montepuez Resources Indicated 7,122 59.5 423,000 Inferred 378 115.4 44,000 Total 7,500 62.3 467,000 Net Present Value at 10.0% discount rate US$996m Internal Rate of Return 311.7% 10 Gemfields Plc