PALLINGHURST RESOURCES LIMITED - Gemfields Ethiopia Operations Overrun

Gemfields’ Ethiopia Operations Overrun

PALLINGHURST RESOURCES LIMITED
(renamed Gemfields Group Limited as of 26 June 2018)
(Incorporated in Guernsey)
(Guernsey registration Number: 47656)
(South African external company registration number 2009/012636/10)
Share code on the BSX: PALLRES ISIN: GG00B27Y8Z93
Share code on the JSE: PGL
("Gemfields" or the "Company")



Gemfields’ Ethiopia Operations Overrun

Gemfields regrets to advise that on Friday 29th June 2018, a mob estimated at between 300 and 500 persons
overran the operations of Web Gemstone Mining plc (“WGM”), an Ethiopian company in which Gemfields holds
a 75% interest. The remaining 25% interest belongs to 50 individuals, either individually or through a mining
cooperative comprising of local villagers, the majority of which are drawn from the nearby village of Web.

WGM’s employees, contractors and service providers were safely evacuated to a town some two hours away by
road. Two members of the WGM team suffered minor injuries at the hands of the mob and are expected to
make full recoveries.

WGM is liaising with local and national authorities and has been advised that local authorities have since secured
WGM’s residential camp and mine offices, as well as the camp used by WGM’s contractors. WGM understands
that the bulk sampling operation is yet to be secured.

A state of emergency in Ethiopia, announced in February 2018, was lifted on 5 June 2018.

While the motive of the mob remains unclear, it is believed that they may have been spurred by a faction seeking
a portion of WGM’s licence.

Gemfields acquired its stake in WGM in February 2015. WGM holds an emerald exploration licence with a total
concession area of 200km2 with 27 kilometres of potential emerald-mineralised strike length. WGM first
established its operations on site in June 2015 and has to date been conducting exploration and core-drilling,
with bulk-sampling operations commencing in August 2017.

Additional information about Gemfields

Gemfields is a world leading supplier of responsibly sourced coloured gemstones. Gemfields is the operator and
75% owner of both the Kagem emerald mine in Zambia (believed to be the world’s single largest producing
emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered
ruby deposits in the world). In addition, Gemfields also holds controlling interests in various other gemstone
mining and prospecting licenses in Zambia, Mozambique, Ethiopia and Madagascar.

Gemfields’ outright ownership of Fabergé - an iconic and prestigious brand of exceptional heritage - enables
Gemfields to optimise positioning, perception and consumer awareness of coloured gemstones, advancing the
wider group’s “mine and market” vision.

Gemfields has developed a proprietary grading system and a pioneering auction and trading platform to provide
a consistent supply of coloured gemstones to downstream markets, a key component of Gemfields’ business
model and has played an important role in the growth of the global coloured gemstone sector.

Further information on Gemfields Group Limited can be found at www.gemfieldsgroup.com.

Guernsey
2 July 2018

Sponsor
Investec Bank Limited

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