The real value of a rough gemstone is only revealed when it has been cut and polished. Accordingly, the pricing for rough gemstones includes an inherent discount to account for this uncertainty. Selling a material proportion of production on a cut and polished basis could enhance Gemfields Resources’ profits materially.

The company has headquartered its processing, cutting and polishing operations in Jaipur. A cutting and polishing facility is aimed to be operational by the end of the third quarter of 2008.

Gemfields has also conditionally acquired an option (also exercisable by Fabergé Limited) to enter into a 15 year worldwide and exclusive licence with Fabergé Limited to use the Fabergé name in branding, marketing and selling coloured gemstones (excluding diamonds). The Fabergé name carries exceptional branding potential and it is intended that, following the completion of the Fabergé Licence Agreement, it will become the company’s premium brand to extract premium prices for the very best gemstones. For further details on Fabergé please visit www.faberge.com.