Drilling/Production Report

Gem Resources Plc (LSE: GEMR), the owner and operator of the Gravelotte Emerald Mine in South Africa, is pleased to provide a further operational update following the successful resumption of mining activities in the Cobra Open Pit. This marks a significant milestone as GEMR undertakes its own hard rock mining operations within the historic Gravelotte deposit where the initial results are ahead of historical results.

Key Operational Developments:

Since the commencement of mining activities in the Cobra Open pit on 20 January 2025, the Company has undertaken the following key activities and made significant progress:

Ore Zone Access and Mining Progression

• The Company has commenced exposing the targeted ore-bearing zone by removing overburden (i.e. the material covering the ore-bearing material) on the southern side of the Cobra Open Pit.
• Following the completion of overburden stripping, direct ore extraction has commenced seamlessly.

Higher-Grade and Quality Ore Extraction

• Initial mining from the newly exposed ore zone in the Cobra Open pit has yielded both high-grade and high-quality emerald-bearing material.
• The geological characteristics observed align with historical production data, supporting the potential for continued high-quality recoveries from the Cobra Open pit

Processing Plant Performance & Upgrades

• The Company's processing plant has now successfully achieved grades of up to 60 carats per tonne, underscoring the strong potential of the deposit.
• Ongoing upgrades to the processing plant have proven highly successful, resulting in significantly improved throughput.

Phased Ramp-Up & Expansion of Operations

• In line with the Company's capital-efficient phased approach, GEMR is steadily ramping up mining activities at the Cobra Open Pit.
• Phase 2, as announced in December 2024, has focused on establishing a steady supply of high-grade ore while optimizing processing efficiencies.
• The Company remains committed to increasing production volumes in a measured and controlled manner, aligning with market conditions and optimizing sale / auction preparation.
• GEMR continues to actively stockpile emeralds in preparation for its first sale or auction

Market Conditions & Emerald Demand

The emerald market continues to demonstrate resilience, with prices remaining strong. Unlike the diamond sector, which has faced pricing pressures due to increased competition from lab-grown alternatives, the demand for high-quality, naturally mined emeralds remains robust.

Ed Nealon Commented: "We are extremely pleased with the initial results and ongoing progress at Gravelotte since initiating our own hard rock mining operations in the Cobra Open Pit. The initial ore recovered is consistent with our expectations of the quality and output potential of the deposit, at the same time the efficiency of our upgraded processing plant has been a key driver in optimizing production. We look forward to further scaling our operations and remain on track for our first sale in the first half of the year."