PALLINGHURST RESOURCES LIMITED

(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 ("Pallinghurst" or the "Company")

Successful completion of Gemfields/Fabergé Merger 1. Introduction

Shareholders are referred to the announcement dated 21 November 2012 and are advised that Gemfields plc ("Gemfields") (via a wholly owned subsidiary) has completed its merger with Fabergé Limited ("Fabergé") (the "Transaction") in exchange for 214 million new shares in Gemfields (the "Consideration Shares"). These new shares represent approximately 40% of Gemfields' fully diluted enlarged share capital. Pallinghurst previously owned indirect equity interests of 33% in Gemfields and 49% in Fabergé and also held certain loan interests in Fabergé. Post completion, Pallinghurst now owns 48% of the enlarged Gemfields.
Brian Gilbertson, Pallinghurst Chairman, commented:

"This transaction creates the world's #1 coloured gemstone company, operating at both critical ends of the value chain. Gemfields can now take its vision for coloured gemstones to the next level and Fabergé becomes the obvious consumer choice for high