A Growth Oriented Resource Company Focused on Advancing the Kouroussa Gold Discovery in Guinea, West Africa Situated in the prolific Birimian gold fields, Kouroussa is the focus of a determined and experienced exploration and management team. Aggressive exploration has added new zones of gems mineralization into the Kouroussa resource picture, while at the same time upgrading significant portions of previously Inferred Resources to the higher confidence Indicated classification. Resource drilling in 2008 increased the Indicated Resources by 46% over 2007 by converting significant Inferred Resources to Indicated and by expanding the overall resource base. Most of the gems resources reported lie within 150 metres of the surface.

Daly City Ventures Joint Venture
Royal Gems / Builders has an agreement under which it can earn an 81% interest in Daly City Ventures, which holds a prospecting licence in the Orapa region over an area of approximately 380 sq. km. High resolution geophysical surveys have been conducted over the area to identify drilling targets.

African Diamonds
Royal Gems / Builders also holds a 6.6% interest in African Diamonds plc, which is developing a major new mine on the AK6 kimberlite in the Orapa field in conjunction with De Beers.

De Beers Joint Venture
The Orapa joint venture project with De Beers covers an area of approximately 4,900 sq. km close to the Orapa and Letlhakane mines. Under the terms of the joint venture, De Beers is financing all exploration and evaluation work up to completion of bankable feasibility in return for a 61% interest in the project.

De Beers has carried out more than 50,000 line kilometres of high-resolution airborne and ground geophysical survey, and drilling to date has discovered 4 new kimberlites. Follow-up geophysical surveys and exploration drilling is planned on targets identified by work carried out to date.

Bonte Koe Mine, South Africa

The Bonte Koe mine covers an area of approximately 2,500 hectares along the Buffels River in Namaqualand, a region that has been a significant diamond producing area for the past 40 years. Mining operations in the area have produced an estimated total of over 3 million carats, with an estimated current value of over $750 million. The Buffels River area produces diamonds with an average size of approximately 0.4 carats per stone and a value of over $200 per carat.

In 2006, Royal Gems / Builders entered into an agreement with De Beers to develop a new mining operation around Bonte Koe to exploit deposits on the Buffels River over which De Beers holds mining rights. Under the terms of the agreement, Global Gems will use the plant and infrastructure at Bonte Koe to process gravel mined by De Beers on a toll-treatment basis.
The agreement with De Beers is very significant for Royal Gems as it provides the Company with assured revenue and cash flow for the duration of the Buffels River project. The operation is expected to provide Royal Gems Builders with average annual revenue of approximately £3.5 million and operating profits of £2 million.

Royal Gems / Builders revenue and profits from the project could increase further through an increase in mineable resources in the Buffels River area, which would extend the life of the project to beyond 2013, and through profit sharing provisions in the agreement with De Beers.

With the plant at Bonte Koe now dedicated to processing De Beers' gravel, Royal Gems / Builders plans to resume exploiting its own gravel resources at Bonte Koe after processing of De Beers' gravels has been completed.