Gem International Provides Updates on the Dala Project, Lunda Sul, Angola

August 23, 2016

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VANCOUVER, BRITISH COLUMBIA–(Marketwired – Aug. 23, 2016) – Gem International Resources Inc. (the “Company”) (TSX VENTURE:GI) reports that its operating partner Global Gems International (“GGI”) has started the initial work program to begin evaluation and production of diamonds from high priority areas highlighted as favorable for hosting alluvial diamond deposits on the 3,000 sq. km. Dala alluvial mining license in Lunda Sul Province, Angola.

Dala is located in the heart of a highly prospective and productive diamond region of Angola, only 25 kilometres south of the world-class Catoca diamond mine, the world’s fourth largest, and immediately adjacent to the regional centre of Saurimo. Dala is an early stage project with excellent potential for the discovery of both alluvial and kimberlite deposits. Two of the area’s most productive alluvial diamond hosting rivers, Luachimo and Tchicapa flow northward through the license with over 100 km of combined drainage length, and there are numerous areas of currently active artisanal diamond production along these drainages and their tributaries.

Work Program

The Company and GGI have started the initial field and technical programs to prioritize startup areas for alluvial gravel testing. This includes establishment of a camp logistics base in Saurimo, as well as procurement of mining, diamond production and infrastructure equipment. Over 30 high priority areas have been identified where there are classic trap sites in active drainages and accumulations of river gravels preserved in old meanders and terraces. Observation of the extensive active and historical artisanal work areas by local garimpeiros at Dala indicate that extensive areas of Calonda Formation may be present. The Calonda Formation is a regional basal gravel and sheet wash unit in the Lunda Provinces that is often very diamondiferous and productive.

Data Acquisition

The Company is in the process of reviewing an extensive database of information for both alluvial and kimberlite exploration by a previous operator at Dala with the objective of acquiring this information to assist the current work. With data for over 900 alluvial sample sites and extensive information from kimberlite exploration this database will speed up the ability to prioritize initial work areas. It is known that at least 5 new kimberlite pipes were located at Dala and numerous other untested kimberlite targets are known to be present. The alluvial diamonds currently being mined there are likely to have sources in diamond bearing kimberlites on the Dala License. GGI staff is also reviewing and have access to, all known technical data for Dala held by Endiama the Angolan state diamond organization. It is known that historical alluvial sampling data from over 900 sites on the license are available, as well as information filed by a previous company for their kimberlite exploration program. This information will be invaluable in determining high priority area to begin the work program.

A diamond recovery plant is being sourced will be installed on site later this season. The smaller volume gravel pumping operations will utilize jig type diamond recovery equipment using an x-ray recovery system on the concentrates and all tailings will be passed over diamond grease tables as a final recovery procedure. Oversize waste will be stockpiled for later processing. It is known that diamonds of over 40 carats in weight have been recovered at Dala from the artisanal operations and the recovery procedures will be set up to maximize the ability of the system to recover larger stones . A rigorous diamond security system will be implemented for all stages of the diamond recovery operations.

A. Lee Barker P.Eng, P. Geol., a qualified person under National Instrument 43-101 has reviewed and approved the technical contents of this release.

On behalf of the Board of Gem International Resources Inc.

Per: “Denis Hayes”

CEO & Director

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Forward-Looking Statements

Information set forth in this news release involves forward-looking statements under applicable securities laws. The forward-looking statements contained herein include, but are not limited to, financings, equipment commissioning processes and other transactions being pursued, and all such forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although the Company believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct and, accordingly, undue reliance should not be put on such forward-looking statements. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein.

Category: General