Gem International Resources Inc. | A Junior Diamond Exploration Company

Gem International Resources Inc. has closed a private placement for the sale of 2.85 million units at 15 cents per unit for a total of $427,500, where each unit consists of one common share of the company and one share purchase warrant having a five-year term for the purchase of one further common share of the company at the exercise price of 32 cents per share. All of the securities issued under the private placement are subject to a four-month hold period expiring October 19, 2010.

The Company also announces that it received acceptance from the TSX Venture Exchange with respect to the option agreement (the "Agreement") between the Company and Musadik Mohamed Ally and Najua Kassira (the "Optionors"), under which the Company has an option to acquire a 100% interest in 109 Primary Mining Licences within the Shinyanga region of Northern Tanzania. Consideration for the option is a cash payment of $300,000, an issue of 1,000,000 common shares of the Company and the spending of $1,500,000 in exploration expenditures over a three-year period. The Optionors retains a 3 per cent net smelter return royalty, 1 percent of which may be purchased by the Company for $5,000,000.

The Company has closed the transaction, paid $300,000 and issued 1,000,000 common shares to the Optionors. The Company also issued 221,341 common shares as a finder's fee. All common shares issued pursuant to this transaction are subject to a hold period expiring October 19, 2010.

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. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.

All statements, trend analysis and other information contained in this press release relative to markets about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements even if circumstances or management’s estimates or opinions should change. Investors should not place undue reliance on forward-looking statements.

Consolidated Global Diamond Corp. seeks safe harbor.

News Releases

News Releases

Gem International Closes $427,500 Private Placement