Mr. Dev Shetty reports

PROMISING BULK SAMPLING RESULTS AT THE COSCUEZ EMERALD MINE

Fura Gems Inc. has provided updates and results of its bulk sampling program at the Coscuez emerald project in Boyaca, Colombia.

Key highlights:

• A bulk sampling program at Coscuez was initiated in March, 2018, with an aim to mine from the mineralized body in different levels and workings.
• In phase 1 of the sampling, 9,737 tonnes of material were mined.
• A total of 6,396 tonnes of mineralized body were identified, with a total of 1,800 tonnes of high-priority mineralized body washed, recovering 12,845 carats of emeralds at 7.14 carats per tonne.
• The balance of the low- to medium-quality emeralds are expected to be washed before Dec. 31, 2018, and the company expects the postwash blended average to be lower than the 7.14 carats per tonne recovered to date.
• Out of the 12,845 carats of emeralds recovered by the company, there is a good mix of high-, medium- and lower-quality emeralds, which are needed to support the wider demand for Colombian emeralds.
• In May, 2018, the company announced the discovery of an exceptional high-quality 25.97-carat emerald, the ARE emerald.
• Phase 2 of the bulk sampling program has been initiated, with a larger size stope, to further define the mineralization.
• The company has started working on the pilot wash plant design to support the bulk sampling process, and completion is expected before the end of the year.
• The maiden National Instrument 43-101 mineral resource estimate is on track to be released in fourth quarter 2018.
• The company has appointed Mining One Australia to carry out a scoping study to validate the mine plan assumptions and trade-off studies between different mining methods to construct a large underground mine, due to be released in fourth quarter 2018.
• The 2,500 metres of diamond core drilling program to delineate the mineralized zone was initiated in June, 2018, and is expected to be completed in fourth quarter 2018.

Dev Shetty, president and chief executive officer of Fura, commented: "We are pleased to announce the recent results of our bulk sampling program at the Coscuez emerald mine, through which we have significantly progressed our understanding of the emerald mineralization at the mine.

"Within a short period of six months since the launch of the bulk sampling program, we have gained a comprehensive understanding of the geology [and] possible mining methods, and we have developed a culture of workplace safety. We are now continuing with the next phase of our bulk sampling program with an even greater confidence on our vision of a long-term mine plan at Coscuez.

"Through our phase 1 program, we have found a wide range of quality in our emerald production, including the 25.97-carat ARE emerald. This further proves the potential of the mine, and we look forward to confirming this with our maiden NI 43-101 mineral resource estimate at the end of the year."

Bulk sampling program -- phase 1 completion

Fura owns a 76-per-cent beneficial interest in the Coscuez emerald mine, which covers a total area of 46 hectares. The Coscuez deposit is in the Muzo formation, which is the host rock for emerald mineralization. The Muzo formation is underlain by the Furatena formation and overlain by the Capotes formation. Within it, the carbonaceous and calcareous shales have the affinity to host emeralds in association with any combination of calcite, pyrite, breccia, kaolin and alteration zones.

In phase 1 of the bulk sampling program, a short-term business plan was implemented with smaller-sized stopes of two by two metres within the mineralized zone. The mining was focused on the available adit on the La Paz tunnel but with improved safety conditions. A total of approximately 10,000 tonnes of material was mined between the various levels at the La Paz tunnel (900 metres) and down to 770-metre levels. The picture shows the overall surface profile and the shape of the potential emerald-bearing horizon within the Muzo formation, as currently understood from available information. Various known tunnels and workings, as well as those referred to in the document, have been identified in the model.

The shape of the structurally controlled mineralized zone currently appears to be a near-vertical carrot-shaped body plunging toward the south. It is interesting to note that the mineralized body is open at depth.

The completion of phase 1 of the bulk sampling program has assisted in the validation of various assumptions for the development of the next phase and large-scale mining plan.

A total of 9,737 tonnes of material has been mined, out of which 6,396 tonnes of mineralized body have been identified. Out of 6,396 tonnes of mineralized body, a total of 1,800 tonnes of high-priority mineralized body has been washed, recovering 12,845 carats of emeralds, equating to a grade of 7.14 carats per tonne.

The 12,845 carats are composed of a promising mix of high-, medium- and low-quality emeralds, which Fura expects will lead to a wider distribution of its product.

Diamond core drilling program

Detailed geological and topographic surveys were initiated in January, 2018, to allow Fura to collect data to scientifically estimate the possible extent of the mineralized zones. Exploration activities have included satellite imagery studies, surface and subsurface geological mapping, 3-D modelling of the mapped information, and geochemical sampling of the surface and underground face samples.

Moreover, the company has been implementing underground diamond core drilling programs in Coscuez, activities that have been implemented for the first time by a publicly listed company in Colombia. The programs will continue to provide vital input on geological and structural controls and subsurface continuity of the orebody.

To establish the subsurface continuity of the emerald-bearing host rock beyond the known levels, diamond core drilling was launched in June, 2018. Fura aims to drill between 10 and 12 holes during 2018, covering about 2,500 metres. The core drilling is planned to drill the orebody from inside to outside, thus optimizing both drilling metrage and cost, avoiding unanticipated encounters of old workings above these levels.

To date, four holes have been completed, and the fifth hole is in progress, accounting for 861 metres of drilling. These were drilled from one pad located on the eastern side of the mineralized zone at an 88-metre depth from the main La Paz tunnel. After this, a second pad has been identified, and it is on the western side of the mineralized zone at the same elevation of 88 metres. A third drill pad at 125 m is also under preparation to complete the program by the end of December, 2018. The results to date indicate subsurface continuity of the mineralized Muzo formation for another 200 metres below the lowest tunnel. The mineralized body is believed to remain open at depth.

Next phase of bulk sampling

The company will look to complete the balance of 20,000 tonnes of the bulk sampling program by March, 2019. For the next phase, larger stope sizes with dimensions of four by five metres will be utilized to better understand the behaviour of the calcite vein within the mineralized zone and the dilution impact on the large stop sizes.

The drilling data, along with bulk sampling results, will contribute to a maiden National Instrument 43-101 mineral resource estimate expected to be published in the fourth quarter of 2018.

Appointment of director, investor relations

Bradley Scharfe has been appointed as director of investor relations and will be based out of Toronto and Vancouver in Canada. Mr. Scharfe will help initiate and maintain contact with the financial community, shareholders, investors and other stakeholders for increasing awareness of the company and its multiple mining operations. Mr. Scharfe comes with over 20 years experience in capital markets in Canada.

Pursuant to the consulting agreement between the company and Mr. Scharfe, Mr. Scharfe will offer the company strategic investor relations services for a monthly fee of $4,000 for an initial term of 12 months.

About the Coscuez emerald mine

The Coscuez emerald mine covers an area of 46 hectares and is located in the municipality of San Pablo de Borbur, west province of the department of Boyaca. The Coscuez emerald mine is historically one of the world's most significant emerald mines, having been in operation for over 400 years, and has produced some of Colombia's finest emeralds. Its worldwide recognition stems from the production of renowned pieces like the 1,759-carat Guinness emerald, believed to be one of the largest gem-quality crystal or the pieces found in the Spanish crown, as well as collections from India and the Ottoman Empire, which continue to be discovered in diverse archeological findings such as the San Jose galleon.

Despite its history, the Coscuez emerald mine has been historically mined on small-scale or artisanal basis, with minimal focus on technology and geological studies of emerald mineralization. The previous operations at the Coscuez emerald mine functioned with small-scale underground methods, such as blasting of the mineralization zone within the carbonaceous shale, chiselling of the calcite veins within the carbonaceous shale and focusing on the manual extraction of emeralds present on the calcite veins.

About Fura Gems Inc.

Fura Gems is a gemstone mining and marketing company which is engaged in the mining, exploration and acquisition of gemstone licences. Fura's headquarters is located in Toronto, Canada, and its administrative headquarters is located in the Almas Tower, Dubai.

Fura is engaged in the exploration of resource properties in Colombia and owns a 76-per-cent interest in the Coscuez emerald mine in Boyaca, Colombia. Fura is involved in the exploration and mining of rubies in Mozambique through its 80-per-cent effective interest in the four ruby licences (4392, 3868, 3869 and 6811) that it acquired in November, 2017.

Qualified person

Ricardo A. Valls, MSc, PGeo, of Valls Geoconsultant, Toronto, Ont., a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information disclosed in this news release and has approved its dissemination. Mr. Valls is considered independent of Fura.

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