Mr. Dev Shetty reports

FURA ANNOUNCES MAIDEN MINERAL RESOURCE ESTIMATE FOR THE COSCUEZ EMERALD MINE, A FIRST FOR THE COLOMBIAN EMERALD SECTOR

Fura Gems Inc. has released a maiden mineral resource estimate for its 76-per-cent-owned Coscuez emerald mine in Colombia and the first mineral resource estimate in the Colombian emerald sector.

The maiden mineral resource estimate, prepared and classified by independent group Watts, Griffis and McOuat Ltd. (WGM), contains an estimated three million tonnes of inferred mineral resources at a grade of 2.0 carats per tonne, for a total of six million carats with a conservative price of $200 (U.S.) per carat. Coscuez emerald mine is located in the heart of the most important emerald mining region of Colombia and was acquired by Fura in January, 2018.

The mineral resource estimate is reported in accordance with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definition standards for mineral resources and mineral reserves and guidelines and was prepared in accordance with National Instrument 43-101.

Highlights:

• Maiden inferred mineral resource estimate at Coscuez mine is in accordance with the NI 43-101 and the first of its kind at an emerald deposit in Colombia;
• Activities to deliver the mineral resource estimate included:
  • Mapping of more than 20 kilometres of existing underground tunnels;
  • Completion of more than 1,600 metres of core drilling;
  • Recovery of nearly 16,000 carats of emeralds from bulk sampling activities;
• Inferred mineral resource estimate:
  • Three million tonnes of inferred mineral resources;
  • Grade of 2.0 carats per tonne;
  • Six million carats contained;
  • Estimated life of mine for Coscuez of 30 years;
  • Conservative case price of $200 (U.S.) carat;
  • Estimate prepared and classified by WGM, an independent group of consulting geologists and engineers based in Toronto, Canada.

Dev Shetty, president and chief executive officer of Fura, commented: "We have today published our maiden mineral resource estimate at Coscuez, which is a first for the Colombian emerald sector. Pleasingly, this maiden mineral resource estimate comes less than a year since acquiring this mine. These results highlight the opportunity we have here, at a mine that has previously produced some of the finest emeralds in the world.

"Fura's Colombian team have worked hard during the year to complete this resource estimate, including the mapping of more than 20 kilometres of our existing underground mine workings. Our findings have been confirmed by WGM, one of the longest-running mining consultant groups in Canada. In addition, WGM has estimated a price of $200 (U.S.) per carat, which is significantly higher than the average prices achieved by Zambia's emerald producers.

"This maiden mineral resource estimate is also the result of our ongoing bulk sampling activities, where we have recovered nearly 16,000 carats of emeralds. Importantly, this continues to give us additional confidence to the geological understanding, emerald distribution and the potential value of the stones we have recovered.

"This historic mine's maiden mineral resource estimate is a significant milestone for the company. We look forward to upgrading the resource estimate to higher category in the upcoming year. I would like to thank all of the Fura employees for their constant hard work, the community, local partners and the government of Colombia for their consistent support."

Inferred emerald mineral resource estimate

The maiden mineral resource estimate (see attached table) for the Coscuez emerald mine was prepared and classified by WGM, an independent group of consulting geologists and engineers based in Toronto, Canada. WGM is one of the longest-running mining consultant groups in Canada and has used this experience to geologically model and estimate the initial emerald mineral resource. To complete this mineral resource estimate, WGM has reviewed Fura's geological mapping, 3-D modelling and drill log files, as well as having its qualified professionals make three site visits to the Coscuez mine site and Fura's offices in downtown Bogota.

The mineral resources estimate is reported in accordance with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definition standards for mineral resources and mineral reserves and guidelines and is prepared in accordance with NI 43-101. The mineral resource estimate is effective as of Nov. 30, 2018, and the technical report summarizing the results will be filed under the company's profile on SEDAR and Fura's website within 45 days of this news release. For further information with respect to the key assumptions, parameters, risks, the mineral resource estimate, data verification, quality assurance/quality control and other technical information with respect to the Coscuez emerald mine, please refer to the technical report, when available.

The Coscuez emerald mine is estimated to contain three million tonnes and six million carats.

               ESTIMATE OF INFERRED MINERAL RESOURCE 
                  AT COSCUEZ AS AT NOV. 30, 2018
                 
Grade (ct/t)     Value per carat ($/ct)     Tonnes (t)       Carats 
  
2.0                               $200      3 million     6 million

Notes:
(1) All currency in is in U.S. dollars.
(2) Following a review of emeralds produced during Fura's bulk 
sampling program, a conservative $200 (U.S.) per carat average 
value was used.  
(3) A broad range of potential grades from 0.5 carat per tonne 
up to 4.5 carats per tonne are plausible; 2.0 carats per tonne 
is the most suitable for the inferred mineral resource estimate.  
(4) Fura's current mine plan is targeting 105,000 tonnes per 
year by underground methods which may be improved as the 
understanding of the rock mechanics and vein/breccia 
distribution increases.  
(5) Estimated 105,000 tonnes per year over 30 years (three million 
tonnes total) in the mineral resource estimate, with an inference 
that such mining can be done for roughly $50 (U.S.) per tonne.
(6) The potentially mineralized Muzo formation is more than 
sufficient in tonnage to support Fura's current mine plan.
(7) All reported mineral resources are limited to fall within 
the property boundaries of the project area.
(8) Inferred mineral resources have a large degree of uncertainty 
as to their existence and whether they can be mined economically. 
It cannot be assumed that all or any part of the inferred mineral 
resource will be upgraded to a higher confidence category.
(9) There is both considerable downside and upside in this maiden 
mineral resource estimate. On the downside, it is plausible that 
further bulk sampling will not support grades as high as 
considered in the mineral resource estimate. As well, limitations 
to the site, the situation with artisanal miners and 
government regulations may impact the resource estimate negatively.
On the upside, the size of the Muzo formation may prove sufficient 
to support a significantly larger mining operation, and high 
grades may continue to be encountered at a greater frequency than 
assumed in this estimate. As well, the mining cost estimate may 
decrease as methods are refined.
(10) There are no other known environmental, permitting, legal, 
title, taxation, socio-economic, political, marketing or other 
relevant factors that could materially affect the estimate 
of mineral resources. 

The attached table is a summary of the potential grades (from 0.5 carat to 4.5 carats per tonne) against per-carat values ($140 (U.S.) per carat, $200 (U.S.) per carat and $260 (U.S.) per carat) and indicates nearly all cases exceed likely mining costs by a factor of at least two times. Only the lowest potential grade and value case is less than two times the expected mining cost of roughly $50 (U.S.) per tonne.

 
                EXPLORATION TARGET -- RANGE OF 
            POTENTIAL GRADES AND PER-CARAT VALUES
 
Range of potential       $140     $200      $260      Per carat
grades

0.5 ct/tonne              $70     $100      $130      Per tonne
1.0 ct/tonne             $140     $200      $260      Per tonne
1.5 ct/tonne             $210     $300      $390      Per tonne
2.0 ct/tonne             $280     $400      $520      Per tonne
2.5 ct/tonne             $350     $500      $650      Per tonne
3.0 ct/tonne             $420     $600      $780      Per tonne
3.5 ct/tonne             $490     $700      $910      Per tonne
4.0 ct/tonne             $560     $800    $1,040      Per tonne
4.5 ct/tonne             $630     $900    $1,170      Per tonne

From the broad range of potential grade and per-carat values, it was determined that 2.0 carats per tonne and $200 (U.S.) per carat are the most reasonable and conservative case on which to estimate an initial mineral resource estimate at Coscuez.

Fura's continuing bulk sampling program is providing additional confidence to the geological understanding, emerald distribution and potential value of the stones, and, as additional bulking sampling and drilling information is made available, WGM is of the opinion that the categorization of the current mineral resources can be upgraded.

The upside at Coscuez may be viewed as an exploration target of considerable potential (a "target for further exploration" in CIM usage). The entire body of the Muzo formation potentially encloses 30 million cubic metres of rock, as estimated by Fura from its 3-D modelling, which is based on tunnel and drill hole geology.

Exploration target

Using a density of 2.4 implies an overall potential of roughly 70 million tonnes. Applying a range of plausible and conservative grades between 0.5 carat and two carats per tonne points toward an exploration target potential for the entire Muzo formation of between 35 million and 140 million total contained carats. Using arbitrary reduction factors of 50 per cent and 75 per cent to conservatively account for mining recovery limits, this Coscuez exploration target is estimated to host between approximately 10 million to 70 million carats. The potential quantity and grade are conceptual in nature as there has not been sufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

  
            COSCUEZ EXPLORATION TARGET POTENTIAL, SUBJECT TO FURTHER 
               RESULTS FROM FURA'S CONTINUING EXPLORATION PROGRAM

Range of          Potential carats         Potential carats        Potential carats 
potential           at 75% tonnage           at 50% tonnage        from exploration
grades            reduction factor         reduction factor         target of total 
               (~20 million tonnes)      (35 million tonnes)      70 million tonnes
 

0.5 ct/tonne             9,000,000               17,500,000              35,000,000
1.0 ct/tonne            18,000,000               35,000,000              70,000,000
1.5 ct/tonne            27,000,000               52,500,000             105,000,000
2.0 ct/tonne            36,000,000               70,000,000             140,000,000

Coscuez emerald mine

Fura acquired the Coscuez mine in January, 2018, and has moved steadily forward to upgrade the project to modern standards of geological understanding, safety and environmental controls. Fura's geological investigations in 2018 have included mapping more than 20 kilometres of underground tunnels, completing 1,600 metres of core drilling, and recovering nearly 16,000 carats of emeralds from underground bulk samples.

The Coscuez mine is a historically important producer of valuable emeralds. Fura is in the early stages of testing but has already produced results sufficient for WGM to estimate an inferred resource of emeralds occurring at Coscuez. The bulk sample has produced 15,864 carats (plus emeralds contained in rocks) from 2,242 tonnes processed through October, mostly from the Itoco-2 area following a calcite breccia vein zone.

Qualified person

Dr. Harrison Cookenboo, PhD, PGeo, is a qualified person as defined by NI 43-101 and is independent of Fura. Dr. Cookenboo is responsible for reviewing and approving this mineral resource estimate. He has verified, reviewed and approved the technical data contained in this news release.

About Fura Gems Inc.

Fura Gems is a gemstone mining and marketing company that is engaged in the mining, exploration and acquisition of gemstone licences.

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 also involved in the exploration and mining of rubies in Mozambique through its 80-per-cent effective interest in four ruby mining licences (4392L, 3868L, 3869L and 6811L).

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