Mr. Dev Shetty reports

FURA ANNOUNCES UPDATE ON AUSTRALIAN SAPPHIRE MINING PROJECT ACQUISITION

Fura Gems Inc. has provided an update in respect of the option agreement that was entered into by the company and Richland Resources Ltd. on June 26, 2019, pursuant to which the company is entitled to an option to acquire 100-per-cent interests in two mining permits (EPM 25973 and EPM 25978) and three mining licences (ML 70419, ML 70447 and ML 70451) for a sapphire mining project in Queensland, Australia. The acquisition is described in more detail in the company's press release dated June 27, 2019.

Amended option agreement

On July 19, 2019, to facilitate completion of the acquisition, Fura and Richland entered into an amending agreement to the option agreement, whereby the parties agreed to (i) reduce the option fee payable by Fura to Richland from $150,000 to $25,000, and (ii) increase the cash consideration payable on completion of the acquisition by $125,000, plus an amount equal to the interest accrued to completion on a $125,000 loan made to Richland by a third party, such amount not to exceed $3,000.

Exercise of option

On July 19, 2019, Fura issued an exercise notice in accordance with the terms of the amended option agreement, which was accepted by Richland and includes an acknowledgment by Richland that the option fee is deemed to include payment of the $100 exercise price.

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 are located in Toronto, Canada, and its administrative headquarters are located in the Gold Tower, Dubai.

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