Mr. Dev Shetty reports

FURA COMPLETES ACQUISITION OF AUSTRALIAN SAPPHIRE MINING PROJECT

Fura Gems Inc., on Dec. 31, 2019, successfully completed its previously announced acquisition of 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 below, and in the company's press releases dated June 27, 2019, July 22, 2019, and Dec. 16, 2019.

Dev Shetty, president and chief executive officer of Fura, commented, "We are very pleased to complete the acquisition, which results in Fura becoming the only public gemstone mining and marketing company in the world to hold emerald, ruby and sapphire mining assets (being all three coloured gemstones)."

Pursuant to the option agreement that was entered into by the company and Richland Resources Ltd. (vendor) on June 26, 2019, as amended, in exchange for the vendor (i) transferring all of the issued shares of Richland's wholly owned subsidiary, Richland Corporate Ltd., and (ii) assigning all of the vendor's loans to Richland Corporate to Fura, Fura paid $1.25-million (U.S.) in cash to the vendor. Fura previously paid the vendor $25,000 as an option fee payment.

The acquisition was an arm's-length transaction for the purposes of the policies of the TSX Venture Exchange (TSX-V). Fura did not pay any finders' fees in connection with the acquisition.

Fura is currently in the process of completing the purchase and sale of interests in three additional ruby prospecting licences/concessions in Mozambique as follows: (i) 75 per cent of the issued shares of Montepuez Minerals Pty. Ltd., which owns a 70-per-cent interest in mining licence 5030L and an 80-per-cent interest in mining concession 8921C; and (ii) a right to earn a 65-per-cent interest in mining concession 8955C under a joint venture agreement. Please see the company's press release dated Nov. 29, 2018, for further details regarding the terms of this proposed acquisition, which remains subject to TSX-V approval.

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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