Fura Gems Inc. announced its maiden operations update, including drilling results, for its four ruby licenses 4392, 3868, 3869 and 6811 (collectively, the "Ruby Assets" or "Licences") in Mozambique. Fura prepared this operations update to provide investors with additional information on the exploration planning, drilling, sampling, washing, sorting and the geological studies carried out by the Company from October 4, 2017 to the present date. The auger (non-core) and core drilling program was commenced in October 2017 to delineate the thickness of the gravel bed ("secondary ruby mineralisation") and ruby bearing amphibolite rock ("primary ruby mineralisation"). The first phase of the drilling program consists of 5,000 metres (400m x 200m grid), of which 2,350 metres of non-core drilling has been completed to date. A total of 399 non-core bore holes have been drilled and 627 wash samples have been completed. Out of the 399 bore holes, 49 positive bore holes of gravel bed ("secondary ruby mineralisation") have been intersected. Out of 627 wash samples (including gravels), a total of 316 samples (50%) have been processed and sorted. The wash results have generated 926.1 carats of Ruby, Corundum and Garnets. The drilling program is expected to be completed on or before June 30, 2018 and the bulk mining is expected to commence in the second half of 2018. Ruby mineralisation at Montepuez occurs in two settings, namely the underlying primary mineralisation, which is associated with amphibolites, and the overlying secondary mineralisation, hosted by the gravel bed above the basement. The current focus for exploration and production is both the primary and secondary mineralisation, which historically has been the source of both high and low-quality gemstones. Secondary rubies, which are confined to the gravel bed horizon above basement, are typically more transparent, less included and often of a darker red colour than primary rubies in the in-situ amphibolite. Primary rubies are liberated by chemical and physical weathering of the host rock. These are then carried by one or more major fluvial cycle and concentrated in the gravel bed due to its high specific gravity. Alluvial reworking resulted in the fragmentation of the more heavily included and fractured material into particle sized grains, concentrating the more durable clean material into the gravel bed deposits. As a result, the average gem quality of the secondary rubies is typically much higher than those contained within the primary amphibolite. Drilling Update: In July 2017, a systematic exploration method was employed over the whole area comprising the Licences to get a better understanding of its primary and secondary ruby occurrences/potential. This work included satellite image interpretation, lineament analysis, detailed lithological and structural mapping, and soil geochemical sampling. Based on the above studies and geological/geophysical and geomorphological interpretation, a series of potential exploration blocks (twenty-one) were identified and an Auger drilling program was initiated in the area comprising the Licenses in a large grid pattern. Auger drilling is used for getting data relating to the depth and thickness of the gravel bed, the thickness of the over burden and the basement geology. Following the auger drilling, core drilling will be undertaken in the areas where amphibolites rocks with primary mineralisation have been encountered. Auger drilling data will also help in identifying the areas for mining by bulk sampling which will determine the actual potential of the area. Geochemical Surveys: Geochemical sampling of boreholes was completed for all the drill holes completed to date. Each meter interval samples were stored in a chip tray/zip-lock sample bag. A total of 2,376 samples were collected for analysis by XRF/ICP MS. The results of such analysis is pending. Sample Processing: Gravel and possible primary mineralised samples of approximate weight 35-50 Kg were fed to a scrubber cum classifier with three different size fractions, 1-5mm, 5mm-10mm and more than 10mm. The 1-5mm and 5-10mm samples are being processed by the Plietz Jig and the 5-10mm samples are being hand sorted at site. The scrubber cum classifier's has a round pan, approximately 500mm across and 50mm deep, with a very tight screen bottom which is shaken up and down (jigged) below the water level of its bin. Gravel is fed on to the pan at a controlled rate and this jigging motion gyrates the gravel in the water causing the material with the heavier specific gravity to collect at the bottom of the pan and the lighter material to float over the edge. After feeding the machine with a prescribed amount of gravel, the machine is stopped, the pan lifted out carefully, overturned onto a sorting table and lifted away to expose the collected layer of gravel. Due to the unique jigging action, all the heavy specific gravity material, which includes rubies and garnets are on top of this layer. Fura has also procured Bushman Jig from South Africa. It is commissioned at site and expedites the washing process. Gemmological Studies: Fura has a team of specialist gemmologists for immediate study of sample grains obtained from wash samples and field samples. Fura has also established a small-scale field gemmological laboratory in its Montepuez office for immediate reporting of the quality of gemstones identified.