Shefa Gems announced that the Quarries and Mines Branch of the Ministry of National Infrastructures of the State of Israel has awarded a Certificate of Discovery to the Company covering the projected gemstone mine development in the Kishon Mid Reach, Zones 1 and 2. The Certificate of Discovery, dated 17 March 2020, is the culmination of the Company's successful exploration activities and market analysis; and signals the beginning of the process towards future commercial mining. 20 years of exploration in the Kishon valley have brought the Company one step closer in the establishing Israel's first and only future precious gemstone mine, originally identified and progressed by the founder of the company, the late and much missed Abraham (Avi) Taub. The inclusion of Zone 2 together with Zone 1 in the award represents a significant achievement, increasing the expected mine life to between 8 to 11 years, subject to final mine throughput, enabling the Company to plan the alluvial mining project in a fully integrated manner from its inception. The award of the Certificate of Discovery (No. 869D12) under Article 39 of the Mines Ordinance enables and requires Shefa Gems to proceed with mine planning procedures with the Israel Lands Authority and other relevant planning institutions and to prepare a mining plan that demonstrates its commercial feasibility. An initial application for mining rights must be filed by the Company within one year of grant of the Certificate of Discovery. In making its award, the Inspector of Mines recognised the significance of Shefa Gem's unique Carmel SapphireTM gemstone to the commercial feasibility of the project. Referring to it as a titanium-rich mineral corundum, the Certificate of Discovery points to the principal economic value of the Gem Suite as being contributed by the Carmel SapphireTM. In parallel with the mine plan, the Company intends to expand its trial marketing, in execution of its established "mine-to-market" strategy. As explained more fully in announcement of 13 February 2020, Carmel SapphireTM contains inclusions of Carmeltazite, which was chosen to be Mineral of the Year 2018 by the International Mineralogical Association (IMA). The Carmel SapphireTM is one of the Target Mineral Assemblage of gemstones ("TMA Suite") in both primary volcanic sources and in secondary alluvial deposits lying within the Kishon catchment, on Mount Carmel and in the Zevulun and Yizre'el valleys and their margins. The TMA suite comprises Diamond (rare), natural moissanite, sapphire, ruby, Carmel Sapphire™, garnet, hibonite, spinel, ilmenite and heavy minerals including zircon and rutile.