B"H

30 September 2021

Shefa Gems Ltd.

("Shefa Gems" or the "Company")

Interim Financial Results for the 6 months ended June 30, 2021 ("IFR")

Shefa Gems (LSE: SEFA), is pleased to announce its results for the six months ended June 30, 2021. These reports were prepared considering the reorganization of the assets that the Company is currently implementing, following the approval of the combined transaction as approved by the special general meeting of the Company's shareholders (the "Combined Transaction"; "SGM") held on August 9, 2021 (and reported on August 10, 2021).

Corporate and Financial - Highlights

·    As of March 1, 2021, all the Company's mining activity was transferred to its fully owned Subsidiary - Shefa in Israel (G.M.) Ltd. (the "Subsidiary"). As of that date, the subsidiary is solely responsible for covering the expenses related to the mining activity (See Note 3A to the IFR). The Subsidiary received loans from 2 of Shefa's old shareholders, in the amount of approximately £ 983,000 for the benefit of continued financing and promotion of mining activities.

·    The Company financed its limited operations (excluding the mining business) through the realization of shares of Nala Digital it owned in the amount of approximately £ 266,000.

Post Period - In accordance with the provisions of the Combined Transaction, and following the approval of the SGM on August 9, 2021, the Company performed the following actions:

·    Mr. Alon Shany (Executive Chairman), Mr. Jacques Abitbol (Non-Executive Director), Ms. Eva Abittan (Non-Executive Director) have been appointed to the Board. Michael Rosenberg, David Nachshon, Gershon Frenkel, Zvi Nemeth, James Campbell and Natan Drukman have stepped down from the Board.  Mr. Yossef Taub remains on the board as a Non-Executive Director, and Ms. Nathalie Schwarz remains on the board as an independent Non-Executive Director.

·    Ms. Irit Ben Ami, who was appointed to serve as an Independent Director on the Company's Board (subject to shareholders approval), has a BA in Economy and Accounting from the Haifa University in Israeli and an LLM in Law from the IDC Herzliya in Israel.  She is qualified under the Israeli Companies Law as an expert director and possesses financial and accounting expertise.  She serves as an external director in two Israeli publicly traded companies in the fields of clean energy and medical cannabis, Medivie Therapeutic Ltd. and Together Pharma Ltd.  Until 2019, she also served as a director in Nano Dimension, a public company in the field of 3D printing.

·    Mr. Avi Levin, who was appointed to serve as an Independent Director on the Company's Board (subject to shareholders approval), has a BA in Economy and Accounting from the Ben Gurion University in Israeli and an MBA in Finance and Global Business from the New York University. He holds a chartered accountant license in Israel and a CPA in the U.S.  In addition to his appointment in the Company, he also serves as a CFO in Blackswan Technologies, a company in the field of cloud computing and artificial intelligence.  He is qualified under the Israeli Companies Law as an expert director and possesses financial and accounting expertise.

·    On September 6, 2021, the Company announced the conclusion of the equity subscription of 2,123,543,065 new ordinary shares of the Company at a price of USD 0.0005 per share raising a total of USD 1,050,000 ("Investment Funds") by new investors. The Company is aware of its obligation to publish a prospectus in connection with the foregoing equity subscription and is progressing it.

·    Out of the Investment Funds, USD 700,000 was used to pay liabilities related to the exploration assets. As a result, the Company has no further liabilities in relation to the mining activity (except for share-related liabilities). The balance of USD 350,000 will be used by the Company to finance the limited activity (excluding mining activity) until the implementation of the acquisition strategy in the web technology and software space (See Note 4H to the IFR).

·    The Company intends shortly to apply to the Israeli Registrar of Companies to approve to change of its name to "Alef Bet Advanced Technologies (2021)". The purpose of the name change is to more closely reflect the Company's strategy to make an acquisition in the web technology and software space. Subject to the approval of the Israeli Registrar of Companies to the change of name, the Company will make application to the London Stock Exchange to change its TDIM symbol from "SEFA" to "ALEF". Shareholders should note that their shareholdings will be unaffected by the change of name, although new share certificates will be issued to Shareholders following the name change.  The Company will notify the market of when the change of name and TIDM will be effective. 

·    In accordance with Israeli law, the Company has appointed attorney Natan Drukman as a trustee to hold the shares of the Subsidiary (the owner of the mining business) - and will be progressing with the disposal of the mining business by way of a dividend in specie to existing shareholders.  This is expected to be completed subject to the schedule to be determined by the court in Israel. On the basis of the attached IFR and the independent valuation of the transferred assets (for tax purposes) - an application for approval of the dividend in specie process will be submitted in the coming days. The trustee will update on the schedule and progress of the process and any matter concerning the disposal of the mining business - through the RNS reporting system.

Alon Shany, Executive Chairman of Shefa Gems, said:

"We are excited about the new direction the Company is taking and are pleased to welcome new shareholders to the Company.

We believe that this Company as a cash shell is exceptional for itself, in terms that allow a common ground between Israel and London - so we expect interesting opportunities in the future, in the web technology and software space, and aim for acquiring a company with a strong potential for profitability and benefit for the Company and its shareholders. We are working hard to find the best company for the future of the Company as we see it.

We hope and know that all of new and existing shareholders will be excited as we are."

-Ends -

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B"H

SHEFA GEMS LTD.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021

(UNAUDITED)

SHEFA GEMS LTD.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021

(Unaudited)

INDEX

Jerusalem, September 2, 2021

REVIEW REPORT OF INDEPENDENT AUDITORS

To the Shareholders of

SHEFA GEMS LTD.

Introduction

We have reviewed the accompanying condensed interim consolidated financial statements of SHEFA GEMS LTD. (hereinafter - "the Company") comprising the condensed interim consolidated statements of financial position as of June 30, 2021 and the related condensed interim consolidated statements of comprehensive loss, consolidated changes in shareholders' equity and consolidated cash flows for the six month period then ended. The board of directors and management are responsible for the preparation and presentation of these condensed interim consolidated financial statements in accordance with IAS 34, "Interim Financial Reporting". Our responsibility is to express a conclusion on these interim consolidated financial statements based on our review.

Scope of the Review

We conducted our review in accordance with the Israeli Review Standard (Israel) 2410, "Review of Financial Information for Interim Periods Performed by the Independent Auditor of the Entity" of the Association of Certified Public Accountants in Israel. A review of financial information for interim periods consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Auditing Standards accepted in Israel. Consequently, it does not enable us to obtain assurance that we would become aware of all the significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for the Qualified Conclusion

We were not satisfied in regard to the NIS 29 million amount of impairment of the exploration assets that is included in other expenses in the Company statements of comprehensive loss, and in accordance in regard to the amount that is shown for the assets held for distribution to shareholders. See Note 3 in regard to uncertainty in the value estimation of the exploration assets.

SHEFA GEMS LTD.

(In NIS in thousands)