Indaba 2008

Discover a leading African diamond producer

Important Notice

These Presentation Materials do not constitute or form part of any invitation, offer for sale or subscription orany solicitation for any offer to buy or subscribe for any securities in the Company nor shall they or any partof them form the basis of or be relied upon in any manner or for any purpose whatsoever.

These Presentation Materials must not be used or relied upon for the purpose of making any investmentdecision or engaging in an investment activity and any decision in connection with a purchase of shares in theCompany must be made solely on the basis of the publicly available information. Accordingly, neither theCompany nor its directors makes any representation or warranty in respect of the contents of thePresentation Materials.

The information contained in the Presentation Materials is subject to amendment, revision and updating inany way without notice or liability to any party. The presentation materials contain forward-lookingstatements which involve risk and uncertainties and actual results and developments may differ materiallyfrom those expressed or implied by these statements depending on a variety of factors. No representation orwarranty express or implied is made as to the fairness accuracy or completeness of the information orwarranty, express or implied, is made as to the fairness, accuracy or completeness of the information oropinions contained herein, which have not been independently verified.

The delivery of these Presentation Materials shall not at any time or in any circumstance create anyimplication that there has been no adverse change, or any event reasonably likely to involve any adversechange, in the condition (financial or otherwise) of the Company since the date of these Presentationchange, in the condition (financial or otherwise) of the Company since the date of these PresentationMaterials.

The Presentation Materials are confidential and being supplied to you for your own information and may notbe reproduced, further distributed, passed on, or the contents otherwise divulged, directly or indirectly, to anyother person (except the recipient’s professional advisers) or published, in whole or in part, for any purposewhatsoever. The Presentation Materials may not be used for the purpose of an offer or solicitation tosubscribe for securities by anyone in any jurisdiction.

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Discover Petra

A Unique & High Growth Pure Play Diamond Company

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A Window to the Diamond Market

Unprecedented diamond market conditions

Source: BMO Capital Markets

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Diamond Price Index vs Gold Price

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Source: BMO Capital Markets

Petra’s Strategy

• To acquire major producing assets with long life operations

• To realise the potential of our world class exploration assets

• To capitalise on the opportunities of today’s evolving diamondmarket

h fl d h b h h ld• To increase our cash flows and thereby our return to shareholders

• To maintain our superior growth profile

• To grow our stature as a world class diamond group

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Focus on Africa

* Acquisitions to complete 2008

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Production

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Production Overview

• Six diamond mines in South Africa:Koffiefontein Helam Sedibeng Star; Koffiefontein, Helam, Sedibeng, Star; Cullinan, Kimberley Underground (acquisitions to complete 2008)

• Recognised experts in underground kimberlite pipe and fissure • Recognised experts in underground kimberlite pipe and fissure mining (over 20 yrs experience) – proven track record

• Low cost producer – lean operations, most manufacturing / Low cost producer lean operations, most manufacturing / engineering / construction carried out internally

• After De Beers, largest producer of diamonds in South Africa (incl. , g p (Cullinan and Kimberley Underground)

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Cullinan – Transforming Petra

Major Diamond Producer

• 14.5 million carats recovered by De Beers between 1997 to 2006

• 1.15 million carats produced in t D 2007year to Dec 2007

Cullinan Assets

• Operating mine with reserves in p gplace to support >1m carat annual production for over 20 yrs

• C-Cut Resource (133m carats) –ld’ 2nd l t i di t d world’s 2nd largest indicated

resource by in-situ value

• Substantial tailings resource

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Source of Spectacular Diamonds

• Source of many of the world’s most famous diamonds

P d d 300 t i hi th 100 t • Produced over 300 stones weighing more than 100 carats; a quarter of all diamonds weighing more than 400 carats

• World’s only significant source of blue diamonds

• Market for high end and coloured diamonds very strong

The Centenary599 carats rough

The Golden Jubilee545 carats polished

The Premier Rose353 carats rough

The Cullinan 3,106 carats uncut

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Cullinan Acquisition

• Petra Diamonds Cullinan Consortium (PDCC) acquired Cullinan for ( ) qR1 billion; Petra share of consideration R325m

• PDCC comprises Petra Diamonds (37%), Al Rajhi Holdings (37%) and Thembinkosi Mining Investments (BEE partner 26%); Petra option to increase ownership to 60%

K l i hi d JV li i f di i• Key relationships and JVs limit funding requirements

• Acquisition expected to complete mid 2008

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Cullinan – Mining Layout

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Cullinan - Geology Overview

Black HKGre TKB

The largest diamondiferous kimberlite pipe thus far discovered in South Africa, at 32ha at surface

Piebald HKGrey TKBwith > 30%internal waste

Grey TKB

B TKB

surface

Brown TKB

HK – Hypabyssal KimberliteTKB – Tuffisitic Kimberlite Breccia

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Cullinan – Our Approach

• Produce over 1 million carats pa – elevating Petra into league of World’s significant diamond producers

• Refurbish plant and optimise configuration – emphasis on recovery of larger diamonds

• Re-evaluate mine plan – option to advance into BA West block

• Bring all tailings resources to account (dumps and higher grade optical)

D l C C t R t d h t d l t• Develop C-Cut Resource - staged approach to development

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Koffiefontein – High Value Production

• Acquisition completed & mine q pbrought on stream – July 2007; acquisition cost US$11.7m

• Renowned as a producer of high value diamonds

E ti l i f t t d • Exceptional infrastructure and high quality underground operation

• Petra proves itself as the operator of a major underground mineunderground mine

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Koffiefontein - Front Cave Mining

SUB LEVEL

FRONT CAVENORTH

SUB LEVEL CAVINGSOUTH

SUB LEVEL CAVING

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Koffiefontein Reveals its Hand

• Average value per carat of US$408 (almost double

• August: 60.25 carat diamond realises US$736 000US$408 (almost double

anticipated US$240) –exceptional for kimberlite mine

• Grade achieved of 8 2cpht vs

realises US$736,000

• September: 74.7 carat diamond realises US$1 012 636• Grade achieved of 8.2cpht vs

anticipated 7.4cpht; further improvements expected

• Regularly produces large and

US$1,012,636

• December: 51.88 carat diamond realises US$780,580

• Regularly produces large and exceptional stones

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Koffiefontein – The Future

Exceptional economics provide opportunity to:

• Significantly extend mine life by deepening existing mine workings below 490m

• Upgrade Petra resources - substantial diamond resource beneath 620m not yet included in group resource and reserves

P t ti l t i t i d f 1Mt t 1 5Mt • Potential to increase tonnages mined from 1Mt to 1.5Mt p.a.

• Process additional tailings resource of 70Mt – operations to begin by end 2008by end 2008

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Kimberley Underground

• Acquisition cost of US$11m

• Petra currently operating mine under care & maintenance pending deal completion

• New plant being constructed in-house

• Underground production to start 2008 – diamond recoveries in 2009

• Sales expected > 100,000 carats pa; US$160/carat; US$16m revenue pa

Comprises Wesselton, Du Toitspanand Bultfontein minesUS$16m revenue pa

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Expected production growth

1,100

700800900

1,000

-('

000)

400500600700

r an

num

0100200300

Car

ats

pe

0C

2005/6 2008/92006/7 2007/8 2009/2010Management Expectations

Rapidly rising production set against a backdrop of rising diamond prices

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Reserves & Resources

Total carat base increases 101% to 9.33 million carats attributable (May 2005: 4.64 million carats attributable)

May 2005 November 2007*+ 101%

1.77m carats2.86m carats

2.95m carats6.38m carats

In situ value of US$1 5 billion attributable (US$1 9 billion gross)

ReservesResources

ReservesResources

In-situ value of US$1.5 billion attributable (US$1.9 billion gross)

*excludes Cullinan and Kimberley Underground

Exploration & Development

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Exploration Overview

Exploration pipeline provides building blocks for future production

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Alto Cuilo - Angola

Alto Cuilo could host the world’s next major diamond mine

JV with BHP Billiton – for spend of US$60 million, BHPB earns a75% share of Petra/BHPB

31 Dec ’07: BHP Billiton funding of US$57.8m – one of thehighest spends in BHP Billiton’s global mining & mineralexploration portfolio

249 Geophysical anomalies - 77 kimberlites identified from 99targets drilled - surface area of kimberlites > 1,500 hectares

Highly encouraging mantle geotherm, diamond indicator mineralchemistry and initial micro-diamond counts

Potential for high tonnage operation

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Alto Cuilo – Kimberlite Comparison

¯

¯0 10 205

Kilometres

¯AC98

174 8 ha174.8 ha

AC63

29 9 haBotswanaOrapa ‐ 111 ha

Jwaneng ‐ 45.5 ha

29.9 ha

comparative kimberlite sizes

i t l t l

Botswana

0 5 102.5Kilometres

Cullinan ‐ 32 ha

approximately to scaleSouth Africa

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Alto Cuilo – Bulk Sampling

Major milestone in Alto Cuilo Development

Large diameter drilling (LDD) and mobile DMS plant treating mini-bulksamples - first step in establishing economic viability

Encouraging mini bulk sample results from AC63 and AC98Encouraging mini bulk sample results from AC63 and AC98

2nd LDD rig now at site to accelerate MBS programme and priorities for2008 identified

Bulk samples now scheduled on surface outcrops of AC16 and AC98where higher grades are expected

Petra continues to gain a better understanding of the complex nature ofthe kimberlitic bodies - more NSAMT surveys planned in Q1 ’08

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Luangue – bordering Alto Cuilo

Petra consolidates position in most prospective diamond belt of Angola

• Separate JV with BHP Billiton agreed Aug ‘07; BHPB pay Petra US$22.3mcash for 25% and (to earn in) to fund to later of pre-feasibility (when willmove to 75%) and US$110m

• Objective is to fast track Luangue based on Alto Cuilo experience

• Low level Aero Magnetic survey completed Dec ’07 and results expected byg y p p yend March ’08

• 3 core drill rigs en-route to Luangue to commence the drilling programme

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Cutting & Polishing

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Calibrated Diamonds

• Calibrated proprietary laser technology – produces ‘brilliant’ cut diamonds of a very high and consistent standarddiamonds of a very high and consistent standard

• Significant value (approx. 50%) can be added to rough production through the polishing process

• Calibrated has the potential to significantly enhance Petra’s revenues and cash flows

• Now in ramp up phase: on track to apply technology to 2,500 carats per month from Petra production by mid 2008

• Provides a transparent production pipeline, tracking diamonds p p p p , g"from mine to finger”

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Trading Update (published 24 January 2008)

Sales for 6 months to December 2007

• Revenue for the Period: US$31.7 million, a 286% increase (6 months to 31 December 2006: US$8.2 million)

• Substantial revenue growth mainly due to Koffiefontein mine coming on stream, supported by strong diamond prices at the fissure mines

• 115,918 carats sold for the Period, a 79% increase (6 months to 31 December 2006: 64,940 carats)

• Production of 101,213 carats, a 17% increase (6 months to 31 December 2006: 86,396)

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The Petra Transformation

From Junior Explorer to leading Mid Tier Producer

Petra acquires Cullinan, Koffiefontein, Kimberley Undergroundfollowing competitive tender processes

Group resource base (incl. Cullinan & Kimberley Underground)to make Petra one of World’s largest pure diamond companies

Production to rise fourfold from circa 250,000 carats in year toJune 2008 to over 1 million carats in year to June 2010

As supply shortage takes hold, Petra’s production will be highlysought after

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Key Investment Highlights

Pure play diamond company with world

class resources

Superior growth profile Unprecedented diamond market conditions

A Unique & High Growth Pure

World’s most prospective exploration areas

Long lifekimberlite mines

A Unique & High Growth Pure Play Diamond Company

Key relationships and JVslimit funding requirements

Unrivalled undergroundkimberlite & fissurelimit funding requirements

Cutting and polishing business that

enhances profitability

mining experience

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Appendix - Corporate

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The Petra Board

Adonis Pouroulis

Chairman

• Successful mining entrepreneur;

l h

Johan Dippenaar

CEO

• 18 years experience in the diamond

David Abery

Finance Director

• Extensive experience as Chief

Jim Davidson

Technical Director

• >20 years experience in mine management;

expertise lies in the discovery and exploration of mineral resources and bringing these assets to production

mining industry in South Africa

• Formerly CEO of ASX quoted Crown Diamonds

Financial Officer in South African and UK business environments

• In-depth

acknowledged world authority on kimberlite geology and exploration

• Formerly Director of production

• Founded Petra Diamonds in 1997 and floated first diamond company on AIM

• Member of the Chartered Accountants of South Africa

knowledge of AIM

• Member of Institute of Chartered Accountants in England and Wales

ASX quoted Crown Diamonds

• Qualified geologist and member of the Geological Society of g g ySouth Africa

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Corporate Profile

Listing AIM: PDL

Offices Corporate - Jersey

Corporate - Johannesburg%

Major Shareholders

Corporate Johannesburg

Representative - London

Shares in Issue 184 million

Fully diluted 203 million

- Saad 28.7

- JP Morgan 9.97

- Al Rajhi 7.66

- Management 6 112 month high/low 167.0p - 119.0p

Cash at 31 Dec '07 US$58.9 million

Market cap £250 million

Share price @ 01/02/08 135p

Management 6.1

- BHP Billiton 2.2

Share Price Chart Share price @ 01/02/08 135p

Broker Price Targets

BMO Capital Markets 22/01/2008 224p

Collins Stewart 07/12/2007 280p

Natixis Blochreider 26/12/2007 235p Natixis Blochreider 26/12/2007 235p

RBC Capital Markets 07/03/2007 195p

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Our Responsibility to Diamonds

• Petra only operates in countries which adhere to and abide by the KimberleyProcess

• Operations adhere to environmental best practice: Detailed studies assesspossible environmental impact, including plans for impact mitigation and landrehabilitation

• Commitment to sustainability: Petra is responsible for 300 jobs in Sierra• Commitment to sustainability: Petra is responsible for 300 jobs in SierraLeone, 300 jobs in Angola, 2400 in South Africa – multiplier effect meansactual support network is much larger

Examples of social initiatives in place to make a meaningful impact on local communities:

Angola - Clinic treats around 400 people per month, with large impact on infant mortality over past 2 years

South Africa - Literacy programme, HIV / AIDS awareness programme, local sports programme

Sierra Leone - Skills development, agriculture initiatives, supporters of Small Business Entrepreneur programme

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Indaba 2008

Dedicated to the Future of Diamonds

Further Enquiries, contact: Cathy Malins – cathym@petradiamonds.com –+44 20 7493 7671

www.petradiamonds.com

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