Focused on Africa’s rich resourcesFocused on Africa’s rich resources

Mining Journal Diamond Day1 March 2007

Petra Diamonds

Presented by - David Abery (Finance Director)

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Petra’s strategy

Petra Diamonds is a diamond mining group focused on the mining, exploration and beneficiation of

diamonds from Africa’s rich resources

Petra’s strategy is to build a portfolio of producing mines (500,000 carats p.a. by 2009/10) with

beneficiation capability, combined with a world classexploration base, achieving the objective of becoming a

successful mid-tier diamond group

Petra is well on the way to achieving this strategy

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Diamond market

Demand for rough growing while supply is constrained

Rough prices expected to rise over the medium term

To meet demand, major new mines need to be identified and proven up

Botswana26%

Russia18%

Canada12%

South Africa12%

Angola9%

DR Congo8%

Namibia7%

Others5%

Australia3%

Source – J. Picton / WHIreland

Total World Production US$13.bn (2005)

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An opportunity to …

directly invest in a mid-tier diamond group with a spread of production, beneficiation and exploration assets

De Beers

BHP Billiton

Rio Tinto Alrosa

Our Objective

Juniors

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Petra’s operations

Alto Cuilo(Angola)

Helam(South Africa)

Star(South Africa)

Sedibeng(South Africa)

Kono(Sierra Leone)

Kalahari(Botswana)

Luangue(Angola) Calibrated

Diamonds

Koffiefontein(South Africa)

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South Africa – producing mines

4 producing mines – Helam, Koffiefontein, Sedibeng and StarKimberlite mines – underground pipe / fissure operationsProduction 71,928 carats 6 months to Dec ‘06; revenue US$8.2m (year to June ‘06 – 175,000 carats; revenue US$20.8m) – substantial production and revenue increase expected for 12 months to June ’07 over 12 months to June ‘06After De Beers, in South Africa, the largest producer of diamonds by volume and the largest employer in diamond mining

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South Africa – Koffiefontein

December ’06 - Petra announced the purchase of the Koffiefontein assets from De BeersMining licence issued December ‘06Kimberlite underground mineExpected to add significant production to Petra groupAcquisition funded from Petra’s existing cash resourcesProduction to commence in the next few weeks – substantial stock pile in place due to care and maintenance

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South Africa – Koffiefontein

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South Africa – expected production growthC

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('000

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50

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Production 2006 175,000 carats

Expected SA production growth to 2010 approx. 300,000 carats;

group target 500,000 carats

2005/6 2009/10

Sou

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frica

Gro

up

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Beneficiation – Calibrated Diamonds

November ‘06 – Petra announced acquisition of Calibrated DiamondsCDIH focused on cutting and polishing of diamonds using a unique process – polished diamonds of a very high and consistent standardAcquisition of CDIH made Petra AIM’s first fully integrated mid-tier diamond mining group

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Beneficiation – Calibrated Diamonds

Significant value (approx. 50%) is added to rough diamond production world wide through the polishing process

Via CDIH, Petra can beneficiate its own production, participating in this value-add

CDIH has the potential to significantly enhance Petra’s revenues and cashflows

Acquisition also in line with focus of African producer countries to beneficiate diamonds at source

Transparency of Petra production gives Petra the ability to build a ‘mine to finger’ supply chain

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Beneficiation – Calibrated Diamonds

Production of a very high and consistent qualityAble to produce “Hearts & Arrows”

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Angola – politically stable –large exporter of oil to US

Alto Cuilo is Petra’s flagshipproject, an opportunity ofmassive potential upside

Petra is in JV with BHP Billiton

73 kimberlites identified from 91 targets drilled – surface area of kimberlites > 1,400 hectares

Highly encouraging mantle geotherm, diamond indicator mineral chemistry and initial microdiamond counts

Angola – exploration – Alto Cuilo

AngolaAngola

Alto Cuilo

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Alto Cuilo – bulk sampling started

“Project Alto Cuilo – has the potential to rival some of the world’s greatest kimberlites”

James Picton – Diamond Analyst – WH Ireland

Large diameter drill and 10 tph mobile DMS plant taking bulk samples from the most prospective anomalies – first results expected April ‘07

Positive bulk sample results could lead to a significant upside to Petra’s valuation

Average value from 310 carat sample previously recovered – US$295/carat

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Bulk sampling results – potential upside to Petra valuation

October 2005 - initial bulk sampling results from AK6

African Diamonds

June 2004 - initial bulk sampling results from the Star Diamond Project

Shoregold

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BHP Billiton funding Alto Cuilo exploration

For spend of US$60 million, BHP Billiton earn a 75% share of Petra/BHP Billiton JV

31 December ’06 – BHP Billiton had funded US$32.9m

One of the highest spends in BHP Billiton’s global mining & mineral exploration portfolio

Refer BHP Billiton presentation 22 Feb ’07 for further information (www.bhpbilliton.com)

Alto Cuilo – BHP Billiton JV

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Kimberlite comparison

Alto Cuilo kimberlite fieldTotal estimated surface area to date 1400 ha

AC 98 – 174.8 ha

Orapa - 111 ha Jwaneng - 45.5 ha

Botswana

Premier – 32 ha

South Africa

Approx. to scale

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Alto Cuilo diamonds

Source: BHP Billiton – Diggers & Dealers presentation – 8 August 2006

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1 March ’07 - Petra announces acquisition of Xceldiam’s interests in Luangue projectAll share consideration; 19.7 million Petra shares to be issuedLuangue borders Alto Cuilo and may host kimberlite geology similar to that of Alto CuiloPetra will take over funding and development; aim to fast track Luangue based on Alto CuiloexperienceConsolidates Petra’s position in the diamond belt of Angola

Angola – Project Luangue

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Kalahari Diamonds has approx. 52,000km2 of highly prospective diamond exploration ground in BotswanaBotswana is the world’s largest producer of diamonds by valuePetra has in Botswana –

technical support from BHP Billiton & access to BHP Billiton’s Falcon technologythe Gope kimberlite field that is known to host six or seven kimberlitesKukama project area, hosting 16 kimberlites, also in Kalahari licence areaother highly prospective anomalies for further investigation

Botswana – exploration – Kalahari Diamonds

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Botswana – exploration – Kalahari Diamonds

Petra’s 2007 work programme;Focus on the Gope area - several known diamondiferous kimberlitesFollow up in Kukama project area, including large gravity anomaly and kimberliteDrilling programme for Gope and Orapa SouthRe-evaluation of accumulated geophysical dataLow-level Xcalibur gradient magnetic survey of Orapa North

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Kukama Project area – 16 kimberlites

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Sierra Leone - stable mining environmentKono project in the world renowned Koidu diamond field51% interest with JV partner Mano River Resources (49%)Fissure strike length may exceed strike length of Petra’s South African fissure minesPotential to yield high grades – indicated by both Mano and Petra samplingDiamond recovery commenced June ’06 –638 diamonds (58.78 carats) recovered to date from shaft sinking

Sierra Leone – production – Kono project

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1 March ’07 – Petra grants US$20 million convertible loan to BHP BillitonConversion price 180 pence; bears interest at LIBOR plus 2%US$17.5 million ring fenced for Angolan expenditure at Petra No change in BHP Billiton sole funding at Alto Cuilo

Corporate – BHP Billiton Convertible Loan

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Shares in issue 151 million

Fully diluted shares in issue 197 million(incl Luangue and convertible)

Market cap £237 million

12 month high/low 157.0p – 57.0p

Production year to June ‘06 175,011 carats

Revenue year to June ‘06 US$20.8 million

Cash (31 Dec ’06) US$19.2 million

1 March ‘07 – BHP Billiton Convertible Loan US$20 million(additional treasury)

Corporate - financial snapshot (as at 26 Feb ‘07)

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Major shareholders (26.02.07)

Share analysis

7.7Al Rajhi

7.6Management

2.7BHP Billiton

1.0Carminda

6.0Star Mining

22.4Saad

52.6Institutions%

Share graph

Broker research

£1.85RBC Capital Markets

£1.58Hargreave Hale£2.09Collins Stewart

Target price

Source: Reuters - as at 26 Feb. ‘07

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Angola – Alto Cuilo is a world-class asset, partnered with BHP Billiton and set to move rapidly up the value curve; entry into Luangue via Xceldiam transaction consolidates Petra’s Angolan interests

Even without Alto Cuilo ….Botswana – the world’s number one address for diamonds, and the largest holder of land under diamond prospecting licenceSierra Leone – the leading expert in fissure mining with diamond production having commenced in June ’06South Africa – the leader in fissure mining; also underground operations at Koffiefontein, where management are well versed inmining techniques; acquisition of Koffiefontein adds significantproduction and revenueBeneficiation – acquisition of Calibrated Diamonds gives significant potential for revenue upsideCorporate – US$39m treasury (incl. BHP Billiton convertible loan proceeds); strong management

Petra Diamonds - summary

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Important notice

These Presentation Materials do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities in the Company nor shall they or any part of 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 investment decision or engaging in an investment activity and any decision in connection with a purchase of shares in the Company must be made solely on the basis of the publicly available information. Accordingly, neither the Company nor its directors makes any representation or warranty in respect of the contents of the Presentation Materials.

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

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

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

For further information visit: www.petradiamonds.com

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