Unique Growth In A Rising Diamond Market

Indaba Conference, 1 - 4 February 2010

Important Notice

These Presentation Materials do not constitute or form part of any invitation, offer for sale or subscription or any solicitation forany 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 reliedupon 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 inan investment activity and any decision in connection with a purchase of shares in the Company must be made solely on thebasis of the publicly available information. Accordingly, neither the Company nor its directors makes any representation orwarranty in respect of the contents of the Presentation Materialswarranty 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 noticeor liability to any party. The presentation materials contain forward-looking statements which involve risk and uncertainties andactual results and developments may differ materially from those expressed or implied by these statements depending on aactual results and developments may differ materially from those expressed or implied by these statements depending on avariety of factors. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of theinformation 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 hasbeen no adverse change, or any event reasonably likely to involve any adverse change, in the condition (financial or otherwise) ofthe 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,f rther distrib ted passed on or the contents other ise di lged directl or indirectl to an other person (e cept the recipient’sfurther distributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person (except the recipient’sprofessional advisers) or published, in whole or in part, for any purpose whatsoever. The Presentation Materials may not be usedfor the purpose of an offer or solicitation to subscribe for securities by anyone in any jurisdiction.

2

Petra At A Glance

• Resource of 262m carats (gross), 195m carats (attributable)

• The diamond producer that offers substantial growth:

• FY2008 – 0.2m carats

• FY2009 – 1.1m carats

• FY2010 – on track for 1.2m carats

• Firm plan in place to exceed 3m p pcarats by FY2019 (all organic growth)

St t t d• Strong management team andoperational track record

3Strategy to grow production from 1 million to 3 million+ carats pa

Why Diamonds?

• Less than 30 significant producing diamond mines in the world

Falling supply

diamond mines in the world

• Most important diamond mines are past their peak

• No new major discoveries for many years; no new major sources of production to come

Source: RBC Capital Markets, Sep ‘09

Rising demand

• Market has made good recovery – Xmas sales & consumer confidence up in US market

• Strong growth drivers, particularly from emerging markets – China became world’s second l t di d i 2009largest diamond consumer in 2009

• Financing has begun to return to pipeline; inventories are being replenished

• All producers are reporting a strong recovery in rough diamond prices

4

All producers are reporting a strong recovery in rough diamond prices

Petra: A Unique Growth Story

Majors:

Anglos / Private Diversified Diversified State-ownedAnglos / Private Diversified Diversified State owned

Pure diamond equities with significant production:

Diamond ProducerDiamond Producer & Diamond Producer

Diversified production portfolio

All assets in expansion phase

S b t ti l d ti d

Diamond Producer &Retail Stores

Diamond Producer

Substantial production andearnings growth to be delivered

5

Production Portfolio

Williamson

Production

South Africa • Cullinan

• Koffiefontein

• Kimberley Underground*

Geographically focused portfolio in stable and low-risk countries

• Fissures

• Helam

• Sedibeng

• Star

6

in stable and low risk countriesTanzania • Williamson* Acquisition to complete soon

Mines + Assets + Infrastructure

Petra has acquired four of the world’s important diamond mines

July 2007 July 2008 November 2008 To complete soon

CullinanKoffiefontein Williamson Kimberley UG

July 2007 July 2008 November 2008 To complete soon

70% Petra30% Re-Teng Diamonds

74% Petra14% Thembinkosi /

12% Employee Share Trust

75% Petra25% Government of Tanzania

on completion: 74% Petra26% Sedibeng Mining

Petra advantage:

• Right-size operations and treat as core assets• Lower costs and improve efficiencies; empower management teams• Optimise plant processing and security to ensure full spectrum recoveries, incl.

‘specials’

7

specials• Achieve best rough diamond prices through open tender system

Iconic Mines – Writing The History Of Diamonds

The Golden Jubilee755 carats rough,

546 polishedCullinan mine

The Taylor Burton241 carats rough,

69 polished

The Cullinan3,106 carats rough

Largest gem diamond ever discoveredCullinan mine

The Oppenheimer 253.7 carats rough

Perfect yellow diamondDutoitspan Mine, Kimberley U/G

Cullinan mineCullinan mine

The Centenary599 carats rough,

The Blue Heart31 carats polished

The Greater Star of AfricaLargest polished yield from the

The Williamson Pink55 carats rough, 24 carats599 carats rough,

274 polishedCullinan mine

31 carats polishedCullinan mine

8

Largest polished yield from theCullinan at 530 carats

Sits in the Royal SceptreCullinan mine

55 carats rough, 24 caratspolished; gifted to Princess

Elizabeth on her engagementWilliamson mine

Block Caving Schematic

9

CullinanOwnership 74% Petra / 14% Thembinkosi Investments /

12% Employee Share TrustMining type Block cave miningg yp g

Production*

FY 09: 1.99 mt (888,595 carats)FY 10: 2.2 mt (957,000 carats)substantial growth to 4 mt (2.2 mcts), plus 4 mttailings (0.4 mcts) by 2019

ROM value* US$95 per caratOn-mine cost per tonne* R160 per ROM tonne

P t i d it t k t 74% (f Al R jhi) N b 2009

• Source of world’s largest gem diamond ever – 3 106 carats

On mine cost per tonne R160 per ROM tonneMine life +50 years (+21 years current mine plan)

• Petra increased its stake to 74% (from Al Rajhi) – November 2009

• Mine cashflows no longer ring-fenced to Al Rajhi loan repayments

• Profitable first year of production despite diamond downturn

ever 3,106 carats• Produced over 300

diamonds of over 100 carats and a quarter of all • Profitable first year of production despite diamond downturn

• Recovery of several world-class diamonds incl. 507 carat diamond in 2009

• Large Diamond Recovery Plant commissioned – December 2009

diamonds over 400 carats

• Only reliable source of highly prized, rare bl di d

10

Large Diamond Recovery Plant commissioned December 2009blue diamonds

* Company forecasts

Cullinan Expansion

Accessing C-Cut / Tailings production

Current• 133m carat C-Cut resource,

ROM grade 55cpht

• C-Cut production 4 mtpa (2 2m

CurrentShaftBottom580 Level AUC

SouthBA5

Current Infrastructure

Planned Infrastructure• C-Cut production 4 mtpa (2.2m

ctpa) from 2019

• Tailings – 17m carat resource

630m Level

732m Level

andBAW Phase 1

BA5BB1E

C-CUT(165mt), grade 10cpht

• Tailings production 4 mtpa (0.4 mct pa) from 2014

763mLoadingLevel

830m Level Phase 2

950mShaft mct pa) from 2014

• CAPEX: US$30m to be funded from treasury / 507 carat di d l t t b

Kimberlite

ShaftBottom C-CUT

diamond sale; rest to befinanced by mine cash flows

* Company forecast

1073m Base of Resource

Footprint16 Ha @830Level

11Takes gross production to 2.6m ctpa & revenue in excess of US$220 million*

Koffiefontein

Ownership 70% Petra / 30% BEE partnersMining type Front cave mining

FY 09: 0 9 mt (52 089 carats)Production*

FY 09: 0.9 mt (52,089 carats)FY 10: 1.0 mt (76,000 carats), expectedgrowth to 1.2 mt (104,000 ctpa) by 2017

ROM value* US$480 per caratROM value US$480 per caratOn-mine cost per tonne* R123 per ROM tonneMine life +21 years

• One of the world’s top kimberlite mines by average value per

• Increase ROM tonnes from 1mtpa to 1.2mtpa (104,000 ctpa)

• ROM grade to increase from 6 6cphtaverage value percarat

• Renowned for high value white diamonds and a regular producer

• ROM grade to increase from 6.6cphtto 8.7cpht

• 400,000 tpa tailings production (1 4mct / 65mt resource) 10 000of coveted pink

diamonds

* C f t

(1.4mct / 65mt resource) – 10,000ctpa

• Ebenhaezer pipe offers further upside

12Expansion plan to take gross production to 114,000 ctpa & revenue >US$50 million*

* Company forecasts

WilliamsonOwnership 75% Petra / 25% Government of TanzaniaMining type Open pit miningFY09 bulk sampling 1 5mt delivering 84 486 carats (5 7cpht)FY09 bulk sampling 1.5mt delivering 84,486 carats (5.7cpht)

Production post upgrade* 10 mtpa / 600,000 ctpaROM value* US$200 per caratOn-mine cost per tonne* US$7.30 per ROM tonneMine life +/- 20 years (phase 1 to 205m depth)

• 3 year expansion programme reshaping open pit installing autogenous

• Renowned for high value and pink diamonds

• 3 year expansion programme - reshaping open pit, installing autogenousmill and constructing new plant

• New plant will treat increased tonnages and improve diamond recoveriesCapex required US$45 $50m

• 146 hectare (360 acre) orebody, continuously mined for 70 years

• Capex required US$45-$50m

• Nov ‘08 – 75% interest in Williamson acquired for U$10m

* C f t

13Takes gross production to 600,000 ctpa & revenue in excess of US$120 million*

* Company forecasts

Kimberley Underground – Completion Soon

Ownership 74% Petra / 26% BEE Partners (on completion)

Mining type Block cave miningMining type Block cave mining

Forecast production* 1mtpa (180,000 carats) from year twoROM value* US$170 – US$200 per caratOn-mine cost per tonne* R100 per ROM tonneMine life +12 years

• Acquisition consideration of US$2.0m (R15m) cash, completion expected soon

• Asset comprises Bultfontein, Dutoitspan and Wesselton mines• Potential for large and

fancy yellow diamonds Asset comprises Bultfontein, Dutoitspan and Wesselton mines• Care and maintenance period enabled Petra to build up a substantial

stockpile of ore – 400,000 tonnes containing in excess of 70,000 carats• New plant constructed and commissioned at Joint Shaft (servicing

fancy yellow diamonds• Produced the

Kimberley Octahedral – at 616ct currently the largest uncut diamond New plant constructed and commissioned at Joint Shaft (servicing

Bultfontein & Dutoitspan) – recoveries to commence on completion• Construction of plant at Wesselton by end of 2010

gin the world

* Company forecasts

14Brings new gross production of 180,000 ctpa & revenue in excess of US$32 million*

Growth On Track

Unit 6 months ended 31 6 months ended 30 6 months ended

Petra on track for production of 1.2m carats in FY2010 (figures below are on a gross basis as announced in Petra’s Trading Update on 13 January 2010):

Unit 6 months ended 31December 2009

6 months ended 30June 2009

6 months ended31 December 2008

Diamonds produced Carats 614 594 546 031 550 413Diamonds produced Carats 614,594 546,031 550,413Revenue US$M 62.4 47.0 47.3Diamonds sold Carats 572,227 643,675 368,031

4,000,000

Petra Diamond Production Profile (gross)FissuresKimberleyKoffiefontein

2,000,000

2,500,000

3,000,000

3,500,000

Prod

uced

WilliamsonCullinan

0

500,000

1,000,000

1,500,000

Car

ats

15

02010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Financial Year

US$120m Placing

• US$120m financing completed in December 2009• Acquired additional 37% of CullinanAcquired additional 37% of Cullinan• Strengthened balance sheet• Broadened shareholder base• New capital provides foundation for growth

M i f d $Main use of proceeds US$m

Part settlement of US$80m Al Rajhi / Cullinan loan, incl.accrued interest 31Repayment of Convertible Note to Al Rajhi 20Development capital for Cullinan 15Expansion capital for Williamson 15Settlement of short term debt 34

16

Capital Structure

Nov 2009 end Jan 2010

Al R jhi H ldi W W L 9 0% 18 1%Al Rajhi Holdings W.W.L. 9.0% 18.1%

Saad Investments Company Limited 44.0% 17.3%

JP Morgan Asset Management (UK) Limited 9.6% 9.3%

Scottish Widows Investment Partnership 0.0% 6.2%

Capital Group International, Inc. 0.0% 6.2%

Blackrock Investment (UK) Limited 0.0% 5.4%

Directors 8.5% 4.7%

Shares in issue 184 0 million 352 6 millionShares in issue 184.0 million 352.6 million

Analyst Target price Listing AIM: PDLy g

Ambrian Partners 95p

CanaccordAdams 120p

g

12 month high / low 89.25p –22.44p

17

RBC Capital Markets 115p Market capitalisation at 60p £210m

Petra – A Unique Diamond Investment

Project risk Major diamond resource; diversified portfolio of mines; access to full diamondProject risk Major diamond resource; diversified portfolio of mines; access to full diamondspectrum; minimal exposure to exploration spend

Technical risk Strong track record and proven delivery on operational targets

Financing risk US$120m fund-raising in Dec 2009 strengthened balance sheet

Growth risk Expansion plan to triple production – existing portfolio provides organic growth for many years

Diamond price risk

Petra’s mines weathered severe downturn – will generate strong revenues in normal market

Political risk Petra projects based in low-risk, stable African democracies

18

Questions?

19The Cullinan Heritage Diamond

Unique growth in a rising diamond market

Thank you

The Petra Board

Adonis PouroulisChairman

Johan DippenaarCEO

David AberyFinance Director

Jim DavidsonTechnical Director

Successful mining entrepreneur One of South Africa’s most successful diamond

Extensive experience as Chief Financial Officer in South

Acknowledged world authority on kimberlite geology and

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

successful diamondentrepreneurs with 20 years’ experience

Founded diamond group in

Financial Officer in SouthAfrican and UK business environments

In-depth knowledge of AIM

on kimberlite geology andexploration

Over 20 years’ experience in mine management

Along with fellow directors, built Petra into pan-African diamond group with over 3500 employees

Founded diamond group in1990 and grew portfolio to 3 producing mines before listing as Crown Diamonds on ASX

In depth knowledge of AIM

Integral to structuring and deliverance of strategic group corporate development,

mine management

Formerly Head of Diamond Exploration for Rio Tinto across Southern Africa

Instrumental in raising funds to help finance and structure early stage mining companies in Africa

Merger with Petra in 2005 –now at helm of AIM’s largest diamond company

including acquisitions and joint ventures As Technical Director of Crown

Diamonds, managed specialist underground fissure mines over a decade

2121

Africa a decade

Reserves And Resources

A ib bl b Total carat baseAttributable carat base

Fissures - 4.7

Kimberley - 6 9

Fissures - 4.5

Kimberley - 5.2Kimberley - 6.9

Koffiefontein - 5.9Koffiefontein -4.2Williamson -

Williamson - 40.1

Cullinan - 204.6

a so30.0Cullinan - 151.3

195 million carats 262 million carats

22

Fissures (Helam, Sedibeng, Star)

Ownership Sedibeng: Petra 74.5%/BEE 25.5%Helam & Star: Petra 100% Helam: Full shrinkage overhand stoping

Mining typeHelam: Full shrinkage overhand stopingSedibeng: Full shrinkage overhand stopingStar: Open stope underhand

FY09 production 71,274 caratsp ,ROM values* US$180 per caratOn-mine cost per tonne* R415 per ROM tonneMi lif C bi d 20

• Helam mine has returned to higher levels of production• Narrow vein, low

tonnage ‘fissure’ operations

Mine life Combined +20 years

• New production areas being established on Level 17 in Sedibeng mine – production to commence early 2010

• Future production from portfolio planned to be in excess of 120,000 ctpa

operations• High value

kimberlite mines in comparison to world average

* Company forecasts

23Expansion plan to increase production from 70,000 ctpa to 120,000 ctpa

CAPEX Profile

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Financial�Year

New capital lays foundation for growth

Operation AreaBAW/BB1E/AUCGap�FillersAUC�SouthBAW�Phase�1C�Cut�Phase�1

Cullinan

Total�Tonnes�(Mt) 2.200 2.400 2.400 2.400 2.426 2.680 2.845 3.145 3.150 4.000Total�Carats�(Mcts) 0.957 1.117 1.239 1.314 1.520 1.649 1.801 2.018 2.133 2.600Expansion�Capex�(US$m) 18.0 47.6 45.4 17.7 26.6 28.1 32.9 50.3 55.3 26.6

�������������� ��������������Total�Tonnes�(Mt) 1.231 0.000 0.000 5.000 10.000 10.000 10.000 10.000 10.000 10.000Total�Carats�(Mcts) 0.066 0.000 0.000 0.300 0.600 0.600 0.600 0.600 0.600 0.600

Williamson

Expansion�Capex�(US$m) 16.3 20.1 14.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0Current�OperationNew�Block�CaveTotal�Tonnes�(Mt) 0.948 0.948 0.948 0.948 0.948 1.000 1.100 1.200 1.200 1.200Total�Carats�(Mcts) 0.076 0.080 0.080 0.080 0.080 0.100 0.108 0.114 0.114 0.114Expansion�Capex�(US$m) 1.7 3.1 3.1 3.1 3.1 1.9 1.9 1.9 5.0 5.0

Kofffiefontein

p p ( $ )Bultfontein���845�BCDutoitspan���870�BCDutoitspan���NW�cornerWesselton���995�BCTotal�Tonnes�(Mt) 0.746 0.780 0.916 1.000 1.000 1.000 1.000 1.000 1.000 0.919Total Carats (Mcts) 0 065 0 217 0 223 0 200 0 181 0 181 0 181 0 181 0 181 0 163

Kimberley�U/G

Total�Carats�(Mcts) 0.065 0.217 0.223 0.200 0.181 0.181 0.181 0.181 0.181 0.163Expansion�Capex�(US$m) 5.1 13.1 2.6 1.3 0.0 0.0 0.0 0.0 0.0 0.0Total�Tonnes�(Mt) 0.247 0.266 0.276 0.284 0.291 0.304 0.304 0.304 0.304 0.304Total�Carats�(Mcts) 0.126 0.138 0.144 0.148 0.155 0.165 0.165 0.165 0.165 0.165Expansion�Capex�(US$m) 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Petra�Diamonds Total�Tonnes�(Mt)1 5.372 4.394 4.540 9.632 14.665 14.984 15.249 15.648 15.654 16.423

(G b ) T l C (M )1 29 2 686 2 0 2 2 3 2 69 2 8 3 0 8 3 93 3 6 3

Fissures

24

(Gross�Numbers) Total�Carats�(Mcts)1 1.291 1.552 1.686 2.042 2.535 2.695 2.855 3.078 3.193 3.643Expansion�Capex�(US$m)2 41.1 84.0 65.7 22.2 29.7 30.0 34.8 52.2 60.3 31.6

1.�Excludes�production�form�tailings�retreatment�operations2.�Expansion�capital�expenditure�stated�in�2009�money�terms����������������Williamson�plant�and�infrastructure�upgrade

Petra DiamondsCathy Roberts

cathyr@petradiamonds comcathyr@petradiamonds.com+44 20 7318 0452

www.petradiamonds.com