19 December 200819 December 2008

Petra Diamonds Limitedthe international diamond mining group

AGM Presentation and Trading Update

The arrival of a world class diamond group

Important Notice

These Presentation Materials do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for anyoffer 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 inany manner or for any purpose whatsoever.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 aninvestment activity and any decision in connection with a purchase of shares in the Company must be made solely on the basis ofthe publicly available information. Accordingly, neither the Company nor its directors makes any representation or warranty inrespect 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 a varietyof 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 has beenno adverse change, or any event reasonably likely to involve any adverse change, in the condition (financial or otherwise) of theCompany 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 furtherThe Presentation Materials are confidential and being supplied to you for your own information and may not be reproduced, furtherdistributed, 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.

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Discover Petra

Fast building a world class diamond producer

Operator of five diamond mines in South Africa (plus two acquisitions of major mines to complete)

A reserves and resources base of 265 million carats worth US$27.3 billion (September 2008 statement)

World famous mines renowned for production of large, high value and fancycoloured diamonds

Rapidly rising production and revenues

Experienced entrepreneurial management team effective execution & deliveryExperienced, entrepreneurial management team – effective execution & delivery

Quoted on London’s AIM market – ‘PDL’

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Delivering To Shareholders

Objective Delivery

Create a major independent diamond group

Petra is fast establishing itself as one of the world’s important g p pdiamond producers

Grow production Acquisitions of four major diamond mines in two yearsmines in two years

Reach 1 million carats per annum production by FY 2010

Target achieved a whole year earlier, by FY 2009

Grow reserves and resources Group resource base transformed to 265 million carats gross

Focus on quality diamonds Assets acquired which are renowned q y qfor high value and fancy diamonds

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Building A Major Diamond Group

2008Four major mine acquisitions agreed in two yearsFour major mine acquisitions agreed in two years

Cullinan2006

Cullinan

Koffiefontein Kimberley Underground Williamson

Fissures Exploration Fissures Exploration

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Building Production

Carats in ‘000s

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Building Reserves & Resources

2008Gross Resources265 million caratsUS$27.3 billion*

Fissures - 4.8m carats

Kimberley - 6.4m carats

Koffiefontein - 6m carats2006

Williamson - 40.2m carats

Cullinan - 207.9m carats

Fissures

Gross Resources4.9 million carats

* As at September 2008

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pResource Statement

Key Achievements of 2008

Acquisition of Cullinan mine – now Petra’s flagship asset; accelerated production plan

Agreement reached to acquire Williamson mine in Tanzania

Agreement reached to acquire Kimberley UndergroundAgreement reached to acquire Kimberley Underground

Updated gross resource base of 265 million carats, worth US$27.3bn (September 2008 resource statement) (October 2007: 11.38 million carats, worth US$1.9bn)

First full year production at Koffiefontein – spectacular turnaround achieved

126 69 carat diamond from Fissures sold for US$5 3 million126.69 carat diamond from Fissures sold for US$5.3 million

39.19 carat blue diamond from Cullinan sold for US$8.8 million

R f f h i l 26 58 bl C lliRecovery of a further exceptional 26.58 carat blue at Cullinan

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Trading Update

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Trading Update

Trading Update for six months ended 31 December 2008 (“the Period”)

Combined Cullinan (37% interest only consolidated), Koffiefontein, Fissure mines and Kono

g p ( )

Unit 6 months ended31 December 2008

6 months ended30 June 2008

6 months ended31 December 2007

Production

Diamonds produced Carats 528,636 99,074 101,213

Sales

*** Gross revenue (100% Cullinan): US$48.14 million

Group revenue US$M 31.1*** 45.6 31.7

Diamonds sold Carats 368,296 114,254 115,918

( ) $

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Trading Update

Gross revenue from rough sales for Period: US$48.1million, 52% increase on six th t 31 D b 2007 US$31 7 illi months to 31 December 2007: US$31.7 million

Substantial gross revenue growth due to Cullinan coming on stream July 2008, offset by weaker diamond prices in latter half of the Period and reduced sales at offset by weaker diamond prices in latter half of the Period and reduced sales at Koffiefontein due to release of diamond inventory in the comparable period

Second exceptional blue stone (26 58 carats) recovered at Cullinan; early Second exceptional blue stone (26.58 carats) recovered at Cullinan; early indications it is extremely rare, of even better colour and clarity than remarkable 39.19 carat blue recovered earlier in the Period (sold for US$8.8 million)

Gross production of 528,636 carats for Period (estimate for balance of December), 422% increase on six months to 31 December 2007: 101,213 carats

Group revenue (adjusted for Petra’s 37% interest in Cullinan): US$31.1 million (31 December 2007: US$31.7 million)

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P d tiProduction

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Production Portfolio

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* Acquisitions to complete soon

Cullinan – The Jewel In Our Crown

ROM grade established 40.5 cpht; plant throughput 11,000 tonnes per day, p y

Production well ahead of schedule: 450,129 carats produced for Period; 950,000 carats targeted for FY09

294,030 carats sold for Period; US$26.9m revenue

Petra making major changes to processing of ore with Petra making major changes to processing of ore with emphasis on recovering larger, high value diamonds; average value per carat achieved of US$91 for the Period

4 exceptional stones recovered to date:26 carat white – US$1.6 million39 carat blue – US$8.8 million36 carat white – yet to be tendered36 carat white yet to be tendered26 carat blue – yet to be tendered

Changes in OSP have increased grade from 29 cpht to 70 cpht

14* (all figures gross PDCC)

Koffiefontein

37,692 carats produced for the Period at grade of 7.8 cphtp

Average value per carat of US$342 still very high in comparison to world average

33,804 carats sold for US$11.6m in revenue

2 special stones sold:74 carat white – US$1 million4 carat pink – US$226,66

Plant now ready to receive increased tonnages –potential from underground main pipe and satellite (Ebenheazer)satellite (Ebenheazer)

New tailings treatment plant being commissioned – tailings production to commence in new year

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tailings production to commence in new year

Fissure Mines

Fissures mines comprise: Helam, Sedibeng and Star

Average value per carat of US$240 – reflects company focus on optimisation of revenuescompany focus on optimisation of revenues

Regularly produce exceptional diamonds, including 126 carat stone sold for US$5 25mincluding 126 carat stone sold for US$5.25m

Production of 37,622 carats for the Period –lower due to strike at Helam and restructuring programme

Sales of 39,398 carats, generating US$9.5m

Petra currently undertaking operational reviews – possible that Helam and Star will be placed on care and maintenance

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Kimberley Underground

Petra has been operating Kimberley U d d d d i t i Underground under care and maintenance since September 2007

Acquisition now expected to complete early cqu s t o o e pected to co p ete ea y2009 – no issues, just more complex process

Custom-made plants being constructed in-house

Diamond recoveries and sales will commence Q1 2009 – substantial stockpile will be in place

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

Historic producer of spectacular gems such as Wesselton Dutoitspan and Bultfontein minesHistoric producer of spectacular gems, such as The Oppenheimer: (253.7 carat rough); largest diamond ever recovered was over 800 carats in size

Wesselton, Dutoitspan and Bultfontein mines

17* Note: carat value taken from 2005 records

Williamson

Petra agreed to acquire 75% stake in Williamson mine for US$10mmine for US$10m

Major diamond resource of 40 million carats

Open pit mine to depth of 90 metres – largest kimberlite ever to be mined economically (146ha)( )

Renowned for large high value diamonds & fancy pink diamonds (e.g. Williamson Pink)p ( g )

Petra strategy to initially establish economics then ramp up to 7.5Mt to recover 500,000 carats pa

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Recent Sales Highlights

K ffi f t i

CULLINAN KOFFIEFONTEIN

C lli Koffiefontein

4.13 carat fancy pink sold f US$226 666

Cullinan

39.19 carat blue diamond sold for US$8 8 illi for US$226,666US$8.8 million

26.54 carat white diamond sold for US$1 6 illi

FISSURES

US$1.6 million

Fissures

126.69 carat diamond sold for diamond sold for US$5.3 million

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New Exploration Focus

Strong trading underpins strategic move to focus on cash-generative production

Production and revenue growth can be better achieved by investment into world class production portfolio, as compared to continued spend on exploration

Objective: cut exploration spend from approx US$25m pa to less than US$5m; could reduce as low as US$1m depending on Luangue / Kono reviews

Angola – Petra to withdraw from Alto Cuilo (effective end December 2008)

Angola – Reviewing options with regards to Luangue project; focus on substantially d d l d d h hl d kreduced exploration spend and highly targeted work programme

Botswana – Petra significantly scaling down programme but will not relinquish licence areas of interestareas of interest

Sierra Leone – Petra discussing options with JV partner Stellar Diamonds; aim to substantially reduce spend, with one shaft already on care and maintenance

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y p , y

Focus for 2009

Management to build cash-positive production

Relinquish capital intensive exploration projects

Maintain rigorous cost control, always a core Petra objective

Focusing on efficiencies will ensure mines are cash flow positive despite weaker diamond prices (with the exception of Helam / Star)

Long term Rand weakness in Petra’s favour, increasing revenue

Remarkable 26.58 blue diamond to be marketed and sold

Potential for further exceptional diamond sales due to management focus on enhancing recoveries

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Diamond Market Review

Prices of rough down c.40% and polished c.12% (source Liberum Capital)

Analysts forecast weak 2009 but expect a recovery in 2010 / 2011

The majors are cutting production to support prices

Today’s closures and cuts in development / exploration will only increase the y p / p yshortage of rough in future years

Increased price volatility make diamonds attractive space when up-cycle commencesp y p p y

Are diamonds a ‘discretionary spend’? Can you put off life’s special occasions?

Elasticity of pricing – a diamond to suit every budget

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Petra Relative Performance

Petra Diamonds – relative best performer in comparison to peers over 12 months

Source: Datastream

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18/12/08

D J F M A M J J A S O N D0

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PETRA DIAMONDSFIRESTONE DIAMONDSAFRICAN DIAMONDSNAMAKWA DIAMONDS (DI)

STORNOWAY DIAMONDROCKWELL DIAMONDSGEM DIAMONDS (DI)HARRY WINSTON DIAMOND

Thank you for your supportThank you for your support

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Further Enquiries, contact: Cathy Malins, Corporate Communications Managercathym@petradiamonds.com / +44 20 7318 0452 www.petradiamonds.com