C lli Di d MiCullinan Diamond MineMedia Visit 22 January 2009y

Discover Petra

Fast building a world-class diamond producer

Five diamond mines in South AfricaFive diamond mines in South Africa

Two additional mine acquisitions nearing completion

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

Rapidly rising production and revenues; 2008 group revenue growth US$17 0m toRapidly rising production and revenues; 2008 group revenue growth US$17.0m toUS$76.3m

Reserve / resource base of 265 million carats worth US$27.3 billion (September 2008 t t t)2008 statement)

Experienced, entrepreneurial management team – effective execution & delivery

2

Quoted on London’s AIM market – ‘PDL’

Building a major diamond group

2008Four major mine acquisitions agreed in two years

2006

Cullinan2006

Koffiefontein Kimberley Underground Williamson

Fissures Exploration Fissures Exploration

3

Production portfolio

Johannesburg

CullinanHelam

Pretoria

StarSedibeng

Kimberley Underground*

Koffiefontein

Cape Town

4

* Acquisitions to complete soon

Cullinan mine - overview

1902 - Cullinan kimberlite pipe originally discovered by Sir Thomas Cullinan

32ha surface area32ha surface areaAmongst the most celebrated diamond mines in history

World’s second largest indicated diamond resource by in-situ value value

208 million carats (incl. tailings) US$17.9 billion*

Historic producer of spectacular diamondsHistoric producer of spectacular diamondsincl. “The Cullinan”, world’s largest gem diamond

Only reliable source of truly rare and highly prized blue diamondsdiamonds

Produced 300 stones weighing more than 100 carats & a quarter of all the world’s diamonds over 400 carats

5*As at September 2008 Resource Statement

Cullinan – an aerial perspective

6

Writing the history of diamonds

The Cullinan – 3,106 carats roughLargest gem diamond ever discoveredLargest gem diamond ever discovered

Also source of the largest polished diamonds in the world, incl. The Great Star of Africa (530 carats)of Africa (530 carats)

7

Iconic gems

The Niarchos426.50 carats uncut, 128 25 li h d

Heart of Eternity27.64 carats polished1909 128.25 polished

19541909

The Golden Jubilee755.50 carats rough, 545.65 polished1986

The Premier Rose353.90 carats rough, 137.02 polished1978

The Centenary

1978

The Blue Heart30.82 carats polished

1909 The Taylor Burton599.10 carats rough, 273.85 polished1986

1909 The Taylor Burton240.80 carats rough, 69.42 polished1966

8

Petra Diamonds Cullinan Consortium (PDCC)

16 July 2008: Cullinan acquired by PDCC for R1billion from De Beers

Petra Diamonds Limited

Al Rajhi Holdings W L L

PDCC is37%: Petra – options to acquire up to 60%interest37%: Al Rajhi C lli

Limited W.L.L.

50%(effective

37%)

50% (effective

37%)

37%: Al Rajhi26%: BEE partners

BEE Partners are14% Th bi k i Mi i I

Employee Share Trust

Cullinan Investment

Holdings Limited

BEE partners

74% 14%12%14%: Thembinkosi Mining Investments6.16%Sedibeng Mining5.04% Umnotho weSizwe2.8% Namoise Mining

12%: Petra employee share trust (12%)Cullinan Diamond Mine

74% 14%12%

12%: Petra employee share trust (12%)

9

Mining layout

Open pit was mined from 1903 to 1945 when development of underground mine begang g

B Cut where current mining operations are underway

C Cut: world-class resource of 133 million carats lies

d th i ti ki

10

underneath existing workings

Current operations

Currently mining the B-Cut

ROM grade established 40.5 cphtROM grade established 40.5 cpht

Plant throughput target 8,500 tonnes per day

Average value per carat achieved six months to Dec 08: Average value per carat achieved six months to Dec 08: US$91 (expectation of US$75)

Production well ahead of schedule:450 129 carats produced six months to Dec 08450,129 carats produced six months to Dec 08950,000 carats targeted for FY09

294,030 carats sold six months to Dec 08; US$26.9m revenue; 156,000 carats remaining closing stock; , g g

3 exceptional diamonds recovered to date:26 carat white – US$1.6 million39 carat blue – US$8.8 million

11

26 carat blue – yet to be sold

Mining project focus

Establishing new economics for the mine

Plan to bring BA West (“BAW”) into production in phased approach

Phase 1 - waste handling infrastructure

Phase 2 - project and mining methods costs and schedules methods, costs and schedules

Phase 3 - construction and commissioning

BAW is traditionally producer of blues and large D flawless diamonds

12

Plant project focus

Main Plant

Major ore processing changes in progress to improve plan throughput

X-Ray technology as first line recovery, grease becomes back-up

First two Flow Sort diamond recovery machines (from a total 17) are being commissioned

Remaining 15 will be installed in the next six months

I h tti t 28 30 ( i l 22 24 )Increase crusher settings to 28-30mm (previously 22-24mm)

Screen size increase to 35mm (previously 25mm)

Upgrade and commission the Large Diamond Recovery Plant (LDRP)

Improve diamond recovery through the use of additional technology

Emphasis on recovery of full spectrum of diamonds especially larger ‘exceptional’ diamondsEmphasis on recovery of full spectrum of diamonds, especially larger, exceptional diamonds

Major re-organisation of systems ongoing - 3 years to completion

Optical Sorting Plant (“OSP”)Optical Sorting Plant (“OSP”)

Changes have increased grade from 29 cpht to more than 70 cpht

Further alterations should increase OSP feed rate significantly

13

Main plant immediate benefits – changes since July ‘08

900 000

1,000,000 

Total Carats Recovered ‐ Projection FY2008 

Plant will be capable of

700,000 

800,000 

900,000  Plant will be capable of delivering close to 1 million carats per year

500,000 

600,000 

200,000 

300,000 

400,000 

‐

100,000 

,

Jul‐08 Aug‐08 Sep‐08 Oct‐08 Nov‐08 Dec‐08 Jan‐09 Feb‐09 Mar‐09 Apr‐09 May‐09 Jun‐09

14

Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09

Earlier guidance ‐ range Current estimate diamond production

Key objective

• Add graph

Louis

Number of large stones recovered fell significantly after 2003 15

Performance to date

Unit 6 mths ended31 Dec 2008*

6 mths ended30 June 2008

Production

Diamonds produced Carats 450,129 n/a

Grade Cpht 40.5 n/a

Sales

Revenue US$m 26.9 n/a

Diamonds sold Carats 294,030 n/aDiamonds sold Carats 294,030 n/a

Average price per carat US$ 91 n/a

Figures are 100% Cullinan, as announced in Petra Diamonds ‘Trading Update’ – 19 Dec ’08

16

*Petra has only been operating Cullinan since 16 July 2008, therefore results do not reflect full six month period

Long-term objectives

The Centenary-Cut (“the C-Cut”)

A ld l di d th t li b th th B C t tiA world class diamond resource that lies beneath the B-Cut section133 million carats established by De Beers based on:

extensive microdiamond sampling of both narrow diameter and largediameter drilling

i f h d d f t f t i l f di d f lprocessing of hundreds of tons of material for macro diamonds from largediameter drilling from the 763 level to the 1083 levels

Petra has access to the numerous and exhaustive studies into the C-CutdevelopmentP t ill l t th d l t f th C C t th ti tPetra will evaluate the development of the C-Cut once the operating parametersof the mine under Petra’s management have been established

Tailings

16.8 million carat resourceFurther opportunity to be brought to account in the future

17

Leading CSR initiatives

Education

Safety

Health

Training

18

Outlook

Production running significantly ahead of expectations950,000 carats target to end June 2009

Average value per carat achieved of US$91 per carathigher than expectations of US$75

39 carat blue achieved US$8 8 million on October tender39 carat blue achieved US$8.8 million on October tender26 carat blue yet to be tenderedCould recovery of such stones be expected on a regular basis?

Long term Rand weakness in Petra’s favourLong term Rand weakness in Petra s favourHelps to increase revenue

Petra ethos of strong cost control

Mining, production and plant improvements being put in placeExpected to further improve recovery and results

19

Thank you

20

Further enquiries, contact: Cathy Malins – cathym@petradiamonds.com +44 20 7318 0452 www.petradiamonds.com

Appendix - CorporateAppendix

21

Major reserves and resources (September 2008)

SUMMARY OF RESERVES AND RESOURCES BY STATUS – CULLINAN

Category

Gross Net attributable

O tTonnes

( illi )Grade ( ht)

Contained Diamonds

( t )Tonnes

( illi )Grade ( ht)

Contained Diamonds

( t ) Operator(millions) (cpht) (mcts) (millions) (cpht) (mcts)Ore/Diamond Reserves Proven - - - - - -

Cullinan Diamond Mine (Pty) LtdProbable 16.188 52.12 8.437 5.990 52.12 3.122

Total Diamond Reserves 16.188 52.12 8.437 5.990 52.12 3.122

Diamond Resources Measured

Cullinan Diamond Mine (Pty) Ltd

Indicated 255.826 71.42 182.706 94.656 71.42 67.601Inferred 165.369 10.15 16.780 61.186 10.15 6.208Total Diamond Resources 421.194 47.36 199.486 155.842 47.36 73.810

Total Carat Base (million) 207.923 76.931

Estimated Value (US$ million) $17,874 $6,613

NNotes:•Value calculated on US$90 / run of mine carat and US$40 / tailings carat•Cullinan reserves and resources have been taken from the De Beers October 2006 internal scorecard classification (considered to be a conservativeclassification) and depleted by mining conducted by De Beers from October 2006 to July 2008. Reserves and resources have been re-classified in compliancewith JORC 2004.•Optical Sorting Plant tailings are not included in the reserves and resources statement as they have not been systematically sampled and thus do not haveinferred status and are regarded as a deposit by Petra. However, a deposit of 1.16 million tonnes exists which has historically been processed and which Petra iscontinuing to process and during our first month of operation achieved a grade in excess of 70cphtcontinuing to process, and during our first month of operation achieved a grade in excess of 70cpht.•Petra currently has a 37% interest in Cullinan. Petra can increase its interest in Cullinan to 60% based on the performance of the mine and the payment of pre-agreed option payments