Crown Merger Update on ASX

Petra Diamonds Ld
23 May 2005

23 May 2005



                             Petra Diamonds Limited

                     Proposed Merger with Crown Diamonds NL


Petra Diamonds Limited (LSE: PDL), the AIM-quoted diamond mining group, wishes
to bring to the attention of its shareholders an ASX announcement that was made
today by Crown Diamonds NL ('Crown') (ASX: CRD). The text of the Crown
announcement is reproduced below.





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                      Crown Diamonds NL (ACN: 050 541332)

                    ASX Announcement - released 23 May 2005

                   Crown Board confirms Merger Recommendation



The Board of Crown Diamonds NL ('Crown' or 'the Company') advises all Crown
shareholders and convertible note holders that its Directors reaffirm their
recommendation that shareholders and convertible note holders vote in favour of
the merger with Petra Diamonds Limited ('Petra'), by way of the Schemes of
Arrangement detailed in the Schemes Booklet dated 20 April 2005.



The Board of Crown notes that since the date of the announcement of the merger
on 8 February 2005 stock market conditions in the resource sector have changed
and the share prices of many companies, including both Petra and Crown, have
fallen.

Notwithstanding the changed market conditions and the adjustment in the share
prices of both companies, the Crown Board maintains its belief that the proposed
merger of Crown with Petra is still in the best interests of Crown shareholders
and convertible note holders, and reaffirms its recommendation that shareholders
and convertible note holders vote in favour of the proposed merger.

A capital raising for the merged group has been undertaken by Williams de Broe
Plc (AIM Nominated Adviser and Broker to Petra), to place 20,084,352 new Petra
shares with institutional investors raising £17.1 million (A$40 million)
(before costs). Completion of this placement is conditional on completion of the
merger (with reference to the conditions as set out in Section 2 and 3 of the
Scheme Booklet). The Board expects this capital raising to be completed on or
around 17 June 2005.



The Crown Board has no reason to believe that the conditions relating to the
completion of the merger will not be satisfied.



By Order of the Board


Crown Diamonds NL


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For further information, please contact:


                            David Abery                                 Cathy Malins / Annabel Leather
                            Petra Diamonds, South African office        Parkgreen Communications, London
                            Tel: [phone]                        Tel: [phone]

                            Frank H. Moxon
                            Williams de Broe Plc, London                Karl Paganin / Michael Soucik
                            Tel: [phone]                       Euroz Securities, Perth
                                                                        Tel: [phone]






                            In South Africa:                            In Australia:

                            Johan Dippenaar  
ACN: 050 541 332            CEO and Director                            John Baillie
                            Crown Diamonds NL                           Company Secretary and Director
                            Tel: [phone]                        Crown Diamonds NL

                                                                        Tele: [phone]
                                                                        Fax:  [phone]

                                                                        Kevin Skinner
                                                                        Field Public Relations
                                                                        Tel: [phone]
                                                                        Mobile: [phone]






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