Koffiefontein Tender Results

Petra Diamonds Ld
24 September 2007


24 September 2007
                                                          AIM: PDL

Petra Diamonds Limited


            Koffiefontein Mine Produces Strong Second Tender Results



Petra Diamonds Limited ('Petra' or 'the Company') announces the results of the
second sale of diamonds from the Koffiefontein mine, following the first tender
results announced on 7 August 2007.


Highlights

  • 11,548 carats sold (underground production) for a total consideration of
    US$4.85 million, including  an exceptional stone of 74.7 carats



  • The 74.7 carat stone was sold for US$1,012,636 (US$13,556 per carat),
    being the first ever diamond produced by Petra that sold for more than US$1
    million



  • The average value achieved for the 11,548 carats (including the 74.7
    stone) was US$420 per carat; the average value excluding the 74.7 carat
    stone was US$334 per carat



  • These average values are in line with those achieved in the first tender
    and therefore Petra management has now increased its longer term
    expectations for the value of underground production from the Koffiefontein
    mine


Adonis Pouroulis, Chairman of Petra, commented; 'Koffiefontein is renowned for
the exceptional quality and value of its diamonds and, based on the consistently
high average values per carat achieved at the two recent tenders, Petra has
substantially upgraded its management revenue expectations for the mine. The
acquisition of Koffiefontein introduced a major diamond mine to the Petra
portfolio of producing assets, further consolidating Petra's position as AIM's
leading diamond mining and exploration group.'


The Koffiefontein mine is in South Africa and was recently acquired by Petra
from De Beers Consolidated Mines Limited ('De Beers'). The average sales value
achieved at the first tender of Koffiefontein production (announced 7 August
2007) was U$367 per carat (excluding an exceptional 60.25 stone sold for
US$736,000) and the prices received from the second tender, at US$334 per carat
(excluding the 74.7 carat exceptional stone), are in line with those achieved on
the first tender.

Based on these sale prices achieved, Petra management has significantly
increased its revenue projections for the mine. Managements approach is not to
include exceptional stones in revenue planning, hence stones such as the 74.7
carat sold for US$1,012,636 and the 60.25 carat stone sold for US$736,000 only
add to these revenue expectations.

Petra has now sold a total of 28,246 carats from both Koffiefontein tenders for
US$11.7m.  The 135.6 carat stone that was recovered in August (as announced 17
August 2007) will be sold at the next tender, to be held in October.

Petra's net interest in Koffiefontein is 70%, with its BEE partners holding the
remaining 30%.



Correction re. media articles on Kimberley Underground announcement

Petra announced on Friday 14th September 2007 that it had entered into a
conditional agreement with De Beers to acquire the mining and associated assets
previously used by De Beers in the operation of the Kimberley Underground
diamond mines ('Kimberley Underground'), which are situated near Kimberley,
South Africa.


It has come to the Company's attention that several media articles relating to
this announcement incorrectly stated that Petra's production is expected to
reach 300,000 carats per annum, following the integration of Kimberley
Underground.

In fact, based on historical production and sales information, Petra expects
annual sales from Kimberley Underground in excess of 100,000 carats at an
average of US$160 per carat once full production is recommenced, giving gross
annual revenues in excess of US$16 million and a life of mine of at least 12
years.  Combined with Petra's existing fissure mines and the Koffiefontein mine
in South Africa, this additional production from Kimberley Underground would
contribute annual production in two years time of around 400,000 carats.



Ends



For further information, please contact:


Justine Howarth / Louise Goodeve                     Telephone: [phone]
Parkgreen Communications, London


Adrian Hadden                                        Telephone: [phone]
Collins Stewart, London




                      This information is provided by RNS
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