New anomaly discovered

Petra Diamonds Ld
26 August 2005

26 August 2005

                             Petra Diamonds Limited

            Alto Cuilo - further new kimberlitic anomaly identified

Petra Diamonds Limited ('Petra' or 'the Company'), the AIM-quoted and ASX-listed
diamond mining group, announces the discovery of a 60 hectare kimberlitic
anomaly on the Alto Cuilo project in north eastern Angola. This discovery is in
addition to the 125 and 26 hectare anomalies announced on 8 August 2005 and the
existing 109 hectare (115 million tonne) deposit.

Petra had been aware of there being an anomaly at this target and had previously
drilled seven holes that showed it to be a kimberlitic deposit, with one of the
holes intersecting kimberlitic material to a thickness of 90 metres. The surface
area of this anomaly has now been defined and enlarged by the ongoing processing
of data from the low level Midas helicopter survey that was undertaken in July
this year. The anomaly is 4.5 kilometres from the cluster of anomalies
previously announced on 8 August 2005.

A magnetic image of this new anomaly can be viewed at www.petradiamonds.com

Adonis Pouroulis, Petra's Chairman, commented, 'We are delighted to report that
yet another substantial kimberlitic anomaly has been found at Alto Cuilo. The
fact that this is further afield from our other targets is encouraging as this
continues to confirm the scope and scale of the project.'


 Ends


For further information, please contact:

Petra Diamonds, South Africa                    Parkgreen Communications, London
Adonis Pouroulis/Johan Dippenaar                Justine Howarth / Cathy Malins
Tel [phone]                             Tel [phone]

                                                Field PR, Adelaide
Petra Diamonds, Perth                           Kevin Skinner
John Baillie                                    Tel [phone]
Tel [phone]                             Mobile [phone]

Notes to Editors:

In December 2004 Petra implemented a formal Joint Venture Agreement with BHP
Billiton World Exploration Inc ('BHP Billiton') regarding the Alto Cuilo diamond
project in north eastern Angola.  Under the terms of the Joint Venture
Agreement, BHP Billiton can, by investing up to US$60 million in Petra Diamonds
Alto Cuilo Limited, the JV vehicle ('Vehicle') which holds Petra's share in Alto
Cuilo, acquire a share of up to 75% of the Vehicle.




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