Petra Alexkor Update

Petra Diamonds Ld
11 December 2003




11 December 2003



               Petra Diamonds Limited ('Petra' or the 'Company')

          Update on Alexkor Limited ('Alexkor') Privatisation Process



Further to the Company's announcement of 17 June 2003 in which Petra announced
that the privatisation of Alexkor had been delayed, on 10 December 2003 the
Company was advised by The Department of Public Enterprises of the Government of
the Republic of South Africa (the 'Government') that the Government Cabinet has
resolved to terminate the bidding process for the disposal of 51% of Alexkor.



Petra was bidding for the 51% share of Alexkor via Dimeng Diamond Holdings (Pty)
Ltd, a consortium of South African businesses in which Petra is a 59%
shareholder. The Alexkor privatisation process commenced in June 2002; the
termination follows a number of delays in the process as a result of a dispute
between the Government and the Richtersveld community (who live in the region
where Alexkor is located). The Government has not given the Company a reason for
the termination neither has it commented on whether there will be another
bidding process at a future date. Given the Government's stated objective of
privatising Alexkor, should a new bidding process be initiated it would be
Petra's intention, if suited to its strategy at that time, to participate in it.



During 2003 the Company has been refocusing its energies on its Alto Cuilo
concession in north east Angola. Developments with regards to Alto Cuilo are
looking encouraging and the Company looks forward to providing shareholders with
further news in the near future.

Shareholders should note that Petra is also a 29.5% shareholder in Nabera Mining
(Pty) Ltd ('Nabera'), which managed the Alexkor diamond mine between 1999 and
2001. Under the terms of the management agreement by which Nabera managed the
mine, Nabera is entitled to one third of the 'value added' to the mine during
the 1999-2001 management period ('Value Add'). Independent opening and closing
valuation reports have been completed by Snowden Mining Industry Consultants ('
Snowden') in accordance with the principles contained within the management
agreement and have been submitted to Alexkor, Nabera and the Government. The
Value Add has not, at the time of writing, been settled by the other parties to
the management agreement. Confidentiality agreements mean that at this time
Petra cannot disclose the amount of the Value Add. Petra will, together with
Nabera, be pursuing its claim and will follow the due process within the
management agreement should Alexkor or the Government dispute the Snowden
valuation reports. It should be noted that the Government has the right to elect
to satisfy Nabera's Value Add claim either in cash or in the form of shares in
Alexkor Limited.



                                      Ends

For further information, please contact:

Adonis Pouroulis                   Frank Moxon                   Justine Howarth
Petra Diamonds                     Williams de Broe              Parkgreen Communications
c/o Tel: [phone]      Tel: [phone]     Tel: [phone]




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