re. Strategic Alliance

Petra Diamonds Ld
20 February 2004


20 February 2004
                             Petra Diamonds Limited

               Strategic Alliance entered into with BHP Billiton


Petra Diamonds Limited ('Petra'), the AIM quoted mining group, announces that it
has entered into a Strategic Alliance ('Alliance') with BHP Billiton World
Exploration Inc ('BHP Billiton') regarding its Alto Cuilo diamond project in
north eastern Angola.

Petra, along with its Angolan partners Empresa Nacional de Diamantes de Angola,
EP ('Endiama') and Organizacoes Moyoweno ('Moyoweno'), have established the
presence of diamondiferous kimberlites on the Alto Cuilo concession.

Under the terms of the Alliance, BHP Billiton and Petra will enter into a six
month period of exclusivity. During this time exploration will proceed and the
parties will negotiate a structure and investment schedule for BHP Billiton's
full participation in the project.  Should these negotiations be successful,
Petra and BHP Billiton will enter into a formal joint venture agreement. In the
interim, BHP Billiton will pay the sum of US$1.5m ('the Sum') which will convert
into Petra ordinary shares upon the conclusion of a formal joint venture
agreement, based on Petra's share price on the date of conversion.  In the event
that the formal joint venture agreement is not signed, the Sum will be returned
to BHP Billiton.

Adonis Pouroulis, Chairman and Chief Executive of Petra, commented: 'BHP
Billiton's interest in the Alto Cuilo project validates the Board's belief that
this could prove to be a very exciting diamond exploration project. It endorses
our decision to focus exploration in Angola, a highly prospective diamond
country which we believe could become one of the world's leading diamond
producers.  We look forward to working with BHP Billiton towards the securing of
a formal joint venture agreement in due course.'

For further information, please contact:

Adonis Pouroulis - CEO
David Abery - Finance Director
Petra Diamonds
Tel: (c/o Parkgreen Communications) [phone]

Justine Howarth / Cathy Malins
Parkgreen Communications
Tel: [phone]

Frank H. Moxon
Williams de Broe
Tel: [phone]


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