ALTO CUILO

Petra Diamonds has decided that it should withdraw completely and its interest in Alto Cuilo will now revert (at no cost) to Endiama.

To date date the drilling program has tested 104 priority targets of which 81 were confirmed to be kimberlites. Bulk sampling (2,877 dry tonnes) of the 120 ha AC 16 kimberlite body returned a total of 273.38 carats of diamonds has been recovered from the sample, giving a grade of 9.5 carats per hundred tonnes for the total material processed.

The company has embarked on an intensive and focused program to test the near-surface crater rim re-sedimented volcaniclastic kimberlite ("RVK") deposits. A 4,500 t bulk sample has been taken from the AC16 kimberlite body; a total of 170.47 carats of diamonds have been recovered from the 1,898 tonnes, giving a grade of 9.0 carats per hundred tonnes for the material processed to date. Kimberlite AC9 has been estimated from the current drilling campaign to have a surface area of 25 to 30 hectares and is now Petra's number one ranked kimberlite based on Heavy Mineral Analysis ("HMA") and proximity of RVK to surface. A total of 11 NDD boreholes (2,024 metres total) have been drilled on anomalies AC42 and AC110, which together form a virtually contiguous kimberlite with a combined surface area of 112 hectares (estimated from geophysics). An initial work programme budget of US$10 million will be funded from Petra's internal cash resources over the period to end December 2008. (May13/08)