CULLINAN MINE

Petra Dimaonds reported operational results for the half-year period ended Dec31/09 at its South African operations. The combined operations of Cullinan, Koffiefontein, Williamson and Fissure mines produced 614,594 carats of diamonds. With the recovery of the 507 carat Cullinan Heritage in September 2009, the Cullinan mine has now produced four of the world's top 20 largest high quality gem diamonds: The Cullinan (3,106 carats rough), The Golden Jubilee (755 carats rough), The Centenary (599 carats rough) and The Cullinan Heritage (507 carats rough). To ensure the best possible chance to recover further such important gems, Petra re-commissioned the large diamond recovery plant at Cullinan in December 2009. This is now in full operation and a 130 carat rough diamond was recovered in January. In Tanzania its Williamson mine produced a total of 68,358 carats of diamonds of which a very few were small fancy pink diamonds, including a 2.38 carat fancy 'bubblegum' pink which sold for close to US$40,000 per carat.

Petra Diamonds Limited announced that the 507 carat white diamond has been named The Cullinan Heritage. This spectacular and historic gem has been named to reflect the date of its recovery on Heritage Day in South Africa (24 September 2009), as well as its origins from the illustrious Cullinan mine, which has produced the majority of the world's most famous and important diamonds.

Petra Diamonds announced the completion of the second tranche of the placing to raise total gross proceeds of US$120 million. Under the Placing, the Company issued a total of 121,200,000 new Ordinary Shares at a price of 60 pence per share. Also, the Company has exercised the option to acquire Al Rajhi Holdings W.L.L.'s 37% interest in the Cullinan diamond mine, South Africa, increasing its direct ownership in the mine to 74%.