KONO

Petra Diamonds announced the completion of the transaction with Stellar Diamonds whereby Petra has divested of its interest in the Kono Diamond project in Sierra Leone for shares in Stellar, the project's joint venture partner.

Petra Diamonds announces that it has reached agreement with Stellar Diamonds to exchange its interest in the Kono Diamond Project in Sierra Leone for shares in Stellar.

Petra reported that Kono operations produced a total of 2,923 carats during the period ended June 30, 2009. A total of 4,213 carats of diamonds have been produced from trial mining at Kono to date. Of these, the Pol-K shaft has yielded 3,209 carats and the Bardu shaft 867 carats. The balance came from other kimberlites that were tested, but have not yet been developed further.In May 2009, Petra made a decision with their joint venture partner Stellar to place the Kono kimberlite fissure project on temporary care and maintenance. The Kono project is currently sole-funded by Stellar and is at an advanced stage of exploration, with underground trial mining having been undertaken at the Pol-K and Bardu kimberlites.