May 19, 2010 Petra Diamonds announced the completion of its previously announced transaction with De Beers Consolidated Mines Limited to acquire the mining and associated assets previously used by De Beers in the operation of the Kimberley Underground diamond mines in Kimberley, South Africa. Petra has been operating Kimberley Underground under care and maintenance since September 2007, during which time Petra has built up substantial ore stockpiles totaling
approximately 500,000 tonnes (estimated to contain 90,000 carats); processing and diamond recoveries will now commence forthwith.
September 29, 2009 Petra announced that combined production from Cullinan, Koffiefontein, Fissure Mines, Williamson and Kono for the year ended June 30, 2009 totaled 1,099,367 carats which represents a 448.9% change from the previous year. Petra is also in the final stages of planning substantial production growth at its Cullinan mine with the current level of underground production of 2 mtpa expected to increase to 2.4 mtpa by the 2011 financial year and ramping up to 4 mtpa by 2019, by deepening the current
mine. In addition, a tailings treatment plant is being designed. At Kimberley Underground they have continued to operate the three mines (Bultfontein, Dutoitspan and Wesselton) under care and maintenance whilst they await the required regulatory approvals from the South African Department of Mineral Regulation. At Koffiefontein, the longer than anticipated time to achieve production "caving status" in newly opened blocks on 49 and 52 levels affected output in the year under review, but these issues have been resolved, production has largely returned to normal levels.
December 31, 2008 Ore was being stockpiled for processing once the acquisition is finalised and plant construction
completed.
