Petra Diamonds Limitedthe international diamond mining group

Trading Update – 28 July 2008

Important Notice

These Presentation Materials do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for anyoffer to buy or subscribe for any securities in the Company nor shall they or any part of them form the basis of or be relied upon inany manner or for any purpose whatsoever.

These Presentation Materials must not be used or relied upon for the purpose of making any investment decision or engaging in anThese Presentation Materials must not be used or relied upon for the purpose of making any investment decision or engaging in aninvestment activity and any decision in connection with a purchase of shares in the Company must be made solely on the basis ofthe publicly available information. Accordingly, neither the Company nor its directors makes any representation or warranty inrespect of the contents of the Presentation Materials.

The information contained in the Presentation Materials is subject to amendment, revision and updating in any way without noticeor liability to any party. The presentation materials contain forward-looking statements which involve risk and uncertainties andy y p y p gactual results and developments may differ materially from those expressed or implied by these statements depending on a varietyof factors. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of theinformation or opinions contained herein, which have not been independently verified.

The delivery of these Presentation Materials shall not at any time or in any circumstance create any implication that there has beenno adverse change, or any event reasonably likely to involve any adverse change, in the condition (financial or otherwise) of theC i th d t f th P t ti M t i lCompany since the date of these Presentation Materials.

The Presentation Materials are confidential and being supplied to you for your own information and may not be reproduced, furtherdistributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person (except the recipient’sprofessional advisers) or published, in whole or in part, for any purpose whatsoever. The Presentation Materials may not be usedfor the purpose of an offer or solicitation to subscribe for securities by anyone in any jurisdiction.

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A Leading Diamond Producer

One of the world’s largest diamond groups by resource base

Operations

Experienced, entrepreneurial management team – close to deal flow in Africa

Proven ‘marginal’ assets turnaround credentialsProven marginal assets turnaround credentials

Superior growth – projected four-fold production increase for 2008/9 to around 1m carats

Anticipated production growth

Current portfolio of mines allows for further growth post 2008/9

World class exploration portfolio across Africa’s diamond-fields

rats

per

annum

-('

000)

0100200300400500600700800900

1,0001,100

05/06 08/0906/07 07/08 09/10

AIM – ‘PDL’ - £180m market cap

Ca 05/06 08/0906/07 07/08 09/10

Production figures are stated gross

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Supply Shortage = Higher Prices

Supply and Demand in Rough Terms(at February 2008 values)

Supply shortage keeps prices strong

(at February 2008 values)

$20bn

$22bn

SupplyDemand

Prices rose by 20% on average in 2007

Higher quality goods have seen 30% to 50% yr-on-yr increases

$18bn

30% to 50% yr on yr increases

Mid tier producers all seeing record prices

De Beers raised prices 8 5%

$14bn

$16bnDe Beers raised prices 8.5% then a further 5% in 2008 so far

Strong growth continues in China, India, Russia and Middle East

$12bn2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

East

US downturn could affect demand for lower end, but Petra’s goods are resilient - over US$300 / carat average

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US$300 / carat averageSource: WWW International Diamond Consultants Ltd

Focus on Africa – 65% World Production

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* Acquisition to complete 2008

Trading Update: Year to June 2008

Production & Sales

12 Months to 12 Months VarianceJune 08 to June 07

Production

Diamonds produced carats 200,287 180,474 +11%

Sales

Mine revenue (rough) US$m 76.6 16.7 +359%( g ) $

Diamonds sold carats 230,172 122,821 +87%

Average price per carat US$ 333 136 +144%

Note 1: All production and sales figures are stated gross, as will be recorded in Petra’s financials before minority interests

Note 2: The acquisition of the Koffiefontein Mine was completed by Petra in July 2007

Note 3: The Cullinan mine acquisition was completed 16 July 2008 and will therefore impact the next financial period

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Surpassing Expectations

Petra has delivered on its targets and in many cases has surpassed expectations

Target Achievement

Identify opportunities for further growth Agreements reached to acquire Cullinan and Kimberley Underground minesKimberley Underground mines

Revenue for FY 2007/08:analyst consensus US$70m – US$72m

Petra beats analyst consensus: US$76m

Annual production of 500,000 carats by FY 2009/10

Annual production of 1 million carats now expected to be achieved FY 2008/09

Successfully re-commission the Koffiefontein mine

Koffiefontein achieved US$478/carat for the period, grade now running at 9.1cpht, costs and capex on target

Maximise revenue at the Fissure Mines Average value per carat is up 54% at US$210 and revenue is up 57% at US$26mUS$210 and revenue is up 57% at US$26m

Complete Cullinan acquisition Acquisition completed on target – mid July 2008

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Koffiefontein Sparkles

First year production in Petra’s hands – acquisition completed July 2007

Dramatic economic turnaround

One of the world’s top kimberlite mines by carat value (industry average is US$90/carat)

Average value / carat continues to strengthen due to operational improvements & market for high end goods (March tender: US$524, April tender: US$526, June tender: US$726)

Regularly produces exceptional stones; 74.7 carat diamond sold in September for US$1,01m (US$13,556 per carat); 41.6 carat diamond sold in June for US$1.79m (US$43,028 per carat)June for US$1.79m (US$43,028 per carat)

Initial mine life of > 12 years; significant additional resources expected below 620m

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Koffiefontein Results

12 Months to June 08

12 Months to June 07June 08 to June 07

Production

Diamonds produced carats 89,622 44,423

Grade cpht 9 1 7 7Grade cpht 9.1 7.7

Sales

Revenue (rough) US$m 50.2 -

Diamonds sold carats 105,479 -

Average value per carat US$ 478 -g p $

Note 1: Production for year to June 2007 was stockpiled by Petra during the care and maintenance period until the acquisition completed in July 2007 and sales commenced

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Fissure Mines (Helam – Sedibeng – Star)

12 Months 12 Months Variance12 Months to June 08

12 Months to June 07

Variance

Production

Diamonds produced carats 110,665 136,051 -19%

Grade cpht 41.9 42.1 -0.5%

SalesSales

Revenue (rough) US$m 26.2 16.7 +57%

Diamonds sold carats 124,693 122,821 +1.5%

Average value per carat US$ 210 136 +54%

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Growth Drivers for FY 2009/10

Cullinan – A Company Maker

16 July 2008 – PDCC acquires Cullinan and Petra takes control of operations

World’s 2nd largest indicated diamond resource by in-situ value = 207 million carats (incl. Tailings)

Historic producer of spectacular diamonds, incl. world’s largest ‘Cullinan’ at 3,106 carats, a quarter of the world’s diamonds over 400 carats and only significant source of highly prized blue diamonds

FY 2008/09 C lli t d 700 000 t FY 2008/09, Cullinan to produce 700,000 to 850,000 carats*

FY 2009/10, Cullinan to produce over 1 million carats p a * (est annual revenues of US$100m*)carats p.a.* (est. annual revenues of US$100m*)

PDCC (Petra Diamonds Cullinan Consortium) comprises Petra (37%), Al Rajhi (37%) and BEE Partners (26%) – Petra has options to increase

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Partners (26%) Petra has options to increase ownership to 60%

* (all figures gross PDCC)

Cullinan - Spectacular Diamonds

The Niarchos426.50 carats uncut, 128 25 li h d

The Blue Heart30.82 carats polished1909 128.25 polished

19541909

The Golden Jubilee755.50 carats rough, 545 65 li h d

The Premier Rose353.90 carats rough, 137 02 li h d

The Centenary

545.65 polished1986

137.02 polished1978

The Cullinan 3 106 carats rough The Taylor Burton599.10 carats

rough, 273.85 polished1986

3,106 carats rough1906

The Taylor Burton240.80 carats rough, 69.42 polished19661986

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Kimberley Underground

Petra currently operating mine under care & maintenance

Acquisition to complete by end 2008

New plant being constructed in-house

Ore being stockpiled – diamond recoveries and l ill Q1 2009sales will commence Q1 2009

Sales expected > 100,000 carats pa; US$160/carat; US$16m revenue pa

Also historic producer of spectacular gems such Also historic producer of spectacular gems, such as The Oppenheimer: (253.7 carat rough)

Comprises Wesselton, Du Toitspan and Bultfontein mines

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Exploration & Development

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Exploration Overview

Exploration provides the building blocks of future production

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Exploration Highlights

Petra is exploring some of the world’s most prospective diamond ground

AngolaExploration refocused to test the near-surface crater rim resedimented volcaniclastic kimberlite (“RVK”) depositsAlto Cuilo - bulk sampling underwayAlto Cuilo - bulk sampling underwayLuangue - 138 anomalies and first drill confirmed as kimberliteExploration ground just 35km from major Catoca mine

BotswanaKalahari - 35 known kimberlites & other highly prospective anomaliesDiscovery of new kimberlite near producing Damtshaa mine

Sierra LeoneKono - advanced exploration project with trial mining underwayFirst parcel of diamonds on tender end AugustFirst parcel of diamonds on tender end August

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Appendices

Appendix - Corporate

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The Petra Board

Adonis Pouroulis

Chairman

• Successful mining entrepreneur

• Founded Petra Diamonds

Johan Dippenaar

CEO

•One of South Africa’s most successful diamond entrepreneurs with 18

David Abery

Finance Director

• Extensive experience as Chief Financial Officer in South African and UK b

Jim Davidson

Technical Director

•Acknowledged world authority on kimberlite geology and exploration; Founded Petra Diamonds

in 1997 and floated first diamond company on AIM

•Built Petra into pan-African diamond group with 3000 employees

years experience

• Founded diamond group in 1991 and grew portfolio to 3 producing mines before listing as Crown Diamonds on ASX

business environments

• In-depth knowledge of AIM

• Integral to structuring and deliverance of strategic group corporate

>20 years experience in mine management

• Formerly Head of Diamond Exploration for Rio Tinto across Southern Africa

• Instrumental in raising funds to help finance and structure early stage mining companies in Africa

• Merger with Petra in 2004 – now at helm of AIM’s largest diamond company

group corporate development, including acquisitions and joint ventures

•As Technical Director of Crown Diamonds, managed specialist underground fissure mines over a decade

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Corporate Profile

Listing AIM: PDL

Offices Corporate - Jersey

Corporate - Johannesburg%

Major Shareholders

Corporate Johannesburg

Representative - London

Shares in Issue 184 million

Fully diluted 203 million

- Saad 28.7

- JP Morgan 11.49

- Al Rajhi 8.0

- Photon Global 7.012 month high/low 155p – 93p

Cash at 31 Dec '07 US$58.9 million

Market cap £180 million

Share price @ 25 July 2008 97.5p

Photon Global 7.0

- Management 6.1

Share Price Chart Share price @ 25 July 2008 97.5pShare Price Chart

Broker Price Targets

BMO C it l M k t 09/07/2008 180BMO Capital Markets 09/07/2008 180p

Collins Stewart 14/05/2008 220p

Natixis Blochreider 21/02/2008 240p

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RBC Capital Markets 15/04/2008 160p

Our Responsibility to Diamonds

Leading CSR practices aimed at stimulating socio-economic development in economic development in Africa

A school rebuilt by Petra in Sierra Leone

Angola Clinic treats around 400

Sierra Leone

Angola - Clinic treats around 400 people per month, with large impact on infant mortality over past 2 years

South Africa - Literacy programme, HIV / AIDS awareness programme HIV / AIDS awareness programme, local sports programme

Sierra Leone - Skills development, agriculture initiatives, supporters of Small Business Entrepreneur

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Small Business Entrepreneur programme

Thank You

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Further Enquiries, contact: Cathy Malins – cathym@petradiamonds.com –+44 20 7493 7671

www.petradiamonds.com