Announcements

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Final Results to June 2007

8 October 2007

Highlights and Trading Update

Results

• Revenue to 30 June 2007: US$17.0 million (June 2006: US$20.9 million); revenue post year end for 3 months to 30 September 2007: US$15.9 million, substantial growth and only US$1.1 million short of entire revenue for year to June 2007; revenue jump in 3 months to September 2007 due to Koffiefontein coming on stream in this period
• Group revenue and cash flows expected to be substantially higher in year to June 2008 as Petra has sound foundations for growth in place
• Group cash balances at 30 June 2007: US$44 million (30 June 2006: US$7 million); cash balances 30 September 2007: US$65 million

South Africa

• Resource update - increase of 101% to 9.33 million carats attributable (last statement May 2005: 4.64 million carats); in-situ value of US$1.5 billion attributable
• Production of 180,474 carats for the year to 30 June 2007 (June 2006: 175,011 carats); 250,000 carats expected to June 2008; in excess of 400,000 carats expected to June 2009
• First sales from Koffiefontein - 28,246 carats sold for US$11.7 million in quarter to 30 September 2007, average of US$414 per carat, excellent values for a kimberlite mine; Koffiefontein expected to add 90,000 carats to annual production
• Petra to acquire Kimberley Underground Mines from De Beers which will add in excess of 100,000 carats to annual production in the year to June 2009

Angola

Alto Cuilo

• Next phase of exploration underway with mini bulk sampling programme; kimberlite AC63 records intersections of 22.7 cpht over 90 metres, peaking at 35.5 cpht over 30 metres; other high grade zones identified
• October 2007: kimberlite AC98 records further high grade areas, including intersections of 33.13 cpht over 33 metres
• As at 30 September 2007, BHP Billiton, Petra's joint venture partner, had spent US$52.2 million on exploration development at Alto Cuilo

Luangue

• February 2007: Petra acquired an interest in Luangue, a highly prospective project bordering Alto Cuilo in north eastern Angola, consolidating the Group's position in the diamond belt of Angola; Petra subsequently (August 2007) entered into a joint venture with BHP Billiton to develop Luangue; the deal will effectively fast track project development, with the BHP Billiton earn-in requiring funding to a BHP Billiton pre-feasibility

Botswana

• Positive results from Kalahari drilling programme; discovery of a new kimberlite using Xcalibur magnetics; identification of 20 prospective targets in the Orapa North licence block
• Kukama Project; geophysical indications that diamondiferous kimberlite 173S could be 25 hectares in size
• Discovery of kimberlite X25 in the Gope area - highly significant development as area has been explored thoroughly by other exploration companies in the past; vindicates Petra's belief that new exploration technologies and methodologies can identify significant new kimberlites in Botswana
• New exploration licences granted to Petra over 2 known diamondiferous kimberlites in the Jwaneng locality

Sierra Leone

• Development programme making solid progress at the Kono project, with test shafts delivering highly encouraging results due to consistent kimberlite fissure and good fissure widths encountered
• Trial mining commenced on three shafts, where in-situ grades of between 50 and 80 carats per hundred tonnes have been achieved
• Petra believes that the test shafts have a high likelihood of developing into producing operations; appropriate infrastructure and equipment already in place to make seamless transition to full production

Beneficiation

• Acquisition of Calibrated Diamonds gives Petra the ability to cut and polish its own production, transforming Petra into a vertically integrated group and enabling the Company to add value to its rough production
• Production build up underway; expected that 2,500 carats per month of rough will be processed by mid 2008

Adonis Pouroulis, Chairman, said; 'This last year has been the most gratifying in the Company's history as we have developed the critical mass, the in-house capabilities and, most importantly, the credibility to take the business to the next level. We have delivered, with Koffiefontein and Kimberley Underground, on our promise to shareholders to introduce assets to the Group which will substantially increase our current production and return significant cash flows. We have also seen exciting developments with our major exploration assets in Angola. Bulk sampling and drilling at Alto Cuilo is returning very encouraging results and our second joint venture in Angola with BHP Billiton at neighbouring Luangue consolidates our position in this highly prospective diamond region. Calibrated Diamonds is on track and we expect to cut and polish 2,500 carats of rough per month by mid-2008.'

'The development of the Group over the past year has been quite outstanding and I look forward to further building on this success in 2008.'

Summary of Results (unaudited)

	12 months to 31 June 2007 (US$ millions)	12 months to 31 June 2006 (US$ millions)
Revenue (note 1)	17.0	20.9
Production (carats) (note 1)	180,474	175,011
Gross profit on mine - SA operations (Note 2)	1.3	3.3
Loss before deprication, amortisation and foreign exhange movements	7.8	5.3
Loss for the year	20.9	18.8
Cash at bank (period end)	44.1	7.0

Notes:

• The Koffiefontein acquisition was expected to have been completed (with all conditions being met) by June 2007, but completion only occurred in July 2007, post year end. Had this occurred pre 30 June, Petra would have been able to (in accordance with the conditions of the Koffiefontein purchase agreement) sell diamonds from the processed ore and Group revenue to June 2007 would have been $9.9 million higher. Although Petra was maintaining the cave for many months and processing ore from May 2007, diamonds could not be sold until all conditions were met, therefore Koffiefontein production of 44,423 carats to June 2007 (Group accounting policy is that diamonds in ore mined but not processed are included in closing stock) has been included in diamond inventory at a cost of US$3.5 million; the corresponding gross profit of US$6.4 million (being sales revenue less US$3.5 million and associated plant recovery costs) was recorded in the 3 months to September 2007 when the diamonds were sold and will be accordingly realised in the financial year ending 30 June 2008.
• Gross profit stated before depreciation and amortisation.
• In August 2007 Petra received US$22.35 million from BHP Billiton relating to the disposal of 25% of Frannor Investments and Finance Limited. Petra's cash at bank as at 30 September was US$65 million.

View the Preliminary Results Announcement for the year ended 30 June 2007 (unaudited) (PDF - 100KB)

For further information, please contact:

Parkgreen Communications, London

Louise Goodeve / Justine Howarth
Telephone: +44 (0) 20 7851 7480

Collins Stewart, London

Adrian Hadden
Telephone: +44 (0) 20 7523 8000