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Completion of Kono Project Divestment

24 May 2010

Petra Diamonds announces the completion of the transaction with Stellar Diamonds plc ("Stellar") 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.

Further to the announcement of 4 May 2010, completion of the transaction was subject, inter alia, to the final signature of a share purchase agreement and issue of the Stellar shares to Petra. Both of these conditions have now been met. Stellar has issued to Petra 4,500,000 ordinary Stellar shares (based on a valuation of £0.20 per ordinary share), settling the transaction consideration of £900,000.

For further information, please contact:

Cathy Roberts
Petra Diamonds, London
Telephone: +44 20 7318 0452
Email: cathyr@petradiamonds.com

Bobby Morse / James Strong / Katharine Sutton
Buchanan Communications
Telephone: +44 20 7466 5000
Email: bobbym@buchanan.uk.com
Email: jamess@buchanan.uk.com Email: katharines@buchanan.uk.com

Nicola Taylor
Russell & Associates
Telephone: +27 11 880 3924
Email: nicola@rair.co.za

Ryan Gaffney / Andrew Chubb
Canaccord Adams Limited
Telephone: +44 20 7050 6500
Email: rgaffney@canaccordgenuity.com
Email: achubb@canaccordgenuity.com

Joshua Critchley / Martin Eales
RBC Capital Markets
Telephone: +44 20 7653 4000
Email: joshua.critchley@rbccm.com
Email: martin.eales@rbccm.com

About Petra Diamonds

Petra Diamonds is a leading supplier of rough diamonds, with a gross resource base of 262 million carats. The Company offers a unique growth profile within the diamond sector, increasing its annual production fivefold in the year to June 2009 to over one million carats, and with firm plans in place to grow production to over three million carats.

Petra has a well-diversified portfolio, with majority interests in seven producing mines: six in South Africa (Cullinan, Koffiefontein, Kimberley Underground, Helam, Sedibeng and Star) and one in Tanzania (Williamson).

Petra conducts all its operations according to the highest ethical standards, and will only work in countries which are members of the Kimberley Process. The Company is quoted on the AIM market of the London Stock Exchange (AIM: PDL).