Acquisition

Petra Diamonds Ld
22 October 2001

FOR IMMEDIATE RELEASE

PETRA DIAMONDS LIMITED

Petra Diamonds Limited ('Petra') is pleased to announce that it has acquired
80% of Cancun Trading £85 (Pty) Ltd ('CT') for a cash consideration of
ZAR1.00.

CT has the right to mine for diamonds both in the alluvial gravels and in any
potential kimberlites found on and in the Remainder of the Farm Koppieskraal
no. 140, ('Koppieskraal'). CT also has the right to process a diamond tailings
dump situated on the farm Schutsekama no. 53 ('Schutsekama'). The dump is
estimated to contain 600 000 tons of material at a grade of 0.5 carats per 100
tons.

Koppieskraal and Schutsekama are situated on the Riet River 30 miles
south-west of Kimberley in South Africa. The Riet River has played host to
diamond mining activities for the past 100 years.

Machinery and equipment is already on site so that diamond production at
Koppieskraal will commence immediately. Salient facts of the deal are:

*     Petra's acquisition cost is confined to commitments to fund operating
      expenditure, capital expenditure and mineral lease ownership under        
      strictly defined criteria; and

*     Capital requirements will be injected by way of interest-bearing loan
      capital other than a small capital amount that will be paid for plant and
      machinery.

*    No dividend will be paid until the loans are repaid in full.

*    Petra is not reimbursing the previous owners of CT for their development
     work thus far of approximately £200 000.

Shareholders should note that:

*    The Riet River diamond field is characterised by diamond gravels
     producing a significant proportion of stones of exceptional quality and    
     size; the largest on record being a 411carat gem only 3 miles downstream   
     from Koppieskraal.


*     Koppieskraal is in the middle of a historically productive area for
      larger stones and diamonds in excess of 200 carats have been found in the
      vicinity. Within the last three months a 162 carat 'D' colour stone on the
      farm adjacent to Koppieskraal was recovered and sold for US$3.5 million,  
      (£2.4m).



*     Initial drilling and exploration work by the previous owners has
      confirmed at least 24 million tons of diamondiferous gravel.


*    A second phase of drilling and bulk sampling will commence immediately on
     the middle and upper terraces with the aim of extending the gravel reserves
     and further proving up the diamond grade. This will take place             
     simultaneously with mining the river terraces.


*     Initial production is forecast to yield 250/300 carats per month.


*    Petra expects the gravels, once developed and proven across the property,
     to produce approximately 800/1,000 carats per month at an average value of
     US$500 per carat.



*     Gross annual revenue is expected to be US$4 million to US$5 million.



This acquisition is in line with Petra's previously stated objective to move
from an exploration driven company to one focussed on a mining revenue stream.
To this end Petra anticipates that it will make further announcements with
regard to acquisitions and development in the near-term.



Commenting on Petra's progress, Adonis Pouroulis, the Chairman, said  'We are
entering an exciting period in our history. I am very positive about the
opportunities inherent in the upcoming privatisation of Alexander Bay Diamond
Mining Company by the South African government. I am excited, too, by our new
acquisition and further acquisitions that we are presently considering. Work
on our Syferfontein kimberlite is scheduled to begin this year and before the
end of the current year we will be able to show a sound portfolio of producing
assets.'

For further details please contact:

Howard Drummon
Keith Bayley Rogers             (UK) 207 827 9988


Brian Moritz
Grant Thornton                  (UK) 207 383 5100



Adonis Pouroulis
Petra Diamonds SA (Pty) Ltd     (SA)  11 460 1784

22 October 2001