Drawdown of Convertible Bond

Petra Diamonds Ld
05 October 2006


                             Petra Diamonds Limited

                   Drawdown of US$20 million Convertible Bond

Petra Diamonds Limited ('Petra' or 'the Company'), the AIM-quoted and ASX-listed
diamond mining group, announces that further to the announcement of 19 September
2006 with regards to the issue of a US$20 million unsecured, interest free
convertible bond ('the Convertible') to Al Rajhi Holdings W.L.L, Petra has today
drawn down the US$20 million under the terms of the Convertible.


As stated in the announcement of 19 September 2006, the Company is currently
evaluating opportunities that the board of Petra believe may have the potential
to grow revenue and cash flow, and the Company will provide further information
should any of these opportunities progress to formal agreements.  In the
meantime, the proceeds of the Convertible will be held by Petra and accrue bank
deposit interest and any acquisitions or other business developments will be
subject to the Company's demanding review criteria.


Ends


For further information, please contact:


Justine Howarth / Cathy Malins                   Telephone: [phone]
Parkgreen Communications, London


For further information on Petra Diamonds, please visit www.petradiamonds.com


                      This information is provided by RNS
            The company news service from the London Stock Exchange