Drilling Report

Petra Diamonds Ld
2 August 2004

2 August 2004

                             Petra Diamonds Limited

                     Alto Cuilo - Positive Drilling Update


Petra Diamonds Limited ('Petra' or 'the Company'), the AIM quoted diamond mining
group, is pleased to announce an update with regards to the Alto Cuilo project
in North Eastern Angola.

Drilling Update

During the period May through to July 2004 in excess of 1,350 metres of diamond
core drilling was completed. This work has resulted in the intersection of
primary kimberlite to a depth of 81 metres as well as the intersection of
secondary kimberlite deposits to a thickness in excess of 235 metres. The
drilling was carried out on nine targets in the area which the Company has
previously announced as being part of a larger kimberlite and alluvial complex.
The drilling work will continue with the objective of ascertaining the total
size of the kimberlite and alluvial deposits.

The total number of known kimberlites in the kimberlite and alluvial complex on
which Petra is focusing its activities is eleven; three of these kimberlites are
amenable to surface bulk sampling. A further four magnetic anomalies and two
resistivity targets are to be investigated during the next three months.
Validation by ground geophysical surveys of the anomalies generated by the
airborne survey continues.

Bulk Sampling

Apart from six outstanding containers, which are on the road from Luanda to
site, all the diamond recovery plant is now on site and plant erection will
commence during the forthcoming week. It is anticipated that treatment of bulk
samples will start in September 2004. The bulk sampling work will obtain a
parcel of diamonds from the diamond-bearing deposits for evaluation, enabling us
to determine a representative diamond value and grade.

Commenting on this update, Kevin Dabinett, CEO of Petra Diamonds said, 'The work
at Alto Cuilo continues to yield positive results.  Alto Cuilo is a project of
great potential and I believe we will be in a position to announce further
positive news in the near future from both the drilling and bulk sampling work.'

 Ends


For further information, please contact:

Kevin Dabinett / David Abery        Justine Howarth / Cathy Malins          Frank H. Moxon
Petra Diamonds                      Parkgreen Communications                Williams de Broe Plc
Tel: [phone]                Tel: [phone]                   Tel: [phone]


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