Interim Results

Petra Diamonds Ld
26 March 2003

                              Chairman's Statement

                       Interim Results to 31 December, 2002



Dear Shareholder

As Petra enters its sixth year of operation, it looks forward to many exciting
opportunities.  Most important of these are:

•     Alexkor Bid:     Petra interests were short-listed as a bidder for the
Government of the Republic of South Africa's 51% share disposal in Alexkor
Limited, the sea and land based diamond mine on the West Coast of South Africa.
A comprehensive bid was submitted, the outcome of which is still uncertain at
this stage.  If we are successful, Petra will overnight be transformed into a
major operator.

•     Angola:  The very promising initial results from Alto Cuilo may indicate
the potential for a major diamond mine involving both kimberlite and alluvial
deposits.  As stability returns to Angola, we are again able to operate on this
concession.  A drilling programme is planned to start in April of this year, to
be followed by a thorough feasibility study, which should finish in early 2005.
This is a lengthy process, but a thorough investigation is necessary before
large amounts of capital can be committed.  Meanwhile, we hope to generate some
funds from alluvial operations.

•     The Nabera Value Add.  The Nabera management contract entitles Petra and
its partners to one third of any surplus value that it has added during its
two-year tenure.  The value-add calculation has been tabled by the consultants
and discussions with Government should commence as soon as the Alexkor
privatisation has been finalised.

•     Our agreement with Rio Tinto Mining and Exploration Limited allowing them
to exploit seven of our properties in Limpopo Province in the north of South
Africa is moving towards fruition.  Rio Tinto are confident that Prospecting
Permits will be issued by the South African Government within two months.
Prospecting will commence immediately thereafter.

•     We plan to proceed with work on our Syferfontein kimberlite in the
Klerksdorp area and are in the process of applying for a Prospecting Permit.  We
will then conduct a bulk sample.

•     Platinum remains a key focus given our expansion plans.  We are in the
process of exploring   a possible project and its prospects look promising.

•     Fund Raising     The Company has raised in March 2003 £657,329 through a
placing with existing institutional investors of 3,286,641 Petra Diamond Ltd
ordinary shares of 10p each at 20p per share.  This funding is to be used for
Angolan operations and to provide additional working capital.

I would like to thank the staff and my fellow executives for all their hard work
and dedication and for believing in Petra.

I would also like to thank all shareholders who believe in and continue to
support Petra.


A Pouroulis

Chairman

PETRA DIAMONDS LIMITED




UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2002


                                                 Unaudited figures         Audited             Unaudited
                                                  1 July 2002- 31          figures              figures
                                                      December           1 July 2001-         1 July 2001-
                                                        2002               30 June            31 December  
                                                                             2002                 2001
                                                         £                    £                    £                  
                                                                                              As restated
                                                                             

Turnover                                                 -                    -                    -
Cost of mining operations                                -                    -                    -
Gross loss from mining operations                        -                    -                    -
Other operating income                                   -                   127,935               59,994
Other operating charges                               (388,623)            (856,897)            (331,475)
Foreign exchange gain/(loss)                            190,391          (1,553,195)          (1,799,757)
Operating loss                                        (198,232)          (2,282,697)          (2,071,238)
Share of operating profit/(loss) of                      -                    -                    -
associate
Interest received                                         4,146                9,479                4,291
Interest paid                                           (4,704)              (9,478)              (4,674)
Loss on ordinary activities before and                (198,790)          (2,282,696)          (2,071,621)
after taxation for the financial
period

Basic loss per share - pence                             (0.42)               (5.21)               (4.93)



UNAUDITED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2002


                                                 Unaudited figures         Audited             Unaudited
                                                  1 July 2002- 31          figures              figures
                                                      December           1 July 2001-         1 July 2001-
                                                        2002               30 June            31 December  
                                                                             2002                 2001
                                                         £                    £                    £                  
                                                                                              As restated
                                                                             

Retained loss for the six month period                (198,790)          (2,282,696)          (2,071,621)
Exchange adjustments on translation of                (211,457)            1,527,619            1,642,379
subsidiary undertakings
On translation of non monetary assets                  (21,066)             (25,576)            (157,378)
and liabilites
Transfer from profit and loss -                       (190,391)            1,553,195            1,799,767
foreign exchange gain/(loss)

Total recognised losses                               (410,247)            (755,077)            (429,242)



UNAUDITED CONSOLIDATED BALANCE SHEET
AT 31 DECEMBER 2002


                                             Unaudited figures        Audited            Unaudited
                                              1 July 2002- 31         figures             figures
                                                  December          1 July 2001-        1 July 2001-
                                                    2002              30 June           31 December  
                                                                        2002                2001
                                                     £                   £                   £                 
                                                                                        As restated
Assets                                                                                  
       Fixed Assets
       Intangible assets                             68,496             55,479               49,335
       Tangible assets                               26,954             12,972               12,972
       Investments in associated                     27,542             27,542               26,903
       companies
       Receivables due after more than               15,431             15,431                    -
       one year

                                                    138,423            111,424               89,210
       Current assets
       Trade and other receivables                  387,381            457,815              252,788
       Cash and cash equivalents                    152,879            139,615              773,131

                                                    540,260            597,430            1,025,919

       Total assets                                 678,683            708,854            1,115,129

       Equity and liabilities

       Capital and Reserves
       Share capital                              4,748,146          4,623,561            4,488,562
       Share premium account                     12,507,122         12,347,332           12,170,579
       Foreign currency translation               1,815,822          2,027,279            2,142,039
       reserve
       Profit and loss account                 (18,681,682)       (18,482,892)         (18,271,817)

                                                    389,408            515,280              529,363
       Minority interest                                  -                                   2,211
                                                                             -

       Trade and other payables due                 289,275            193,574              583,555
       within one year

       Total equity and liabilities                 678,683            708,854            1,115,129



Notes to the Interim Financial Statements for the six months ended 
31 December 2002

1.   The unaudited interim financial statements for the six months ended 
     31 December 2001 do not constitute statutory accounts within the meaning 
     of section 240 of the Companies Act 1985.

     They have been drawn up using accounting policies and presentation 
     consistent with those applied in the audited accounts for the year ended 
     30 June 2002

2.   No dividends were proposed or paid during the period.


3.   The prior period unaudited interim financial statements are restated in 
     line with the new accounting policies as adopted in the 30 June 2002 Annual 
     Financial Statements



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