Kalahari Acquisition Approved

Petra Diamonds Ld
26 September 2005



26 September 2005



                             Petra Diamonds Limited


                  Further re acquisition of Kalahari Diamonds




Petra Diamonds Limited ('Petra' or 'the Company'), the AIM-quoted and ASX-listed
diamond mining group, announces that at the EGM of Kalahari Diamonds Resources
Plc ('KDR') held earlier today the resolution approving the sale to Petra of
Kalahari Diamonds Limited ('Kalahari') was passed.



In consideration for the sale of Kalahari's entire issued share capital to
Petra, the Company will issue 16,166,529 new ordinary shares ('the Consideration
Shares') to KDR, representing 12.3% of Petra's current issued share capital.
Completion of the acquisition is conditional on the admission of the
Consideration Shares, which will rank pari passu with existing ordinary shares,
to trading on AIM and quotation of the Consideration Shares on the Australian
Stock Exchange, which is expected to be on 30 September 2005.

Adonis Pouroulis, Chairman of Petra, commented, 'We are delighted with the
result of today's EGM.  This acquisition is indicative of Petra's strategy to
simultaneously grow and diversify the Company, by providing key positioning in a
country renowned for its prolific diamond production. We are also very pleased
to be working in conjunction with BHP Billiton on this project, an invaluable
partner.'



A Petra presentation, covering Petra's proposed acquisition of Kalahari and
recent developments in Petra's other operations, can be viewed on the Company's
website.



For further information, please visit www.petradiamonds.com or contact:


Petra Diamonds, South Africa                    Parkgreen Communications, London

Johan Dippenaar/David Abery                     Justine Howarth / Cathy Malins

Tel [phone]                             Tel [phone]



John Baillie, Perth                             Field PR, Adelaide

Tel [phone]                             Kevin Skinner

                                                Tel [phone]

                                                Mobile [phone]





Editors Notes



Kalahari is a diamond exploration company which explores for diamonds in
Botswana through a strategic alliance with BHP Billiton.  Kalahari's founding
shareholders include BHP Billiton (20%), International Finance Corporation
(9.36%), some of the world's leading diamantaires (approximately 40%) and
institutional investors.



Kalahari is the holder of approximately 77,000 km2 of highly prospective diamond
prospecting licences in Botswana. Botswana is the world's largest diamond
producer by value and hosts two of the world's biggest diamond mines, Orapa and
Jwaneng. Kalahari also has an agreement with BHP Billiton, whereby Kalahari has
rights to direct the deployment of BHP Billiton's proprietary Falcon technology
and access to an experienced Falcon data acquisition and geophysics team.



The acquisition of Kalahari represents a significant step in Petra's strategy of
building a quality exploration portfolio to complement its current producing
mines, as Petra continues with its objective of becoming a significant player in
the diamond industry. One of Petra's objectives has been to increase its
geographical spread of assets across the African continent, focusing on areas
that are known to hold major diamond deposits so as not to be overly reliant on
any one country.



Kalahari applies the airborne Falcon gravity survey method in conducting diamond
exploration on its prospecting areas in Botswana.  The Falcon technology
provides a new dimension in exploration for diamonds.  It is able to 'see
through' the surface cover which overlies much of Botswana and detect anomalies
through these cover rocks. Falcon is an airborne system that can cover larger
remote areas rapidly and cost effectively.  Falcon is of great value in areas
covered by desert sand, such as in Botswana, and Petra considers the deployment
of Falcon, in conjunction with other geophysical and exploration techniques, to
be a more effective approach.



BHP Billiton has back-in rights with respect to the license areas whereby BHP
Billiton is entitled to a 51% or 60% joint venture interest (depending on how
the relevant prospecting licence was acquired).  Upon the exercise of back-in
rights, BHP Billiton would pay 400% of the past expenditure on the specific
project area to Kalahari and fund Kalahari's share of expenditure of a
pre-feasibility study on the relevant property.








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