Operation update

Petra Diamonds Ld
07 October 2002

Embargoed: To be released at 7am on Monday, 7 October 2002



Petra Diamonds Limited



Petra Diamonds to restart operations in Angola

Following the peace accord reached in Angola earlier this year, Petra's
executives have made several visits to that country to ascertain the possibility
of returning to operations. Reconnaissance teams have made site visits to Alto
Cuilo to establish ground conditions and the sustainability of a renewal of
operations.

The company, through its Angolan partner, Moyoweno, requested the Angolan
diamond authority, Endiama, to lift the force majeure imposed in 1998 when
security conditions deteriorated. Endiama has responded positively and has given
a written assurance that the time lost through force majeure, forty-four months
in total, will be added to the contract term.

Accordingly, the company has presented to Endiama a detailed work programme
covering the next two years. Senior staff have been recruited and new offices
have been established in Luanda.  The company anticipates establishing a camp on
the Alto Cuilo concession before year-end for the purpose of recommencing
exploration activities and renewing drilling operations.

Shareholders will be aware that Petra had established the presence of a major
kimberlite on Alto Cuilo prior to declaring force majeure. The Alto Cuilo
concession is approximately 3000 square kilometres situated in the Lunda Norte
province of North Eastern Angola. There are, in addition, six other known
kimberlites on the property and a further 31 anomalies that will be explored.
These geological anomalies were identified by an extensive geophysical survey
undertaken by Petra in 1997. The work programme envisages two drill rigs: one
operating on the kimberlite discovered by Petra and the other traversing the
concession to explore the other known kimberlites and anomalies.

Commenting on this Adonis Pouroulis Chairman and Chief Executive Officer said:

'We are extremely excited as Angola was the foundation upon which Petra was
built. We believe the Alto Cuilo concession to be one of the best diamond
exploration projects in the world. Recommencement of our exploration activities
on the ground could result in the identification of further kimberlites,
translating into enhanced shareholder value.'

Shareholders will be kept advised of developments as they occur.

ends



Information:

A Pouroulis, Chairman Petra Diamonds Limited. Tel ++ 27 11 460 1784

H Drummon, Keith Bailey Rogers ++ 207 827 9988

B Moritz, Grant Thornton Tel ++ 207 383 5100


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