Placing

Petra Diamonds Ld
5 November 2001

FOR IMMEDIATE RELEASE


PETRA DIAMONDS LIMITED


Petra Diamonds Limited ('Petra') has announced that, on 17 October 2001, it
concluded a private placing with one of the world's leading diamond traders,
Finkelstein Ch & Co NV ('Finkelstein'). Finkelstein's head office is in
Antwerp  and the business has been in existence for more than 100 years.

Placing

The placing is for a total of up to $5,000,000

Of this amount, the first tranche of $1,500,000 is unconditional and the
second and third tranches, each of $1,750,000 are triggered by share price
thresholds for Petra ordinary shares and two conditions precedent which have
yet to be fulfilled.

Immediately, and without any suspensive condition or condition precedent Petra
will receive $1,500,000 (£1,047,486) to be settled by the issue of 4,189,944
Petra ordinary shares at 25p. Application is being made for these new shares
to be admitted to trading on AIM, and trading is expected to commence
immediately following payment on or about November 16th 2001.

Thereafter, subject to the conditions precedent, Finkelstein will invest a
further $1,750,000 when the share price trades at 50p and a further $1,750,000
when the share price trades at 75p. In each case the subscription will be at a
discount of 5% from those prices.

The conditions precedent require inter alia that the share must trade at or
above the respective threshold prices for 15 consecutive trading days and
Finkelstein must receive diamonds from Petra for marketing with a value of at
least $3,000,000 within a six month period before making any further
investment.

At its election Finkelstein may place the second and third funds tranche with
Petra prior to the fulfilment of the conditions precedent.

Trading and Future Developments

Finkelstein also has a first right of refusal to finance other mining and
diamond mining ventures that Petra might consider.

The agreement also provides that Finkelstein will market all diamonds mined by
Petra, either from existing mines or from new ventures financed under the
arrangements set out above. Where Finkelstein does not exercise its right to
finance any venture, production from that mine is not covered by the agreement

Finkelstein also has the right to appoint two directors to the board of Petra

Petra's chairman and chief executive, Adonis Pouroulis, expressed himself to
be delighted with the transaction and the choice of partner. He said:

' This is the culmination of a process that commenced six months ago. We have
been around the world looking for the right international partner both for our
on-going activities and for our proposed bid for Alexkor. We believe that
Finkelstein is an ideal fit with us; not only because of its undoubted
financial muscle and its understanding of the diamond industry, but because it
has an entrepreneurial culture, flat management structure and simplified
decision-making process.'

The transaction was arranged by Minerva Mining Corporation Limited.



Dated 5 November 2001


For further information, contact:


Adonis Pouroulis, Chairman                                 00 27 11 460 1784
Brian Moritz, Grant Thornton (Nominated advisers)          020 7728 2367
Howard Drummon, Keith Bayley Rogers (Brokers)              020 7827 9988