Prospecting Permits Issued

Petra Diamonds Ld
25 March 2004

25 March 2004

                             Petra Diamonds Limited

                           Prospecting Permits Issued


Petra Diamonds Limited ('Petra' or 'the Company'), the AIM quoted mining group,
announces that prospecting permits have been issued for both the Syferfontein
and Pakwe kimberlites by the South African Department of Minerals and Energy to
Petra's wholly owned subsidiary Blue Diamond Mines (Pty) Limited.

The Syferfontein and Pakwe kimberlites are located in the North West Province of
South Africa. Previous work has confirmed both of these kimberlites as being
diamondiferous. Drilling and sampling work programmes are under final
consideration by management and further news will follow when the respective
budgets are finalised. The analysis of both of these kimberlites and the
completion of a study to ascertain if they can be developed into economic mines
will be completed within the next twelve months. The prospecting permits are
valid for the next two years.

Commenting on these developments, Adonis Pouroulis, Chairman and Chief Executive
of Petra Diamonds said, 'Should exploration results be positive a new mining
operation could be quickly established, as the kimberlites are within close
proximity of each other and situated in an area where appropriate infrastructure
is easily accessible. The budgets for the drilling and sampling work will not be
substantial with regards to Petra's total expenses for the next twelve months
and were accounted for in our recent placing.'

The majority of the funds raised in the Company's recent placing will be
directed to the Alto Cuilo project in Angola, as previously announced, where the
Board is focused on the proving of a significant diamond resource within the
next two years.


                                      Ends


For further information, please contact:

David Abery
Petra Diamonds
Tel: [phone]

Justine Howarth / Cathy Malins
Parkgreen Communications
Tel: [phone]

Frank H. Moxon
Williams de Broe
Tel: [phone]


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