Re Agreement

Petra Diamonds Ld
20 December 2000


PETRA DIAMONDS LIMITED

Petra Diamonds Limited ('Petra') announces that it has signed a binding
Agreement with New Diamond Corporation (Pty) Limited ('NDC') to acquire
certain diamond properties situated on the Vaal and Orange Rivers in South
Africa and Namibia.  These properties include two kimberlite and three
alluvial deposits.

In accordance with the agreement the consideration will be finalised on the
basis of a professional valuation of the properties being acquired and of
Petra's existing properties. Under the agreement, Petra will issue sufficient
shares to give NDC a majority stake in Petra, with a cash adjustment dependant
on the valuations.  In addition, NDC will have the initial right to nominate a
majority of directors to the board of Petra.  The agreement is conditional,
inter alia, on approval of the South African Reserve Bank, which is currently
being sought.  It is also conditional on the approval of the acquisition by
Petra shareholders, and the admission of the new Petra shares to trading on
AIM.

The acquisition will be a reverse transaction under the AIM rules, and for
that reason Petra shares, which are currently suspended, will remain suspended
until the despatch to shareholders of a circular giving full information on
the acquisition.  This circular will also comprise an admission document for
the purposes of the AIM rules.


Contacts: Adonis Pouroulis (Chairman)                       0027-11-460-1784
          Brian Moritz (Grant Thornton - Nominated Advisor) 020-7383-5100
          Rodney Johnson (Boswell City Financial PR)        020-7583-2001