Stmnt re Alexkor Bid Process

Petra Diamonds Ld
17 June 2003





Press Release

Embargoed: 07:00, 17 June 2003


                          Update - Alexkor Bid Process



Petra Diamonds Ltd, the AIM listed mining group, wishes to update shareholders
on its bid, in partnership with a number of black empowerment entities, for a
51% interest in Alexkor Limited (Alexkor), the sea and land based state-owned
diamond mine situated on the west coast of South Africa.


While it was previously stated that a preferred bidder would be announced by 6
June 2003, the South African Government ('the Government') announced on Friday
13 June 2003 that it was deferring finalisation of the bidding process for the
sale of 51% of Alexkor.


The deferment has been necessitated by discussions between the Government and
representatives of the community living in the Richtersveld ('the Community'),
the district in which Alexkor is located, regarding the outcome of a land claim
by the Community.


Petra has been informed by the Government that discussions are under way with
the Community, but that the bidding process has been deferred because these have
not yet been concluded.


Government communications have stressed that the bidding process has not been
aborted, rather it is pending the resolution of the Community claim.  A copy of
the media statement issued by the Government follows this announcement.



Commenting on the announcement by the Government, Petra Chairman Adonis
Pouroulis said 'We are obviously disappointed with the delay, but we believe our
bid is competitive and our prospects of securing the 51% of Alexkor remain
strong.'



 Ends



For further information, please contact:


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





Media Statement on the restructuring of Alexkor issued by the Department of
Public Enterprises of the South African Government on the 13th of June 2003:



'The Government has resolved to defer the finalisation of the bidding process
for the disposal of a 51% interest in Alexkor pending the outcome of the land
claim by the Richtersveld community ('the Community').



Government appointed advisors in February 2002 to advise it on the disposal
process. At commencement of the disposal process, the Land Claims Court ('LCC')
had granted judgment in favour of the Government and Alexkor, dismissing the
land claim by the Richtersveld community ('the Community'). The land claim
covers the surface and mineral rights over the majority of the Alexkor land
based mining area, restitution as well as compensation from 1928.



During the course of the disposal process, the Community appealed against the
LCC judgment. On 24 March 2003, the Supreme Court of Appeals ('SCA') upheld the
Community(1)s appeal and referred the matter back to the LCC for the purpose of
determining the appropriate compensation.



Alexkor has filed an appeal against the judgment of the SCA to the
Constitutional Court and the matter is due to be heard in September 2003.



On 8 May 2003, the Community, noting its intentions to interdict the disposal
process until the land claim is resolved, served the Government and Alexkor with
an application. A notice of intention to defend the application had been lodged.




The Government has in the meantime engaged the Community in discussions aimed at
reaching a settlement of the land claim. However, as the matter has not been
resolved it has become necessary for the Government to defer the finalisation of
the disposal process.



The Government is continuing its discussions with the Community and is committed
to finding an amicable resolution to the land claim. Resolution of the land
claim issue, whichever way will allow for the finalisation of the disposal
process.



The current bidders in the Alexkor transaction have been fully briefed on this
decision and have taken the necessary steps to effect it.'



Issued by the South African Department of Public Enterprises, Pretoria, South
Africa.




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