Trading Update

Petra Diamonds Ld
24 January 2008


For release 24 January 2008                                             AIM: PDL

                             Petra Diamonds Limited

                                 Trading Update

Petra Diamonds Limited ('Petra' or 'the Company') announces a trading update
(unaudited) for the six months to 31 December 2007 ('the Period').

Petra is AIM's leading diamond producer. The Company has, over the past 14
months, successfully grown its base of quality production assets (all in South
Africa) through the separate acquisitions of the Cullinan, Koffiefontein and
Kimberley Underground mines. These mines complement Petra's world class
exploration base in Angola (Alto Cuilo, Luangue), Botswana (Kalahari Diamonds)
and operations in Sierra Leone (Kono).

This is the first six monthly trading update published by the Company and
trading updates will now be regularly published on a six monthly basis, shortly
after the period end and in advance of the half and full year results.

Petra will publish its interim results to 31 December 2007 on 19 February 2008,
which will include a review of exploration and other developments for the
Period.

The trading results for the Period are comprised of Koffiefontein and Petra's
fissure mines; the acquisition of both the Cullinan and Kimberley Underground
mines are subject to regulatory approvals and the completion of both of these
transactions is progressing well.

Highlights

Sales

•         Revenue for the Period: US$31.7 million, a 286% increase on the 6
months to 31 December 2006: US$8.2 million

•         Substantial revenue growth mainly due to Koffiefontein sales coming on
stream in July, supported by strong diamond prices at the fissure mines

•         115,918 carats sold for the Period, a 79% increase on the 6 months to
31 December 2006: 64,940 carats

•         Koffiefontein yielded excellent values at an average of US$408 per
carat; average value per carat from fissure mines increased substantially to
US$182 (6 months to 31 December 2006: US$126)

•         Two exceptional diamonds sold for more than US$1 million each in the
Period: a 74.7 carat diamond in September for US$1,012,636 (Koffiefontein
production) and a 99.43 carat diamond in December for US$1,305,009 (Sedibeng
production)



Production

•         Production of 101,213 carats, a 17% increase on the 6 months to 31
December 2006: 86,396

•         Changes made by Petra in the Koffiefontein treatment plant are
yielding highly encouraging results with an improvement in the recovered grade
to 8.2 carats per hundred tonne ('cpht') against an estimate of 7.3 cpht used in
the original business plan

•         Operating costs at Koffiefontein and the fissure mines are in line
with expectations


Adonis Pouroulis, Chairman, said:

'This has been a very significant period for the Company, with Koffiefontein now
adding substantially to revenue, and the acquisition of both the Cullinan and
Kimberley Underground mines. Given the scarcity of economic kimberlite diamond
deposits worldwide, Petra's strategy has been to acquire existing diamond mines
with the potential for long life operations to balance its exploration
portfolio. Our strategy has taken a further major step forward with the
successful integration of the Koffiefontein mine, where the grade and value per
carat achieved have far exceeded management expectations. In 2008 we will bring
in the Cullinan and Kimberley Underground mines to our portfolio, and we are
confident that our rising production and the associated cash flow streams will
add significant value to our shareholders.'

Production and sales summary - combined Koffiefontein and fissures mines

                            Unit       6 months ended         6 months ended       6 months ended
                                       31 December 2007       30 June 2007         31 December 2006
Production
Diamonds produced           Carats     101,213                94,078               86,396

Sales
Revenue                     US$M       31.7                   8.5                  8.2
Diamonds sold               Carats     115,918                57,881               64,940

Koffiefontein mine
                            Unit       6 months ended         6 months ended       6 months ended
                                       31 December 2007       30 June 2007         31 December 2006
Production
Diamonds produced           Carats     38,456                 29,955               14,468
Grade                       Cpht       8.2                    7.7                  7.7

Sales
Revenue                     US$M       19.1                   -                    -
Diamonds sold               Carats     46,937                 -                    -
Average price per carat     US$        408                    -                    -

Fissure mines (Sedibeng, Star, Helam)

                            Unit       6 months ended         6 months ended       6 months ended
                                       31 December 2007       30 June 2007         31 December 2006
Production
Diamonds produced           Carats     62,757                 64,123               71,928
Grade                       Cpht       47.5                   42.7                 41.6

Sales
Revenue                     US$M       12.5                   8.5                  8.2
Diamonds sold               Carats     68,981                 57,881               64,940
Average price per carat     US$        182                    147                  126



*  Note 1: All production and sales figures are stated gross

   Note 2: Although production was recorded at Koffiefontein in the year to June
2007 during the care and maintenance period, sales only commenced in July 2007
when the remaining conditions in the Koffiefontein acquisition agreement were
met



For further information, please contact:


Cathy Malins                                         Telephone: [phone]
Petra Diamonds, London

Louise Goodeve / Justine Howarth                     Telephone: [phone]
Parkgreen Communications, London

Adrian Hadden                                        Telephone: [phone]
Collins Stewart, London



About Petra Diamonds

Petra Diamonds is a pan-African diamond mining group with a balanced portfolio
combining major producing mines, world class exploration assets and a cutting
and polishing business.

With operations in South Africa, Angola, Botswana and Sierra Leone, Petra's
objective remains to grow its stature as a leading diamond producer in all of
the countries in which it operates.  In South Africa, Petra has four producing
mines and recently reached agreement to acquire a further two mines (Cullinan
and Kimberley Underground).  The Company is on track to significantly grow its
annual production from 180,000 carats in the year to June 2007, to over 400,000
carats in the year to June 2009 and is targeting over 1 million carats
thereafter.

Complementing the Group's production is an exploration and development portfolio
spread across some of the world's most prospective diamond fields. In Angola,
Petra is developing its world class Alto Cuilo and neighbouring Luangue projects
in two separate joint ventures with BHP Billiton.  In Botswana, Petra has
established the largest exploration holding in the country, where it believes
that modern exploration techniques will hold the key to the discovery of new,
major kimberlites. In Sierra Leone, Petra is developing a fissure operation and
test work to date indicates the potential for economic operations.

www.petradiamonds.com


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