Update on Kono Project

Petra Diamonds Ld
27 February 2006

                             Petra Diamonds Limited



                           Kono Project, Sierra Leone

                       - Nearing First Diamond Production





Petra Diamonds Limited ('Petra' or 'the Company'), the AIM-quoted and ASX-listed
diamond mining group, announces an update with regards to the Kono Project ('the
Project') which is situated in the Kono diamond district of Sierra Leone.



Petra and Mano River Resources Inc ('Mano') are engaged in a joint venture ('the
Mano JV') relating to the production of diamonds from the Lion fissures which
are within the joint venture's licence areas.



Highlights:



  • Mano JV nearing first production from the Lion fissures, with site
    facilities to be established by the end of March 2006 and diamond recovery
    from first bulk samples expected by June 2006



  • Petra has incurred US$3 million of expenditure on the Project and has
    earned a 51% interest in the joint venture and in Basama Diamonds Limited,
    which holds the Project licences



Pre-production update

Petra confirms that the Project is on track for the first diamond recovery from
treatment of the initial bulk samples by June 2006.



The establishment of site facilities remains on track and is expected to be
completed by the end of March 2006. The manufacture in South Africa of the
diamond recovery plant was completed on schedule and it has been shipped.



Pitting and trenching prior to final selection of intrusion points revealed very
encouraging results, with fissure widths of 1.7, 1.2 and 0.4 metres having been
exposed on the Lion fissures 1, 2 and 3 respectively.



During the course of the past year numerous geological samples were taken from
various kimberlite fissures in the area, with mineral probing returning some
very encouraging results which have been used in prioritising the location of
intrusion points.



Further geological exploration work is also being undertaken for the many
kimberlite dykes known to exist on the joint venture's licences in the Kono
region. High-resolution satellite imagery images are awaited to assist in this
aspect.



Financial

Under the terms of the Mano JV, by spending a total of US$3 million on the
Project, Petra would acquire a 51% equity interest in the Project. Petra
previously announced that it would accelerate expenditure and therefore the
development of the Project in order to bring production on line as soon as
possible. Petra confirms that this expenditure has fast-tracked development of
the Project and means that first production is now expected by June 2006.



Petra announces that it has now incurred US$3 million of expenditure on the
Project and has therefore earned a 51% interest in the Mano JV, including Basama
Diamonds Limited (previously a 100% owned subsidiary of Mano), the joint venture
company which is the holder of the Project licences.



Johan Dippenaar, Petra's CEO, commented, 'We have successfully accelerated
development of the Kono Project, sending a clear message to the market that we
deliver on our objectives.  We have already earned our 51% equity interest in
this exciting project and look forward to first production beginning later this
year.



We enjoy an excellent relationship with Mano River Resources and the solid
co-operation received from them has assisted a great deal in the efficient
development of the Project. '.



Mano's President and CEO, Dr Tom Elder, commented:



'We are very pleased with the rapid progress Petra has made in moving the first
of Mano's kimberlite dykes in Kono towards diamond production. Petra's ability
to call on a substantial pool of highly experienced exploration and mining
personnel from their three South African dyke-mining operations has undoubtedly
been a key factor.



'Mano also applauds the fact that, in parallel with the technical programme,
Petra has expended considerable effort in establishing harmonious relations with
Kono area Chiefs and Elders and the local populace in general.



'The acceleration of the programme is excellent news, especially since at the
immediately adjacent Energem dyke/pipe mining operation the diamonds being
produced are currently reported to be selling for well in excess of US$200 per
carat.'





 Ends



For further information, please contact:


Petra Diamonds, South Africa             Parkgreen Communications, London
Johan Dippenaar/David Abery              Justine Howarth / Annabel Leather
Tel [phone]                      Tel [phone]



John Baillie, Perth                      Field PR, Adelaide
Tel [phone]                      Kevin Skinner
                                         Tel [phone], Mobile [phone]






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