Alto Cuilo Update

Petra Diamonds Ld
06 May 2004

For release 6 May 2004

                             Petra Diamonds Limited
                         Alto Cuilo - operations update

Petra Diamonds Limited ('Petra' or 'the Company'), the AIM quoted mining group,
is pleased to announce an update with regards to the Alto Cuilo project in North
Eastern Angola.


Background

Petra is currently focusing its activities on a part of the Alto Cuilo
concession which is of particular interest, the Mussunuige-Luangue river
interfluve ('the ML Complex'). The ML Complex is an area equivalent to sixteen
square kilometres whilst the entire Alto Cuilo project area covers three
thousand square kilometres. Of the thirty one anomalies identified by Petra in
1998 by aeromagnetic survey, eleven are within the ML Complex. A systematic
follow up of these eleven targets is underway as set out below.



Drilling Programme

Drilling has been carried out in March and April 2004 in the Camambeia valley,
where the diamondiferous deposit AC2 was identified in June 2003. Two further
distinct deposits have been identified and interpretation of the drilling
results together with field observation has resulted in the valley now being
identified as part of a larger kimberlite and alluvial complex.



Drilling is currently underway in the Calamba valley, where the diamondiferous
deposit AC4 was also identified in June 2003. A drill hole has intersected a
kimberlite vent and the drill core recovered will be sent to an independent
consultant's laboratory for geochemical analysis. Drilling will continue in the
immediate vicinity to determine the geometry of the deposit prior to moving onto
the next magnetic anomaly within the ML complex.



So far in the ML Complex every magnetic target investigated has yielded a
kimberlite with associated secondary diamond deposition in the vicinity. This
brings the total number of kimberlites in this area to six. A further four
magnetic anomalies in the ML Complex are to be investigated during the next
three months.



Validation by ground magnetic survey of geophysical anomalies generated by the
airborne survey continues. This should result in the generation of more drilling
targets.



Bulk sampling programme

The drilling programme will soon be supplemented by a bulk sampling programme of
both primary and secondary deposits. Manufacture of the Dense Media Separation
diamond recovery plant has been completed and it is being prepared for shipment
to Luanda in the next few days. The plant will then be transported from Luanda
to Alto Cuilo for on-site commissioning. The plant, which has a 65 tonne per
hour capacity, will commence the processing of bulk samples on site during the
next four months.



Initial samples

Grab samples taken by project personnel from different exposed deposits in the
ML Complex have yielded macro-diamonds including one stone weighing 0.54 carats.
It is too early in the exploration programme to determine a representative value
and grade and further news will follow when the bulk sampling programme gets
underway.



Commenting on this update, Adonis Pouroulis, Chairman and Chief Executive of
Petra Diamonds said, 'These initial results are highly encouraging, particularly
that every magnetic target investigated so far in our current focus area has
yielded a kimberlite.  Alto Cuilo is a very exciting project to work on and has
the potential, in due course, to become a significant asset for Petra.''


                                      Ends


For further information, please contact:


Adonis Pouroulis         Justine Howarth / Cathy Malins    Frank H. Moxon
Petra Diamonds           Parkgreen Communications          Williams de Broe
Tel: [phone]     Tel: [phone]             Tel: [phone]


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