Alto Cuilo Update

Petra Diamonds Ld
07 December 2004



                             Petra Diamonds Limited

                         Alto Cuilo - operations update


Petra Diamonds Limited ('Petra' or 'the Company'), the AIM quoted diamond mining
group, announces an operations update with regards to the Alto Cuilo project in
north eastern Angola.



Project update

Since the Company's last Alto Cuilo update announcement on 8 September 2004,
diamond core drilling has continued at a further fifteen sites in the area of
the Mussunuige-Luangue river interfluve ('the ML Complex'). All fifteen sites
have intersected kimberlitic material, with total drilling in excess of 2,571
metres having been undertaken since the last update, giving a total of 5,110
metres drilled to date.



Core samples from these additional sites have also been analysed by an
independent expert from Rhodes University, South Africa. As per the previous
samples sent for analysis from other drill sites, these were confirmed as
kimberlitic in nature. Over one thousand kilogrammes of kimberlitic material has
been collected for further diamond analysis work at a Canadian research
facility. Authorisation for the export of this material has been requested from
the Angolan authorities.



The drilling has resulted in intersections of kimberlitic material ranging from
33 metres to 160 metres in true thickness. The drilling will continue with the
objective of further delineating the size of the kimberlitic deposit.



The drilling carried out to date on anomalies 4 and 13 has led to the Company
calculating a deposit of kimberlitic material of approximately 115 million
tonnes. It is expected that the continuing drilling programme will increase the
size of this deposit. This is only an estimate of tonnage potential based on
wide spaced drilling and does not constitute a reserve or resource for mining.
Sampling for macro diamond grade potential of this body still has to be
undertaken. Sampling of the alluvial deposit and adjacent kimberlitic exposures
has produced many gem quality diamonds. The kimberlitic exposures are not
connected to the kimberlite currently being drilled.



The total number of known kimberlite occurrences in the ML Complex, on which
activities are currently focused, is now twelve.



The ground geophysics work carried out in August has been processed by
independent experts in South Africa. Their interpretation suggests a kimberlitic
complex of approximately 70 hectares in area existing around anomalies 4, 13 and
14 within the ML complex.



The diamond recovery plant (MB100 and DMS) was commissioned on 23 September
2004. The plant has run from that date with steadily improving results. Since
commissioning, alluvial gravels from the Luangue river, as well as kimberlitic
material from the AC2 complex, have been treated by the plant and as of 23
November 2,665 macro diamonds have been recovered with a total mass of 679.8
carats. This includes numerous gem quality diamonds, including stones of 10.35
and 9.61 carats from kimberlitic material. The bulk sampling work on the
alluvial deposits will enable the Company to determine a representative diamond
value and grade for the alluvial deposits in the current area of focus.



Kevin Dabinett, Chief Executive Officer of Petra, comments, 'As we have said in
the past we believe that at Alto Cuilo we are working on a major diamond
deposit. Anomalies 4 and 13 are proving to be a large body of kimberlitic
material and recently dispatched samples will help with an understanding of the
diamond potential. We will now move forward to ascertain the economic value of
the alluvial deposits, progress the drilling and sampling work on the kimberlite
complex and commence the exploration programme on the rest of the Alto Cuilo
concession outside of the ML Complex area.'



 Ends


For further information, please contact:


Kevin Dabinett / David Abery          Justine Howarth / Cathy Malins
Petra Diamonds                        Parkgreen Communications
Tel: [phone]                  Tel: [phone]





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