BHP Update

Petra Diamonds Ld
01 December 2004


1 December 2004


                             Petra Diamonds Limited

             Joint Venture Agreement implemented with BHP Billiton


Petra Diamonds Limited ('Petra' or 'the Company'), the AIM quoted diamond mining
group, announces the implementation of the formal Joint Venture Agreement with
BHP Billiton World Exploration Inc ('BHP Billiton') regarding the Alto Cuilo
diamond project in north eastern Angola.

On Tuesday 30 November BHP Billiton subscribed for 901,060 shares in the Company
at a price of 88.2 pence per share. The price was based on the average of the
closing mid-market prices of Petra's shares for the ten dealing days to 26
November 2004.

Application has been made for these shares to be admitted for trading on AIM and
dealings are expected to commence on 6 December 2004.

As announced on 14 September 2004, under the terms of the Joint Venture
Agreement BHP Billiton can, by investing up to US$60 million in the JV vehicle
('Vehicle') which holds Petra's share in Alto Cuilo, acquire a share of up to
75% of the Vehicle.

Petra has, to date, focused its work on the area around the Mussunuige-Luangue
river interfluve ('the ML Complex') in which Petra, along with its Angolan
partners Endiama and Moyoweno, has already established the presence of a
diamondiferous kimberlite and alluvial complex. Under the terms of the Joint
Venture, BHP Billiton will work with the Company to undertake regional
exploration on the balance of the concession and to develop the ML Complex
further.

Adonis Pouroulis, Chairman of Petra Diamonds, commented, 'Further to the
announcement of the Joint Venture terms on 14 September, we are delighted to
have completed the formal Joint Venture Agreement with BHP Billiton. This is a
very exciting project and although exploration is still at an early stage,
results so far have been encouraging. Along with BHP Billiton, we hope to
expedite exploration on the Alto Cuilo project and look forward to obtaining
further definition of the deposits. '



 Ends



For further information, please contact:

Adonis Pouroulis / David Abery        Cathy Malins / Annabel Leather
Petra Diamonds                        Parkgreen Communications
Tel: [phone]                  Tel: [phone]


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