Interim Results

Petra Diamonds Ld 31 March 2004 For release 31 March 2004 Petra Diamonds Limited ('Petra' or 'the Company') Chairman's Statement Interim Results to 31 December 2003 Further to my Chairman's Statement accompanying the 30 June 2003 annual results, Petra's management has been focused on our stated priority of achieving rapid progress on the Alto Cuilo project in North Eastern Angola and on the South African exploration projects. Against this backdrop and the exciting prospects ahead of us, I report the interim results for the six months to 31 December 2003. Results The loss for the period amounted to £1,799,734 (2002: loss £198,790) stated after operating charges of £1,458,980 (2002: £388,623) and net financing costs of £340,754 (2002: £189,833 revenue). The significant increase in operating costs is due to the expenditure on Alto Cuilo. Although the Company resumed activities on the project in May 2003, it is in the period post June 2003 that the work programme and associated activities have recommenced in earnest and expenditure has increased correspondingly. On 5 March 2004 the Company announced that it had successfully raised £8 million, (approximately £7.5 million net of expenses), the majority of which will be used to fund further exploration at Project Alto Cuilo. Net financing costs were mainly due to the weakening of the dollar against the pound over the six month period leading to exchange losses on the restatement of US dollar denominated loan accounts with Petra Diamonds Limited on the Alto Cuilo project. Angola Project Alto Cuilo Geological work done on site to date indicates the potential for a significant diamond mine involving both kimberlite and alluvial deposits. The drilling programme is now fully underway on site and further news on the geochemistry and size of the deposits will be released as the drilling programme progresses and the results are verified by independent consultants. The drilling programme, together with the bulk sampling programme that will begin when the Dense Media Separation (DMS) plant arrives on site, will enable us to form a better understanding of the geological formation of the deposits on the Camembeia complex within Alto Cuilo. The DMS plant will be completed shortly and then transported from the manufacturing facility in Cape Town to the Alto Cuilo site. I would like to thank Endiama and Moyoweno, our Angolan partners on Alto Cuilo, for their valued input and continuing support and we look forward to working with them on the delivery of our work programmes. The Company announced on 20 February 2004 that it has entered into a Strategic Alliance with BHP Billiton regarding the Alto Cuilo project. Under the terms of the Alliance, BHP Billiton and Petra have entered into a six month period of exclusivity during which time the parties will negotiate a structure and investment schedule for BHP Billiton's full participation into the project culminating in a full joint venture agreement. BHP Billiton's interest is important and validates our belief that Alto Cuilo has the potential to become an exciting diamond project. South Africa Rio Tinto Joint Venture Rio Tinto continue their exploration work on the seven properties in the Limpopo province of South Africa. Kimberlitic indicator minerals have been recovered from three of the properties under the joint venture agreement and we will receive further results of Rio Tinto's work later this year. Syferfontein and Pakwe Prospecting permits for both the Syferfontein and Pakwe kimberlites have recently been issued. Bulk sampling and drilling programmes for both of these kimberlites are under final consideration by management and further news will follow when we have finalised our approach and budgets for this work. These projects are of interest as both of the kimberlites are already confirmed as diamondiferous and are within close proximity of each other. If economic, mining operations could be established within a short time frame. Alexkor The legal and negotiation process is underway between the South African Government and the Richtersveld Community, following the termination of the bidding process in December 2003 for the sale of 51% of Alexkor. The termination of the bidding process was as a result of a dispute between the Government and the Community. Petra Diamonds is watching developments with interest and, if appropriate, will consider becoming involved in the operation of the Alexkor mine. Shareholders should note that with our knowledge and experience of the Alexkor operations the Company would be well placed to play an integral role in the future running and success of Alexkor. Further, Petra is a 29.5% shareholder in Nabera Mining (Pty) Limited, which managed the Alexkor diamond mine between 1999 and 2001. Under the terms of the management agreement by which Nabera managed the Alexkor mine, Nabera is entitled to one third of the 'value added' during its management period. As noted in my Chairman's Statement released in December 2003, it is Petra's objective to finalise this matter during the current financial year and accordingly Nabera has taken appropriate legal steps to move towards achieving this goal and I hope to be able to report further positive progress in the coming months. Conclusion I look forward to reporting the results of our work programmes on Alto Cuilo as well our South African exploration activities over the coming months. I would also like to thank all of the team at Petra Diamonds for their hard work and dedication as well as our shareholders for their continuing support. Adonis Pouroulis, Chairman 30 March 2004 For further information, please contact: Adonis Pouroulis / David Abery Justine Howarth / Cathy Malins Frank H. Moxon Petra Diamonds Parkgreen Communications Williams de Broe Tel: +27 11 467 6710 Tel: +44 20 7493 3713 Tel: +44 20 7588 7511 PETRA DIAMONDS LIMITED UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2003 Unaudited Unaudited Audited Figures Figures Figures 1 July 2003- 1 July 2002- 1 July 2002- 31 December 31 December 30 June 2003 2002 2003 £ £ £ Other operating income - - 2,739 Other operating charges (1,458,980) (388,623) (1,757,853) Group operating loss (1,458,980) (388,623) (1,755,114) Net financing (costs) / revenue (340,754) 189,833 879,744 Loss before and after taxation for the financial (1,799,734) (198,790) (875,370) period Basic and diluted loss per share - pence (3.48) (0.42) (1.81) UNAUDITED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2002 Unaudited Unaudited Audited Figures Figures Figures 1 July 2003- 1 July 2002- 1 July 2002- 31 December 31 December 30 June 2003 2002 2003 £ £ £ Loss for the financial period (1,799,734) (198,790) (875,370) Exchange adjustments on translation of subsidiary 293,229 (211,457) (541,295) and branch undertakings recognised directly into equity Total recognised losses relating to the financial (1,506,505) (410,247) (1,416,665) period PETRA DIAMONDS LIMITED UNAUDITED CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2003 Unaudited Unaudited Audited Figures Figures Figures 31 December 31 December 30 June 2003 2002 2003 £ £ £ ASSETS Property, plant and equipment 493,033 26,954 130,319 Intangible assets 78,440 68,496 77,341 Investments in associates - 27,542 - Total non-current assets 571,473 122,992 207,660 Other receivables 306,917 402,812 166,983 Cash at bank and in hand 285,828 152,879 263,949 Total current assets 592,745 555,691 430,932 Total assets 1,164,218 678,683 638,592 EQUITY AND LIABILITIES Equity Issued capital 5,184,997 4,748,146 5,163,849 Share premium account 12,920,899 12,507,122 12,878,603 Foreign currency translation reserve 1,779,213 1,815,822 1,485,984 Accumulated loss (21,157,996) (18,681,682) (19,358,262) Total equity (1,272,887) 389,408 170,174 Minority interests - - - Liabilities Trade and other payables 2,082,176 - 90,210 Total non-current liabilities 2,082,176 - 90,210 Trade and other payables 354,929 289,275 378,208 Total current liabilities 354,929 289,275 378,208 Total liabilities 2,437,105 289,275 468,418 Total equity, minority interests and liabilities 1,164,218 678,683 638,592 PETRA DIAMONDS LIMITED NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2003 1. The interim results, which are unaudited, have been prepared in accordance with International Financial Reporting Standards (IFRS) adopted by the International Accounting Standards Board (IASB). The unaudited interim financial statements for the six months ended 31 December 2003 do not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. They have been drawn up using accounting policies and presentation consistent with those applied in the audited accounts for the year ended 30 June 2003. The financial information for the year ended 30 June 2003 has been extracted from the statutory accounts for that period, the auditors report on those accounts was unqualified. 2. No dividends were proposed or paid during the period. 3. The calculation of basic loss per share is based on a loss for the interim period of £1,799,734 and on a weighted average of 51,789,060 ordinary shares of 10p each in issue during the period. 4. Due to losses incurred no taxation has been provided for. Deferred tax assets on losses have not been recognised as it is not foreseeable with sufficient certainty that the related tax benefit will be realised. This information is provided by RNS The company news service from the London Stock Exchange

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