Interim Results

Petra Diamonds Ld
31 March 2005

31 March 2005



               Petra Diamonds Limited ('Petra' or 'the Company')

          Chairman's Statement and Interim Results to 31 December 2004



The period since my last Chairman's letter, published in December 2004, has been
very productive for the Company as we have moved significantly closer to
achieving our goal of building a diamond group that combines successful
producing mines with quality exploration assets. With exciting prospects ahead
of us, I report the interim results for the six months to 31 December 2004.



Results

The loss for the period amounted to £4,197,050 (2003: loss £1,799,734) stated
after operating charges of £3,646,031 (2003: £1,458,980) and net financing costs
of £551,019 (2003: £340,754).



The increased loss over the comparative period was due to the level of activity
and associated expenditure at the Alto Cuilo project for the six month period,
which led to significant exploration developments. The Company's expenditure on
Alto Cuilo will not remain at these levels from January 2005 due to an important
development with regards to the joint venture with BHP Billiton World
Exploration Inc ('BHP Billiton') as set out below.



Net financing costs arose due to exchange movements on the restatement of
borrowings within the Petra group.





Proposed Merger with Crown Diamonds

On 8 February Petra Diamonds announced its proposed merger with Australian
listed Crown Diamonds NL ('Crown'). This transaction is a significant step
towards our long-term objective of becoming a significant player in the diamond
industry with a combination of quality producing mines and an impressive
exploration base. On completion of the merger, the enlarged Petra group will be
dual listed on AIM and the ASX, enhancing liquidity and aiming to increase the
scope of institutional investor interest due to asset base and market
capitalisation.



As noted when the proposed merger was announced, the transaction constitutes a
Reverse Takeover under the AIM rules. The Company's shares are currently
suspended from trading on AIM until such time as an AIM Admission document
relating to the proposed merger is published. Work is progressing well on the
preparation of the various documents and we will publish the AIM document and
return to trading in the near future.



Crown's current producing diamond assets are all situated in South Africa. They
encompass Helam, Star and the Messina/Dancarl joint venture. All three of these
diamond operations are kimberlite fissure mines with life of mine in excess of
15 years each and all three produce high quality diamond gem stones. It is
estimated that the Crown operations will produce in excess of 167,000 carats of
gem quality stones in 2005.



Crown has also agreed a joint venture with AIM and TSX listed Mano River
Resources Inc concerning the Kono diamond project in Sierra Leone, a kimberlite
project with several identified fissures from which small scale production is
envisaged during the next twelve months. Initial indications show good
geochemical results with a fissure strike length greater than Crown's current
producing mines.



Crown also brings with it an experienced management team which is highly skilled
in diamond mining production in South Africa. The two management teams together
will have the depth and knowledge to develop diamond opportunities anywhere on
the African continent.





Alto Cuilo and BHP Billiton

Further, I am pleased to announce an important development with regards to the
joint venture with BHP Billiton regarding the Alto Cuilo diamond project in
north eastern Angola.



The joint venture agreement between Petra and BHP Billiton included an option
with regards to BHP Billiton's funding of the project, and I am delighted to
advise you that BHP Billiton have formally elected to fund the Alto Cuilo
kimberlite exploration programme, with this funding taking effect from 1 January
2005. The election by BHP Billiton represents important progress for the project
and for Petra and we look forward to working with BHP Billiton in moving the
exploration programme ahead over the coming months.



Drilling continues at Alto Cuilo and as at the end of February 2005 diamond core
drilling had been completed at 43 sites, with a total 6,436 metres having now
been drilled.



Since commissioning of the diamond recovery plant (MB100 and DMS) in September
2004, alluvial gravels from the Luangue river and kimberlitic material from the
AC2 complex continued to be treated by the plant and as of 26 February 2005,
4,927 macro diamonds have been recovered with a total mass of 1,241 carats.





Conclusion

Petra Diamonds is at a pivotal stage in its development and considerably closer
to achieving its objective of becoming a significant producer of diamonds with a
balanced portfolio of cash flow positive, producing mines combined with the '
blue sky' of high quality exploration assets. The merger with Crown and the
support of BHP Billiton puts the Company in a strong position to create a
geographically diversified diamond group with a substantial asset base and
market capitalisation, giving the Company the potential to become a niche
mid-tier producer of rough diamonds.







Adonis Pouroulis, Chairman

31 March 2005





For further information, please contact:


Kevin Dabinett / David Abery          Justine Howarth / Cathy Malins

Petra Diamonds                        Parkgreen Communications

Tel: [phone]                  Tel: [phone]





PETRA DIAMONDS LIMITED



UNAUDITED CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2004


                                                       Unaudited          Unaudited       Audited
                                                       1 July 2004       1 July 2003   1 July 2003
                                                           31 December  31 December        30 June 
                                                                  2004         2003            2004
                                                                     £            £               £

Other operating income                                               -            -            4,424

Other operating charges                                    (3,646,031)     (1,458,980)     (3,978,460)

Group operating loss                                       (3,646,031)     (1,458,980)     (3,974,036)

Net financing costs                                          (551,019)       (340,754)       (245,827)

Loss before and after taxation for the                     (4,197,050)     (1,799,734)     (4,219,863)
financial period

Basic and diluted loss per share - pence                        (6.17)          (3.48)          (7.45)


UNAUDITED CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2004


                                                               Unaudited       Unaudited        Audited
                                                                  1 July           1 July
                                                                2004- 31            2003      1 July 2003
                                                           December 2004      31 December    30 June 2004
                                                                                     2003
                                                                       £                £               £
Loss for the financial period                                (4,197,050)      (1,799,734)     (4,219,863)

Exchange adjustments on translation of subsidiary                475,979          293,229         153,094
and
branch undertakings recognised directly in equity

Total recognised gains and losses relating to the            (3,721,071)      (1,506,505)     (4,066,769)
financial period



PETRA DIAMONDS LIMITED



UNAUDITED CONSOLIDATED BALANCE SHEET
AT  31 DECEMBER 2004


                                                           Unaudited        Unaudited         Audited
                                                          31 December 2004  31 December 2003 30 June 2004
                                                                   £                £                £
ASSETS
Property, plant and equipment                              2,301,919          493,033        1,782,408

Intangible assets                                             80,281           78,440           79,576

Investment in associates                                           -                -                -

Total non-current assets                                   2,382,200          571,473        1,861,984

Other receivables                                            615,970          306,917          550,838

Cash at bank and in hand                                     452,466          285,828        3,766,852

Total current assets                                       1,068,436          592,745        4,317,690

Total assets                                               3,450,636        1,164,218        6,179,674

EQUITY AND LIABILITIES

Equity

Issued capital                                             6,926,954        5,184,997        6,784,998

Share premium account                                     19,746,615       12,920,899       18,834,587

Foreign currency translation reserve                       2,115,057        1,779,213        1,639,078

Accumulated loss                                        (27,775,175)     (21,157,996)     (23,578,125)

Total equity                                               1,013,451      (1,272,887)        3,680,538

Minority interests                                                 -                -                -

Liabilities

Trade and other payables                                   2,000,000        2,082,176        2,013,620

Total non-current liabilities                              2,000,000        2,082,176        2,013,620

Trade and other payables                                     437,185          354,929          485,516

Total current liabilities                                    437,185          354,929          485,516

Total liabilities                                         2 ,437,185        2,437,105       2 ,499,136

Total equity, minority interests and                       3,450,636        1,164,218        6,179,674
liabilities


PETRA DIAMONDS LIMITED

NOTES TO THE INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2004






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
2004 do not constitute statutory accounts within the meaning of section 240 of
the Companies Act 1985 and have been drawn up using accounting policies and
presentation consistent with those applied in the audited accounts for the year
ended 30 June 2004.



The financial information for the year ended 30 June 2004 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 £4,197,050 and on a weighted average of 68,010,371 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.




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