Mining Licence Granted

Petra Diamonds Ld
21 December 2006

                             Petra Diamonds Limited



                     Koffiefontein - Mining Licence Granted





Petra Diamonds Limited ('Petra' or 'the Company'), the AIM-quoted and ASX-listed
diamond group, announces that further to the announcement of 18 December 2006,
the South African Department of Minerals and Energy ('DME') has now granted the
mining right to its wholly owned subsidiary, Blue Diamond Mines (Pty) Limited ('
BDM') in respect of the Koffiefontein diamond mine ('Koffiefontein'), South
Africa.



BDM has concluded a joint venture agreement ('JV Agreement') with its
Koffiefontein Black Economic Empowerment ('BEE') partners, and the joint venture
will use the assets acquired from De Beers to operate Koffiefontein. The terms
of the JV Agreement are that BDM's interest in the JV is 70%, with the BEE
partners holding the remaining 30%.



Adonis Pouroulis, Petra's CEO commented 'The acquisition of the Koffiefontein
mine is a key addition to Petra's asset base and is in line with our strategy of
increasing the group's production profile.  Petra would like to thank both the
South African Department of Minerals and Energy and De Beers for their support
in returning the mine to production - the mine is an important contributor to
the local community and recommencing operations at Koffiefontein is a highly
positive development for all stakeholders.'



Completion of the JV Agreement is conditional upon the following key terms:



(i)                   the DME issuing a closure certificate to De Beers in
respect of Koffiefontein; and

(ii)                 the DME consenting to the cession, transfer and delegation
of the rehabilitation obligations and liabilities in respect of Koffiefontein
from De Beers to BDM; and

(iii)                the return to De Beers by the DME of all amounts and
financial guarantees previously deposited by De Beers with the DME as part of De
Beers' rehabilitation obligations in respect of Koffiefontein; and

(iv)                the approval by the South African Competition Commission.



When the terms above have all been met, which is expected to be in early 2007,
Petra will commence production from Koffiefontein.



A resource statement for Koffiefontein, in compliance with the AIM Guidance for
Mining companies is shown below:



SUMMARY OF RESERVES AND RESOURCES BY STATUS
Minerals & Ore
Category                    Gross (100%)                     Net attributable (70%)             Operator
               Tonnes       Grade       Contained     Tonnes      Grade       Contained
               (millions)     (cpht)    Diamonds      (millions)    (cpht)    Diamonds
                                        (millions)                            (millions)
Ore/Mineral
reserves per
asset
Proved              -            -            -            -           -           -       Koffiefontein JV
Probable          21.139       4.32         0.914       14.797       4.32        0.640     Koffiefontein JV
Sub-total         21.139       4.32         0.914       14.797       4.32        0.640
Mineral
resources per
asset
Measured            -            -            -            -           -           -       Koffiefontein Mine
                                                                                           JV
Indicated         2.483        7.82         0.194        1.738       7.82        0.136     Koffiefontein JV
Inferred          54.168       4.20         2.276       37.918       4.20        1.593     Koffiefontein JV
Sub-total         56.651       4.36         2.470       39.656       4.36        1.729
Total             77.790       4.35         3.384       54.453       4.35        2.369
Source:           J M Davidson, regarded as Qualified Person for the purposes of the AIM Guidance Note on
                  Mining, Oil and Gas Companies
Note:             'Operator' is name of the company that operates the asset; 'Gross' are 100% of the reserves
                  and/or resources attributable to the licence whilst 'Net attributable' are those
                  attributable to the AIM company; 'cpht' is

                  carats per one hundred tonnes



 Ends



Notes

1. The information in this update that relates to Exploration Results, Mineral
Resources or Ore Reserves is based on information compiled by Jim Davidson, Pr.
Sci Nat (reg No 400031/06), who is a Member of the Geological Society of South
Africa, a 'Recognised Overseas Professional Organisation' ('ROPO'), included in
a list promulgated by the ASX from time to time. Jim Davidson is a full-time
employee of the Company and has sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as defined in
the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves'. Jim Davidson has given his written consent
to the inclusion in this announcement of the matters based on his information in
the form and context in which it appears. Jim Davidson is the Qualified Person
for the purposes of the AIM Guidance Note on Mining, Oil and Gas Companies dated
March 2006.



2. It should be noted that the potential quantity in this report is conceptual
in nature, there has been insufficient exploration to define a Mineral Resource
and it is uncertain if further exploration will result in the determination of a
Mineral Resource.



For further information, please contact:
Cathy Malins / Annabel Leather                       Telephone: [phone]
Parkgreen Communications, London




                      This information is provided by RNS
            The company news service from the London Stock Exchange