Update re Koffiefontein Mine

Petra Diamonds Ld
01 February 2007

                             Petra Diamonds Limited

                Koffiefontein - Competition Commission Approval


Petra Diamonds Limited ('Petra'), the AIM-quoted and ASX-listed diamond group,
announces that the South African Competition Commission has approved the
acquisition of the assets associated with Koffiefontein diamond mine ('
Koffiefontein') by its wholly owned subsidiary, Blue Diamond Mines (Pty) Limited
('BDM'), from De Beers Consolidated Mines Limited ('De Beers'). This approval
was a condition to completion of the acquisition.



As announced on 18 December 2006, Petra and BDM have entered into a conditional
agreement ('the Agreement') with De Beers to acquire the mining and associated
capital assets previously used by De Beers in the operation of Koffiefontein.
Completion of the Agreement is now conditional upon the following outstanding
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.



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





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




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