Gross Revenue up 88% - Petra Diamonds

Petra Diamogold from the ore to the final productnds Limited announces the following sales and production trading update (unaudited) for the year ended 30 June 2010.

This has been a highly progressive year for the Company, during which Petra has:

• increased its ownership of the Cullinan mine to 74%, thereby doubling Cullinan’s attributable production and increasing Petra’s attributable resource base from all operations to 195 million carats (gross: 262 million carats);


• completed the acquisition of a further important producing diamond mine - Kimberley Underground;


• sold the remarkable 507 carat Cullinan Heritage diamond for US$35.3 million;


• raised US$120 million in an equity financing; and


• agreed terms for debt facilities totalling US$78 million with IFC and Rand Merchant Bank (“RMB”).

Petra is now fully financed to roll out its planned capital expansions to treble annual output to over three million carats, by increasing production from its world-class resource base.

The Company looks forward to announcing its full financial results for the Period in September. The Petra operations are, on the back of the revenue growth in this trading update, expected to report strong earnings and operating cashflows.

Highlights
Sales

• Gross mine revenue up 88% to US$177.7 million (FY 2009: US$94.4 million) due to:

o continuation of the recovery in rough diamond prices for the Period
o sale of notable ‘specials’
o increased Group production

• Gross carats sold up 11% to 1,125,098 (FY 2009: 1,011,707)


• Group (consolidated) mine revenue� up 136% to US$163.3 million (FY 2009: US$69.1 million); growth accentuated due to 100% consolidation of Cullinan from November 2009

Production

• Gross production up 6% to 1,164,856 carats (FY2009: 1,099,367 carats)

Johan Dippenaar, Chief Executive Officer, said: “These results signify a further step change for Petra, with substantially higher revenues reflecting our continued production growth and a strong recovery in rough diamond prices. We have recently taken steps to significantly strengthen our balance sheet and are now fully financed to ensure the capital roll-out which will deliver further growth and returns to our shareholders.”