Petra Diamonds Regulatory News (PDL)

Petra Diamonds Limited

("Petra" or the "Company" or the "Group")

Director Share Grants

Petra Diamonds Limited announces the grant on 20 December 2012 of performance based share awards under the Company's 2012 Performance Share Plan ("2012 PSP").

The 2012 PSP was introduced in January 2012 and is used to grant annual awards of performance shares to the Executive Directors.

The awards made on 20 December 2012 under the 2012 PSP are as follows, with full vesting of the maximum award requiring performance conditions to be met in full:

Further details of the awards made on 20 December 2012 under the 2012 PSP will be provided in the Directors' Remuneration Report within the Company's 2013 Annual Report.

Notes:

1. These awards under the 2012 PSP are subject to performance conditions based on: (i) absolute total shareholder return (25%) (ii) relative total shareholder return against industry peers (25%) (iii) carat production (25%) and (iv) targets linked to delivery of the expansion programmes at the Company's various operations (25%). Vesting will be based on performance measured over the period 1 July 2012 to 30 June 2015.

2. The carat production targets are revised from those disclosed in the Company's 2012 Directors' Remuneration Report having taking into account the following developments: (i) the announced planned disposal of the fissure mines (Helam, Sedibeng and Star), these assets having become non-core to the Group and (ii) the announced revision of the Finsch mining approach following the technical review carried out subsequent to Petra's acquisition of the mine.

3. All awards under the 2012 PSP are granted as conditional awards over ordinary shares in Petra of 10p each.

4. No consideration was payable for the grant of the awards.

5. In accordance with the plan rules for the 2012 PSP, awards may be settled in cash or shares at the Company's discretion.

6. The grant of these share awards does not affect Petra's Total Voting Rights until some or all of the awards vest and the underlying shares are issued.

7. This announcement is made under the UKLA's Disclosure and Transparency Rule 3.1.2R. 

For further information, please contact:

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About Petra Diamonds Limited

Petra Diamonds is a leading independent diamond mining group and an increasingly important supplier of rough diamonds to the international market. The Company has interests in eight producing mines: seven in South Africa (Finsch, Cullinan, Koffiefontein, Kimberley Underground, Helam, Sedibeng and Star) and one in Tanzania (Williamson). It also maintains an exploration programme in Botswana.

The Company has recently commenced a disposal process in respect of the Helam, Sedibeng and Star mines (the Fissure Mines), which are no longer core to the Group's portfolio.

Petra offers an exceptional growth profile, with a core objective to steadily increase annual production to 5 million carats by FY 2019. The Group has a major resource base in excess of 300 million carats.

Petra conducts all operations according to the highest ethical standards and will only operate in countries which are members of the Kimberley Process. Petra is quoted with a premium listing on the Main Market of the London Stock Exchange under the ticker 'PDL' and is a member of the FTSE 250.

For more information, visit the Company's website at www.petradiamonds.com