Petra Diamonds Regulatory News (PDL)

Petra Diamonds Limited

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

Director Share Grants

Petra Diamonds Limited announces the grant on 15 May 2012 of performance based share awards under the Company's 2011 Longer Term Share Plan and 2012 Performance Share Plan.

2011 Longer Term Share Plan ("2011 LTSP")

The 2011 LTSP was introduced to addressthe retention of Directors and management over the period to FY 2016, which is a pivotal period during which key expansion programmes will be rolled out across the Group.

The 2011 LTSP awards support the next phase of the Company's development by aligning performance conditions with the focus on key operational priorities (carat production and delivery of expansion programmes) over the period to FY 2016.

After these grants, no further 2011 LTSP grants will be made to the Executive Directors.

Performance Share Plan ("2012 PSP")

The 2012 PSP was introduced in January 2012, replacing the Petra Diamonds 2005 Share Option Plan. The 2012 PSP will be used to grant on-going annual awards of performance shares to Executive Directors and senior management.

Awards under each plan have been made as follows, with full vesting of the maximum award requiring performance conditions to be met in full:

The Company will publish a full Directors Remuneration Report within its 2012 Annual Report, in line with UK corporate governance standards.

Notes:

1. The maximum awards under the 2011 LTSP and 2012 PSP shall only vest if the performance conditions are met in full.

2. A grant of share awards will also be made to certain Group management personnel, based on similar performance conditions.

3. The awards under the 2011 LTSP will be subject to performance conditions based on: (i) carat production (50%); and (ii) targets linked to delivery of the expansion programmes at the Company's various operations (50%). Full vesting will be based on performance measured over the period from 1 July 2012 to 30 June 2016.

4. The awards under the 2012PSP will be 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 2011 to 30 June 2014.

5. All awards under the 2011 LTSP and the 2012 PSP are granted as conditional awards over ordinary shares in Petra of 10p each.

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

7. In accordance with the plan rules for the 2011 LTSP and the 2012 PSP, awards may be settled in cash or shares at the Company's discretion.

8. 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.

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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 a well-diversified portfolio, with 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 a highly focused exploration programme in Botswana.

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 its 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 Index.

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