Petra Diamonds Regulatory News (PDL)

Petra Diamonds Limited

("Petra" or the "Company")

Increase of effective interest in Koffiefontein mine to 74%

Petra announces that it has, with effect from 10 December 2010, increased its effective interest in the Koffiefontein mine in South Africa ("Koffiefontein") from 70% to 74%.

The additional 4% interest in Koffiefontein was acquired from the shareholders of Re-Teng Diamonds (Pty) Limited, Petra's black economic empowerment partners ("BEE partners") at Koffiefontein; the interests in Koffiefontein are now Petra 74%, BEE partners 26%.

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About Petra Diamonds

Petra Diamonds is a leading independent diamond mining group and an increasingly important supplier of rough diamonds to the international market. The Company offers a unique growth profile within the diamond sector, with a core objective to double annual production to around two and a half million carats by FY 2014 and more than treble production to over three million carats by FY 2019. Beyond this target, the Group's major resource base of 261 million carats provides scope for further organic growth going forward.

Petra has a well-diversified portfolio, with interests in seven producing mines: six in South Africa (Cullinan, Koffiefontein, Kimberley Underground, Helam, Sedibeng and Star) and one in Tanzania (Williamson).

Petra conducts all its operations according to the highest ethical standards and will only work in countries which are members of the Kimberley Process. The Company is quoted on the AIM market of the London Stock Exchange (AIM: PDL). For more information, visit www.petradiamonds.com.