Petra Diamonds Regulatory News (PDL)

Petra Diamonds Limited

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

New Debt Facilities

Petra Diamonds Limited announces that its wholly owned subsidiary Afropean Diamonds (Pty) Limited ("Afropean") has entered into an agreement with Rand Merchant Bank ("RMB") (a division of FirstRand Bank Limited) with regards to new debt facilities of ZAR400 million (approximately US$48 million), secured on the assets of Afropean in respect of the Finsch diamond mine in South Africa ("Finsch") and the Company's interest in Afropean.

The facilities will provide working capital to the Finsch mine, as well as provide additional financing lines to the Group for general expansion and working capital needs.

Highlights

·; Afropean has agreed terms with RMB for ZAR400 million debt facilities comprised of:

o a revolving credit facility ("RCF") of ZAR300 million (approximately US$36 million); and

o a working capital facility ("WCF") of ZAR100 million (approximately US$12 million)

·; The RCF and WCF are secured on the assets of Afropean in respect of Finsch and the Company's interest in Afropean

·; The debt facilities provide for flexibility around the working capital requirements of Finsch as well as providing the Group with greater financial flexibility as it continues with the roll out of its capital expansion plans

·; Prior to entering into these debt facilities, Afropean had no existing external debt, having been fully funded to date by Petra, with the Grouphaving paid the consideration of ZAR1.425 billion (US$192 million) for the acquisition of the Finsch mine from its internal cash resources, following the placing carried out in January 2011

Johan Dippenaar, Petra's CEO, commented, "We are delighted to have agreed terms for these financing facilities with RMB, which are in addition to the existing debt lines we have in place with both RMB and IFC of approximately US$83 million. These credit facilities further strengthen our balance sheet and provide assurance to the roll-out of our expansion plans to take Group production to over 5 million carats by FY 2019."

Details of the RCF

·; The RCF will be available for Petra's draw-down for up to 22 months from financial close of the transaction (expected to be in the near future) subject to the RCF commitment amount being reduced by 25% on 1 July 2013 (and repayment by Petra of the outstanding balance to the extent that it then exceeds the RCF commitment amount)

·; The RCF is repayable 24 months from financial close of the transaction

·; Interest rate: three month JIBAR plus 2.5% margin

·; Capital repayments: All capital outstanding to be repaid by 24 months from financial close of the transaction

Details of the WCF

·; The WCF is available for draw-down for a period of 11 months from financial close and is subject to annual review

·; Interest rate: three month JIBAR plus 2.4% margin

·; Final repayment date: 12 months from financial close of the transaction (subject to annual review)

Financial close will be reached when all conditions precedent to completing the transaction have been met or appropriately waived, which is expected in the near future. The principal conditions precedent relate to the perfection of security over the Group's assets; the agreement contains standard events of default and warranties for facilities of this size and nature.

Notes

1. An exchange rate of US$1:R8.35 has been used for the purposes of this announcement.

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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).

Petra offers an exceptional growth profile, with a core objective to steadily increase annual production to over 5 million carats by FY 2019. The Group has a major reserves and resources 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. The Company is quoted on the AIM market of the London Stock Exchange (AIM: PDL), and has announced its plans to step up to the Main Market on or shortly after 8 December 2011. For more information, visit www.petradiamonds.com.

About RMB

RMB, a division of the FirstRand Bank Limited, is a leading diversified financial services brand encompassing investment banking, fund management, private wealth management and advisory services. The bank offers innovative financing solutions to its clients in South Africa and across Africa. For more information, visit www.rmb.co.za.