Results of Second FY 2016 Tender

Petra Diamonds Limited

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

Results of Second FY 2016 Tender

Petra Diamonds Limited announces the following market update with regards to its most recent diamond tender. Petra does not intend to provide sales results routinely on a tender by tender basis.

· Petra has recently closed its second tender of H1 FY 2016 (1 July to 31 December 2015), with 606,080 carats sold yielding US$86.2 million in revenues, including the sale of the 23.16 carat pink stone from Williamson for US$10.05 million, as reported on 9 December 2015, and the unsold parcels from the Company's first tender of H1 FY 2016.

· All goods were sold, with the exception of ca. 3,200 carats with an estimated value of around US$166,000.

· Pricing on a like for like basis was flat in comparison to Petra's first tender of FY 2016, however the expected improvement in product mix has favourably impacted the average value per carat achieved for each of the Company's operations.

· As noted in previous announcements, product mix can vary significantly from tender to tender, but Petra has guided for an improved product mix in FY 2016 due to the shift from the old diluted mining blocks at its underground mines in South Africa to the new undiluted mining blocks, as well as a lesser reliance on production from the Group's lower value tailings resources. The first significant input of undiluted ore is on track to contribute to the Group's production profile from H2 FY 2016 (1 January to 30 June 2016) onwards.

· Rough diamond prices remain down ca. 9% for FY 2016 to date on a like for like basis in comparison to Petra's actual results for Q4 FY 2015. However the impact of this on Petra's financial results has been mitigated by the significant weakening of the South African Rand over this period (from ZAR12.21/USD1 on 30 June 2015 to over ZAR15.00/USD1 on 10 December 2015).

· The table below summarises the results of the first two tenders of FY 2016:

Notes:

1. The average values reported in this column correspond to the actual pricing achieved from completed sales, as reported in Petra's Q1 FY 2016 Trading Update on pages 9 and 10.

2. Excluding exceptional diamonds, the average value per carat was US$278.

· The table below summarises diamond pricing achieved year to date, set against the last financial year. It also includes a column demonstrating the ranges of values achieved from tender to tender in FY 2015, thereby demonstrating the variability across the full year.

Notes:

1. Includes sales to Petra's in-house cutting and polishing subsidiary Tarorite (Pty) Ltd totalling 309.69 carats valued at US$1.34 million across the operations.

2. Excluding exceptional diamonds, the average value per carat was US$119.

3. Excluding exceptional diamonds.

4. Excluding exceptional diamonds, the average value per carat was US$240.

· Petra will hold four tenders in H2 FY 2016 as usual.

Petra will release its H1 FY 2016 Trading Update (production and sales for the six months to 31 December 2015) on Monday 25 January 2016.

Note:

1. The following definition has been used in this announcement:

a. Exceptional diamonds: stones that sell for +US$5 million.

~ Ends ~

For further information, please contact:

Petra Diamonds, London Telephone: +44 20 7494 8203

Cathy Malins cathy.malins@petradiamonds.com

Cornelia Grant cornelia.grant@petradiamonds.com

Buchanan Telephone: +44 20 7466 5000

(PR Adviser)

Bobby Morse bobbym@buchanan.uk.com

Anna Michniewicz annam@buchanan.uk.com

RBC Capital Markets Telephone: +44 20 7653 4000

(Joint Broker)

Matthew Coakes matthew.coakes@rbccm.com

Jonathan Hardy jonathan.hardy@rbccm.com

Barclays Telephone: +44 20 7623 2323

(Joint Broker)

Bertie Whitehead bertie.whitehead@barclays.com

Philip Drake philip.e.drake@barclays.com

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 five producing mines: four in South Africa (Finsch, Cullinan, Koffiefontein and Kimberley Underground) and one in Tanzania (Williamson). It also maintains an exploration programme in Botswana.

Petra has a core objective to steadily increase annual production to ca. 5 million carats by FY 2019. The Group has a significant resource base of ca. 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'. For more information, visit the Company's website at www.petradiamonds.com.