For release 24 January 2008

AIM: PDL

Petra Diamonds Limited

Trading Update

Petra Diamonds Limited ("Petra" or "the Company") announces a trading update (unaudited) for the six months to 31 December 2007 ("the Period").

Petra is AIM's leading diamond producer. The Company has, over the past 14 months, successfully grown its base of quality production assets (all in South Africa) through the separate acquisitions of the Cullinan, Koffiefontein and Kimberley Underground mines. These mines complement Petra's world class exploration base in Angola (Alto Cuilo, Luangue), Botswana (Kalahari Diamonds) and operations in Sierra Leone (Kono).

This is the first six monthly trading update published by the Company and trading updates will now be regularly published on a six monthly basis, shortly after the period end and in advance of the half and full year results.

Petra will publish its interim results to 31 December 2007 on 19 February 2008, which will include a review of exploration and other developments for the Period.

The trading results for the Period are comprised of Koffiefontein and Petra's fissure mines; the acquisition of both the Cullinan and Kimberley Underground mines are subject to regulatory approvals and the completion of both of these transactions is progressing well.

Highlights

Sales

• Revenue for the Period: US$31.7 million, a 286% increase on the 6 months to 31 December 2006: US$8.2 million
• Substantial revenue growth mainly due to Koffiefontein sales coming on stream in July, supported by strong diamond prices at the fissure mines
• 115,918 carats sold for the Period, a 79% increase on the 6 months to 31 December 2006: 64,940 carats
• Koffiefontein yielded excellent values at an average of US$408 per carat; average value per carat from fissure mines increased substantially to US$182 (6 months to 31 December 2006: US$126)
• Two exceptional diamonds sold for more than US$1 million each in the Period: a 74.7 carat diamond in September for US$1,012,636 (Koffiefontein production) and a 99.43 carat diamond in December for US$1,305,009 (Sedibeng production)

Production

• Production of 101,213 carats, a 17% increase on the 6 months to 31 December 2006: 86,396
• Changes made by Petra in the Koffiefontein treatment plant are yielding highly encouraging results with an improvement in the recovered grade to 8.2 carats per hundred tonne ("cpht") against an estimate of 7.3 cpht used in the original business plan
• Operating costs at Koffiefontein and the fissure mines are in line with expectations

Adonis Pouroulis, Chairman, said:

"This has been a very significant period for the Company, with Koffiefontein now adding substantially to revenue, and the acquisition of both the Cullinan and Kimberley Underground mines. Given the scarcity of economic kimberlite diamond deposits worldwide, Petra's strategy has been to acquire existing diamond mines with the potential for long life operations to balance its exploration portfolio. Our strategy has taken a further major step forward with the successful integration of the Koffiefontein mine, where the grade and value per carat achieved have far exceeded management expectations. In 2008 we will bring in the Cullinan and Kimberley Underground mines to our portfolio, and we are confident that our rising production and the associated cash flow streams will add significant value to our shareholders."

Production and sales summary - combined Koffiefontein and fissures mines

Koffiefontein mine

Fissure mines (Sedibeng, Star, Helam)

*� Note 1: All production and sales figures are stated gross

�� Note 2: Although production was recorded at Koffiefontein in the year to June 2007 during the care and maintenance period, sales only commenced in July 2007 when the remaining conditions in the Koffiefontein acquisition agreement were met��

For further information, please contact:

About Petra Diamonds

Petra Diamonds is a pan-African diamond mining group with a balanced portfolio combining major producing mines, world class exploration assets and a cutting and polishing business.

With operations in South Africa, Angola, Botswana and Sierra Leone, Petra's objective remains to grow its stature as a leading diamond producer in all of the countries in which it operates.  In South Africa, Petra has four producing mines and recently reached agreement to acquire a further two mines (Cullinan and Kimberley Underground).  The Company is on track to significantly grow its annual production from 180,000 carats in the year to June 2007, to over 400,000 carats in the year to June 2009 and is targeting over 1 million carats thereafter.

Complementing the Group's production is an exploration and development portfolio spread across some of the world's most prospective diamond fields. In Angola, Petra is developing its world class Alto Cuilo and neighbouring Luangue projects in two separate joint ventures with BHP Billiton.  In Botswana, Petra has established the largest exploration holding in the country, where it believes that modern exploration techniques will hold the key to the discovery of new, major kimberlites. In Sierra Leone, Petra is developing a fissure operation and test work to date indicates the potential for economic operations.

Visit Petra Diamonds at www.petradiamonds.com

�