Petra: Option to increase ownership in iconic Cullinan diamond mine and fundraising

November 18, 2009

Petra Diamonds Limited ("Petra" or the "Company" or the "Group") is pleased to announce that, on 17 November 2009, Petra and Al Rajhi Holdings W.L.L. ("Al Rajhi") entered into an option agreement whereby Petra can, by 18 December 2009, acquire (at its election) Al Rajhi's 37% interest in the Cullinan mine (the "Option") on the terms set out below. Exercise of the Cullinan Option would take Petra's interest in this iconic diamond mine from 37% to 74%, substantially increasing the Group's attributable revenues and resource base.

The Cullinan mine is one of the world's most celebrated diamond mines as it regularly produces large, high quality gems, and is the only reliable source of very rare and valuable blue diamonds. In addition, it contains the world's second largest inferred diamond resource, with a total of 204.6 million carats.

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