Completion of Kono Project Divestment

AIM: PDL

Petra Diamonds Limited

("Petra" or "the Company")

Completion of Kono Project Divestment

Petra Diamonds announces the completion of the transaction with Stellar Diamonds plc ("Stellar") whereby Petra has divested of its interest in the Kono Diamond project in Sierra Leone for shares in Stellar, the project's joint venture partner.

Further to the announcement of 4 May 2010, completion of the transaction was subject, inter alia, to the final signature of a share purchase agreement and issue of the Stellar shares to Petra. Both of these conditions have now been met. Stellar has issued to Petra 4,500,000 ordinary Stellar shares (based on a valuation of £0.20 per ordinary share), settling the transaction consideration of £900,000.

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About Petra Diamonds

Petra Diamonds is a leading supplier of rough diamonds, with a gross resource base of 262 million carats. The Company offers a unique growth profile within the diamond sector, increasing its annual production fivefold in the year to June 2009 to over one million carats, and with firm plans in place to grow production to over three million carats.

Petra has a well-diversified portfolio, with majority 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).

www.petradiamonds.com