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Capital Markets Diamond Conference 15 May 2009 Petra Diamonds Limited the international diamond mining group RBC Capital Markets Diamond Conference.

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Presentation on theme: "Capital Markets Diamond Conference 15 May 2009 Petra Diamonds Limited the international diamond mining group RBC Capital Markets Diamond Conference."— Presentation transcript:

1 Capital Markets Diamond Conference 15 May 2009 Petra Diamonds Limited the international diamond mining group RBC Capital Markets Diamond Conference

2 Capital Markets Diamond Conference 2 Important Notice These Presentation Materials do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities in the Company nor shall they or any part of them form the basis of or be relied upon in any manner or for any purpose whatsoever. These Presentation Materials must not be used or relied upon for the purpose of making any investment decision or engaging in an investment activity and any decision in connection with a purchase of shares in the Company must be made solely on the basis of the publicly available information. Accordingly, neither the Company nor its directors makes any representation or warranty in respect of the contents of the Presentation Materials. The information contained in the Presentation Materials is subject to amendment, revision and updating in any way without notice or liability to any party. The presentation materials contain forward-looking statements which involve risk and uncertainties and actual results and developments may differ materially from those expressed or implied by these statements depending on a variety of factors. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information or opinions contained herein, which have not been independently verified. The delivery of these Presentation Materials shall not at any time or in any circumstance create any implication that there has been no adverse change, or any event reasonably likely to involve any adverse change, in the condition (financial or otherwise) of the Company since the date of these Presentation Materials. The Presentation Materials are confidential and being supplied to you for your own information and may not be reproduced, further distributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person (except the recipient’s professional advisers) or published, in whole or in part, for any purpose whatsoever. The Presentation Materials may not be used for the purpose of an offer or solicitation to subscribe for securities by anyone in any jurisdiction.

3 Capital Markets Diamond Conference 3 A Leading Diamond Producer  AIM’s largest diamond mining group – ‘PDL’ - £200m market cap  Second largest diamond producer and employer in South Africa after De Beers  Experienced, entrepreneurial management team – close to deal flow in Africa  Proven ‘marginal’ assets turnaround credentials  Superior growth - projected four-fold production increase by 2010 to >1m carats pa  World class exploration portfolio across Africa’s diamond-fields Operations Anticipated production growth Carats per annum - ('000) 05/06 08/09 06/07 07/0809/10 Production figures are stated gross

4 Capital Markets Diamond Conference 4 The Petra Board Adonis Pouroulis Chairman Successful mining entrepreneur Founded Petra Diamonds in 1997 and floated first diamond company on AIM Built Petra into pan-African diamond group with 3000 employees Instrumental in raising funds to help finance and structure early stage mining companies in Africa Johan Dippenaar CEO One of South Africa’s most successful diamond entrepreneurs with 18 years experience Founded diamond group in 1991 and grew portfolio to 3 producing mines before listing as Crown Diamonds on ASX Merger with Petra in 2004 – now at helm of AIM’s largest diamond company David Abery Finance Director Extensive experience as Chief Financial Officer in South African and UK business environments In-depth knowledge of AIM Integral to structuring and deliverance of strategic group corporate development, including acquisitions and joint ventures Jim Davidson Technical Director Acknowledged world authority on kimberlite geology and exploration; >20 years experience in mine management Formerly Head of Diamond Exploration for Rio Tinto across Southern Africa As Technical Director of Crown Diamonds, managed specialist underground fissure mines over a decade

5 Capital Markets Diamond Conference 5 Focus on Africa – 65% World Production * Acquisitions to complete 2008

6 Capital Markets Diamond Conference 6 Production – Delivering Growth

7 Capital Markets Diamond Conference 7 Putting Production Into Perspective Cumulative production since antiquity Diamonds Gold Copper 161,000 tonnes** 900 tonnes*565 million tonnes*** *or 4.5 billion carats - estimate world production to 2005: ‘Global Rough Diamond Production since 1870’, A. J. A. (Bram) Janse *** world output based on actual production of 513 million cu tonnes post 1900 + 10% upward adjustment for pre-1900 production – source CRU Analysis ** Source: GFMS ‘Gold Survey 2008’

8 Capital Markets Diamond Conference 8 Rare Opportunity To Acquire Major Production There are only between 30 and 40 major diamond mines worldwide (kimberlite & alluvial) Now ‘Petra’ mines Source: ‘Global Rough Diamond Production since 1870’, A. J. A. (Bram) Janse

9 Capital Markets Diamond Conference 9 Producing Mines Koffiefontein Fissure mines (Helam, Sedibeng, Star) Annual production: - 125,000 – 140,000 cts Average price/ct: - US$231 Mine Life: - > 15 yrs Annual production: - 80,000 cts (+ tailings) Average price/ct: - US$484 Mine Life: - > 12 yrs Low cost approach to operations

10 Capital Markets Diamond Conference 10 Koffiefontein Acquired by Petra from De Beers in July 2007 for US$11.9m Ownership 70% Petra; 30% BEE Partners Exceptional value production – amongst world’s top kimberlite mines Largest stone recovered: 232.34 carats in 1994 First class infrastructure and underground operation

11 Capital Markets Diamond Conference 11 Turnaround Success In Petra’s hands, new Koffiefontein economics established: cost structure realigned with Petra Group (different economies of scale) right-sized throughput & production key plant modifications emphasis on recovery of whole spectrum of diamonds Dramatically reduced external contractor usage (e.g. engineering, plant design etc) using internal skill set where possible

12 Capital Markets Diamond Conference 12 Average value per carat of US$484 Grade 8.2cpht vs anticipated 7.4cpht; further improvements expected Regularly produces exceptional stones Aug 07: 60.25 carat diamond realises US$736,000 Sep 07: 74.7 carat diamond realises US$1,012,636 Dec 07: 51.88 carat diamond realises US$780,580 Sparkling Results

13 Capital Markets Diamond Conference 13 Group Production & Sales 6 Months to Dec 07 US$M 6 Months to Dec 06 US$M Variance Production Diamonds producedCts101,21386,39617% Grade - Koffiefonteincpht8.2-- - Fissures (average)cpht47.541.614% Sales Revenue (rough)US$31.78.2286% Diamonds soldCts115,91864,94079% Av. value per carat - KoffiefonteinUS$408-- - Fissures (av.)US$18212644%

14 Capital Markets Diamond Conference 14 New Mines from 2008/09 Cullinan Kimberley Underground Annual Production (from 2008/9): - >1m cts Average price/ct: - US$75 Mine Life: - >20 yrs Annual Production (from 2008/9): - 100,000 – 125,000 cts Average price/ct: - US$160 Mine Life: - >12 yrs

15 Capital Markets Diamond Conference 15 Cullinan > 1m ct pa producer & source of world famous, iconic diamonds C-Cut Resource (133m cts) – world’s 2 nd largest indicated resource by in-situ value – plus substantial tailings resource Produced 300+ stones weighing more than 100 carats - quarter of all 400+ carat diamonds - only significant source of prized blue diamonds Petra’s Approach Operating mine reserves support >1m carat production p.a. for over 20 yrs Refurbish plant, optimise configuration focus on larger diamond recovery Process tailings resources (will enhance annual production) Replicate turnaround success at Koffiefontein Develop C-Cut Resource – staged approach will minimise CAPEX The Centenary 599 carats rough The Golden Jubilee 545 carats polished The Premier Rose 353 carats rough The Cullinan 3,106 carats uncut The Taylor Burton 69 carats polished “Big girls need big diamonds” Elizabeth Taylor

16 Capital Markets Diamond Conference 16 Kimberley Underground Petra currently operating mine under care & maintenance New plant being constructed in-house Underground production to start 2008; diamond recoveries 2009 Sales expected > 100,000 carats pa; US$160/carat; US$16m revenue pa Comprises Wesselton, Du Toitspan and Bultfontein mines Also historic producer of spectacular gems, such as The Oppenheimer: (253.7 carat rough)

17 Capital Markets Diamond Conference 17 Building Our Reserves & Resources * excludes Cullinan & Kimberley Underground, plus Koffiefontein beneath 620 metres ** all figures are stated attributable 1.77m carats 2.86m carats May 2005 November 2007* 2.95m carats 6.38m carats + 101% 4.64 million carats 9.33 million carats In-situ value of US$1.5 billion

18 Capital Markets Diamond Conference 18 Exploration & Development

19 Capital Markets Diamond Conference 19 Exploration Overview Exploration provides the building blocks of future production

20 Capital Markets Diamond Conference 20 Alto Cuilo - Angola Major kimberlite exploration project in diamond rich Lucapa Graben 120 anomalies - 77 kimberlites identified (from 99 targets drilled) Petra assumes control of Alto Cuilo - BHP Billiton handover of interest effective 31 March 2008 Petra resulting interest increases to 41.2% (5.2% via Moyoweno shareholding) Exploration data now available to Petra for technical re-interpretation Petra to refocus exploration programme on potential of enriched near-surface resedimented volcaniclasic kimberlite (“RVK”) deposits These crater rims can contain substantial deposits of economic diamond-bearing material (e.g. Catoca in Angola and Williamson in Tanzania) Petra to fast-track work programme (and news flow) going forward

21 Capital Markets Diamond Conference 21 RVK rims in Kimberlites RVK Rim Proximal Distal Country Rock Breccia Crater Facies Sands Tuff Ring washing back into Crater forms RVK rim (re-concentration of diamonds)

22 Capital Markets Diamond Conference 22 AC16 & AC98 RVK Rim Sampling Area of accelerated work programme Refocused Exploration Strategy

23 Capital Markets Diamond Conference 23 Contiguous to Alto Cuilo; same kimberlite cluster geology Petra assumes control of Luangue – BHP Billiton handover of interest effective 30 April 2008 Petra resulting interest increases to 39% of Luangue kimberlite project Low level Aero Magnetic survey - 138 targets identified (total surface area over 8,000ha) - certain targets up to 233 hectares in size 5 targets already confirmed as kimberlite - 3 core drill rigs en-route to commence drilling programme within 2 months Drill holes will be positioned to intersect RVK close to surface at the estimated crater rim locality Fast track Luangue based on Alto Cuilo experience Luangue - Angola

24 Capital Markets Diamond Conference 24 Luangue Anomalies As at Alto Cuilo, Luangue work programme will focus on the potential of enriched near-surface RVK deposits

25 Capital Markets Diamond Conference 25 Kalahari - Botswana 52,000km 2 of prospective ground; 34 known kimberlites Known kimberlites do not explain abundant KIM anomalies Modern technology key to discovery of new kimberlites 2 diamondiferous kimberlites DK4 & DK6 near Jwaneng & 173S at Kukama to be further tested in 2008 H1 ‘08: Results from 59,000 line km gradient array magnetometer survey (Kukama, Tswapong) 3000m – 5000m+ drilling programme (Gope East, Gope West and Kukama, planned once permits have been received Drilling planned to test Kikao 700m diameter diamondiferous kimberlite - focus on crater rim RVK

26 Capital Markets Diamond Conference 26 Kono – Sierra Leone JV with Stellar Diamonds Advanced exploration – trial mining at two shafts 8,640 diamonds (760.32 carats) recovered, incl. 10.55 carat octahedron Valuation to be carried out when sufficient diamond parcel available Production decision to be made 2008 Airborne EM survey to prospect for potential kimberlite pipes and blows completed April 2008 – results expected July 2008

27 Capital Markets Diamond Conference 27 Calibrated Diamonds Proprietary technology – produces ‘brilliant’ cut diamonds Highly sought after hearts & arrows quality Potential to add significant value to rough Provides transparent pipeline "from mine to finger”

28 Capital Markets Diamond Conference 28 Our Responsibility to Diamonds Angola - Clinic treats around 400 people per month, with large impact on infant mortality over past 2 years South Africa - Literacy programme, HIV / AIDS awareness programme, local sports programme Sierra Leone - Skills development, agriculture initiatives, supporters of Small Business Entrepreneur programme Leading CSR practices aimed at stimulating socio- economic development in Africa A school rebuilt by Petra in Sierra Leone

29 Capital Markets Diamond Conference 29 Thank you Further Enquiries, contact: Cathy Malins – – +44 20 7493 7671

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