Petra Diamonds Limited announces the following Trading Update (unaudited) for the six months ended 31 December 2019 (the 'Period', 'H1 FY 2020' or 'H1'), ahead of the publication of the Company's Interim Results for the Period on 17 February 2020.

SUMMARY

Lost Time Injury Frequency Rate ('LTIFR') of 0.22 (H1 FY 2019: 0.16 and FY 2019: 0.21). Petra remains committed to achieving a zero harm working environment.

H1 production up 3% to 2,070,240 carats (H1 FY 2019: 2,019,147 carats). Petra is currently on track to meet or exceed FY 2020 production guidance of ca. 3.8 Mcts, as some of the Project 2022 throughput benefits are starting to deliver.

H1 revenue down 6% to US$193.9 million from 1,743,807 carats sold (H1 FY 2019: US$207.1 million from 1,736,357 carats sold), mainly due to lower diamond prices and the previously reported adverse product mix at Finsch and Williamson, partially offset by the sale of the exceptional blue diamond from Cullinan.

Q2 FY 2020 saw growing stability in pricing as the calendar year closed. Post Period end, demand has continued to improve as the midstream looks to replenish inventory. Early indications are that rough pricing has improved modestly to date in Q3 FY 2020.

All the Project 2022 workstreams (at mine and Group level) are being implemented and are progressing well. The throughput work stream (comprising 75% of the Project 2022 target) has contributed to the improved production performance and assisted in the delivery of a record level of ROM tonnes mined in H1 FY 2020.

Net debt at 31 December 2019 of US$596.4 million (30 September 2019: US$592.8 million); diamond inventory of 992,425 carats valued at US$85.2 million at Period end (30 September 2019: US$92.4 million).

The Company's South African Lender Group has consented to a waiver of the EBITDA related covenant ratios associated with its banking facilities for the December 2019 measurement period (measured only in March 2020).

ZAR:USD exchange rate volatility continued during the Period (averaging R14.69/USD1) with some strengthening at the Period end, closing at ZAR13.99/USD1. Post Period end, the ZAR:USD exchange rate has weakened again to ca. ZAR14.42/USD1 as at 24 January 2020.

Richard Duffy, Chief Executive of Petra Diamonds, commented: 'I am very pleased with the progress made in implementing Project 2022 across our operations and at corporate level. The buy in to this project from all of our Petra employees and contractors has supported the strong operational performance across all sites, resulting in us achieving our highest level of ROM tonnes mined and carats recovered over the last six months, and has positioned us to meet or exceed full year guidance.

'It is also encouraging that rough diamond pricing has modestly improved moving into our third quarter. The health of the market will depend on continued supply discipline from the majors as well as macro-economic conditions.

'Lastly, I would like to welcome Thashmi Doorasamy to the Petra executive team. Thashmi will assume the new role of Group Human Resources and Public Affairs Executive, effective 1 February 2020, which now also completes our Executive Committee.'

Contact:

Tel: +44 20 7494 8203

About Petra Diamonds Limited

Petra Diamonds is a leading independent diamond mining group and a consistent supplier of gem quality rough diamonds to the international market. The Company has a diversified portfolio incorporating interests in three underground producing mines in South Africa (Finsch, Cullinan and Koffiefontein) and one open pit producing mine in Tanzania (Williamson). Petra also conducts a limited exploration programme in Botswana and South Africa.

Petra's strategy is to focus on value rather than volume production by optimising recoveries from its high-quality asset base in order to maximise their efficiency and profitability. The Group has a significant resource base of ca. 250 million carats, which supports the potential for long-life operations.

Petra conducts all operations according to the highest ethical standards and will only operate in countries which are members of the Kimberley Process. The Company aims to generate tangible value for each of its stakeholders, thereby contributing to the socio-economic development of its host countries and supporting long-term sustainable operations to the benefit of its employees, partners and communities.

Petra is quoted with a premium listing on the Main Market of the London Stock Exchange under the ticker 'PDL' and is a constituent of the FTSE4Good Index. The Company's US$650 million loan notes due in 2022 are listed on the Global Exchange market of the Irish Stock Exchange.

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