Trading Statement

RNS Number:4520M
Petra Diamonds Ld
18 June 2003


Press Release

18 June 2003



Initial exploration recovers indicator minerals on Petra Diamond's properties in
                                  South Africa


Petra Diamonds Limited ("Petra"), the AIM quoted mining group, announces that
initial kimberlite prospecting has begun on its properties in South Africa's
Limpopo Province.

On 26 September 2002, Petra's wholly owned subsidiary, Blue Diamond Mines (Pty)
Ltd ("BDM"), signed a five-year option agreement with Rio Tinto Mining and
Exploration Limited ("Rio Tinto"), in terms of which Rio Tinto would conduct a
work programme over the seven minerals rights properties. On 23 April 2003, the
South African Government issued prospecting permits in respect of the
properties.

Work has now been carried out on two of the properties from which first pass
samples are currently being processed. Initial results from the samples
demonstrate the presence of indicator minerals. One sample produced a G9 garnet
and two kimberlitic ilmenites, and two other samples produced a kimberlitic
ilmenite each. Sampling on these two properties is ongoing, and first-pass
sampling has begun on a third property. Depending on the results of the analysis
of the first-pass sampling, further sampling may be carried out on the three
properties.

The presence of indicator minerals suggests the presence of a kimberlite source.
Indicator minerals are released from a kimberlite occurrence. Modern exploration
techniques make use of the presence of these minerals to trace the source
because their relative abundance makes them a more efficient indicator of
potentially diamondiferous material than diamonds themselves.

The 2002 agreement between BDM and Rio Tinto entitles Rio Tinto to explore and
conduct feasibility studies on the properties for up to five years. All
exploration related costs will be borne by Rio Tinto and if the option runs for
the full five year period Rio Tinto have committed to spending US$1 million on
exploration. Rio Tinto will pay BDM an annual fee related to the area under
option, subject to its decision through the option period to continue with its
work programme.

During the option period and up to the stage including feasibility, the
agreement gives Rio Tinto 51% of the project and Petra the remaining 49%.  If
the feasibility study yields a positive outcome and Rio decides to develop a
mining operation, Rio Tinto will earn 70% of the project with the remaining 30%
residing with Petra.   Both parties will thereafter be obliged to fund their
pro-rata portion of the project development costs in order to retain their
interests at this level with a provision for dilution.


- Ends -



For further information, please contact:

Justine Howarth / Cathy Malins
Parkgreen Communications
Tel: [phone]



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