Cullinan

completed

The Project entails the replacement of a +60 year old processing plant at Cullinan diamond mine in South Africa. Cullinan is a 112-year old mine that was acquired by Petra Diamonds Limited (“Petra”) from De Beers in 2008. Since then, Petra has spent $357 million with a further $250 million planned capital expenditures, to increase production from 0.8 million carats in 2009 to a targeted 2.2 Mcts by 2019. Cullinan has an initial mine life to 2030, but the potential mine life is +50 years with a gross resource of 200 Mcts. The replacement of the processing plant will enable increased ore tonnage to be treated more efficiently and is expected to result in higher recoveries through the use of better technology. The processing circuit will be simplified and will include the use of advanced diamond recovery technology, including autogenous milling, high pressure grinding rolls technology and XRF x-ray machines. The current plant has a ROM throughput capacity of 2.8 million tons per annum while the replacement plant will have a 6.0 mtpa ROM capacity. Petra also aims to simplify and streamline the processing route and reduce the existing plant footprint of 25.6ha down to 4.9ha (with 15km of conveyor belts being reduced to 3km). Operating efficiencies and security improvements will be driven through increased automation, reduced tons in circulation and improved energy efficiencies, with an expected improvement in energy efficiency per ton. Based on these efficiencies, the Company will target overall direct cash cost savings of up to ZAR15 per ton treated.