Williamson Diamonds Limited

completed

The project entails a corporate loan, coupled with a warrants package, from IFC and a South African bank (“SA Bank”) to Petra Diamonds Limited (“Petra”) to: (i) finance the mine expansion program at the Williamson Diamond Mine (“Williamson”) in Tanzania; and (ii) finance the mine expansion program at the Cullinan Diamond Mine in South Africa (“Cullinan”), as well as Petra’s general corporate needs (collectively, the “Project”). The proceeds of IFC’s loan will be used over the next 3 years to finance the Williamson expansion. A parallel loan from SA Bank will be used to complete the Project’s funding plan, including financing the Cullinan expansion program. The Cullinan and Williamson mine expansion programs are expected to substantially improve the economics of each mine. Going forward, Cullinan and Williamson are expected to represent a significant portion of Petra’s net asset value. Petra has a 75% stake in Williamson, with the balance of 25% held by the Government of Tanzania. Williamson currently has a resource of some 40 million carats (995 million tons of kimberlite) and is renowned as a source of extremely rare, fancy pink diamonds. At Williamson, Petra is contemplating increasing throughput to between 7.5-10 million tons per annum (“mtpa”) by: (i) re-shaping of the open pit to cater for a 10 mtpa extraction rate; (ii) installing an autogenous mill to maximize liberation of the clay-rich RVK material; and (iii) enhancing the diamond recovery system to cater for Type II diamonds. Petra has a 74% stake in Cullinan, with the balance of 26% held by empowerment partners. The Cullinan mine encompasses 32 hectares at surface and is the second largest indicated diamond resource in the world by in-situ value and totals some 204 million carats (including tailings). At Cullinan, Petra plans to: (i) increase throughput from 1.9 to 2.4 mtpa by 2014 by establishing new underground tunnels, upgrading existing winders, and deepening existing shafts, and (ii) construct a 1 mpta tailings treatment facility by 2012.