Petra Diamonds Limited announces the following sales and production trading update (unaudited) for the six months ended 31 December, 2009 ahead of the publication of the Company's interim results for the period on 22nd February, 2010.

The Company is on track to achieve its production target of 1.2 million carats for the 2010 financial year (FY2009 actual: 1,099,367 gross carats), with Group sales and production for the Period up 43% and 12% respectively on the six months to December 2008. Longer term, Petra's current expansion plan will take production to over 3 million carats per annum by 2019.

Some of the highlights in sales include gross mine revenue for the Period up 32% to US$62.4 million (H1 2008: US$47.3 million), group mine revenue for the Period up 43% to US$48.2 million (H1 2008: US$33.8 million), 572,227 carats (gross) sold during the Period, an increase of 55% on the six months to 31st December, 2008 (368,296 carats), revenue growth due to: increased production across all the mines; a significant improvement in diamond prices; and recovery of notable 'specials' at Cullinan and Koffiefontein.

Notable diamonds sold during the Period: an exceptional 168 carat white diamond from Cullinan sold for US$6.3 million; two exceptional +50 carat white diamonds from Cullinan sold for US$2.8 million combined; a 34 carat white diamond from Koffiefontein sold for US$1 million; and a number of small rough and polished blue diamonds from Cullinan were sold for US$0.88 million (between US$61,000 and US$76,000 per carat).

The gross production up 12% for the Period to 614,594 carats (H1 2008: 550,413 carats), net increase in production mainly due to ramp-up of production at Cullinan, important 507 carat white diamond, considered to be amongst the top 20 largest high quality rough diamonds ever found worldwide, recovered at the Cullinan mine; expert analysis indicates the stone is of exceptional colour and clarity and Petra is assessing the route to market for this very rare diamond and on track to increase annual gross production to over 3 million carats by 2019.

Johan Dippenaar, Chief Executive Officer, said: "Petra has continued to consistently meet its operational targets and our production growth is on track as targeted for the 2010 financial year. The rough diamond market has improved significantly over the last six months and we have seen prices come back strongly at each of our six producing mines. Having recapitalised the business and consolidated the Cullinan holding in December, Petra is on a strong platform as we continue to grow annual production to over three million carats and increase our stature as a significant diamond producer".

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