FOR IMMEDIATE RELEASE

13 December 2022

LSE: PDL

Sales results for Tender 3 FY 2023

Petra achieves US$42.3 million in sales in its third tender for FY 2023

Richard Duffy, Chief Executive Officer of Petra Diamonds (Petra), said:

“Petra’s third tender for FY 2023 saw a 2.2% increase in like-for-like[1]prices on Tender 2 FY 2023, reversing the downward trend observed in the previous two tenders. Although it is still too early to speculate on whether rough diamond prices have bottomed out, we are very satisfied with the overall result. Prices in the 2ct to 10ct size ranges saw an upward movement in contrast to the recent negative trends, partly ascribed to improving expectations for the current festive season and potentially reflecting signals from the Chinese authorities with respect to an easing of lockdown restrictions. Prices in smaller size ranges saw improved pricing which more than offset softer pricing in the 0.75ct to 2ct ranges.

We continue to expect a supportive diamond market in the medium to longer term as a result of the structural supply deficit and see current levels of demand continuing into the New Year, albeit with the potential for further upside from any easing of lockdown restrictions in China.”

Petra announces the results of Tender 3 of FY 2023, at which 305,366 carats were sold for a total of US$42.3 million across Petra’s mining operations.

Rough diamond sales results for the respective periods are set out below:

	Tender 3 FY23 Dec-22	Tender 2 FY23 Oct / Nov-22	Variance T2 FY23 vs T3 FY23	Tender 3 FY22 Dec-21	YTD FY 2023 after Tenders 1-3	YTD FY 2022 after Tenders 1-3
Diamonds sold (carats)	305,366	447,276	-32%	885,136	1,272,653	1,595,848
Sales (US$ million)	42.3	61.3	-31%	128.3	206.4	264.7
Average price (US$/ct)	138	137	+1%	145	162	166
Revenue from Exceptional Stones[2] (US$ million)	–	–	–	27.7	–	77.9

Sales

The results of Tender 3 bring FY 2023 YTD revenue from rough diamond sales to US$206.4 million, with no Exceptional Stone sales, compared to US$264.7 million in the first three tenders of FY 2022, which included a US$77.9 million contribution from Exceptional Stones. The lower volume sold in Tender 3 relative to the equivalent tender in FY 2022 was largely driven by the earlier cut-off date for the current cycle.

Mine by mine average prices for the respective periods are set out in the table below:

US$/carat	Tender 3 FY23 Dec-22	Tender 2 FY23 Oct / Nov-22	Tender 3 FY22 Dec-21	YTD FY 2023 after Tenders 1-3	YTD FY 2022 after Tenders 1-3	FY 2022 12 months to 30 June 2022
Cullinan Mine	116	113	1421	154	1921	1691
Finsch	107	118	96	121	97	118
Williamson	266	272	7601	280	7601	3841
Koffiefontein	371	639	520	450	538	581

Note 1: Prices for both Cullinan Mine and Williamson include proceeds from the sale of a number of Exceptional Stones.

Like-for like prices

Whilst like-for-like rough diamond prices improved by 2.2% on Tender 2 FY 2023, they increased 7.4% compared to Tender 2 of FY 2022, with YTD prices up 12.7% compared to the comparable three tenders of FY 2022. Prices across all size ranges were generally up against the previous tender with the exception of the 0.75ct to 2ct stones which saw a marginal decline in prices.

Product mix

The balance of price movements are attributable to product mix, resulting in a slight increase at Cullinan while both Finsch and Williamson saw downward price movements. The Williamson parcel consisted of all diamonds produced in the period leading up to the Tailings Storage Facility failure announced on 7 November 2022.

For further information, please contact:

Petra Diamonds, London                 Telephone: +44 20 7494 8203                                               

Patrick Pittaway                                  [email protected]

Julia Stone

About Petra Diamonds Limited

Petra Diamonds is a leading independent diamond mining group and a supplier of gem quality rough diamonds to the international market. The Company’s portfolio incorporates interests in three underground producing mines in South Africa (Finsch, Cullinan Mine and Koffiefontein) and one open pit mine in Tanzania (Williamson).

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 which supports the potential for long-life operations.

Petra strives to conduct all operations according to the highest ethical standards and only operates 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'. The Company’s loan notes due in 2026 are listed on the Irish Stock Exchange and admitted to trading on the Global Exchange Market. For more information, visit www.petradiamonds.com.

[1] Like-for-like refers to the change in realised prices between tenders and excludes revenue from all single stones and Exceptional Stones, while normalising for the product mix impact

[2] Petra classifies “Exceptional Stones” as rough diamonds which sell for US$5 million or more each