Petra Diamonds Limited - Business Update

About this update from Petra Diamonds Limited

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION [image] 29 May 2026 LSE: PDL Petra Diamonds Limited (the "Company" or "Business") Business Update Vivek Gadodia, Chief Executive Officer of Petra Diamonds, commented: "We are faced with an unprecedentedly weak diamond market, due to global macro factors as well as the recent Middle East tensions. In particular, we continue to see deterioration in the value of the smaller sized diamonds, where we do not currently expect a material near-term recovery. Our tender results for April 2026 and May 2026 have yielded an average price for Cullinan Mine of c. $81/ct (compared to $109/ct in Q3), while Finsch averaged c. $47/ct (compared to $56/ct during Q3). In addition, the sustained stronger Rand has had a significant impact, with no indication that this is going to change in the near future. In order to mitigate the impacts of the weaker market and the stronger Rand, the Company has been implementing immediate cash preservation measures, which include stopping capital expenditure at Finsch, refocusing effort to increase production in the high value areas in the Cullinan Mine, and piloting additional productivity enhancing levers at the Cullinan Mine. As has been indicated in previous announcements, the Company has been assessing the business in light of the ongoing headwinds described above, with specific focus on the assessment of the viability of the Finsch Mine due to its product mix being predominantly the smaller sized diamonds, and also not having the benefit of high value Type II stones that the Cullinan Mine produces. Based on these assessments, it is with regret that the Company today announces commencing a business rescue process at Finsch in accordance with the South African Companies Act. We will now look to appoint a Business Rescue Practitioner and will keep the market updated on any material developments. This is being done in order to protect the overall Business, which we believe has a viable future given the Cullinan Mine's unique product mix, which has thus far allowed it to mitigate both the weaker market and the stronger Rand. To ensure a more resilient Business going forward which is able to withstand a weaker for longer market and in light of the expected stronger Rand and the structural decline in prices of the smaller sized diamonds, we need to further optimise the Operations at Cullinan Mine a...

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