Update - Calibrated Diamonds

Petra Diamonds Ld 31 January 2007 Petra Diamonds Limited Update - Calibrated Diamonds Petra Diamonds Limited ('Petra' or 'the Company' or 'the Group'), the AIM-quoted and ASX-listed diamond group, announces the appointment of Mr Ken Axsel as Managing Director of the Group's diamond cutting and polishing business, Calibrated Diamonds Investment Holdings (Pty) Limited ('CDIH' or 'Calibrated Diamonds'). Mr Axsel's experience in the global diamond industry spans 20 years. He joins Petra from the leading global diamond bank ABN AMRO, where he served as Country Head South Africa - International Diamond and Jewellery Group. He started his career as a geologist moving through the fields of mining engineering, mineral economics as well as commercial and financial roles. Mr Axsel has also held the positions of Deputy Executive Officer of the South African Diamond Board and Director (Head of Mining) of ING Financial Markets. Mr Axsel will work with Mr John Bond (Technical Director, CDIH), the founder of Calibrated Diamonds, in taking the CDIH business forward. Mr Bond has been involved in the cutting and polishing of diamonds for over 28 years and has been involved in many of the technologies used in the global diamond industry. He was instrumental in the development of technologies for the cutting of diamonds by laser as well as techniques for the double and multiple side-sawing of rough stones and has also been a recipient of some of South Africa's most prestigious technology awards. The technologies he was instrumental in designing and which are used at CDIH are among the most advanced diamond processing methods in the world. Petra acquired the entire issued share capital of CDIH in November 2006. CDIH is focused on the cutting and polishing ('beneficiation') of rough diamonds, utilising what Petra believes to be a unique process developed by CDIH and which enables Petra to produce polished diamonds of a very high and consistent standard. The acquisition of CDIH represents a significant step forward in Petra's objective of growing its diamond revenues, as CDIH will provide Petra with the potential to significantly enhance its overall revenues due to the value added from the beneficiation of rough diamond production. Johan Dippenaar, CEO of Petra Diamonds commented, 'Ken's appointment is an important step for Petra as he, along with John Bond, will be driving the growth and development of our beneficiation business, with the potential for substantial value creation for the Company. His appointment also serves to further increase the breadth of expertise in-house, as he brings to Petra a wealth of diamond industry experience. We are delighted to welcome people of both Ken and John's calibre to the Petra team.' For further information, please contact: Cathy Malins / Annabel Leather Telephone: +44 (0) 20 7851 7480 Parkgreen Communications, London This information is provided by RNS The company news service from the London Stock Exchange