REG-Petra Diamonds: Potential exit of Petra’s investment in Koffiefontein

Petra DiamondsAnnouncement

26/04/2022 14:00

26 April 2022   LSE: PDL 

Petra Diamonds Limited

Potential exit of Petra’s investment in Koffiefontein

Petra Diamonds Limited ("Petra", the "Company" or the “Group”) announces
that, in conjunction with its Black Economic Empowerment (BEE) partners, Kago
Diamonds (Pty) Ltd and Itumeleng Petra Diamonds Employee Trust (IPDET), it is
exploring a responsible exit from its investment in the Koffiefontein diamond
mining operations in South Africa. 

Following the conclusion of the Business Re-engineering project, which Petra
announced in its interim results, Petra has updated its plan for the
Koffiefontein mine, which has a current mine plan to FY 2025. A process of
right-sizing the operation, which is likely to involve a reduction in employee
headcount under Section 189A of the Labour Relations Act, 66 of 1995, has
commenced. This process aims to provide for sustainable operations at
Koffiefontein until the end of Petra’s mine plan.

Given the gross resource base of c. 5.25 million carats as at 30 June 2021,
including c. 1.11 million carats in the indicated resource category associated
with underground resources, it may be feasible for another owner to extend the
mine’s life. The focus of this disposal process will be to identify a
technically and financially suitable buyer that could potentially unlock
further value from Koffiefontein.

In the event that a suitable buyer is not identified through this process,
Petra remains committed to operate the mine responsibly in accordance with its
current life of mine plan before proceeding with a decommissioning,
rehabilitation and closure programme.

It should be noted that the disposal process will run in parallel to the
Section 189A process currently underway and does not in any way impact or
alter it, and vice versa.

Petra has appointed Questco Corporate Advisory (“Questco”) to manage the
disposal process on its behalf. All parties interested in participating in the
disposal process are invited to contact Questco to register their interest. 

The closing date for registering an interest with Questco is 09 May 2022 and
the contact details are:
* Ciska Kloppers +27 82 303 4826
* Kaveshan Subramanian +27 73 201 4359
* projectoasis@questco.co.za
ABOUT PETRA DIAMONDS

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 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
of ca. 230 million carats, 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 US$336.7 million 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.

FURTHER INFORMATION

Please contact

Petra Diamonds, London                                     
                   Telephone: +44 207494 8203
Jill Sherratt
                                                                            
investorrelations@petradiamonds.com
Julia Stone                                           
         



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