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Annual Report and Accounts 2012 Petra Diamonds Limited33Operational ReviewCorporate GoDiscover Petra DiamondsBusiness ReviewvernanceGroup AccountsCompany AccountsDevelopment planPetra's current mine plan at Williamson is to ramp up ROM production from circa 2.5 Mt in FY 2013 to circa 3.6 Mt by FY 2016, following the introduction of a re-crush system into the plant circuit. The mine's Phase 2 expansion project, which was initially planned to take the mine to 10 Mtpa, is currently on hold, though Petra continues to consider approaches to further significantly increase production beyond 3.6 Mtpa. An expansion plan above this level will be dependent upon appropriate electricity and water supply, as well as the results recorded from treatment by the rebuilt plant of main pit material over the medium term. The Company will update the market in due course when its internal studies are completed.Petra's current mine plan for Williamson has a life of 18 years but, given that the Mwadui kimberlite hosts a major resource of 39.6 Mcts, there is potential to extend the LOM considerably.CapexExpansion Capex of US$20.6 million for the year was predominantly spent on finalising the rebuilt plant and on other production-related activities, including pit shaping/shale removal, haul road construction and slimes/tailings handling facilities. Due to the deferral of the Phase 2 expansion, circa US$25 million of previously planned Capex was not spent in FY 2012.The deferral of the original Phase 2 expansion programme has also resulted in expansion Capex savings in FY 2013 of circa US$29 million (in comparable FY 2013 money terms).Petra's current mine plan for Williamson has a life of 18 years but, given that the Mwadui kimberlite hosts a major resource of 39.6 million carats, there is potential to extend the life of mine considerablyThe Williamson team is focused on ramping up the operation to 3.6 Mtpa by FY 2016

34Petra Diamonds Limited Annual Report and Accounts 2012Company AccountsGroup AccountsCorporate GovernanceOperational ReviewBusiness ReviewDiscover Petra DiamondsOur Assets continuedIn depthExplorationPetra's exploration activities are focused in Botswana, the world's largest diamond producer by value and host to two of the world's biggest diamond mines, Orapa and Jwaneng.BotswanaPerformance summary$$Petra focused on evaluating the KX36 kimberlite discovery and its surrounding area.$$Results from the initial drilling and microdiamond sampling were very encouraging.$$A follow-up mini bulk sample has now been completed and results are being analysed.Botswana offers an exceptional basis for diamond exploration in that it ranks highly with regards to prospectivity, has a low risk profile and an attractive fiscal regime. The Company has diamond prospecting licences in country covering approximately 12,725km2, all of which are 'on craton'.Petra's focus at present is to evaluate the KX36 kimberlite discovery. Results from an initial drilling and microdiamond sampling campaign were highly encouraging, with indications of a potentially high grade (between 75 and 180 Cpht at a bottom-cut of 1mm) and a relatively coarse diamond size distribution. The kimberlite is estimated to have a surface area of circa 5 hectares under circa 78m of Kalahari overburden, hosting a potential deposit of between 28 Mt and 34 Mt to a vertical depth of 516m below surface.The next phase in the work programme was a 1,550m large diameter drilling ("LDD") programme which commenced in early May 2012 (comprising five 24-inch vertical holes down to a depth of 310m), to obtain an initial mini-bulk sample and to ascertain further information with regards to grade and an indication of diamond value.As at the date of this report, all five LDD boreholes had been completed (circa 818 tonnes of kimberlite) and the bulk sample material has been transported to Petra's bulk sampling plant in Kimberley, South Africa. Preliminary results from analysis of the bulk sampling material are expected in Q2 FY 2013.The first phase (shallow) of a narrow diameter drilling programme, designed to improve on current geological and geotechnical information, has been completed (circa 1,170m) and the results will now be modelled.Based on the premise that KX36 might be one of several kimberlites within a new kimberlite field (given that kimberlites generally occur in clusters), a high resolution regional soil sampling programme (250m by 250m grid) covering kimberlite KX36 and its immediate surrounds has commenced. To date, 818 heavy mineral samples have been collected and despatched for analysis. The first results are expected to become available H1 FY 2013.Following positive results obtained from several ground electromagnetic ("EM") surveys conducted over kimberlite KX36, a decision was also taken to deploy an airborne EM survey in the KX36 region. This survey will cover an area of circa 300 to 400km² and is expected to be completed by the end of Q3 FY 2013.In the Lebu West project area, a 29,200 line kilometre Hi-Res Airborne Magnetic Gradiometer Survey covering some 2,656km2 was successfully completed at the end of Q1 FY 2012. Following the interpretation of this high quality data, 24 priority targets were identified, of which six have been drilled with negative results. The remaining targets will be systematically followed up.During the year, the Company was granted a six-month extension for a part of the prospecting licence hosting kimberlite BK1S (the portion of the kimberlite body BK1 (15%-20%) that falls outside the Debswana Mining Lease and within Petra's prospecting licence). Following discussions with regards to the analysis and evaluation of this shared orebody, a decision was taken to formally relinquish this licence on expiry as it is not considered to offer economic potential as a stand-alone operation.Technical Director Jim Davidson and Botswana Country Manager Tobias Hough at the KX36 discovery