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Petra Diamonds Limited Sustainability Report 20129OVERVIEWOverviewKey Performance IndicatorsKey Performance IndicatorsDuring FY 2012, Petra identified a range of non-financial KPIs to measure its performance on sustainability issues at a Group level.1.13Lost Time Injury Frequency Rate ("LTIFR") is defined as an occurrence that resulted in a time lost from work of one day or shift or more. LTIFR is an industry-wide measure of overall safety performance. The team is very focused on driving improvements in line with the Group's objective of zero-harm.LTIFRKPI2012DescriptionFIFR0.03Fatal Injury Frequency Rate ("FIFR") represents the number of fatalities per 200,000 hours worked. Very regrettably there was a fatality in January 2012 at Kimberley Underground; a full investigation was carried out into the accident. Fatalities are unacceptable and we target a FIFR of zero.CSI SPENDca. US$3.3 million¹Corporate Social Investment ("CSI") spend represents the total amount of expenditure on community and social projects in the Year. It shows how Petra's revenues are channelled to support our communities. Further detail on these projects can be found in the Community section of this Report.WOMEN IN THE WORKFORCE14%The percentage of female employees in our total workforce. Attracting and retaining women is a major part of establishing gender diversity in our workforce and is one of Petra's priorities.STAFF TURNOVER12%Staff turnover is calculated using the total number of employees who have left the Group during the Year, including voluntary turnover and terminations. High employee turnover can negatively impact the human capital of the Company and affect productivity. We aim to maintain low staff turnover rates.WATER USAGE14,593,831m3The total volume of water used by Petra during the Year. Water is a scarce resource in the countries where we operate so we carefully monitor its usage. ENERGY USAGE444,509,579kWhThis represents the amount of energy used by Petra for the Year. Our main sources of energy consumption are electricity and diesel. Diamond mining is an energy-intensive activity and rising electricity prices have led Petra to focus on increasing energy efficiency and reducing our usage through energy saving initiatives.CARBON EMISSIONS476,552t CO2-e2This includes all carbon emitted by the Company during the course of its activities, both direct and indirect. We have substantially improved monitoring of the consumables which account for such emissions in FY 2012.TRAINING SPENDca. US$3.3 million¹Training spend represents the total amount invested in training schemes for our workforce during the Year. Our training schemes include Adult Basic Education and Training, the Leadership Development Programme and the Bursary scheme. There is more information on these in the Our People section of this Report.1. Calculated using an average exchange rate of US$1:R7.77.2. Metric tonne carbon dioxide equivalent.

Petra Diamonds Limited Sustainability Report 201210OVERVIEWOverviewLetter from the CEO"Petra considers sustainable development policies and practices to be essential to the long-term health of our business and they are therefore integral to the way we plan and structure our operations."Johan DippenaarCEO's StatementIt gives me pleasure to introduce our fourth Sustainability Report, which outlines Petra's key safety, social and environmental impacts and the way these are managed and mitigated by the Group. We consider sustainable development policies and practices to be essential to the long-term health of our business and they are therefore integral to the way we plan and structure our operations.Building a world-class diamond groupFY 2012 was a further transformative year for Petra as the Company stepped up from AIM to the Main Market of the London Stock Exchange and completed the acquisition of the Finsch mine in South Africa. As a result we are now well established as London's largest listed diamond producer and a constituent of the FTSE 250 index. We have built our business by acquiring world-class diamond mines in Africa and investing in them to create sustainable long-term operations with significantly increased production. The results have been striking - over the last five years, production has grown tenfold from just over 200,000 carats to more than two million carats, revenues have grown from US$77 million to US$317 million and the Petra Group now encompasses over 4,700 employees, as well as just over 800 contractors.The resultant benefits to Petra's stakeholders are significant. Our revitalised operations provide secure long-term employment (US$110.4 million on salaries, wages and benefits in FY 2012), training and career development opportunities (US$3.3 million on training in FY 2012), sustained community investment (US$3.3 million on CSI expenditure in FY 2012) and significant tax payments to Governments (US$51.1 million in FY 2012).Following a period of rapid growth through acquisition and consolidation, Petra is now embarking on the next important stage of its expansion. We will be delivering further growth to our stakeholders through the development of our existing assets and we are targeting to more than double FY 2012 production levels by FY 2019.Evolving governance and Group policiesTo ensure we are well positioned to deliver on our continued growth strategy, we have begun a review of policies across the Group, led by the Board-represented Health, Safety, Social and Environmental ("HSSE") Committee, which I chair. This process will lead to the development of an overarching series of Group-level strategic policies, which will aim to ensure consistent and improving standards across the Group's operations, whilst also taking account of international best practice. This is a wide ranging process, covering areas as diverse as stakeholder engagement, corporate social responsibility and community health, and reflecting the changed risks we face as a maturing company with a focus on the long-term development of our assets. Please review the section on Strategy and Governance on pages 12 to 17 for further information on developments in this area.Of key importance is the development of a revised Group Code of Ethical Conduct to provide clear guidance to all staff on the standards which the Company expects in SUMMARY$ We have built our business by acquiring world-class diamond mines in Africa and investing in them to create sustainable long-term operations$ To ensure we continue to deliver on our strategy, we have begun a review of policies across the Group, led by the HSSE Committee$ The health and safety of our employees remains our top priority and any loss of life is unacceptable$ We contribute to local communities through initiatives which address poverty alleviation, job creation and local economic development