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Petra Diamonds Limited Sustainability Report 20121OVERVIEWOverviewContentsPetra Diamonds is committed to the responsible development of its assets to the benefit of all stakeholders. The Company operates according to the highest ethical and corporate governance standards and seeks to achieve leading environmental, social and health and safety performance.Discover more about Petra www.petradiamonds.com1 OVERVIEW2 Company profile2 Scope of this report3 Petra's production cycle4 FY 2012 highlights5 Our operations7 Business model9 Key performance indicators10 Letter from the CEO12 STRATEGY AND GOVERNANCE17 Case study: Petra and the IFC18 HEALTH AND SAFETY22 Case study: Installation of the collision warning system at Finsch23 OUR PEOPLE28 Case study: The Leadership Development Programme29 ENVIRONMENTAL PERFORMANCE37 Case study: Koffiefontein champions the Secretarybird38 Case study: Williamson wins the Presidential award for water management and forestry conservation39 COMMUNITY44 Case study: The Vukuzenzele Agricultural Project45 GRI INDEX51 GLOSSARYFront cover image: The Cullinan mine in South Africa.

Petra Diamonds Limited Sustainability Report 20122OVERVIEWOverviewCompany profile and scope of this report Company PROFILEPetra Diamonds Limited ("Petra" or "the Company" or "the Group") is a leading independent diamond mining group and an important supplier of rough diamonds to the international market.$ Petra offers an exceptional growth profile, with a core objective to steadily increase annual production from 2.2 million carats in FY 2012 to 5 million carats by FY 2019. The Group has a major resource base in excess of 300 million carats, which provides a solid foundation for sustainable operations over the long term.$ Petra is a dynamic company, in which employees are encouraged to fulfil their true potential, and underpinning our success is a 'can do' attitude. $ The Group conducts all its operations according to the highest ethical standards and will only operate in countries which are members of the Kimberley Process.SCOPE OF THIS REPORTThis Report is the fourth annual Sustainability Report (the "Report") produced by Petra and covers the Company's performance in the area of sustainability for the year to 30 June 2012 ("FY 2012" or "the Year").$ This Report covers the operations managed by the Company in FY 2012, including the Finsch mine (from the date of acquisition on 14 September 2011) and the Fissure Mines (the Helam, Sedibeng and Star mines in South Africa), although Petra and its BEE partners announced the initiation of a sale process for the Fissure Mines in July 2012. $ This Report aims to provide a comprehensive overview of the Group's performance in the areas of health, safety, social and environment during FY 2012, and to set out the Group's strategy towards managing sustainability going forward. The sustainability issues that are deemed to be most material to the Group are discussed and, where applicable, illustrative case studies are provided. This Report should be read in conjunction with the Company's 2012 Annual Report, which is also available to download on the Petra website at$ This Report has been produced in compliance with the Global Reporting Initiative's ("GRI") G3 Guidelines and the Mining and Metals Sector Supplement. Petra has self-declared a B level of reporting for this Report, according to the GRI Guidelines - see the GRI Index on page 45 for more information.$ I n addition, Petra's sustainability policies and reporting processes are aligned with international standards, including: the UN Global Compact, the UN Universal Declaration of Human Rights, the Kimberley Process, the Extractive Industries Transparency Initiative, ISO 14001 and OHSAS 18001 and the ILO Declaration on Fundamental Principles and Rights at Work.$ All data contained in this Report is subject to internal documentation and review processes but is not audited or assured by an external agency. $ This Report is only available in electronic format, with due consideration for the environment. For more information on our sustainability reporting, please contact:Cathy MalinsCorporate Communications ManagerTel: +44 20 7494 8203Email: 52-53 Conduit Street, London W1S 2YX, UK