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Petra Diamonds Limited Sustainability Report 201225OUR PEOPLEOur PeopleFostering our team continuedLocal hiringAll Petra operations follow a policy of preferential local recruitment. In South Africa, it is part of the mines' Social and Labour Plan ("SLP") commitments to recruit from local communities that are regarded as their main labour sending areas, and is in some cases also contained within agreements with organised labour (e.g. with the National Union of Mineworkers ("NUM") in the case of Finsch). In practice, only vacancies for positions in the skilled bands, where there could be a skills shortage internally or in the host community, are advertised regionally or nationally. Even when a position has been advertised regionally or nationally, preference will still be given to local applicants. Major contractors to the operations are expected to apply the same recruitment principle when employing workers for contracts at these operations. Below is a summary of the breakdown of the proportion of Petra's workforce at the core South African operations from the local community:LocalProvincialNationalFinsch57%18%25%Cullinan64%16%20%Koffiefontein84%5%11%Kimberley Underground100%0%0%In Tanzania, Petra's entire workforce at Williamson is of Tanzanian nationality apart from eight expatriates. The breakdown of the Tanzanian workforce is as follows:LocalRegionalNationalWilliamson14%12%74%RetentionA key challenge for Petra is workforce retention, especially as the majority of our employees are classified as skilled or semi-skilled. We operate in remote areas and there is a limited pool from which we can draw our employees. Therefore we try hard to limit staff turnover (and dismissals).Petra is taking a number of steps to foster a vibrant company culture, in which employees are engaged in the development of the business, able to share in its success and encouraged to reach their full potential. Current internal projects underway include the Organisational Culture Scan (see Organisational Review section on page 24) and the Skills Audit Project (see Training and Development section to follow). In addition, Petra's employment terms and incentivisation structures are designed to attract, incentivise and retain individuals of a high calibre.In FY 2012, employee turnover was 12%; much of this was the result of competitor actions, which illustrates the ongoing skills shortage in our sector and the retention challenges we face. The breakdown of this Group turnover rate is provided below:SouthAfricaTanzaniaBotswanaTotalTerminations and voluntary turnover423220445Age group20-2567206926-3075407930-3586409036-4049004940-4547204946-5041104251-60589067Male371190390Female523055Training and developmentPetra is committed to the training and development of employees in order to ensure the current and future skills needs of the organisation are met. In FY 2012 we invested ca. US$3.3 million in staff training and development across the Group. In FY 2012 we launched the Skills Audit Project to evaluate employee skills in the context of the skills required by our business, now and in future. The project will help us refine our approach to training and employee development, clarify job descriptions, increase the focus on individual training and career development, and, ultimately, produce a more competent and engaged workforce. In order to match the skills required by our business, in particular the technical skills necessary for diamond mining, we have an ongoing need to train our workers. The Mining Charter of South Africa stipulates a training expenditure target of 4% of operations payroll for 2012, and at most of our South African operations we achieved this. Two of our Fissure Mines, Helam and Sedibeng, did not meet the target due to capacity and budgetary constraints. Spending at our other mines takes our average training expenditure above the 4% target as stipulated in the Mining Charter and in FY 2013 we aim to achieve the stipulated expenditure target at all of the operations. Leadership development programmeAs a growing company, Petra requires a productive and effective workforce who can lead the Company through its next stages of development. In addition to technical skills, this requires the ability to lead and motivate teams, to measure and manage team performance, manage resources, systems and processes, and develop and implement action plans to ensure operational objectives are met. Petra's leadership development programme ("LDP") is an important strategic tool to assist the organisation in the identification and development of employees who display the potential to fulfil leadership positions in the future.Candidates for the LDP are selected from employees, with a focus on Historically Disadvantaged South Africans ("HDSAs"), including women, who are potentially managers and supervisors. These employees have been earmarked as potential leaders and have a career path into management positions.Currently, 36 out of the 47 LDP candidates are HDSAs. The shortage of women in technical fields was identified as a key challenge for FY 2012 and we have made good progress with improving female participation, with the number in the scheme increasing from 14 to 17. We hope to continue with this upward trend going forward.Participants in the LDP receive regular performance and career development reviews. These include annual assessments by supervisors, mentors and the project team, as well as self evaluation. Personal development plans are reviewed, discussed and signed off each year at the beginning of the programme cycle by participants, their mentors and supervisors. Progress is also assessed through the submission of two individual assignments and a group assignment and presentation.To complement the LDP, we are introducing two additional programmes, the Supervisory Development Programme and the Executive Management Development Programme. These will focus on the development of employees currently in supervisory positions and ensure the management skills required for the growth of our Company are available.Regular performance and career development reviews are currently not available to the wider workforce in South Africa. In Tanzania and Botswana, no formal performance review programme currently exists.

Petra Diamonds Limited Sustainability Report 201226OUR PEOPLEOur PeopleFostering our team continuedAdult basic education and trainingOne challenge facing Petra and our employees is the poor standard of education in South Africa, which has an illiteracy rate of 23%. On average, the illiteracy rate of Petra's South African workforce is 22%. In order to facilitate communication and understanding, improve our workers' skills and comply with the South African Mining Charter, Petra is committed to increasing the literacy levels of its employees through adult basic education and training ("ABET"). The purpose of Petra's ABET programme is to:$ provide individuals with the opportunity to gain a minimum level of education; $ provide employees with a basic education that allows for further development through South Africa's further education and training system; $ develop employees' skills and knowledge through participation in sector specific training opportunities; and$ develop a culture of lifelong learning.We have ABET facilities in place at all of our South African operations. Such facilities are provided by Petra in the case of the larger pipe mines and Sedibeng, whereas the other Fissure Mines (Helam and Star) have access to community ABET centres.ABET programmes may be run internally and presented by Company-employed facilitators or outsourced to other accredited, regulated providers, or a combination of the aforementioned, depending on the facilities available at each operation. In Tanzania, where the Williamson mine is located, the workforce has a much higher level of basic education, and it is estimated that 95% of Williamson employees are functionally literate and numerate. Likewise in Botswana, where our workforce is comparatively very small, ABET is not necessary.Portable skills trainingTo support the continued employability of our workforce, Petra has established portable skills training programmes at all our South African operations. These programmes provide employees with the opportunity to acquire a portable skill, which may prove useful upon leaving the mining industry. Training on offer includes carpentry, air conditioning repairs, computer skills, plumbing and brick-making. These programmes are also open to the local community to assist with wider skills development. There are currently no formal portable skills programmes in place in Tanzania and Botswana, although in the former we give continuous training in the workplace and distance learning programmes and short courses are well attended.Bursary schemeThe bursary scheme is part of Petra's SLP in South Africa. The bursaries give promising students the opportunity to study for a degree in a relevant discipline. In FY 2012, a total of 14 students were on the bursary scheme, although three have now been suspended for poor academic performance. Budget allocated for FY 2012ca. US$193,562 (R1,579,462)Budget allocated for FY 2013ca. US$269,181 (R2,196,520)LearnershipsA learnership is a registered and accredited learning programme in South Africa, which combines practical work experience with academic learning. Petra's learnership programmes are aligned to the Company's business plan and therefore aim to address skills shortages and job vacancies both at our mines and within the mining industry as a whole, with the objective therefore being to increase the pool of available labour both internally and externally.Learners are recruited from inside and outside the Company. Currently we have learners on a number of programmes ranging from various engineering disciplines (electrical, fitter, instrumentation, etc.) to rock breaking and metallurgy.In calendar 2012, 11 learners completed their programme. This number will increase to 36 in calendar 2013. Most of these learners will be absorbed into our workforce.The table below indicates the number of learnerships across Petra's South African operations currently and the expected pass out rate over the next four years. EqualityOur Disciplinary Code and employment policies prohibit any kind of discrimination.In South Africa, we have an Employment Equity Policy and have set up Employment Equity Committees at all of our mines, with membership drawn from employer and employee representatives, which monitor the implementation of Employment Equity Plans. These plans detail the identified barriers to equitable employment and specify affirmative measures to be implemented by each operation. Our Employment Equity Policy and plans are currently being reviewed to enable the Company to comply with the targets set in the Mining Charter. Diversity Champions have been trained and a diversity awareness workshop was conducted with Petra's Senior Management in FY 2012. LearnershipsExpected completion date2012201320142015Total Vacantearliestfinish 2015 Part-timeTotal Engineering: Diesel Mechanic122 5 5Engineering: Electrical1634144 18Engineering: Fitter 15 62 8Engineering: Fitter and Turner12 362 8Engineering: Instrumentation 11 1Engineering: Mechanician 11 13 3Engineering: Plater/Boilermaker5 3816 16Engineering: Plater/Welder 21362 8Engineering: Rigger1 1132 5Metallurgy Learnership 5 5 813Mining: Rockbreaking L2 and L3 137 20 22211361721851210107Section 18.1 Candidates¹:61Section 18.2 Candidates²:25Engineering Section 28 Candidates³: 6Notes:1. Section 18.1 Candidates refer to learners who are our employees. 2. Section 18.2 Candidates refer to learners who are not our employees but come mainly from our host communities. 3. Engineering Section 28 Candidates refer to learners who complete an apprenticeship following a more experiential approach and not a formal learnership.