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Petra Diamonds Limited Sustainability Report 201229ENVIRONMENTAL PERFORMANCE" Every prospecting, mining and related activity is committed to undertaking all activities in accordance with the highest environmental standards."

Petra Diamonds Limited Sustainability Report 201230ENVIRONMENTAL PERFORMANCEEnvironmental PerformanceProtecting our environment Our approach and key issuesPetra recognises the need to conduct its operations in an environmentally sustainable manner by using resources responsibly, protecting and restoring the environments where we operate and mitigating the impacts of our operations. We are committed to implementing rigorous environmental management processes, developing long-term sustainable practices and meeting international best practice. We aim to continually improve our environmental management systems and promote environmental awareness among our employees and the community. Environmental responsibility is integrated into our strategic planning, management systems and daily activities and we conduct regular internal and external audits of our operations.The main environmental risks to our operations are:$ water consumption in excess of permitted volumes;$ discharge of substandard effluent into nearby water sources; $ unsustainable energy consumption; $ changes in vegetation dynamics and degradation of faunal habitat; $ the impact of climate change, in particular affecting the availability of water; and$ mine stoppages due to non-compliance with regulations.In order to manage these risks and the environmental impacts of our operations, we monitor our environmental performance in the following areas:$ resource and water usage; $ energy consumption;$ carbon emissions;$ dust and waste management; $ protection and biodiversity management of the land upon which our operations are held; and$ rehabilitation and closure procedures.We strive to comply in full with all environmental laws and regulations in the countries where we operate. In addition, our Group Environmental Policy ("the Policy") sets out our commitment to achieving a high standard of environmental performance across all our operations. The Policy is supplemented by our Group Environmental Management Strategy which provides guidance on our Group objectives and key performance areas. The Policy was communicated to all operations and implemented across the Group in FY 2012 and our Environmental Management Strategy is currently being rolled out, with full implementation expected by FY 2013. At an operational level, an Environmental Management System ("EMS"), which sets out detailed processes for mitigating the environmental impacts and risks of our activities, is being put in place for each prospecting and mining licence. This includes a suite of policies that deal with specific environmental issues at each operation.Our objective is that all EMSs should comply with ISO 14001, which is a voluntary international environmental management standard. Finsch and Cullinan have already achieved this goal, whilst Koffiefontein and Kimberley Underground are scheduled for certification by the end of FY 2013. The South African operations also have Environmental Management Programmes ("EMPs") in place, which relate to compliance with the Mineral and Petroleum Resources Development Act ("MPRDA") in South Africa.The Williamson mine has an EMS that is compatible with ISO 14001 and complies with Tanzanian legislation. Subject to approval by Tanzanian authorities, we expect it to be finalised later this year, with certification to follow. The Fissure Mines are currently in the process of developing and implementing procedures in order to implement an EMS compatible with ISO 14001.A full EMS is not yet required for our exploration project in Botswana, but in FY 2012 we completed a Social and Environmental Strategic Risk Report related to the progression of exploration work on kimberlite KX36 and associated drilling programmes. EnvironmentWe recognise the need to conduct our operations in an environmentally sustainable manner by using resources responsibly, protecting and restoring the environments where we operate and mitigating the impacts of our operations.SUMMARY$ We aim to continually improve our environmental management systems and promote environmental awareness among our employees and the community$ We monitor our resource usage carefully, ensuring that materials are reused or recycled wherever possible$ We have identified the management of water as one of our most significant environmental risks due to the impact of climate change$ All our operations have implemented initiatives to reduce energy consumption and increase energy efficiency wherever possible