Initial sales results for Tender 3 FY 2024

Petra Diamonds Limited

("Petra" or "the Company")

Initial sales results for Tender 3 FY 2024

Petra announces initial sales results for Tender 3 of FY 2024, at which 462.8 kcts were sold for a total of US$58.7 million, representing a c. 20% increase in like-for-like[1] prices compared to Tender 2 FY 2024, which closed in October 2023. Final sales for this third cycle are scheduled to close next week, with around 31 kcts from Williamson mine on tender at the Company's sales facilities in Belgium, and some 25 kcts from the South African operations planned to be sold to local clients to meet our South African Diamond Beneficiation obligations.

Richard Duffy, Chief Executive Officer of Petra, said:

"The 20% increase in like-for-like1 prices for our third tender of FY 2024 supports the view that diamond prices have likely bottomed. We believe actions taken by major producers to curb supply and the two-month Indian moratorium that comes to an end on 15 December 2023, together with strengthened retail sales in the US, have improved market conditions as inventory levels across the pipeline rebalance. Ongoing discipline by the key players is important to provide some price stability in the new year."

Rough diamond sales results for the respective periods are set out below1:

Note 2: Exceptional Stones are defined as rough diamonds for US$15 million or more each.

Sales

A total of 411.7kcts of goods from Cullinan Mine and Finsch were sold, yielding US$48.3 million, and 51.0kcts from Williamson yielding US$10.4 million.

The current cycle also includes 31.3kcts from Williamson to be tendered at our Belgium facility and around 25kcts from the South African operations planned to be sold to South African customers next week. These sales will be included in the final results of this third tender cycle and in the Company's H1 FY 2024 financial results.

The provisional results of Tender 3 bring FY 2024 YTD revenue from rough diamond sales to US$178.5 million, compared to US$202.8 million in the first three tenders of FY 2023, excluding Koffiefontein. Year-on-year volume variances were affected by the deferral of certain FY 2023 sale parcels, which were sold as part of Tender 1 of FY 2024.

Mine by mine average prices for the respective periods are set out in the table below:

Like-for-like prices

Like-for-like rough diamond prices for goods sold improved by c.20.0% on Tender 2 FY 2024, driven by over 20% increases in the prices achieved for goods smaller than 2cts, while 2 to 10.8ct parcels saw increases in the mid-teens. Year to date like-for-like prices are down 13.2% compared to the equivalent three tenders of FY 2023.

Product mix

The balance of price movements is attributable to product mix, with an improved contribution from higher-value single stones from Cullinan Mine, including a 12.6ct blue stone that sold for US$6.2 million, while Finsch and Williamson saw marginally reduced overall qualities in their product offering, although both remained within the expected range of product variability.