Q1 FY 2027 Business, Strategic Review and Operating Update

Petra Diamonds Limited

(Petra or the Company)

Q1 FY 2027 Operating Update

Entry into Binding Advance Payment Agreement

Business and Strategic Review Update

Vivek Gadodia, Chief Executive Officer of the Company, commented:

“The first quarter of the Year has been a truly challenging time for the Company, with the market remaining weak, the S189A process at Cullinan Mine and the rest of Group, and the implementation of the Business Rescue process at Finsch, all of which have been managed against a very tight balance sheet. Of note, despite these headwinds, production from underground areas at Cullinan Mine was down only 3% quarter on quarter, notwithstanding productivity impacted by the S189A process, maintenance related downtime, as well as the broader uncertainty surrounding the Company and the diamond sector. Overall production was down 5% quarter on quarter as a result of tailings processed during Q1 FY 2027 being 14% lower quarter on quarter.

The Company announced the commencement of a Strategic Review at the beginning of October, which is underway. The Strategic Review can be summarised as concurrently progressing three distinct workstreams - short-term liquidity support, a consensual refinancing, and/or a sale of the Company’s assets, with a view to maximising the possible outcomes for the Company’s stakeholders.

The Company has reached several important milestones in recent weeks The S189A process has concluded, which is expected to result in sustainable annualised savings of c. US$3 million. As part of the first workstream of the Strategic Review, a binding Advance Payment Agreement has been agreed for future run-of-mine production to provide immediate short-term liquidity support as well as a Forbearance Period being agreed with our Senior Secured Lender, which provides the Company with the platform to progress the other workstreams within the Strategic Review process.

Overall, the diamond sector remains at historic low levels, but with robust demand for high value stones. There appeared to be a cautious but uneven bottoming of the overall market towards the end of September, with prices on smaller goods also seeing some improvement against prices from June/July. The Company realised average prices of US$63/ct (compared to US$76/ct for the previous quarter). Management consider this to be largely attributable to a weaker product mix.

The Company will continue to focus on mining areas of the Cullinan Mine that have the maximum potential for high value stones. Management expect improvements to both product mix and grade from November onwards following conclusion of the S189A process, completion of scheduled maintenance during Q1 FY 2027 within the C-Cut as well as sourcing of some critical mining equipment that began to arrive at the Cullinan Mine from October onwards.

The Company also announced on 22 October that due to delays in auditing the Group's financial statements for the financial year ended 30 June 2026, it was unable to publish its results before the 31 October 2026, which has resulted in the suspension of the listing of and trading in the Company’s shares. In addition, Euronext Dublin has confirmed by announcement on 2 November 2026 a temporary suspension of listing and trading of the second lien notes due 2030 issued by Petra Diamonds US$ Treasury plc, which is an automatic consequence of such delays. The Company intends to seek restoration of listing and resumption of trading of its shares and second lien notes, following publication of the Group's audited financial statements for the financial year ended 30 June 2026.The audit work remains ongoing in order to complete the publication of the financial results as soon as possible, alongside the Company’s continuing discussions with potential finance providers.

The Company would like to thank its employees for the tremendous resilience and fortitude displayed during perhaps the most challenging time experienced both by the Company and the diamond sector as a whole, especially in South Africa. In addition, the Company would also like to thank all its stakeholders, including its shareholders and lenders for the on-going support in helping the Company as it seeks to navigate through these challenges.”

Q1 FY 2027 Salient Points

LTIFR increased to 0.69 and LTIs to 3 (Q4 FY 2026: 0.43 and 2 respectively)

Underground ore processed decreased by 3% at Cullinan Mine compared to Q4 FY 2026, mainly attributed to the S189A process which impacted shift patterns, as well as availability of mining equipment and planned maintenance, which was completed during the quarter. Tailings processed was lower by 14% quarter on quarter, largely due to increased tailings processed during Q4 FY 2026

Total revenue amounted to US$21 million (Q4 FY 2026: US$30 million) from 329,948 carats sold (Q4 FY 2026: 395,005 carats), with an average price of US$63/ct (Q4 FY 2026: US$76/ct). Average diamond prices for the period decreased c. 18% compared to Q4 FY 2026 due to a weaker product mix and lower occurrence of Type II diamonds

The South African Rand strengthened during the quarter, averaging ZAR16.20:US$1 (Q4 FY 2026: ZAR16.47:US$1)

Bank loans and borrowings, including accrued interest and deferred transaction costs, represent the Company’s ZAR1.75 billion (US$107 million) revolving credit facility (RCF). As at 30 September 2026, the RCF had been fully drawn

In July 2026, the Group secured an additional R300 million (approximately US$18 million) working capital facility from Absa Bank under its existing banking arrangements. The facility has an 18-month term, maturing in January 2028. This additional facility of R300 million is currently fully drawn

Consolidated net debt increased to US$348 million as at 30 September 2026 (30 June 2026: US$322 million). Unrestricted cash on hand of US$7 million as at 30 September 2026 (30 June 2026: US$9 million)

The Business Rescue practitioners continue to implement the Business Rescue Plan at Finsch

Litigation against the Company’s former Head of Sales & Marketing is ongoing, with a first instance decision in Dubai finding in favour of the Company's claim of breach of contract and making an award of c. US$2.1 million. The Company intends to take steps to obtain final judgement, enforce this award and pursue available claims

Post Period

A strategic review commenced on 1 October to address liquidity needs of the business: binding Advance Payment Agreement executed and Senior Secured Lender Forbearance Period agreed

Following a hearing on 14 October, a UK court made a winding-up order in respect of Petra Diamonds UK Treasury Limited, a wholly owned, indirect subsidiary of the Company regarding £5,647,811.32 for FY2025 due to HMRC in relation to corporation tax. Further updates will be provided as and when appropriate

Amre Youness, who had the right to attend meetings of the Board of the Company, has informed the Chair that he will not attend any future meetings. The Board wishes to express its gratitude to Amre for his longstanding and continued support for the Company.

Updates on Strategic Review

A strategic review was announced on 1 October 2026 which includes the consideration of all potential paths to address liquidity needs of the business, continue discussions for a refinancing of the Company, while also assessing any potential sale of the Company’s assets with a view to maximising the possible outcomes for the Company’s stakeholders.

This process continues to progress, with the immediate objective being injection of further working capital liquidity in order to continue operations at the Cullinan Mine which has been secured as detailed below.

Advance Payment Agreement and Senior Secured Lender Forbearance

The Company announces that its subsidiary, Cullinan Diamond Mine Proprietary Limited (“Cullinan Mine”), has entered a binding Advance Payment Agreement with a mid-stream diamantaire group (“Offtaker”). The Offtaker will make available at least US$20 million through revolving advance payments for all future run-of-mine production. The conditions and commercials attached with this facility are in line with other agreements of this type. Cullinan Mine may terminate this agreement at any time without penalty, provided that any outstanding amounts are settled in full.

Concurrently, and as a condition to the Advance Payment Agreement, Petra has also agreed a forbearance and consent letter with its Senior Secured Lender (“Forbearance”), pursuant to which the Senior Secured Lender will not take enforcement action on specified defaults until the earlier of 12 months from the date of the letter or full repayment of any outstanding amounts under the Advance Payment Agreement, subject to certain ongoing conditions being met.

Together, the Advance Payment Agreement and the Forbearance provide near-term liquidity and stability for Petra and Cullinan Mine whilst it continues to progress its strategic review to find a long-term financing solution.

S189A at Cullinan Mine and rest of Group

As previously announced, on 28 July 2026, the Company launched a Section 189A labour restructuring process during Q4 FY 2026. This process resulted in extensive engagements over the past 3-4 months, resulting in a conclusion achieved during October 2026. As a result of the process, regrettably, 25 positions have been made redundant and certain variable cost reductions have been implemented. The outcome of the S189A process is expected to result in c. US$3m in annualised sustainable savings.

The Company is now focused on moving on from the challenges of the S189A process, and re-orientating the workforce towards improving production and safety performance achieved during Q1 FY 2027.

Litigation against the Company’s former Head of Sales & Marketing

Earlier this year, the Company commenced claims, including in South Africa and Dubai, against its former Head of Sales & Marketing on the basis that, while employed, he was believed to have established and operated a competing business using knowledge, contacts and opportunities acquired through his employment within the Company's group.

In September of this year, in Dubai, a Court of first instance found in favour of the Company, against its former Head of Sales & Marketing (“the First Defendant”) and a company established by him, Noble Star DMCC (“the Second Defendant”, and together “the Defendants”), finding that the Defendants committed acts of unlawful competition through the First Defendant's establishment of the Second Defendant, which carried on similar business activity and operated in a similar market during the period of his employment within the Company's group.

The Court found that this constituted a contractual breach by the First Defendant and a tortious wrongful act by the Second Defendant and made an award of AED 7,764,544 in favour of the Company, being worth approximately US$2.1 million as at today's date. The Company intends to take steps to obtain final judgement, enforce this award and pursue available claims. Further updates will be shared, as appropriate.

Updates on the Business Rescue Process at Finsch

As previously announced, on 7 August 2026, the Business Plan presented by the Business Rescue Practitioners was adopted. Progress has been made since then, with the following main elements to note:

Recovery of underground movable assets nearly complete, with a view to completing all underground operations as soon as possible.

Asset sales have commenced, with over 3000 lots catalogued for disposal largely through the auction route, with these auctions underway with the speed of auctions governed by the applicable Mine Health and Safety Act.

A skeleton crew continues to work under the custodianship of the Business Rescue Practitioners to implement the Business Plan.

A S189A process was initiated and completed, with a retrenchment agreement signed on 14 of October 2026, which resulted in the retrenchment of all employees at Finsch, with the skeleton crew continuing to help implement the approved Business Plan, and who will also exit once the work is completed.

The Business Rescue Practitioners continue to progress the Business Plan, with the immediate focus on completing the underground activities and progressing the asset sales. Further updates will be provided on material developments going forward.

Operating Summary

1 FY26 numbers exclude Finsch

2Revenue reflects proceeds from the sale of rough diamonds and excludes revenue from profit share arrangements

LTIFR and LTIs increased to 0.69 and 3 respectively, from 0.43 and 2 in Q4 FY 2026. The increase is associated with recent organisational restructuring initiatives, with approximately 66% of LTIs linked to behavioural factors, specifically inadequate risk awareness and hazard recognition. This highlights the need for strengthened safety leadership, engagement, and risk awareness interventions during periods of organisational change.

Production at Cullinan Mine during the quarter was down compared to the previous quarter. This was largely as a result of scheduled maintenance and a breakdown, which resulted in non-availability of two crushers servicing the C-Cut during September and into October, which impacted both the product mix as well as the grade. Availability of critical mining equipment also played a role in delaying planned ramp-up production from the CC1E. The delays in procuring critical mining equipment were as a direct result of cash management steps, which resulted in deferring procurement of critical mining equipment. Despite these challenges, as well as the morale and productivity dips related to the S189A process for the entirety of the quarter, underground ROM production was down only 3% quarter on quarter. Tailings production was down by 14% quarter on quarter, largely because Q4 FY2026 saw enhanced tailings processing.

We expect improvements in both product mix and grade, which should improve the carats produced from underground from November onwards, with critical mining equipment arriving at Cullinan Mine from October, with continued deliveries in November, as well as the completion and re-operationalisation of the C-Cut crushers.

Q1 FY 2027 sales results

Diamond sales for Q1 FY 2027 was US$21 million from 329,948 carats. Average prices decreased c. 18% compared to Q4 FY 2026. Rough diamond sales results for the respective periods are shown below.

Overall, the markets showed some signs of bottoming out in August and September, with good demand for the coarser higher valued goods. The Cullinan Mine, experienced a period of depressed product mix through the quarter, largely due to the challenges noted above, where Cullinan Mine was not able to maximise production from the intended production areas as a result of unavailability of two crushers and a delay in delivery of critical mining equipment.

There is no certainty as to the outcome of the Strategic Review. The Board will make further announcements in due course.

The person responsible for releasing this announcement is Tumi Dakada, General Counsel and Company Secretary of the Company.

LTIFR: lost time injury frequency rate, calculated as the number of LTIs multiplied by 200,000 and divided by the number of hours worked

FY: financial year ending 30 June

CY: calendar year ending 31 December

Q: quarter of the financial year

ROM: run-of-mine (i.e. production from the primary orebody)

m: million

Mt: million tonnes

Mcts: million carats

period: the first quarter of FY 2026

Preceding Period: Q4 FY 2025

Prior Period: Q1 FY 2025

Corporate and financial summary as at 30 September 2026

Notes:

The following exchange rates have been used for this announcement: average for Q1 FY 2027 US$1: ZAR16.20 (FY 2026: US$1: ZAR18.15); closing rate as at 30 September 2026 US$1: ZAR16.42.

The Group’s cash balances comprise unrestricted balances of US$7 million, and restricted balances of US$19 million.

Recorded at the lower of cost and net realisable value.

The 2030 Loan Notes have a carrying value of US$249 million which represents the nominal value of US$228 million, plus fair value adjustments at modification date in terms of IFRS 9 and net of any unamortised transaction costs capitalised which were incurred during the Refinancing completed during November 2025. The 2026 Loan Notes represent the gross capital of US$228 million (including PIK), plus accrued and unpaid interest for the relevant periods, up to the refinancing date.

Bank loans and borrowings represent the Group’s ZAR1.75 billion (US$107 million) revolving credit facility and ZAR300 million (US$18 million) additional facility granted in July 2026, including accrued interest of US$6 million, less repayments of US$5 million. As at 30 September 2026, both the revolving credit facility and the additional facility were fully drawn.

Consolidated Net Debt is bank loans and borrowings plus loan notes, less cash and diamond debtors.