Letter from the CEO

Dear Stakeholder

I am pleased to present our first Sustainable Development Report which reflects the Company's progress in the areas of economic, social and environmental performance.

While we include a summary sustainable development section in our annual report to shareholders, we have compiled this more detailed report in a web-based format. We have adopted the Global Reporting Initiative's (GRI) G3 guidelines as the basis of our report and, since most of our operations are in South Africa, we report also on progress we have made against the objectives set by the Mining Charter. As a leading diamond Company, we are a signatory to the Kimberley Process and this report addresses many of the concerns and misconceptions that may exist about the diamond industry today.

Importantly sustainable development is not only about hard facts and numbers - it has at its heart people - employees and communities. So, an important part of this report are the case studies where we talk to some of our people about the challenges they face, the progress they have made and their plans for the future.

In reviewing the year, there have been a number of achievements that we can be proud of:

• Ensuring the health and safety of our employees is one of the most important commitments we make. We were pleased to report an exceptional health and safety performance in the 2009 financial year.
• The Company also made substantial progress in the area of training with a Leadership Development Programme having been implemented to identify and develop the management of tomorrow from within our workforce. The 43 candidates who successfully completed the first year of the programme are now in the second year and completed a range of subjects vital to improved productivity and management in the workplace.
• In line with Petra's commitment to being a responsible corporate citizen, the Company recognises the poverty alleviation and local economic development priorities in Africa. We are aware that mining operations have finite lives and our contribution to host communities therefore needs to deliver sustainable initiatives whose benefits will outlast the lives of our mines. We are committed to ensuring a positive impact on the social, economic and institutional development of our host communities.
• Emphasis is placed on environmental management throughout the life cycle of our operations from exploration to closure. We are committed to, at minimum, adhering to all environmental regulations and legislation and, where possible, applying best practice.

We will continue to report on our sustainable development progress annually to effectively engage all our Stakeholders and aim to continually improve on our social, economic and environmental impacts.

Johan Dippenaar
Chief Executive Officer
9 November 2009