Johannesburg, 22 November 2007 - PDCC is comprised of AIM quoted Petra Diamonds Limited (“Petra”), Al Rajhi Holdings WLL (a Saudi-based investment company) and their empowerment partner, Thembinkosi Mining Investments (Pty) Ltd (“Thembinkosi”). Thembinkosi brings together a significant pool of empowerment players, its shareholders being Sedibeng Mining (Pty) Ltd, Namoise Mining (Pty) Ltd, Umnotho weSizwe Group (Pty) Ltd, and a Petra Employee Share Trust that will ensure that all Petra employees, including those at the mine, can benefit in the mine’s success.

The agreement to sell the mine to PDCC follows an open and rigorous selection process that evaluated prospective bidders on a number of criteria determined by DBCM as critical to ensuring the long-term sustainability of Cullinan Diamond Mine. In addition to the consortium’s access to funding, criteria included a detailed evaluation of the company’s technical capacity and BEE credentials, as well as its socio-political focus.

Commenting on the sale, David Noko, Managing Director of DBCM said: “We are particularly pleased to have been able to conclude this transaction with PDCC. We believe that Petra’s track record as a hardrock underground miner bodes well for the long-term sustainability of Cullinan Diamond Mine going forward, and are confident that this will help ensure a long-term opportunity for the Petra-led consortium as the new owners of the mine, as well as guarantee continued investment in the town of Cullinan for many years to come.”

Petra has proven expertise in successfully mining diamond ore resources that could be considered as marginal by larger mining companies. The company has already purchased the Dancarl Mine in the Barkley West District and Koffiefontein Mine from DBCM. It also reached an agreement with DBCM to purchase the company’s Kimberley underground mines in September 2007, which the parties hope to finalise by early 2008. To date these three transactions have secured 1 050 jobs that would otherwise have been lost in South Africa.

The sale of Cullinan Diamond Mine reflects De Beers’ continued realignment of its mining portfolio and a global business model that no longer focuses on maximising market share of production. Taken together with the previous announcements regarding Namaqualand Mines and the Kimberley mining operations this completes DBCM’s portfolio review process.

The strategy to operate mines best suited to the future plans of De Beers in South Africa will lead to improved returns on DBCM’s capital as new projects like SASA (the recently operational marine mining operation off the West Coast of South Africa) and Voorspoed come fully on stream in 2008 and 2009.

Gareth Penny, Managing Director of the De Beers Group said: “This will enable De Beers to best use our capital to invest in exciting growth opportunities and to sustain a strong diamond mining business in South Africa for the future. In this way De Beers is strengthening its commercial future in South Africa whilst helping to meet Government’s aspirations for a diversified, transformed South African diamond industry.”

Johan Dippenaar, Chief Executive Officer of Petra said: “The Cullinan Diamond Mine is one of the most illustrious diamond mines in South Africa and we are delighted to have concluded this transaction which will ensure a viable and sustainable mining operation for many years to come.

Over the last 100 years, Cullinan has played an integral part in writing the history of diamonds – giving the world its largest ever gem diamond, the Cullinan diamond, as well as many of the most famous and spectacular diamonds ever seen, including the two largest polished diamonds. Now we are confident that the mine will help to write the future history of diamonds in the hands of our consortium.

“This transaction is a transformational deal for Petra and reflects the opportunities DBCM is creating for new players in the diamond industry, such as our consortium, which includes our valued empowerment partner, Thembinkosi, and the Petra Employee Share Trust. We would like to extend special thanks to DBCM, the Department of Minerals and Energy, and organised labour for their help and support.”

In terms of the sale agreement the cash consideration is R1 billion, and the transaction will also transfer the full environmental rehabilitation liabilities.DBCM will continue to own and manage Cullinan Diamond Mine until such time as the sale, which is subject to a number of conditions precedent, has been finalised. These include obtaining the necessary approvals from the Competition Tribunal, as well as the successful conversion of  DBCM’s mining right from an old order mining right to a new order mining right, and the transfer of that mining right to Petra and Thembinkosi.