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The Petra Group encompassed 5,139 permanent employeesand 2,117 contractors as at 30 June 2013.OverviewOperation comprises Bultfontein,Dutoitspan and Wesseltonkimberlite pipescolour commercial white diamonds highlysought after by manufacturersPetra Diamonds BotswanaTanzania’s most importantdiamond producerBotswana is the world’s largestdiamond producer by value Renowned for beautifully rounded white Petra holds 21,520 km² of diamond FY 2013 production of 164,376 caratsand revenue of US 41.9 million Work progressed on the KX36 discoverygoods and ‘bubblegum’ pink diamonds FY 2013 production of 115,400 carats 1,215 people: 519 employees, 641 people: 641 employees Petra ownership 75%; United Governmentand revenue of US 33.4 millionand 0 contractorsexploration ground US 4.8 million exploration spendin FY 2013696 contractorsof the Republic of Tanzania 25% 42 people: nine employeesHealth and Safety Production characterised by the betterWilliamsonStrategy and GovernanceKimberley Undergroundand 33 contractors Petra ownership 74%¹; BEE partners26% (Sedibeng Mining (Pty) Ltd)Our PeopleOther departmentsSorting, Marketingand SalesEnvironment Petra cleans and sorts its roughdiamonds mined in Tanzaniaand South Africa Sales tenders are carried out inboth South Africa (Johannesburg)and Belgium (Antwerp)Fissure minesPortfolio of three mines (Helam, Sedibeng and Star)commenced a public disposal processin respect of the Fissure Mines, whichdid not result in any acceptable offers;the Company is continuing to run Helamon a commercial basis, whilst Sedibengand Star have been placed onto careand maintenance FY 2013 production of 72,287 caratsand revenue of US 17.1 million 1,165 people: 1,157 employees Petra is headquartered in Jersey,with administrative offices alsoin Johannesburg and Londonand eight contractors Helam, Sedibeng, Star ownership:Petra 74%¹, BEE partner 26%(Sedibeng Mining (Pty) Ltd) US 11.3 million corporateoverhead spend in FY 2013Sustainability Report 2013 Petra Diamonds Limited0 PDL csr13 [NB MR].indd 9Community In FY 2013, Petra and its BEE partnersGroup/Corporate/Central Technical andOperations Support711/27/2013 5:06:29 PM

OverviewOur commitmentOur commitmentOur commitment to invest in our mines enablesPetra to have a clear roadmap to 5 Mctpaby FY 2019.15 Growth profile focuses on brownfield expansion –strategy to recapitalise existing mines4 Fully financed Capex profile using treasury,cashflows and debt facilitiesReview the ‘Capex Guidance’ on Petra’swebsite for further information on theCompany’s Capex profile to FY 2019 idance2013TotalCapex3FY 2013 Capex per operation:1 CullinanUS 89.0m2 Expansion Capex of US 64.0 million, sustaining Capex ofUS 17.2 million and borrowing costs capitalised of US 7.8 million Expansion plan to increase production from ca. 870,000 ctpato ca. 2.2 Mctpa by FY 2019 (underground and tailings)2 FINSCH3 KOFFIEFONTEINUS 48.6mUS 20.4m Expansion Capex of US 33.5 million, sustaining Capex of Expansion Capex of US 10.9 million and sustaining Expansion plan to increase production from 1.4 Mctpa to Expansion plan to increase production from 34,800 ctpa4 KIMBERLEY UNDERGROUND5 Williamson Expansion Capex of US 17.6 million and sustaining Capex Expansion Capex of US 8.4 million and sustaining Capex Expansion plan to increase production from ca. 115,000 ctpa Expansion plan to increase production from ca. 160,000 ctpaUS 10.6 million and borrowing costs capitalised of US 4.5 millionca. 1.8 Mctpa by FY 2016 and to ca. 2.0 Mctpa by FY 2019(underground and tailings)US 21.6mof US 4.0 millionto ca. 130,000 ctpa by FY 20168Capex of US 9.5 millionto ca. 105,000 ctpa by FY 2017 (underground only)US 11.7mof US 3.3 millionto ca. 300,000 ctpa by FY 2017Petra Diamonds Limited Sustainability Report 20130 PDL csr13 [NB MR].indd 1011/27/2013 5:06:31 PM

OverviewKey Performance IndicatorsThe following non-financial KPIs are considered by management to be themost appropriate in terms of tracking Petra’s sustainability performanceyear on year.OverviewKPI andFY 2013 performancePerformancein FY 2013Objectivesfor FY 2014Lost Time InjuryFrequency Rate (“LTIFR”)is defined as the numberof lost time injuriesmultiplied by 200,000 anddivided by the number ofhours worked. LTIFR is anindustry-wide measure ofoverall safety performance.Group LTIFR for theYear reduced to 0.67. Thisis an encouraging trendconsidering the increasein activities as the capitalprogrammes progress.Petra will continueto remain highly vigilantwith regards to ensuring itsemployees can work safely;the Company’s wide rangeof initiatives, training andawareness programmesall aim to foster a zeroharm workplace and targeta minimum 20% reductionper annum.Fatal Injury FrequencyRate (“FIFR”) representsthe number of fatalitiesper 200,000 hours worked.There were no fatalitiesin FY 2013.Fatalities are unacceptableand we target an FIFRof zero, as achievedin FY 2013.Corporate SocialInvestment (“CSI”)spend representsthe total amountof expenditureon community andsocial projects in theYear. It shows howPetra’s revenues arechannelled to supportits communities.Expenditure waslower than expecteddue to delays approvingthe new Local EconomicDevelopment (“LED”)projects in South Africa.Social expenditureis highly regulated inSouth Africa, accordingto commitments madein the SLPs acceptedand approved by theDMR. Once approved,Petra will adhere toits commitmentsas per its SLPs.DescriptionSafetyLTIFR2012: 1.130.002012: 0.03Health and SafetyFIFRThe team is very focusedon driving improvementsin line with the Group’sobjective of zero harm.Strategy and Governance0.67Socialca. US 0.9 million¹2012: ca. US 3.3 millionOur PeopleCSI spendEnvironmentCommunityNotes:1. Calculated using an average exchange rate of US 1:R8.84.Sustainability Report 2013 Petra Diamonds Limited0 PDL csr13 [NB MR].indd 11911/27/2013 5:06:32 PM

OverviewKey Performance Indicators continuedKPI andFY 2013 performancePerformancein FY 2013Objectivesfor FY 2014Training spend representsthe total amount investedin training schemes forour workforce during theYear. The developmentof people also takes placethrough offerings suchas adult basic educationand training, the LeadershipDevelopment Programmeand the bursary scheme.Training spend hasremained in line withthe South African MiningCharter stipulation for2013 to be ca. 4.5% ofoperations payroll.It is anticipated thatPetra’s training spend inSouth Africa will increaseto ca. 5% of operationspayroll, as required bythe Mining Charterfrom 2014 onwards.The percentage offemale employees in ourtotal workforce. Attractingand retaining women is amajor part of establishinggender diversity in ourworkforce and is oneof Petra’s priorities.The percentage of femaleemployees in the workforceremained stable during thereporting period.Increasing the numberof female employeesis an important aspectof improving on equityin the Company. Despitethe challenges inherentto employing womenin the mining industry,preference is givento the recruitment ofwomen as a historicallydisadvantaged group.Staff turnover is calculatedusing the total numberof employees who haveleft the Group during theYear, including voluntaryturnover and terminations.High employee turnovercan negatively impactthe human capital ofthe Company and affectproductivity. We aimto maintain low staffturnover rates.Staff turnover ratesconsistent with nationaland industry levelswere maintained.Although turnoverrates are consistent withthe industry and nationalnorm, these are monitoredto ensure that appropriateaction is taken should staffturnover rates start risingunacceptably.DescriptionOur Peopletraining spendca. US 4.5 million¹2012: ca. US 3.3 millionwomen in theworkforce14%2012: 14%staff turnover11%2012: 12%Notes:1. Calculated using an average exchange rate of US 1:R8.84.10Petra Diamonds Limited Sustainability Report 20130 PDL csr13 [NB MR].indd 1211/27/2013 5:06:32 PM

OverviewKPI andFY 2013 performancePerformancein FY 2013Objectivesfor FY 2014The volume of water usedby Petra during the Yearexpressed as a total for theGroup and on a per tonnetreated basis (“m3/t”).The higher volume of waterconsumption is attributedto increased productionand improved reportingof consumption from allmines. As the accuracyof water monitoringimproved in FY 2013,the usage recorded forthe Year is not directlycomparable to FY 2012.It is expected that waterconsumption will increasein the future as most of ouroperations are expandingor increasing production.Petra will mitigate thisimpact by focusing onincreasing the re-use ofwater and by minimisingwater losses. Petra willtarget a reduction in waterconsumption measuredin m3/t.This represents the amountof energy used by Petrafor the Year expressed as atotal for the Group and ona per tonne treated basis(“kWh/t”). Our main sourcesof energy consumption areelectricity and diesel.Total energy usageincreased in line withthe Group’s increase inproduction for the Year;however Petra combattedthe required increases bydriving energy efficiencyinitiatives across all itsoperations leading toa reduction in energyusage per tonne.Minimising energy useis an economical and anenvironmental prerogativeand the Group thereforehas a number of energyefficiency initiatives in placeacross all its operations – seepages 42 and 43 for moreinformation. Petra willtarget a reduction in energyconsumption in kWh/t.This includes all carbonemitted by the Companyduring the course of itsactivities, both directand indirect.We have substantiallyimproved monitoringof the consumables whichaccount for such emissions,and therefore the emissionsrecorded for the Year arenot directly comparableto FY 2012.As most of the emissionsare as a result of electricityconsumption, Petra willcontinue to focus onenergy efficiencies,as noted above.DescriptionEnvironmentWater usage2012: 14,593,831m3 or 2.18m3/t511,806,719kWhor 31 kWh/t2012: 444,509,579kWh or 46 kWh/t584,386t CO2-eEnvironment2012: 476,552t CO2-eOur Peoplecarbon emissionsHealth and SafetyEnergy usageStrategy and Governance31,993,403m3or 1.95m3/tCommunitySustainability Report 2013 Petra Diamonds Limited0 PDL csr13 [NB MR].indd 131111/27/2013 5:06:32 PM

OverviewCEO’s statementLetter from the CEOThe holistic approach we apply to our operations sets the foundation for a long-termand successful future for the Group.I am delighted to introduce our fifth Sustainability Report, whichoutlines the holistic approach that we apply with regards to ouroperations, covering health and safety, environmental managementand caring for the people who are both directly and indirectlysupported by the Group. We are focused on a long-term, successfulfuture for Petra, which cannot be achieved without this approach.FY 2013 has been a further period of growth for Petra, bothin terms of production (up 21% to 2.67 Mcts), revenue (up 27% toUS 402.7 million) and the underlying profitability of the business(profit from mining activity up 34% to US 138.6 million, adjustedEBITDA up 36% to US 122.4 million, adjusted operating cashflow up57% to US 132.8 million and a net profit after tax of US 27.9 million)as well as in the size of the Group by the number of employeesand contractors (5,139 employees and 2,117 contractors as at30 June 2013).Johan DippenaarChief Executive OfficerSummary As Chair of our HSSE CommitteeI have sight of any critical HSSE mattersfacing the Group and how they shouldbe managed. It was particularly pleasing that oursafety record improved for the Year,demonstrating our focus on this area. Career-oriented training is one of themost important contributions we canmake for our employees. We believe that active long-termengagement with local communitiesis fundamental to our business.12The benefits of this growth to Petra’s stakeholders aresignificant, in terms of employment (ca. US 148.1 million onsalaries, wages and benefits in FY 2013), training and careerdevelopment opportunities (ca. US 4.5 million on trainingin FY 2013), community investment (ca. US 0.9 million onCSI expenditure in FY 2013) and significant tax paymentsto governments (ca. US 29.8 million in FY 2013).This fast growth rate brings both risk and reward, andone of the key challenges for the last few years has been toconsolidate our newly acquired operations into the existingPetra organisation and to strive for consistency of standardsacross the Group. My role as Chair of our HSSE Committeeassists in this regard, as I thereby have sight of any criticalHSSE matters facing the Group and how they should bemanaged to ensure that Petra can continue upon asustainable growth path going forward.Health and safetyHealth and safety of all Petra people is of course our greatestpriority. It was therefore particularly pleasing that our safetyrecord improved for the Year to an LTIFR of 0.67, which is a greatachievement considering the acceleration of activity associatedwith the major expansion plans underway at Finsch and Cullinan.This safety performance can also be considered of a good standardtaking into account that the majority of our operations areunderground mines; however we will not be complacent andwill continue to strive for a zero harm working environment.Petra Diamonds Limited Sustainability Report 20130 PDL csr13 [NB MR].indd 1411/27/2013 5:06:32 PM

Johan DippenaarChief Executive Officer28 November 2013EnvironmentEnvironmental managementContinuous improvement is a key tenet of the Petra ‘way of doingthings’ and we made good progress in terms of our environmentalperformance in FY 2013, with all the underground pipe mines nowISO 14001 certified (see ‘What is ISO 14001?’ on page 43 formore information).OutlookWe have made a number of important achievements in the areaof sustainability in FY 2013, but we will continue to seek toimprove our performance, as well as the monitoring andreporting of such performance. I am confident that this will bethe case, given the many passionate and hard-working individualswho make up the Petra Group and who each contribute somuch to a long-term, sustainable future for our business.Our PeopleIn Tanzania, the Williamson mine gained national recognitionfor its commitment to Corporate Social Responsibility by winningawards in two areas of Tanzania’s Presidential Award on CorporateSocial Responsibility and Empowerment in August 2013. The minewon certificates for Empowerment and Employment and was therunner up in a further three areas (Procurement, Water Programsand Education). Williamson was also presented with a trophyas overall winner for the Year 2012 in the category Large ScaleMinerals Projects (see case study: Williamson wins PresidentialAward in Corporate Social Responsibility on page 57 formore information).Labour relationsOur South African operations were affected by briefwork stoppages during October 2012 and, post Year end, inSeptember 2013. These disruptions were not as significant asthose experienced in the platinum and other sectors, and Petrawas able to resume operations in a timely manner. Currentlylabour relations are stable, but we remain vigilant in terms ofmonitoring the situation and are highly focused on this area.We believe that open and effective dialogue is key, and tothis end we have put in place a range of methods via whichwe can communicate with our employees, being one of ourmost important stakeholders.Health and SafetyOur spend for such programmes in South Africa is highly regulatedin accordance with the set parameters of our various approvedSocial and Labour Plans. Agreeing and approving new projectscan therefore cause timing differences in the roll-out of thespend allocated to such projects.Water management is one of our key focus areas and to thisend we have recently integrated all our water managementplans in South Africa, aligning them with industry best practiceand the Integrated Water Use Licence Applications commitments.This is a long-term plan and will be implemented in a phasedapproached and the ongoing monitoring results willinform the subsequent phases.Strategy and GovernanceContributing to our communitiesWe believe that active long-term engagement with localcommunities is fundamental to our business and thereforedevote considerable time and resources to such engagement.This inclusive engagement process has over time identified thefollowing as the critical issues which should be the key focusof our activities: sustainable job creation; poverty alleviation;skills transfer; and enterprise development in local communities.Having defined our objectives, we are therefore able to identifyrelevant projects for support, in conjunction with the relevantlocal authorities, as well as with those appointed to representour local communities.In order to achieve the ISO 14001 standards, we have madea number of improvements across all the operations in termsof environmental management and monitoring, includingof carbon emissions, water usage and recycling of materials.OverviewAll our operations have high levels of safety standards andperformance and it was an excellent achievement that all ourunderground pipe mines achieved OHSAS 18001 certificationduring the Year (see ‘What is OHSAS 18001?’ on page 28 for moreinformation). Williamson, our open pit operation, also continuedto excel in this area, recording a remarkable 2.7 million hourswithout a single LTI in FY 2013. My congratulations to all ourmine management teams for their efforts in driving ourimproved safety performance for the Year.CommunitySustainability Report 2013 Petra Diamonds Limited0 PDL csr13 [NB MR].indd 151311/27/2013 5:06:32 PM

Strategy and GovernanceAnthonie Afrika, Clerk of Works at the Finschunderground expansion project, conducts an essentialrisk assessment before work commences.0 PDL csr13 [NB MR].indd 1611/27/2013 5:06:35 PM

Strategy and GovernanceResponsible leadershipStrategy and GovernanceEffective governanc

Petra aims to operate according to the highest ethical and governance standards and seeks to achieve leading environmental, social and health and safety performance. 1 Overview 2 Company profile 2 Scope of this report 3 FY 2013 highlights 4 Our business 6 Our operations 8 Our commitment 9 Key Performance Indicators 12 CEO's statement