Petra Diamonds Limited – Q3 FY 2026 Operating Update

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8 May 2026 LSE: PDL

Petra Diamonds Limited

Q3 FY 2026 Operating Update

Vivek Gadodia and Juan Kemp, interim joint Chief Executive Officers of Petra,
commented:

«Q3 FY 2026 reflected steady operational performance, with Finsch performing
largely to plan while Cullinan focused on recovering from weather-related
disruptions as noted in our half-year results.

Sales increased to US$68 million, supported by the sale of the 41.82 carat Type
IIb blue diamond, although pricing remains under pressure, particularly across
the smaller size fractions within the product mixes at both our mines. Our
tenders also experienced headwinds as a result of the Middle East conflict which
led to travel disruptions.

The rand also strengthened during the quarter, averaging ZAR16.34:US$1, adding
further pressure to cash generation. Net debt increased to US$298 million at 31
March 2026 (compared to US$284 million at 31 Dec 2025), with the Group’s
revolving credit facility fully drawn.

Against this backdrop, Management has embarked upon an immediate cost and
capital expenditure reduction assessment to preserve liquidity across the Group.
We are currently reviewing the phasing of operating and capital expenditure,
prioritising mining areas that offer the best near-term value, and minimizing
non-core operating and capital expenditure.

At Cullinan, in addition to optimising operating and capital expenditure, we
have shifted our focus on maximising production from the areas of the ore body
that are known to contain high value Type-II stones, which are the Eastern areas
of the C-Cut. This has already resulted in, and will continue to result in, a
reduction in carats recovered from the CC1E (which is at a much higher grade and
was the basis of the current mining plan and guidance). This decision has been
taken to ensure the product mix at Cullinan Mine is able to withstand the on
-going weakness in the smaller size fractions through the recovery of high value
Type-II stones. We are also evaluating the appropriate capital profile for
Cullinan Mine, recognising the need to balance liquidity protection with future
production resilience.

Given the work underway to revise operating plans at the Cullinan Mine, and the
focus on producing higher valued carats (but at a lower grade compared to CC1E),
it is unlikely that full year carat production guidance at CDM will be achieved
and is therefore suspended for the remainder of the year.»

Highlights vs Q2 FY 2026

· LTIFR and LTIs are 0.42 and 3 respectively (Q2 FY 2026: 0.14 and 1), while
the LTIFR and LTIs are 0.28 and 6 respectively for the first 9 months of FY 2026
(first nine months of FY 2025: 0.38 and 9).
· Ore processed reduced 4% to 1.5Mt from 1.6Mt with performance at Cullinan
Mine impacted by power interruptions due to adverse weather, and deterioration
of underground road conditions due to water ingress, impacting machine
availability and reliability. ROM grade performance at Finsch continued to
improve.
· Revenue amounted to US$68 million (Q2 FY 2026: US$49 million), including
proceeds from the sale of the 41.82 carat Type IIb blue stone from our Cullinan
Mine.
· The South African Rand performance continued to exert pressure during the
quarter, averaging ZAR16.34:US$1 (Q2 FY 2026: ZAR17.20:US$1).
· Bank loans and borrowings represent the Group’s ZAR1.75 billion (US$102
million) revolving credit facility (RCF). As at 31 March 2026, ZAR1.75 billion
(US$102 million) had been drawn, following a ZAR195 million (US$11 million)
drawdown from the RCF in January 2026.
· Consolidated net debt increased to US$298 million as at 31 March 2026 (31
December 2025: US$284 million) following the draw-down on the RCF.

Operating Summary

Safety, Unit Three Nine
sales months months
and YTD
production
Q3 Q2 Var. Q3 FY FY 2026 FY Var.
2025 2025
FY 2026 FY
2026
Safety
LTIFR – 0.42 0.14 +200% 0.42 0.28 0.38
-26%
LTIs Number 3 1 +200% 3 6 9
-33%

Sales
Diamonds Carats 781,797 494,237 +58% 558,651 1,745,320
1,672,034 +4%
sold
Revenue1 US$m 68 49 +39% 42 168 156
+8%

Production
ROM tonnes Tonnes 1,498,034 1,564,679 -4% 1,585,838 4,650,523
4,793,312 -3%
Tailings Tonnes 202,315 193,850 +4% 124,703 550,920
333,330 +65%
and
other
tonnes
Total Tonnes 1,700,349 1,758,529 -3% 1,710,541 5,201,443
5,126,642 +1%
tonnes
treated

ROM Carats 549,433 579,087 -5% 563,875 1,694,270
1,649,541 +3%
diamonds
Tailings Carats 57,963 54,999 +5% 45,920 156,548
159,920 -2%
and
other
diamonds
Total Carats 607,396 634,086 -4% 609,795 1,850,818
1,809,461 +1%
diamonds

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

Production during Q3 was steady, with Finsch delivering largely against plan,
while Cullinan Mine shifted its focus of maximising production from the eastern
parts of the C-Cut, that are known to contain larger and higher value Type-II
stones – which is a product category that is showing a recovery due to a
scarcity of supply in these segments. This is a conscious shift to first
maximize production from the C-Cut and not from the CC1E (which was the basis of
the guidance). While this will result in a reduction of overall carats recovered
from the Cullinan Mine due to the C-Cut having a much lower grade, Management
believes this is prudent given the impact of the weaker diamond prices on the
smaller size segments.

Furthermore, certain initiatives that were identified for increasing carat
recoveries at CC1E to mitigate the impact of the weather disruptions have been
put on hold in lieu of the new strategy of maximising production from the
eastern parts of the C-Cut, as well as reducing cost to preserve liquidity.
This, combined with maximizing production from the C-Cut (which comes at a lower
grade), will therefore result in not achieving the Cullinan ROM carats guidance.
Guidance for future years will be updated once the revision of Cullinan Mine’s
operating plan is complete.

Review of Finsch

The Company has, over the past years, been focused on an internal restructuring
that has resulted in a simpler and more streamlined business and operating
model. This has included the sale of the Koffiefontein and Williamson mines,
multiple labour restructuring initiatives and an optimisation and smoothing of
the Group’s capital development profiles.

Over the last 9-12 months, the smaller size segment has been experiencing
continued weakness adding pressure to cash generation. In parallel, the rand has
strengthened during the quarter, averaging ZAR16.34:US$1. As a result, the
Company has decided to undertake a cost reduction assessment to preserve
liquidity across the Group. The Company is considering suspending further
capital expenditure at Finsch.

The Company is in the process of assessing the current financial situation of
the Finsch mine and the related implications of its financial situation. The
Company anticipates its review to be finalised during the course of May 2026.
Depending on the outcome of such assessment, the Company will consider all
options, including, but not limited to, operational cost cutting and other
measures in respect of Finsch. No decision has been taken at this time.

Next steps

The Company will release further announcements in due course, as appropriate.

The completion of the assessment of the financial situation of Finsch may take
significantly longer than the Group currently anticipates. There can be no
guarantee that the options regarding Finsch will be as currently contemplated by
Management and will be implemented on the terms set out above.

The information communicated in this announcement is inside information for the
purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms
part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018
(«MAR»), and is disclosed in accordance with the Company’s obligations under
Article 17 of MAR. Upon the publication of this announcement via a Regulatory
Information Service, this inside information will be considered to be in the
public domain. The person responsible for arranging for the release of this
announcement on behalf of the Company is Tumi Dakada, acting Company Secretary.

FURTHER INFORMATION

For further information, please contact:

Investor Relations, London                             Telephone: +44
(0)7495470187

Kelsey Traynor\Julia Stone
 [email protected]

About Petra Diamonds Limited

Petra Diamonds is a leading independent diamond mining group and a supplier of
gem quality rough diamonds to the international market. The Company’s portfolio
incorporates interests in two underground mines in South Africa (Cullinan Mine
and Finsch).

Petra’s strategy is to focus on value rather than volume production by
optimising recoveries from its high-quality asset base in order to maximise
their efficiency and profitability. The Group has a significant resource base
which supports the potential for long-life operations.

Petra strives to conduct all operations according to the highest ethical
standards and only operates in countries which are members of the Kimberley
Process. The Company aims to generate tangible value for each of its
stakeholders, thereby contributing to the socio-economic development of its host
countries and supporting long-term sustainable operations to the benefit of its
employees, partners and communities.

Petra is quoted on the Main Market of the London Stock Exchange under the ticker
‘PDL’. The Company’s loan notes, due in 2030, are listed on EuroNext Dublin
(Irish Stock Exchange). For more information, visit www.petradiamonds.com.

Corporate and financial summary 31 March 2026

+—————-+——+——–+——–+———+————-+++
| |Unit |As at 31|As at 31|As at 30 |As at 30 June|||
| | |March |December|September| |||
| | |2026 | |2025 |2025 |||
| | | |2025 | | |||
+—————-+——+——–+——–+———+————-+++
|Total cash at |US$m |34 |55 |46 |52 |||
|bank¹,2 | | | | | |||
+—————-+——+——–+——–+———+————-+++
|Diamond debtors |US$m |21 |- |2 |12 |||
+—————-+——+——–+——–+———+————-+++
|Diamond |US$m |29 |46 |44 |26 |||
|inventories3 | | | | | |||
| |Carats|434,182 |608,217 |468,733 |328,689 |||
+—————-+——+——–+——–+———+————-+++
|2030 Loan Notes4|US$m |251 |246 |n/a |n/a |||
+—————-+——+——–+——–+———+————-+++
|2026 Loan Notes4|US$m |n/a |n/a |233 |226 |||
+—————-+——+——–+——–+———+————-+++
|Bank loans and |US$m |102 |92 |102 |99 |||
|borrowings5 | | | | | |||
+—————-+——+——–+——–+———+————-+++
|Consolidated Net|US$m |298 |284 |287 |261 |||
|Debt6 | | | | | |||
+—————-+——+——–+——–+———+————-+++
|Bank facilities |US$m |- |11 |- |- |||
|undrawn and | | | | | |||
|available5 | | | | | |||
+—————-+——+——–+——–+———+————-+++

Notes:

1. The following exchange rates have been used for this announcement: average
for 9M FY 2026 US$1:ZAR17.05  (FY 2025: US$1:ZAR18.15); closing rate as at 31
March 2026 US$1:ZAR16.93 (31 December 2025 US$1:ZAR16.56; 30 September 2025:
ZAR17.25; 30 June 2025: ZAR17.75 and 31 March 2025 ZAR18.30).
2. The Group’s cash balances comprise unrestricted balances of US$15 million,
and restricted cash balances of US$19 million.
3. Recorded at the lower of cost and net realisable value.
4. The 2030 Loan Notes have a carrying value of US$251 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, issued following 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

5. Bank loans and borrowings represent amounts drawn under the Group’s
refinanced  ZAR1.75 billion (US$102 million) Revolving Credit Facility (RCF) and
comprise capital draw-down of ZAR1,750 million (US$103 million), net of
unamortised transaction costs capitalised of ZAR55 million (US$3 million) and
includes accrued interest of ZAR32 million (US$2 million). As at 31 March 2026,
the full facility was drawn.
6. Consolidated Net Debt is bank loans and borrowings plus loan notes, less
total cash and diamond debtors.

Mine-by-mine tables:

Cullinan Mine – South Africa

Unit Three Nine
months months
YTD
Q3 FY 2026 Q2 FY Var. Q3 FY FY FY 2025 Var.
2026 2025 2026
Sales
Revenue US$m 50 33 +52% 23 119 100
+18%
Diamonds Carats 453,518 271,983 +67% 294,592 1,003,076 934,661
+7%
sold
Average US$ 109 120 -9% 77 118 107
+10%
price per
carat

ROM
Production
Tonnes Tonnes 953,801 1,006,998 -5% 1,000,455 2,920,057 3,197,812
-9%
treated
Diamonds Carats 294,344 321,564 -8% 294,220 902,805 939,425
-4%
produced
Grade1 Cpht 30.9 31.9 -3% 29.4 30.9 29.4
+5%

Tailings
Production
Tonnes Tonnes 202,315 193,850 +4% 124,703 550,920 333,330
+65%
treated
Diamonds Carats 57,963 54,999 +5% 45,920 156,549 159,920
-2%
produced
Grade1 Cpht 28.7 28.4 +1% 36.8 28.4 48.0
-41%

Total
Production
Tonnes Tonnes 1,156,116 1,200,848 -4% 1,125,158 3,470,977 3,531,142
-2%
treated
Diamonds Carats 352,307 376,563 -6% 340,140 1,059,354 1,099,345
-4%
produced

Note: 1. Petra is not able to precisely measure the ROM / tailings grade split
because ore from both sources is processed through the same plant; the Company
therefore back-calculates the grade with reference to resource grades.

Finsch – South Africa

Unit Three Nine
months months
YTD
Q3 FY 2026 Q2 FY Var. Q3 FY FY FY 2025 Var.
2026 2025 2026
Sales
Revenue US$m 18 16 +13% 19 50 56 -11%
Diamonds Carats 328,279 222,254 +48% 264,059 742,244 737,373 +1%
sold
Average US$ 56 72 -22% 72 67 76 -12%
price per
carat

ROM
Production
Tonnes Tonnes 544,233 557,681 -2% 585,383 1,730,466 1,595,499 +8%
treated
Diamonds Carats 255,089 257,523 -1% 269,656 791,465 710,116 +11%
produced
Grade Cpht 46.9 46.2 +2% 46.1 45.7 44.5 +3%

Notes:

1. The following definitions have been used in this announcement:

a. cpht: carats per hundred tonnes
b. LTIs: lost time injuries
c. LTIFR: lost time injury frequency rate, calculated as the number of LTIs
multiplied by 200,000 and divided by the number of hours worked
d. FY: financial year ending 30 June
e. CY: calendar year ending 31 December
f. H: half of the financial year
g. ROM: run-of-mine (i.e. production from the primary orebody)
h. m: million
i. Mt: million tonnes
j. Mcts: million carats
k. kcts: thousand carats

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