Q4 and FY 2026 Operating & Business Update

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

FOR IMMEDIATE RELEASE.

Petra Diamonds Limited

(Petra or the Company)

Q4 and FY 2026 Operating & Business Update

Vivek Gadodia, Chief Executive Officer of Petra Diamonds, commented:

“Against a backdrop of ongoing global geopolitical tensions, a structural change in the smaller-sized diamond price segment, and the continued strength of the Rand, Q4 FY 2026 saw a shift in production and a reassessment of our business profile to mitigate the impact of these continued headwinds.

We continue our short-term shift of focus at Cullinan Mine to maximise production from the C-Cut, which yields a higher proportion of large and fancy coloured diamonds, and we anticipate this will provide some mitigation against the broader weaker market. While Q4 FY 2026 averaged US$77/ct at Cullinan Mine, due to both a continuing weaker market and a poorer product mix in Q4 relative to Q3, which included the sale of the 41.82ct exceptional blue stone, the higher value diamonds from the C-Cut over the year remain robust and achieved premium prices. This has been reflected by the increase in average price for Cullinan Mine for FY 2026 at US$106 per carat, up from US$96 per carat in FY 2025, affirming that Cullinan Mine’s unique product mix can maintain margins notwithstanding the challenging current market conditions.

Going forward, we will continue the optimisation of the appropriate capital profile for the Cullinan Mine, ensuring that we continue to open additional production areas in the C-Cut. As part of our ongoing business optimisation efforts at the Cullinan Mine and the rest of the Company, the Section 189A process initiated in May 2026 remains ongoing. We anticipate the completion of the Section 189A process and the finalisation of our ongoing business and production improvement initiatives in time to inform the updated Company business plan due in September 2026, as previously stated. Given these factors, guidance for now remains suspended.

Throughout these turbulent times, safety and the wellbeing of our employees and contractors remains front and centre. We were pleased to celebrate 9 million fatality-free shifts and remain vigilant to the impact that recent business shifts have made on our employees and continue to focus on initiatives to ensure a strong “health and safety first” culture.

It is with great regret that during Q4 FY 2026, Finsch was placed into Business Rescue. Despite its strong operating performance, its large proportion of smaller goods, compounded by the strength of the Rand, made the mine untenable in these unprecedented market conditions. As announced on 10 June 2026, operations at the Finsch mine were suspended. The Business Rescue Practitioners continue to finalise their Business Plan and have secured an extension from the Finsch creditors for the submission of their proposed Business Plan. We want to thank all employees and contractors for their continued understanding as we work through this process and will continue to provide updates as appropriate.

We end the year with revenue flat year-on-year, with net debt increasing to US$322 million as at 30 June 2026 (31 March 2026: US$298 million), due largely to losses sustained at Finsch mine. Cash on hand remains tight both as a result of the weaker prices achieved during Q4 FY 2026, as well as the ring-fencing of retained cash attributable to Finsch as part of the Business Rescue process.

The Company has been engaging with its Senior Lender to facilitate liquidity in the short term, in order to allow the Company time to complete various capital and cost reduction initiatives, improve its business plan, and ensure a more resilient and sustainable Company going forward. As a result, the Senior Lender has agreed to defer the payment of approximately US$6 million of cash interest that was due to be paid in July 2026, to January 2027, and in addition has also provided an additional short-term working capital facility of R300 million (approximately US$18 million), which is now available to the Company. In parallel to the finalisation of the updated Business Plan, the Company will be progressing conversations related to a potential refinancing of the Company with the relevant stakeholders.

We will continue our focus on ensuring the continued safe operating environment and delivering on our short-term targets. I would like to again thank our employees, our investors and creditors for their ongoing support and understanding during these unprecedentedly difficult times.”

Highlights vs Q3 FY 2026

All results for the Finsch mine are included in the reported numbers, throughout this operating update, up to 31 May 2026, after which the entity went into Business Rescue.

• LTIFR and LTIs increased to 0.56 and 4 respectively (Q3 FY 2026: 0.42 and 3 respectively). This has been associated with the recent organisational restructuring programmes, with approximately 57% of Lost Time Injuries (LTIs) attributed to behavioural factors
• Ore processed decreased by 18% to 1.39Mt at the Cullinan Mine and Finsch, mainly due to the suspension of production at Finsch, with Cullinan Mine remaining largely on track
• Total revenue amounted to US$38 million (Q3 FY 2026: US$68 million)
• The South African Rand weakened slightly during the quarter, averaging ZAR16.68:US$1 (Q3 FY 2026: ZAR16.34: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 June 2026, ZAR1.75 billion (US$107 million) had been drawn, unchanged from Q3 FY 2026

• Consolidated net debt increased to US$322 million as at 30 June 2026 (31 March 2026: US$298 million)
• Q4 FY 2026 tender results delivered US$38 million in revenue from 547,220 carats sold, with an average price of US$69 per carat, bringing year-to-date sales revenues to US$206 million from the sale of 2,292,540 carats

• Business Rescue process announced on 29 May 2026 at Finsch Diamond Mine remains ongoing following the appointment of Business Rescue Practitioners on 10 June 2026, extension secured to present plan for voting, which is expected in mid-August

• Launch of Section 189A labour restructure at Company and Cullinan Mine and business and production improvement opportunities underway to identify further optimisation of cash generation across the business

• Updated business plan, considering the outcomes of the Section 189A process, as well as updated capital and production profiles to be completed by the end of September 2026; guidance remains suspended until this new business plan is finalised

Working Capital Support from Senior Lender

Given the tight cash position of the Company as a result of weaker Q4 FY 2026 tender prices and the ring-fencing of Finsch cash as part of the Business Rescue process, the Company has engaged with its Senior Lender for short-term working capital support. This has resulted in the Senior Lender supporting the Company as follows:

1. Deferral of c. US$6m cash interest due to be paid in July 2026 to January 2027, including a waiver that this will not result in any event of default related to the non-payment of this cash interest.

2. An additional facility under the Company’s existing General Banking Facility of R300 million (c. US$18 million), utilising permitted debt incurrence baskets and other permissions under the existing Finance agreements (including the Company’s outstanding senior secured notes), with the following salient features:

1. Tenure of 18 months (up to January 2028).
2. Interest margin of 750 bps (consistent with this type of facility).
3. Repayment to be made through the Company’s on-going cash generation activities.
4. Other customary conditions consistent with this type of facility and as per the existing Finance agreements.
5. Appointment of a Board Observer nominated by the Senior Lender (as per rights in the existing Finance agreements).
6. Commence discussions for a refinancing of the Company by the second half of September 2026, with a view to agreeing on non-binding commercial terms by the end of October 2026, failing which, the Senior Lender has an option to initiate a sales process and request the Company to appoint a Chief Restructuring Officer and form an independent Restructuring Committee reporting to the Board on potential restructuring options.

The Company has initiated preliminary conversations with certain shareholders and note holders and is confident in getting to a consensual refinancing solution by the end of October 2026. 

Business Rescue process at Finsch

The Business Rescue process at Finsch is proceeding, with the Business Rescue Practitioners in consultation with Finsch creditors and stakeholders on finalising the way forward. The Business Rescue Practitioners have secured an extension to submit their recommended business plan for voting, which is now expected to happen during the first half of August. Production remains suspended at Finsch, and we will continue to provide updates as appropriate. 

Operating Summary

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

In April 2026, Petra celebrated the significant milestone of nine consecutive fatality-free years, followed by an extraordinary achievement of nine million fatality-free shifts in June 2026. These milestones are a testament to the unwavering commitment, vigilance, and safety-first mindset demonstrated by our employees and business partners across the Company.

Our strong safety performance is further reflected in the FY 2026 Lost Time Injury Frequency Rate (LTIFR), which improved by 17% compared to FY 2025. This positive result was driven by an increased focus on Visible Felt Leadership (VFL), with greater involvement of line managers in safety leadership, as well as the continued empowerment of Health and Safety Representatives to proactively identify and mitigate workplace risks.

Despite this overall improvement, a comparison of Q3 and Q4 FY 2026 LTIFR indicates a slight deterioration during the fourth quarter. This trend is believed to be associated with the recent organisational restructuring programmes, with approximately 57% of Lost Time Injuries (LTIs) attributed to behavioural factors. During periods of organisational change, maintaining a strong safety culture becomes even more critical. As we enter FY 2027, we remain committed to strengthening our health and safety culture through targeted interventions, behavioural safety initiatives, and proactive prevention programmes. Our focus will continue to be on embedding safe behaviours, enhancing leadership visibility, and ensuring every employee returns home safely every day.

Production at Cullinan Mine during the quarter was steady as we continue to maximise production from the eastern parts of the C-Cut where we yield larger, higher-value stones that are less affected by the weakened diamond market. As detailed in our Q3 FY 2026 Operating Update, this has resulted in an overall reduction in carats recovered but ensured that we offset the value loss associated with suppressed smaller fraction size prices – affirming that Cullinan Mine’s product mix is able to outperform the current market environment.

Up until the point of its production suspension, Finsch continued to produce to plan. However, given what is now believed to be a structural shift in the smaller segment of the diamond market, its product mix was unable to balance the impacts of reduced prices, which were down 14% YoY. This, compounded by the continued strength of the Rand, meant that it entered Business Rescue during the Period, with suspension of production announced on 10 June.

The operation is now under the custodianship of Business Rescue Practitioners, and we await the outcome of their assessment of the Business Rescue and the resulting Finsch-specific business plan. We will provide updates on this process as appropriate.

In the final days of the quarter, Petra experienced a ransomware incident affecting parts of its IT environment. Management took immediate steps to protect Petra’s employees, safeguard Petra’s operational technology environment and maintain safe mining operations. This included isolating affected systems, engaging external incident response specialists, notifying the relevant authorities and moving into a controlled recovery process. The investigation and recovery work remain ongoing, with systems being restored only where the necessary security controls have been confirmed. While the incident has affected certain administrative processes, including aspects of procurement and finance processing, Petra’s teams have implemented workarounds and continue to prioritise safe production, data protection and disciplined restoration of business services.

Mine-by-mine tables:

Cullinan Mine – South Africa

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

Notes: 

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

1. cpht: carats per hundred tonnes 

2. LTIs: lost time injuries 

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

4. FY: financial year ending 30 June 

5. CY: calendar year ending 31 December 

6. H: half of the financial year 

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

8. m: million 

9. Mt: million tonnes 

10. Mcts: million carats 

11. kcts: thousand carats 

 Corporate and financial summary as at 30 June 2026

Notes:

1. The following exchange rates have been used for this announcement: average for FY 2026 US$1:ZAR16.91  (FY 2025: US$1:ZAR18.15); closing rate as at 30 June 2026  US$1:ZAR16.39 (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 Company’s cash balances comprise unrestricted balances of US$9 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$243 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. 

5. Bank loans and borrowings represent amounts drawn under the Company’s refinanced  ZAR1.75 billion (US$107 million) Revolving Credit Facility (RCF) and comprise capital draw-down of ZAR1,750 million (US$107 million), net of unamortised transaction costs capitalised of ZAR51 million (US$3 million) and includes accrued interest of ZAR86 million (US$5 million). As at 30 June 2026, the full facility was drawn. 

6. Consolidated net debt is bank loans and borrowings plus loan notes, less total cash and diamond debtors. 
7. Amounts attributable to Finsch mine at 30 June 2026 have been excluded.
8. Finsch unrestricted cash balance of US$6m and diamond inventory of 95 kcts as at 30 June 2026.

Q4 and FY 2026 sales results

The diamond market remained under pressure with the prices of smaller-sized diamonds continuing to see price pressure during Q4 FY 2026 and into June 2026. As previously reported, the Cullinan Mine achieved c. US$81/ct for April & May 2026. For June, the Cullinan Mine averaged US$67/ct, bringing the Q4 average $/ct realised for the Cullinan Mine to US$77/ct. The drop in realised prices is largely due to the difference in product mix, quarter on quarter, partially offset by some like-for- like price improvements, especially in the 2-10 cts range.

Our tender cycles in the final quarter of the year yielded US$38 million, bringing revenue for FY 2026 to US$206 million, flat on FY 2025.  Given the challenges we have faced with the smaller goods from Finsch, and prolonged weakness in diamond pricing, this reflects the strength of the higher value goods and exceptionals from Cullinan Mine, which continues to be a world-class asset.

Company rough diamond sales results for the respective periods are set out in the table below:  

Price comparison by operation 

Mine-by-mine average prices for the respective periods are set out in the table below: 

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

For further information please contact

Investor Relations, London

Julia Stone     Telephone: +44 (0)7495470187

Kelsey Traynor

investorrelations@petradiamonds.com

Notes:

The following definitions have been used in this announcement:

1. cpht: carats per hundred tonnes
2. LTIs: lost time injuries
3. LTIFR: lost time injury frequency rate, calculated as the number of LTIs multiplied by 200,000 and divided by the number of hours worked
4. FY: financial year ending 30 June
5. CY: calendar year ending 31 December
6. Q: quarter of the financial year
7. ROM: run-of-mine (i.e. production from the primary orebody)
8. m: million
9. Mt: million tonnes
10. Mcts: million carats
11. period: the fourth quarter of FY 2026
12. Like-for-like refers to the change in realised prices between tenders and excludes revenue from all single stones, while normalising for product mix impact 

ABOUT PETRA DIAMONDS

Petra Diamonds is a leading independent diamond mining company and a supplier of gem-quality rough diamonds to the international market. The Company's portfolio incorporates interests in the Cullinan Mine and Finsch in South Africa. Finsch is currently under Business Rescue.

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 Company 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.

IMPORTANT INFORMATION

This announcement contains statements about Petra that are or may be forward-looking statements. All statements other than statements of historical facts included in this announcement may be forward-looking statements. Without limitation, any statements preceded or followed by or that include the words "targets", "goals", "should", "would", "could", "continue", "plans", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "estimates", "hopes", "projects" or words or terms of similar substance or the negative thereof, are forward-looking statements.

Such forward-looking statements involve risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. In light of these known and unknown risks, uncertainties, contingencies, estimates and assumptions, the events in the forward-looking statements may not occur or may cause actual results, performance or achievements to differ materially from those expressed by or implied from such forward-looking statements, whether as a result of new information, future events or otherwise. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Petra disclaims any obligation to update any forward-looking or other statements contained herein, except as required by applicable law or regulation. Past performance of the Company cannot be relied on as a guide to, or a guarantee or an indication of, future performance. No statement in the announcement is intended to be, nor should be construed as, a profit forecast.