Lac de Gras Exploration Update

Lac de Gras Region, Northwest Territories

Exploration Update March 1, 2012 1

TSX: PGD www.pdiam.com

WO PROJECT, LAC DE GRAS REGION NORTHWEST TERRITORIES

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LAC DE GRAS GEOPHYSICAL TARGETS

Images created from ground magnetics

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DO-27 DIAMONDS

Largest diamond shown is 4.35 carats

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DO-27- INDICATED MINERAL RESOURCE 19.5 M TONNES, 94 CPHT, 18.2 M CARATS • Modelled diamond value (2007) US $40-70 per carat, base case US $51/carat (WWW International Diamond Consultants) • Large undeveloped, 43-101 compliant resource near existing mine infrastructure (27 km from DiavikTM, 56 km from EKATI) • Resource estimation and Preliminary Technical Assessment by AMEC Americas Ltd. • Top 120 metres of kimberlite can be upgraded up to 10x using simple washing techniques Di d prices i i ifi tl since i 2007 • Diamond up significantly (WWW International Diamond Consultants)

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