CONTENTS
01 Corporate Profile
02 Highlights for 2007
03 Geographical Locations
05 Chairman’s Review
06 Chief Executive Officer’s Report
10 Review of Operations
15 Directorate, Management and Advisors
17 Independent Auditor’s Report
18 Directors’ Report
25 Consolidated Annual Financial Statements 2007
49 Notice of Annual General Meeting
Proxy Form Inserted
Harts River project – Bulk sampling
using the Wirtgen mechanised mining
machine on the calcretised gravels in
the Brussels area Pangea DiamondFields plc      Annual Report 2007      1
Pangea DiamondFields plc (“Pangea” or “PDF”) is an emerging mid-tier diamond producer
and exploration company. The Company has a portfolio of ten diamond projects comprising
multiple resource areas, located in the Central African Republic (“CAR”), Democratic
Republic of Congo (“DRC”), South Africa and Angola.
PDF’s mission is to become a significant producer of diamonds on the African continent.
Its immediate objective is to progress up to three projects to commercial scale by the end
of calendar 2009 and to grow these mines to optimum scale by modular expansion thereafter. 2 Pangea DiamondFields plc      Annual Report 2007
• Exploration projects progressing well:
– One project at pilot mining stage
– Four at bulk sampling and one project proposed to move into bulk sampling early in 2008
– Balance of projects at differing stages of exploration
• Dimbi project:
– Started producing and exporting diamonds from bulk sampling with the first sale of a parcel of
diamonds made in Antwerp subsequent to year end achieving an average price of US$166 per
carat
– Encouraging results in bulk sampling prompted the decision to scale up to pilot mining and
additional equipment was en route to Dimbi by year end
• Longatshimo River project:
– Bulk sampling plant and equipment successfully delivered to the Longatshimo camp after a
groundbreaking 4,700km overland journey from South Africa to the DRC via Namibia and Angola
– Bulk sampling plant successfully constructed and commissioned on schedule subsequent to year end
• Cassanguidi project:
– Improved sales procedures, allowing consideration of expansion opportunities
• Bakerville project:
– Bulk sampling plant commissioned and resource delineation well advanced
• Harts River project:
– Phase 2 bulk sampling in the north of the Harts River project at the Brussels area re-commenced
late in the year
– Second bulk sampling site in the south of the Harts River project at the Pampierstad area well
advanced and due for commissioning early in 2008
• Team strengthened by the recruitment of additional key personnel both in the corporate office and
on the project sites
• Agreement reached with international diamond experts, WWW International 
• Presence with institutional investors expanded in London and Toronto during late 2007 with
successful capital raise of approximately US$15 million 
HIGHLIGHTS
for 2007 Pangea DiamondFields plc      Annual Report 2007      3
GEOGRAPHICAL LOCATIONS
Calonda Gravel, Cassanguidi Jigging in progress, Kapopo River, Longatshimo
Central African Republic 
(“CAR”)
• Dimbi
• Etoile
Democratic Republic of 
Congo (“DRC”)
• Tshikapa
• Longatshimo
• Luebo
• Kasai
Angola
• Cassanguidi
South Africa
• Bakerville
• Harts River
• Bloemhof 4 Pangea DiamondFields plc      Annual Report 2007
Diamonds recovered from the Dimbi project Pangea DiamondFields plc      Annual Report 2007      5
In my review last year I stated that “In 2007, I look[ed]
forward to [PDF] reaching critical mass with the
acceleration of the exploration process and the
upgrading of three projects from advanced
exploration stage to bulk sampling”. I am pleased to
report that this objective has been achieved and,
indeed, exceeded.
PDF now has one project at pilot mining stage, four
at bulk sampling, one moving into bulk sampling early
in 2008 and the balance at differing stages of
exploration. This achievement has been the result of
steady and methodical exploration, plant construction
and operation work by the PDF team operating under
challenging circumstances.
PDF has established excellent exploration skills and
the geological team, led by Mr Anton Esterhuizen,
continues to demonstrate its experience and
commitment in the discovery and delineation of
world-class resources. As the Company is now
progressing as planned to bulk sampling evaluation
of its projects and to the commercialisation thereof,
logistical and operational skills become paramount.
The PDF team's achievements in 2007 in establishing
its operations in remote areas of the DRC and the
CAR in particular are encouraging and augur well for
their ability to capitalise on the opportunities available
to the Company.
Certainly I and the PDF team are under no illusions
as to the need to expedite the commercialisation of
the deposits that have been delineated so that the
Company can start demonstrating its potential and
generate positive cash flow from these deposits. In
order to achieve this during 2008, the team will focus
on completing its bulk sampling programmes and on
delineating sufficient resources to justify progression
to commercial scale mining and commissioning of
at least two mines by year end; exploration for new
alluvial diamond deposits continues unabated. 
Despite having successfully raised approximately
US$15 million in additional equity funding in February
2008, a considerable achievement given market
conditions, PDF will target the raising of additional
funds during the year.
Commercial fundamentals within the diamond industry
remain robust. Whilst PDF is attempting to develop
commercial mines in remote areas, there is little doubt
that the indicated returns are worth the effort. 
I continue to be most favourably impressed by the
dedication and effectiveness of the men and women
who, under Rob Still and his executive, manage and
operate Pangea DiamondFields’ range of activities
from early exploration through to mining, finance and
administration. I would like to extend my thanks to
them all for their efforts to progress your Company
towards the status of a productive and viable mid-tier
diamond producing company. 
During 2008 Rob Still, our Chief Executive, will move
to Deputy Chairman and Brett Thompson will take
over as Chief Executive. I have confidence in them
both to move the Company forward as planned. 
Bill Nairn
Chairman
31 March 2008
William Alan Nairn, Chairman
CHAIRMAN’S REVIEW 6 Pangea DiamondFields plc      Annual Report 2007
Introduction
Your company's Admission Document on its listing on
the AIM market in 2006 stated that: “Pangea's
immediate objective is to select and progress the best
three projects [in its portfolio] to mine development
by the end of 2009 and to grow these mines to
optimum scale by modular expansion thereafter”.
Some 20 months later it is gratifying to report that
this immediate objective and target remains Pangea's
focus and that the Company is on track to achieve it.
Furthermore, the overall fundamentals of the diamond
industry remain positive and the supply/demand and
pricing outlook remains favourable. In short, our
objectives remain economically worth pursuing. 
Since our listing in October of 2006, Pangea has made
steady but hard-won progress across its portfolio of
ten projects, located in four countries.
Additional equipment is in transit to upgrade Dimbi
in the CAR to pilot mining status and Longatshimo in
the DRC has now progressed to bulk sampling with
Cassanguidi in Angola, after a period of trial mining,
planned to be shortly upgraded to commercial scale.
In South Africa, bulk sampling has re-commenced at
Pangea's Harts River project in the Brussels area and
equipment is currently being mobilised to commence
bulk sampling in the Pampierstad area, while bulk
sampling continues at Bakerville. 
Since its admission to AIM in October 2006,
$26 million has been spent in the evaluation of our
CHIEF EXECUTIVE OFFICER’S REPORT
projects and, of this, 88% has been spent “in the
ground”, including 54% on capital equipment.
Pangea's project evaluation work across its entire
portfolio is characterised by the steady, procedural
and systematic application of fundamental geological
techniques and by a gradual but incremental
resolution of attendant logistical challenges. This
emphasis on “bottom-up” fundamental work is
intended to reduce project risks and enhance the
probability of the future commercial success of
Pangea’s projects.
The mining and resources industry is booming
worldwide and increasingly companies appear to be
“ignoring or skipping” the boring fundamentals in
their quest for quick progress, perhaps none more so
than in diamond exploration. When the tide recedes,
we at Pangea intend to be fully clothed. 
In February 2008, and despite difficult market
conditions, Pangea raised approximately US$15 million
by the issue of 16,5 million new shares at £0.46 per
share. These funds will be utilised to pursue the
commercialisation of its major projects. In addition,
Pangea is exploring its options in raising a further
US$15-US$25 million. 
Given the consistent achievement of its stated targets
and the potential of its project portfolio, the Pangea
management team continue to believe that the true
value of the Company has yet to be reflected in our
share price.
Rob Still, Chief Executive  Pangea DiamondFields plc      Annual Report 2007      7
Strategic Overview
Country Spread
Given the potential risks involved with mineral
exploration in general, and with exploration in Africa
and alluvial diamond exploration in particular,
Pangea’s strategy has been to target projects in four
highly prospective countries to diversify its political
and geological risks.
While such a strategy has the potential to spread the
Company’s focus and resources, and presents a
challenge in terms of communicating the high quality
and exploration potential of its projects, we continue
to believe such a strategy will provide the greatest
return for our shareholders.
Pangea’s focus in 2008 will be on commercialising its
core projects to achieve overall positive cash flow
during 2009, while emphasising and communicating
the value and potential of its projects to the
investment community.
Alluvial vs. Kimberlite Exploration
Pangea remains committed to alluvial exploration
and diamond mining. Due to the relatively short
development and capital payback periods, Pangea
is now, after three years, ready to progress its
advanced alluvial diamond projects to commercial
scale production.
Pangea will not expend its resources on kimberlite
exploration and regards grass-roots exploration for
kimberlite deposits as having an inappropriate
risk/return profile. 
Exploration vs Acquisition
Pangea has the core skills to source, evaluate and
progress diamond exploration projects to commercial
scale production at relatively low cost. Although
analyses to date have suggested growth by acquisition
is costlier than in-house development, Pangea
continues to review all opportunities to enhance
shareholder value.
During the past year Pangea was presented with an
exciting opportunity to acquire a significant stake in
the Kao Kimberlite project in Lesotho at a realistic
price from disgruntled investors representing a
significant shareholding. Whilst we believed that the
potential acquisition of this project presented an
opportunity for all shareholders to enhance value,
we unfortunately were unable to acquire control of
the project or joint management and consequently
decided not to pursue the opportunity.
Commercial Production and Cash Flow
Pangea's current strategy is clear and compelling. 
As a result of its phased approach to the evaluation
of its projects, the Company is now in a position to
progress its core projects to commercial scale
production. Successfully achieving this objective is
expected to result in the Company enjoying positive
cash flows by 2H 2009. This will create the required
momentum to invest in further resources and
operational scale and further progress its remaining
projects to production. 
Bauer drilling, Patsema Mega pit sampling, Longatshimo River 8 Pangea DiamondFields plc      Annual Report 2007
Pangea’s key milestones include:
•  At Dimbi – Completing resource delineation from
current bulk sampling plant to enable a go-ahead
decision on mining at “Module 1” scale  in 2H 2008
and to be commissioned and operational by year
end; and
•  At Longatshimo – To commence the bulk sampling
programme in March 2008 and upgrade to pilot
mining in 2H 2008 by increasing mining fleet and
throughput to delineate sufficient resources to
enable a go-ahead decision on mining at “Module
1” scale to proceed in 1H 2009; and
•  At Cassanguidi – To complete commercial
negotiations with the project partners to increase
Pangea's economic interests in the project to
enable a go-ahead decision on mining at “Module
1” scale in 1H 2008 and to be commissioned and
operational by 2H 2008; and
For the twelve months ended
2007 2006 2007 2006
Exploration Exploration Capital Capital 
expenditure expenditure expenditure expenditure
US$ millions US$ millions US$ millions US$ millions
CAR – Dimbi project 5,1 2,6 1,6 3,2
DRC – All projects 2,6 1,0 4,3 –
South Africa – All projects 1,3 1,8 0,4 –
Angola – Lumuanza project – 2,8 – 1,2
Angola – Cassanguidi project – – 0,1 2,0
Total 9,0 8,2 6,4 6,4
At year end, the cash balance was US$3,9 million (2006: US$26,1 million). In February 2008 the Company raised
gross proceeds of approximately US$15 million by placing 16,5 million new shares at £0.46 per share. In addition,
Pangea is exploring its options in raising a further US$15-$25 million during 2008. The Company expects that
these additional funds, if raised, will be used primarily to fund the development of the Company's major
projects.
CHIEF EXECUTIVE OFFICER’S REPORT continued
•  At Harts River and Bakerville in South Africa – To
continue bulk sampling and project evaluations
so that the projects can proceed to development
in 2009.
Financial Results and Planning
It is the Group's policy to expense all exploration
expenditure. The loss for the year of US$19,0 million
(2006: US$14,9 million) includes US$9,0 million
(2006: US$8,2 million) direct exploration expenditure,
US$2,75 million (2006: US$1,8 million) of depreciation
and US$2,6 million (2006: US$1,3 million) in expensing
employee share options. Total expenditure for the
year was US$ 25,4 million (2006: US$20,1 million),
including capital expenditure. Exploration and capital
expenditure for the year per country/project was
made up as follows: Pangea DiamondFields plc      Annual Report 2007      9
CHIEF EXECUTIVE OFFICER’S REPORT continued
Management and Board
Mr JA Dreyer, who is moving to Australia, resigned
from the board during the year. His past service is
appreciated. The board is otherwise unchanged and
I would like to record my appreciation to the
Chairman, Mr Bill Nairn, and the directors for their
wise counsel and support during the year.
Effective 1 July 2008 I shall step down as Chief
Executive owing to other competing work and family
commitments. I shall remain involved as Executive
Deputy Chairman, spending some 50% of my time
on Company matters. I shall be replaced by Brett
Thompson as Chief Executive. The full board and I
have complete faith in both Brett's ability and
commitment to take Pangea forward. 
Acknowledgements
This last financial year has been one of extremely hard
work in often difficult circumstances. A talented and
dedicated team made possible what has been
achieved this year and I would like to thank all the
staff for their efforts.
Rob Still
Chief Executive
31 March 2008
Conveyor belts feeding the DMS, Bakerville 60ct stone on left, Harts River 10 Pangea DiamondFields plc      Annual Report 2007
Details of the progress and status of each project are
set out in the following section.
Central African Republic (“CAR”)
The CAR is viewed by PDF management as a highly
prospective target area which has historically been
under explored despite being a source of high quality
alluvial diamonds.
The Dimbi Project
Pangea's primary focus in the CAR continues to be the
Dimbi project.
Our wholly owned subsidiary, Dimbi Diamants SAU
(“Dimbi Diamants”) commenced a bulk sampling
exercise on the Dimbi concession in March 2007
following commissioning of the plant. 
This bulk sampling exercise has focused on the
proposed Mining Area within a 3km radius of the plant
and to date has been mainly in the Mea River (Paleo-
Kotto) floodplain and the Akongo River (a Dimbi
Formation tributary), an area that represents less than
3% of the overall Prospecting Licence area. The
objective is to delineate sufficient ore resources at
economic grades to initially supply over 5 years of
mine life at the planned “Module 1” run of mine
gravel processing capacity of approximately 40,000m
3
per month.
Data from bulk sampling trenches mined across the
Paleo-Kotto floodplain in the target area, together
with hand bulk sample pits and drilling, is being
assessed to delineate ore resources and this
programme should be well advanced by mid-year.
Over 5,000ct have been recovered to date and on
27 February 2008 the first 3,671ct were sold on
tender in Antwerp by the Company's agents,
WWW International, at an average price of US$166. 
The bulk sampling activities have been impacted by
an extremely wet season and core equipment
unavailability. Additional mining equipment which is
currently en route to Dimbi and further pumping
REVIEW OF OPERATIONS 
equipment recently installed should result in improved
throughput going forward. 
Grade data to date is encouraging and it is hoped
that a recovered grade in excess of 35ct/100m
3
will
ultimately prove a realistic target for the planned
“Module 1” scale mining operations. This translates
into revenue per m
3
of approximately $58/m
3
compared with all in cash costs budgeted at $22/m
3
.
A decision to proceed with “Module 1” scale mining
operations will be made by mid-year after the results
of the programme are processed and commissioning
is targeted in late 2008.
Diamonds are carried in the Paleo Kotto within the
Upper Unit Basal Gravel package. This package, which
is visually identifiable in mining operations, varies from
0.6m to 1.2m and waste:ore strip ratios vary from 4 to 8.
Bulk sampling programmes by definition utilise a
limited suite of earthmoving equipment and as such
lead to sub-optimal mining methods. At Dimbi, the
final gravel mining has been undertaken with a 45t
excavator. Consequently, excessive dilution occurs and
impacts recovered grades. This mining dilution will be
addressed by more appropriate mining methods and
equipment during commercial scale mining.
As previously reported, near surface and highly
weathered samples taken from a discovery in the
south of the concession in December 2006, have been
analysed by independent laboratories as “mantle-
derived” source rocks, believed to be either a
kimberlite or a lamproite. Similar weathered, green,
apparently mantle-derived rocks have also been
recently discovered in the footwall of current bulk
sampling activities some 30km from the original
discovery. 
These apparently “mantle-derived” source rocks are
considered highly prospective. Despite having been a
significant producer of diamonds for many years, no
diamond bearing source rocks have been discovered
in the CAR to date.  Pangea DiamondFields plc      Annual Report 2007      11
REVIEW OF OPERATIONS continued
It has been decided to only commence the evaluation
of these areas after commercial scale mining on the
initial target area has commenced and is cash flow
positive.
The Etoile Prospect
Owing to Pangea's significant presence in the CAR, a
number of additional prospective project areas have
been selectively reviewed and evaluated during the
year and a new licence area, the Etoile concession,
has now been acquired. 
This prospect, covering some 3,000km
2
, is located in
the Mouka Ouadda region of the eastern CAR along
the Kotto River where extensive river and river bank
artisanal activities are present. 
Pangea has established two field camps on the
concession and reconnaissance exploration is in
progress to outline and map the terrace paleo
channels where waste stripping is likely to make the
deposits economic. Diamonds from artisanal workings
in this area average 0.75ct per stone and diamonds
larger than 10ct are frequently recovered.
Democratic Republic of Congo (“DRC”)
A general political stabilisation within the DRC over
recent years, as well as the highly prospective nature
of the “Lucapa” corridor running from south-west to
north-east from Lunda North in Angola through the
Tshikapa area in the DRC and beyond, make this
region an obvious target for diamond exploration.
PDF is confident it has selected highly prospective
target areas in the region.
Since 2005, Pangea staff have been actively exploring
and evaluating its various target areas and from late
2006 our efforts have been concentrated on the
Tshikapa and Longatshimo River project areas where
the “Advanced Exploration Phase”, including
extensive mapping, pitting and drilling of the various
terraces, has now been completed. Subject to
corroboration of the positive results of this exercise by
scientific bulk sampling, it appears these Tshikapa and
Longatshimo River project areas have the potential
to host both extensive and highly economic deposits
of alluvial diamonds.
Pangea has accordingly extended and consolidated
its land holding in this target area and now has seven
licence blocks at Tshikapa and six at Longatshimo. 
Notwithstanding the considerable potential of alluvial
diamond mining in the Kasai region of the DRC, the
logistical challenges to commercial scale diamond
mining are daunting. Traditional access routes to the
Tshikapa region have been by sea, road and river-
barge with no less than four separate legs and
“transfer points” which have often been rendered
almost impassable by seasonal closures, transfer and
haulage equipment shortages and impassable
bridges. 
Pangea decided during 2007 that it was both possible,
and indeed optimal, to open up a logistical supply
route overland from the Angolan border some 70km
to the south of its Tshikapa and Longatshimo project
areas. To this end Pangea has:
•  Successfully petitioned both the Angolan and DRC
Governments to re-open a disused border post
north-west of the town of Dundo in Angola;
•  Built a road from Dundo in Angola to its camp at
the Longatshimo project, including the construction
of several steel bridges;
•  Transported an entire bulk sampling plant, camp
infrastructure and mining equipment weighing
some 600 tonnes over 4,700km via a fleet of
17 trucks from South Africa to its camp at the
Longatshimo project; and 
•  Built and commissioned the plant at the
Longatshimo project.
We believe pioneering this new logistical supply route
will enable Pangea to overcome the challenges to 12 Pangea DiamondFields plc      Annual Report 2007
commercial scale diamond mining in its Tshikapa and
Longatshimo River project areas. It is recommended
that shareholders view photos of this “convoy” and
the new plant at Longatshimo contained in this report
and on the Company website in order to better
appreciate the enormity of this task completed by the
Pangea team led by Mr Boris Kamstra.
Bulk sampling will now commence at Longatshimo
and the successful delineation of sufficient economic
resources to enable a decision to proceed with
“Module 1” scale mining operations to be made by the
end of 2008. During 2009 the Company expects bulk
sampling to commence at the twin project at Tshikapa.
Whilst reconnaissance exploration has been
successfully carried out on the Kasai Licence and the
Luebo Licence areas, Pangea is evaluating whether
these projects can effectively overcome the logistical
challenges to facilitate economic commercial scale
diamond mining and a decision on the future of these
licence areas will depend upon this evaluation. 
Angola
Whilst highly prospective for diamond mining and
exploration, Angola is a challenging country to
operate in. This is due to the combined impact of
byzantine legal systems, limited infrastructure, non-
commercial investment terms from the State diamond
monopoly, Endiama and its sales arm Sodiam and
high input costs (with the notable exception of fuel).
Any review of the results of public companies
operating in Angola attests to this and it is Pangea's
view that ultimately the system is structurally
unsustainable. 
Accordingly Pangea, as previously reported, withdrew
from its Lumuanza project in late 2006, having
concluded that, whilst this project remains a
reasonably prospective exploration target, the
potential future project returns did not justify
continued exploration funding on risk. An agreement
to pay Pangea US$1,4 million for its stake in the
project was concluded but is, to date, yet to be
honoured. 
REVIEW OF OPERATIONS continued
The Cassanguidi Project
Owing to its strategic location relative to Pangea's
DRC projects and to the more balanced “old order”
licence arrangements, Pangea has retained its
investment in the Cassanguidi project. This project is
considered to be at pilot mining status although it is
currently facing challenges posed by inadequate
mining and processing equipment.
Pangea seeks to reach a stage that it can invest in
appropriate equipment to achieve commercial
operational scale to place the operation on a
sustainable and profitable basis. Regional exploration
activities have identified sufficient resources adequate
for this planned capacity expansion.
From late in 2006, PDF was able to exercise an
increasingly greater managerial role over the
Cassanguidi pilot mining operation. Except for a
period of heavy seasonal rains late in 2006 into early
2007, plant throughput and diamond production
increased steadily to mid-2007 with a peak of 4,761ct
produced in June. Since then production has been
negatively impacted by equipment unavailability but
operations have broadly covered costs.
However, diamond sales results through Sodiam (the
monopoly marketing arm of Endiama, the state owned
diamond company) were disappointing in the latter
part of 2006 and first half of 2007, with independent
and in-house valuations suggesting gross prices
received reflected a 30-40% discount to market. This
was a major concern to the Group and discussions
regarding the sale and marketing procedures have
been successful and market-related prices are now
being achieved.
Pangea currently owns 50% of Sub Sahara Limitada, an
Angolan company that in turn has a 65% share in the
Cassanguidi joint venture together with our Angolan
partner, Marsanto, who holds a carried 35%. The
remaining shareholders of Sub Sahara have to date
been unable to invest their pro-rata share of the
required capital, estimated at US$3 million, to
upgrade Cassanguidi to commercial scale.  Pangea DiamondFields plc      Annual Report 2007      13
REVIEW OF OPERATIONS continued
In February 2008 Pangea purchased, for a nominal
sum, a further 10% shareholding in Sub Sahara
although the requisite company procedures to
formally register this transaction under Angolan law
are in progress. As a consequence of now being the
majority shareholder in Sub Sahara, Pangea intends
to further increase its shareholding in Sub Sahara
consequent with its further investment of the required
capital, estimated at US$3 million, to upgrade
Cassanguidi to commercial scale and such investment
will be contingent thereon.
Republic of South Africa
Despite having been mined extensively for diamonds
over the past century or more, PDF management
believe that South Africa still hosts significant
untapped diamond resources. Specifically the recent
changes in legislation have provided access to highly
prospective areas otherwise sterilised in the past and
in addition, many previously mined areas had not been
subjected to any recent “brown-fields” exploration
using modern techniques. PDF has exploited both of
these opportunities to select and acquire a number of
exciting target areas in South Africa.
Despite Pangea's limited financial and managerial
resources the South African projects have seen
significant exploration progress during 2007 although
progress on the Harts River project has been slow.
The Bakerville Project
The Bakerville area was the subject of a major
diamond rush in the 1920s during which the declared
diamond production was reported to be around
7,5 million carats. The project areas are high potential
extensions of the historical production areas which
remained sterilised until the 2004 legislation changes
provided a means to access these properties.
There are two distinct sub-areas within this project
area: Patsema and Malmani. The Patsema area has
similar potential to the high grade historical potholes
and gravel runs at Bakerville. The Malmani area
targets represented potential trap sites identified from
the extensions of the Patsema area gravel runs and
potholes. Bulk sampling carried out on the Malmani
targets during 2007 returned disappointing results and
that area has been discontinued. 
Patsema area
Historic diamond production from this area has
yielded diamond grades of the gravel runs of
5ct/100 ton, whilst that of the potholes is up to
500ct/100 ton or 5ct/ton. Consequently, this area
is considered highly prospective and PDF's focus is
on identifying the high grade pothole resources. 
A ground gravity survey conducted on a portion of
the farm Zamenkomst “downstream” from historical
potholes, identified runs and ten potential pothole
targets which were subsequently tested by the drilling
of over 400 boreholes. This drilling and subsequent
follow up in fill drilling then confirmed the presence of
at least four distinct pothole structures and numerous
gravel runs containing significant gravel resources.
At least six more targets remain yet to be drilled.
Our target is to find potholes similar to those mined
historically, some of which have yielded up to
3,2 million carats in a single pothole. Exploration is
continuing and to date, less than 10% of the Patsema
area has been investigated.
In the second half of 2007, 19 Bauer rig large diameter
holes were completed to test the initial pothole
structures and Pangea commissioned a 20tph DMS
(Dense Medium Separation) plant at the Zamenkomst
site to treat the resulting gravels. To date 25ct have
been recovered and these stones have been
encouragingly independently valued at US$310/ct. At
this early stage, the results for the potholes drilled are
inconclusive although the gravel runs certainly appear
economic. The evaluation process is ongoing and is
expected to yield more conclusive results during 2008.
On the farm Geluksdal, within the Patsema area, a
kimberlite target was identified by geo-magnetic
modelling and analysis and to date four holes were
drilled into the postulated kimberlite. The holes were
each drilled to a depth of about 50m before being
abandoned after intersecting chert lenses and
abundant gravels. While a kimberlite below the
gravels cannot be ruled out, until drilling has been
able to penetrate this sequence, this target now 14 Pangea DiamondFields plc      Annual Report 2007
appears at the very least to be a large pothole (more
than 200m x 200m). Five Bauer rig large diameter
holes were completed to test this structure but results
have been disappointing and activity in this area has
been curtailed. 
The Harts River Project
The Harts River project was identified by the PDF
exploration team and represents a target area which
had otherwise been overlooked in the past. It has
been modelled as a number of large volume gravel
deposits situated over a 250km plus stretch of the
paleo-Harts River. All licences in this project area have
now been granted. 
The first phase 600,000t bulk sampling programme
which focused on the Brussels area in the north of
the system was completed in 2006 by sub-contractors
who were remunerated from the diamonds recovered.
This programme, under the specific direction of PDF
geologists, was designed to separately process
specific gravel horizons (within the up to 7m thick
gravel package), to find the optimal diamond bearing
gravel.  A specific gravel package has been identified
(called UCG) which has demonstrated a more
attractive grade of around 0.47ct/100t from bulk
sampling and with an average diamond size of
1.24ct and an average selling price in 2006 of over
US$1,500 per carat. These results are considered
highly encouraging given subsequent increases in
large diamond prices and the impact of the
weakening rand on cost structures.
During 2007 surface access rights have been
negotiated on contiguous farms to the initial Brussels
evaluation area and late in 2007 a second phase bulk
sampling programme has commenced to delineate
high grade gravel horizons within the northern system.
This programme will include a trial of new specialised
equipment for mining calcretised gravels to test
postulated lower costs and greater diamond
liberation. 
REVIEW OF OPERATIONS continued
Another of the large gravel resource areas identified
within the Harts River project occurs on a property
(Pampierstad) in the south.  The gravel identified in
this area appears to be much less calcretised and as
a consequence relatively easily mined and a bulk
sampling programme using PDF equipment and
personnel is planned to commence in 2Q 2008 on
this site. Equipment is currently being mobilised to
Pampierstad.
The Harts River project has the potential to host a
very large scale, low cost, low grade mining operation
recovering high-value diamonds similar to large
successful operations on the middle Orange River.
The 250km paleo-Harts River contains vast gravel
deposits, postulated in excess of 1 billion tons. The
overall objective of the exploration programme is to
investigate and better understand the various paleo
gravel units in order to identify and delineate the
higher grade and economic gravel horizons within
the overall system.
Based on this further exploration, Pangea targets the
development of preliminary scoping studies during
2008 leading to feasibility studies and a mine go-
ahead decision by late 2009.
The Bloemhof Project
The Bloemhof project occurs in an area of extensive
alluvial mining activity and PDF identified prospective
properties which were previously subject to complex
mineral rights arrangements and prevented
exploitation. These were acquired as a result of the
recent changes in legislation and prospecting permits
over five blocks of farms have been granted to the
underlying PDF Group companies. During 2008
negotiations have been concluded with the respective
surface rights owners for access to these farms and
initial exploration has commenced. 
During 2008 Pangea intends to offer these projects to
suitable third parties for mining under joint venture
arrangements.  Pangea DiamondFields plc      Annual Report 2007      15
DIRECTORATE, MANAGEMENT AND ADVISORS
Directors William (Bill) Alan Nairn Independent Non-Executive Chairman
Robert George Still Chief Executive Officer
Brett Peter Thompson Chief Operating Officer
Patrick Randal Cooke Chief Financial Officer
Dewald Lambertus Joubert Independent Non-Executive
Miles Alistair Kennedy Independent Non-Executive
Ashley John Dunster Non-Executive
Company's registered office Falcon Cliff
Palace Road
Douglas
Isle of Man
IM2 4LB
Management Anton Esterhuizen Chief Exploration Officer
Boris Kamstra Operations Manager/Engineering discipline head
Helen Pein Exploration Manager
Jurgen Schwarz Management Accountant
Michael Hunt Operations Manager/Processing discipline head
Michelle Weipers Company Secretary
Advisors Ambrian Partners Limited Nominated advisor and broker
128 Queen Victoria Street
London EC4V
United Kingdom
KPMG Inc Auditors
KPMG Crescent
85 Empire Road 
Parktown 2193
South Africa
Venmyn Rand Limited Competent Persons
First Floor, Block G
Rochester Place
173 Rivonia Road
Sandton 2146
South Africa
Maitland Advisory LLP Legal advisors
Berkshire House
168-173 High Holborn
WC1V7AA
United Kingdom 16 Pangea DiamondFields plc      Annual Report 2007
Advisors continued Maitland Services Limited Registrars
Falcon Cliff
Palace Road
Douglas
Isle of Man IM24LB
Computershare Investor Crest Service Provider
Services (Channel Islands) 
Limited
31 Pier Road
St Helier
Jersey JE4 8PW
Channel Islands
The Royal Bank of Scotland Principal bankers
International Limited
Royal Bank House
2 Victoria Street
Douglas
Isle of Man IM99 1NJ
Parkgreen Communications PR consultants
Limited
Pegasus House
37-43 Sackville Street
London W1S 3EH
United Kingdom
DIRECTORATE, MANAGEMENT AND ADVISORS continued Pangea DiamondFields plc      Annual Report 2007      17
INDEPENDENT AUDITOR’S REPORT
To the members of Pangea Diamonds (Proprietary) Limited 
We have audited the annual financial statements of Pangea DiamondFields plc, which comprise the consolidated
balance sheet at 31 December 2007, and the consolidated income statement, the consolidated statement of
changes in equity and consolidated cash flow statement for the year then ended, and the notes to the
consolidated financial statements, which include a summary of significant accounting policies and other
explanatory notes, and the directors’ report as set out on pages 18 to 48. 
Directors’ responsibility for the financial statements
The Company’s directors are responsible for the preparation and fair presentation of these consolidated
financial statements in accordance with International Financial Reporting Standards. This responsibility includes:
designing, implementing and maintaining internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error; selecting and
applying appropriate accounting policies; and making accounting estimates that are reasonable in the
circumstances.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with International Standards on Auditing. Those standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated
financial position of Pangea DiamondFields plc at 31 December 2007, and its financial performance and cash
flows for the year then ended in accordance with International Financial Reporting Standards.
KPMG Inc.
Per AH Jaffer
Chartered Accountant (SA)
Registered Auditor
Director
31 March 2008 18 Pangea DiamondFields plc      Annual Report 2007
Directors’ responsibility statement
The directors are responsible for the preparation and fair presentation of the consolidated annual financial
statements of Pangea DiamondFields plc, comprising the balance sheet at 31 December 2007, and the income
statement, the statement of changes in equity and cash flow statement for the year then ended, and the notes to
the financial statements, which include a summary of significant accounting policies and other explanatory notes,
and the directors' report, in accordance with International Financial Reporting Standards and in the manner
required by the Isle of Man Companies Act.
The directors' responsibility includes: designing, implementing and maintaining internal control relevant to
the preparation and fair presentation of these consolidated financial statements that are free from material
misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and
making accounting estimates that are reasonable in the circumstances.
The directors' responsibility also includes maintaining adequate accounting records and an effective system
of risk management as well as the preparation of the supplementary schedules included in these consolidated
financial statements.
The directors have made an assessment of the Group's ability to continue as a going concern and there is no
reason to believe the businesses will not be going concerns in the year ahead.
The external auditor is responsible for reporting on whether the consolidated annual financial statements are
fairly presented in accordance with the applicable financial reporting framework.
Corporate governance statement
Principles of good governance
As a Group quoted on the Alternative Investment Market of the London Stock Exchange (“AIM”), the Company
is not required to comply with the Combined Code. Following the listing in October 2006, the Group enhanced
its procedures during 2006 in those areas which it considered most appropriate for compliance. The board
believes in providing a framework for establishing good corporate governance and accountability and identifies
the following Group procedures supporting this approach:
The board
The specific responsibilities reserved to the board include: setting Group strategy and approving an annual
budget and medium-term projections; reviewing operational and financial performance; approving major
acquisitions; divestments and capital expenditure; reviewing the Group's systems of financial control and risk
management; ensuring that appropriate management development and succession plans are in place; reviewing
the environmental, health and safety performance of the Group; approving appointments to the board and the
Company Secretary; approving policies relating to directors' remuneration and the severance of directors'
contracts; and ensuring that a satisfactory dialogue takes place with shareholders.
The board has delegated the following responsibilities to Executive Management: the development and
recommendation of strategic plans for consideration by the board that reflect the longer-term objectives and
priorities established by the board; implementation of the strategies and policies of the Group as determined by
the board; monitoring the operating and financial results against plans and budgets; monitoring the quality of
DIRECTORS’ REPORT Pangea DiamondFields plc      Annual Report 2007      19
the investment process against objectives; prioritising the allocation of capital, technical and human resources;
monitoring the composition and terms of reference of divisional management committees; and developing and
implementing risk management systems.
Directors and directors' independence
The board currently comprises the Chairman, who is non-executive and independent, three non-executive
directors of whom two are independent and a further three executive directors. The names of the directors are
set out on page 15. The non-executive directors are of sufficient calibre that their views carry significant weight
in the board’s decision making.
The directors are given access to independent professional advice at the Group's expense, when the directors
deem it necessary in order for them to carry out their responsibilities.
The Company Secretary
The Company Secretary is responsible for advising the board through the Chairman on all governance matters.
The directors have access to the advice and services of the Company Secretary.
Information
Regular reports and papers are circulated to the directors in a timely manner in preparation for board and
committee meetings. These papers are supplemented by information specifically requested by the directors
from time to time.
Relations with shareholders
The Group maintains a corporate website (www.pangeadiamondfields.com) containing a wide range of
information of interest to institutional and private investors. The Group has frequent discussions with institutional
shareholders on a range of issues affecting its performance. These include meeting following the announcement
of annual results with the Group's largest institutional shareholders on an individual basis. In addition, the Group
responds to individual ad hoc requests for discussions from institutional shareholders.
Internal control
In accordance with the guidance of the Turnbull Committee, the board of directors is responsible for the Group's
system of internal control; sets appropriate policies on internal control; seeks regular assurance that enables it to
satisfy itself that the system is functioning effectively; and ensures that the system of internal control is effective
in managing risks in the manner which it has approved.
The directors continue to review the effectiveness of the Group's system of financial and non-financial controls;
including operational and compliance controls, risk management and the Group's high level of internal control
arrangements. These reviews include an assessment of internal controls and, in particular, internal financial
controls.
The Group views the careful management of risk as a key management activity. Managing business risk to deliver
opportunities is a key element of all activities. These business risks, which may be strategic, operational,
reputational, financial or environmental, should be understood and visible.
DIRECTORS’ REPORT continued 20 Pangea DiamondFields plc      Annual Report 2007
The Group does not have an internal audit function and the board will consider the need to create one as the
Group grows.
Remuneration committee
The Group has established a remuneration committee, which will continue to operate with formally delegated
duties and responsibilities. 
The remuneration committee comprises Ashley Dunster (Chairman), Miles Kennedy and William (Bill) Nairn.
The remuneration committee meets twice during the year; when necessary non-executive members are invited
to attend.
The remuneration committee's principal responsibilities are:
•  setting, reviewing and recommending to the board for approval the Group's overall remuneration policy and
strategy;
•  setting, reviewing and approving individual remuneration packages for executive directors and the Chairman,
including terms and conditions of employment and any changes to the packages;
•  reviewing the salary structure and terms, conditions and benefits of employment of other Group executive
committee members; and
•  approving the rules, and launch, of any executive share, share option or cash based incentive scheme and the
grant, award, allocation or issue of shares, share options or payments under such scheme.
In addition the committee regularly reviews the Group's remuneration policy in relation to:
•  Its competitors and industry norms;
•  compensation commitment; and
•  contract periods.
The audit committee
The audit committee meets at least twice during the year, and comprises Dewald Joubert (Chairman) and Ashley
Dunster.
Under its terms of reference, the audit committee monitors the integrity of the Group's consolidated financial
statements and any formal announcements relating to the Group's financial performance. The committee is
responsible for monitoring the effectiveness of the external audit process and making recommendations to the
board for ensuring that an appropriate relationship between the Group and the external auditor is maintained,
including reviewing non-audit services and fees.
The committee meets with executive directors and management, as well as privately with the external auditor.
In 2007, the audit committee discharged its responsibilities by:
•  reviewing the Group's draft consolidated financial statements prior to board approval and reviewing the
external auditor's detailed reports thereon;
•  reviewing the appropriateness of the Group's policies;
•  reviewing the external auditor's plan for the audit of the Group's consolidated financial statements, which
included scope of work, key risks to the financial statements, confirmation of auditor independence and
approving the terms of engagement for the audit; and
•  reviewing the performance of the external auditor.
DIRECTORS’ REPORT continued Pangea DiamondFields plc      Annual Report 2007      21
DIRECTORS’ REPORT continued
Auditor's independence and objectivity
The audit committee reviews all services being provided by the external auditor to review the independence and
objectivity of the external auditor, taking into consideration relevant professional and regulatory requirements, so
that these are not impaired by the provision of permissible non-audit services.
Details of the amount paid to the external auditor during the year for audit and other services are set out in 
note 14 to the consolidated financial statements.
Going concern
The Company is in the process of exploring its mineral property interests and has not yet determined whether
its mineral property interests contain economically recoverable mineral reserves. The underlying value and the
recoverability of the amounts shown for mineral property interests and exploration costs are entirely dependent
upon the existence of economically recoverable mineral reserves, the ability of the Company to obtain the
necessary financing to complete the exploration and development of the mineral property interest, and future
profitable production or proceeds from the disposition of the mineral property interests.
The Company raised in February 2008, gross proceeds of US$15 million from the issue of 16,5 million ordinary
shares at a price of £0.46. The Company is planning to raise further funds. Should this financing not be obtained,
there is material uncertainty which may cast significant doubt on the Company’s ability to continue as a going
concern and therefore it may be unable to realise its assets and discharge its liabilities in the normal course of
business.
The financial statements have been prepared on the going concern basis, since the directors believe that the
Company will be successful in arranging the finance.
Share capital changes
Changes during the year under review
On 25 July 2007 share options over 266,667 ordinary shares at a price of US$0.625 each were exercised.
Changes during the prior year
On 5 May 2006 the Company allotted and issued 2,500,000 ordinary shares of US$0.01 each at a price of
US$2.00 per share and on 10 July 2006 the Company allotted and issued 2,500,000 ordinary shares of US$0.01
at a price of US$2.00 per share. Both these share allotments were settled in cash.
On 7 July 2006 the Company allotted and issued 300,000 ordinary shares of US$0.01 each at a price of
US$2.00 for a non-cash consideration to acquire a third party's economic participation rights to the Dimbi
Project in the Central African Republic.
On 15 September 2006 by way of special resolution the authorised share capital of the Company was converted
from US$1,000,000 divided into 100,000,000 ordinary shares of US$0.01 each into US$1,000,000 divided into
200,000,000 ordinary shares of US$0.005 each.
On 17 October 2006 the Company allotted and issued 26,483,051 ordinary shares of US$0.005 each at a price of
£0.60 (equivalent to US$1.13) per share settled in cash.
Dividends
The directors do no recommend the payment of a dividend. 22 Pangea DiamondFields plc      Annual Report 2007
Subsidiaries
Country of PDF's effective 
origin shareholding % Activity
Dorado Investments Limited Mauritius 100 Investment holding
Dayspring Management Services (Pty) Limited South Africa 100 Investment holding
Efidium Limited Isle of Man 100 Investment holding
Sub Sahara Investimentos e Consultoria 
Limitada (“Sub Sahara”) Angola 50 Exploration/mining
Efidium DRC Exploration SPRL DRC 100 Exploration
Nyanzambi Mining SPRL DRC 100 Exploration
Dimbi Diamants SAU CAR 100 Exploration
Kotto Diamants SAU CAR 100 Exploration
Etoile Diamants  SAU CAR 100 Exploration
Carmines Diamants SAU CAR 100 Exploration
Pangea Diamonds (Pty) Limited South Africa 74 Investment holding/
(“Pangea Diamonds”) exploration
Tranter Pangea Diamonds Investments South Africa 36 Exploration
(Pty) Limited
La Bamba Holdings (Pty) Limited South Africa 36 Exploration
Innovage Resources (Pty) Limited (“Innovage”) South Africa 55 Exploration
Ostiprop Exploration (Pty) Limited South Africa 74 Exploration
Bluedust 23 (Pty) Limited South Africa 55 Exploration
Crestwave 68 (Pty) Limited South Africa 36 Exploration
Upward Spiral 10 (Pty) Limited (“Upward Spiral”) South Africa 55 Exploration
Directorate
During the year under review, Mr John Arthur Dreyer resigned as a director on 1 August 2007.
The directors who served during the year, their beneficial interests and those of their immediate families in the
ordinary share capital of the Company, were as follows:
As at 31 December 2007 As at 31 December 2006
Ordinary shares Share options Ordinary shares Share options
William (Bill) Alan Nairn –– ––
Robert George Still* 9 006 000 1 600 000 9 006 000 1 600 000
Brett Peter Thompson** 1 000 000 1 400 000 500 000 1 200 000
Patrick Randal Cooke – 1 000 000 – 800 000
John Arthur Dreyer –– ––
Ashley John Dunster –– ––
Dewalt Lambertus Joubert –– ––
Miles Alistair Kennedy –– ––
* Shares held via Suri Investments Limited
** Shares held via The SJL Trust
DIRECTORS’ REPORT continued Pangea DiamondFields plc      Annual Report 2007      23
DIRECTORS’ REPORT continued
None of the directors held any interest in the share capital of any Group companies as at 31 December 2007
(31 December 2006: nil).
As an AIM listed company, PDF is not required to report on directors’ remuneration. However, the board has
chosen to disclose remuneration paid to directors as the board think this will better inform our shareholders.
Salary/fees Salary/fees 
year ended year ended
31 December 2007 31 December 2006
US$ US$
William (Bill) Alan Nairn 35 000 14 583
Robert George Still* 253 914 195 580
Brett Peter Thompson* 283 616 171 980
Patrick Randal Cooke* 148 506 71 530
John Arthur Dreyer 14 583 51 250
Dewalt Lambertus Joubert 30 000 12 500
Miles Alistair Kennedy 25 000 10 417
790 619 527 840
* The three executive directors each have one year service agreements
Significant shareholders
The share register records that the following, excluding the directors, held 3% or more of the issued share capital
of the Company as at 31 December 2007.
Number Number 
of shares % of shares %
2007 2007 2006 2006
Capital Int Private Equity Fund IV, LA 22 266 988 18,97 22 266 988 19,00
Suri Investments Limited 9 006 000 7,67 9 006 000 7,70
Chartered Holdings Limited 8 750 000 7,46 8 750 000 7,50
Brait International Limited 8 048 768 6,86 8 048 768 6,90
Belajev Trading Limited 7 560 028 6,44 7 560 028 6,25
Caramba Limited 7 350 000 6,26 7 350 000 6,30
JP Morgan Funds 5 753 700 4,90 5 234 000 4,50
JP Morgan Fund ICVC – JPM Natural 
Resources Fund 5 666 000 4,83 5 666 000 4,80
The Sycamore Charitable Trust 4 413 842 3,76 4 413 842 3,80
Mining Concession Mauritius Limited 4 263 660 3,63 8 187 074 7,00
Pershing Keen Nominees Limited 3 923 394 3,34 ––
Summerwood Investments Limited 3 742 926 3,19 3 742 926 3,20
Andiamo Investments Limited 3 716 000 3,17 3 716 000 3,20 24 Pangea DiamondFields plc      Annual Report 2007
Approval of consolidated financial statements
The consolidated financial statements for the year ended 31 December 2007 set out on pages 26 to 48 were
approved by the board of directors on 31 March 2008.
Subsequent events
There have been no events subsequent to year end that materially affect these consolidated financial statements
other than as disclosed in note 24 to these consolidated financial statements.
The Company has issued 16,500,000 ordinary shares at a price of £0.46 raising gross proceeds of US$15 million.
After share issue and related expenses, the Company received US$13,904,829.
Approval of consolidated annual financial statements
The consolidated annual financial statements of Pangea DiamondFields plc, as identified in the first paragraph,
were approved by the directors on 31 March 2008 and signed on their behalf by:
RG Still WA Nairn
Chief Executive Chairman
31 March 2008 31 March 2008
DIRECTOR’S REPORT continued
Kasai River exploration Cassanguidi diamonds
General overview of the
Cassanguidi Plant Pangea DiamondFields plc      Annual Report 2007      25
CONTENTS
26 Consolidated Income Statement
27 Consolidated Balance Sheet
28 Consolidated Statement of Changes in Equity
29 Consolidated Cash Flow Statement
30 Notes to the Consolidated Financial Statements
Kapopo River which is a 
tributary of the 
Longatshimo River 26 Pangea DiamondFields plc      Annual Report 2007
CONSOLIDATED INCOME STATEMENT
for the year ended 31 December 2007
GROUP GROUP
2007 2006
Notes US$ US$
Diamond revenue* 4 816 980 3 092 223 
Pilot mining operating expenditure (5 319 252) (4 346 818)
Exploration expenditure (8 953 315) (8 216 349)
Other operating expenses (7 786 321) (1 567 220)
Impairment losses attributable to Project Lumuanza 12 – (2 926 187)
Equity-settled share-based payment transactions 13 (2 576 306) (1 286 011)
Operating losses 14 (19 818 214) (15 250 362)
Interest income 15 799 038 395 525 
Loss before taxation (19 019 176) (14 854 837)
Taxation 16 – –  
Loss for the year (19 019 176) (14 854 837)
Attributable to:
– Equity holders of the parent company (18 691 186) (14 283 476)
– Minority interests (327 990) (571 361)
Loss for the year (19 019 176) (14 854 837)
Loss per share (US cents) 18 (15,95) (15,63)
* net of applicable royalties Pangea DiamondFields plc      Annual Report 2007      27
CONSOLIDATED BALANCE SHEET
as at 31 December 2007
GROUP GROUP
2007 2006
Notes US$ US$
Assets
Total non-current assets 15 722 819 10 711 152 
Mineral properties 4 3 170 390 3 170 390 
Plant and equipment 5 11 143 370 7 540 762 
Unlisted investments 6 1 409 059 –   
Total current assets 4 673 240 26 640 943 
Other receivables 7 801 880 547 245 
Cash and cash equivalents 19.4 3 871 360 26 093 698 
Total assets 20 396 059 37 352 095 
Equity and liabilities
Equity
Share capital 9 586 749 585 415 
Share premium 48 165 897 48 000 564 
Foreign currency translation reserve (177 085) (156 530)
Share-based equity reserves 13 3 862 317 1 286 011 
Accumulated losses (36 323 249) (17 632 063)
Total equity attributable to equity holders of the Company 16 114 629 32 083 397 
Minority interest –   327 990 
Total equity  16 114 629 32 411 387 
Non-current liability
Non-interest bearing loans 10 3 786 601 4 009 394 
Total current liabilities 494 829 931 314 
Short-term loans 10 201 316 727 041 
Trade and other payables 11 293 513 204 273 
Total equity and liabilities 20 396 059 37 352 095 28 Pangea DiamondFields plc      Annual Report 2007
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2007
Total
Foreign Share- recognised
exchange based income
Share Share translation equityAccumulated and Minority
capital premium reserve reserve losses expenses interest Total
US$ US$ US$ US$ US$ US$ US$ US$
Balance at 
31 December 2005 400 000 9 937 708 (107 445) – (3 812 707) (3 920 152) 1 363 471 7 781 027 
Shares issued for cash 50 000 9 950 000 – – – – – 10 000 000 
Shares issued – acquisition of 
participation interest 3 000 597 000 – – – – – 600 000 
Shares issued on AIM 
admission 132 415 29 720 639 – – – – – 29 853 054 
Share issue expenses paid – (2 204 783) – – – – – (2 204 783)
Acquisition of additional 
interest in subsidiary – – – – 464 120 464 120 (464 120) –
Share-based equity reserve – – – 1 286 011 – 1 286 011 – 1 286 011 
Foreign currency translation 
reserve – – (49 085) – – (49 085) – (49 085)
Loss for the year – – – – (14 283 476) (14 283 476) (571 361) (14 854 837)
Balance at 
31 December 2006 585 415 48 000 564 (156 530) 1 286 011 (17 632 063) (16 502 582) 327 990 32 411 387 
Shares issued for cash 1 334 165 333 – – – – – 166 667 
Share-based equity reserve – – – 2 576 306 – 2 576 306 – 2 576 306 
Foreign currency translation 
reserve – – (20 555) – – (20 555) – (20 555)
Loss for the year – – – – (18 691 186) (18 691 186) (327 990) (19 019 176)
Balance at 
31 December 2007 586 749 48 165 897 (177 085) 3 862 317 (36 323 249) (32 638 017) – 16 114 629 Pangea DiamondFields plc      Annual Report 2007      29
CONSOLIDATED CASH FLOW STATEMENT
as at 31 December 2007
GROUP GROUP
2007 2006
Notes US$ US$
Cash flows from operating activities
Net cash applied to operating activities
Cash flows applied to operating activities 19.1 (15 184 473) (9 009 869)
Cash flows from investing activities (6 961 184) (6 977 779)
Interest received 799 038 395 525 
Acquisition of plant and equipment (6 351 163) (5 387 994)
Acquisition of unlisted investments (1 409 059) – 
Acquisition of subsidiary, net of cash – (1 985 310)
Net cash used in investing activities (22 145 657) (15 987 648)
Cash (outflows)/inflows from financing activities
Shares issued for cash 166 667 38 248 271 
Net loans (repaid)/raised (222 793) 1 594 362 
Net cash (repaid) flows from financing activities (56 126) 39 842 633 
Net (decrease)/increase in cash balances (22 201 783) 23 854 985 
Cash balances at beginning of the year 26 093 698 2 316 376 
Foreign currency translation adjustment relating to cash balances (20 555) (77 663)
Cash balances at end of the year 19.4 3 871 360 26 093 698 30 Pangea DiamondFields plc      Annual Report 2007
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2007
1. Significant accounting policies
Pangea DiamondFields plc (“the Company”) is a company domiciled in the Isle of Man. The consolidated
annual financial information as at and for the year ended 31 December 2007 comprises the Company and
its subsidiaries (together referred to as “the Group”). The  consolidated financial statements incorporate
the principal accounting policies set out below.
1.1 Statement of compliance
The consolidated financial statements are prepared in accordance with International Financial
Reporting Standards (“IFRS”) and its interpretations adopted by the International Accounting
Standards Board (“IASB”).
1.2 Basis of preparation
The consolidated financial statements have been prepared in US dollars on the historical cost basis
except for financial instruments available for sale. The preparation of financial statements in
conformity with IFRS requires management to make judgements, estimates and assumptions that
affect the application of policies and reported amounts of assets and liabilities, income and expenses.
The estimates and assumptions are based on historical experience and various other factors that are
believed to be reasonable under the circumstances, the results of which form the basis of making the
judgements about carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates. The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in
which the estimate is revised if the revision affects only that period, or in the period of revision and
future periods if the revision affects both current and future periods. The key area of judgement and
estimates by management relates to the assessment of the continued viability of exploration projects
in respect of which property acquisition costs and mineral and surface rights have been capitalised as
mineral properties on the balance sheet.
1.3 Functional and presentation currency
These financial statements are presented in US dollars (“USD”), which is the Company's functional
currency. All financial information presented in USD has been rounded to the nearest US dollar.
1.4 Basis of consolidation
Where the Company has the power, either directly or indirectly, to govern the financial and operating
policies of another entity or business so as to obtain benefits from its activities, it is classified as a
subsidiary. The consolidated financial information presents the results of the Company and its
subsidiaries (“the Group”) as if they formed a single entity. Intercompany transactions and balances
between Group companies are therefore eliminated in full.
1.5 Business combinations
The consolidated financial information incorporates the results of business combinations using the
purchase method. In the consolidated balance sheet, the accounting acquiree's identifiable assets
and liabilities are initially recognised at their fair values at the acquisition date. The results of acquired
operations are included in the consolidated income statement from the date on which control is
obtained. Pangea DiamondFields plc      Annual Report 2007      31
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2007
1. Significant accounting policies continued
1.6 Foreign currency
The Company's functional currency is the US dollar ($).
Foreign currency transactions of individual transactions are translated at the rates ruling when they
occurred. Foreign currency monetary assets and liabilities are translated at the rates ruling at the
balance sheet dates. Any differences are taken to the income statement.
The results of foreign subsidiaries with functional currency other than the US dollar are translated at
the average rates of exchange during the period and their balance sheets are translated into US$ at
the rates of exchange ruling on the balance sheet date. Exchange differences which arise from
translation of the opening net assets and results of foreign subsidiary undertakings and from
translating the income statement at an average rate are recognised in the foreign currency translation
reserve.
All other differences are taken to the income statement with the exception of differences on foreign
currency borrowings, which, to the extent that they are used to finance or provide or hedge against
foreign equity investments, are taken directly to reserves to the extent of the exchange differences
arising on the net investment in these enterprises. Tax charges or credits that are directly and solely
attributable to such differences are also taken to reserves.
1.7 Exploration and development expenditure
Exploration and development costs are expensed as incurred. If it is subsequently established that
a project has reached an economically viable stage, then all further pre-production expenditure is
capitalised. Costs related to property acquisition and mineral and surface rights are capitalised as
mineral properties only when acquired through business combination or when projects reach an
economically viable stage.
If a project in respect of which project acquisition costs or mineral and surface rights have been
capitalised is subsequently considered not viable and is abandoned, the amount capitalised will be
written off in the income statement.
Amortisation commences in the first year of commercial production, after which amortisation is
provided over the time contemplated for the economic extraction of the resource.
1.8 Impairment
The carrying amounts of the Group's assets are reviewed at each balance sheet date to determine
whether there is any indication of impairment. If there is any indication that an asset may be impaired,
its recoverable amount is estimated. The recoverable amount is the higher of its net selling price and
its value in use. 32 Pangea DiamondFields plc      Annual Report 2007
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2007
1. Significant accounting policies continued
1.8 Impairment continued
In assessing value in use, the expected future cash flows from the asset are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset. An impairment loss is recognised whenever the carrying
amount of an asset exceeds its recoverable amount. Impairment losses are recognised in the income
statement.
An impairment loss is reversed if there has been a change in the estimates used to determine the
recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying
amount does not exceed the carrying amount that would have been determined, net of depreciation
or amortisation, if no impairment loss  had been recognised.
1.9 Investments
Investments in unlisted entities over which the Group is unable to exercise significant influence are
stated at fair value. The fair value gains and losses arising on investments classified as available to sale
securities are recognised directly in equity, except for impairment losses, until the financial asset is
derecognised, at which time the cumulative gain or loss previously recognised in equity shall be
recognised in profit or loss.
1.10 Plant and equipment and depreciation
Items of plant and equipment are measured at cost less accumulated depreciation. Costs include all
expenditure that is directly attributable to the acquisition of assets.
Gains or losses on disposal of an item of plant and equipment are determined by comparing the
proceeds from disposal with the carrying amount of plant and equipment and are recognised as
“other income” in profit or loss.
Depreciation is provided on all tangible assets to write off the cost to its estimated residual value over
its expected useful life on a straight-line basis on the following bases:
Plant and equipment 8 – 10 years
Vehicles 3 years
Furniture and office equipment 8 – 10 years
The residual value, if not insignificant, is reassessed annually.
1.11 Income tax
Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is
recognised in the income statement except to the extent that it relates to items recognised directly in
equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantially enacted at the balance sheet date, and any adjustment to tax payable in respect of
previous years. Pangea DiamondFields plc      Annual Report 2007      33
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2007
1. Significant accounting policies continued
1.11 Income tax continued
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying
amount of assets and liabilities in the financial statements and the corresponding tax bases used in
the tax computations, and is accounted for using the balance sheet liability method. Deferred tax
liabilities are generally recognised for all taxable temporary differences and deferred tax assets are
recognised to the extent that it is probable profits will be available against which deductible
temporary differences can be utilised.
Deferred tax is calculated at the enacted or substantially enacted tax rates that are expected to apply
in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in
the income statement, except when it relates to items charged or credited to equity, in which case it is
also dealt with in equity.
1.12 Long-term environmental rehabilitation provisions
The Group is required to restore exploration and mining sites at the end of the project lives to a
condition acceptable to the relevant authorities and in terms of the Group's environmental policy.
The cost of any committed decommissioning or restoration programme is provided when the liability
arises and is capitalised. The capitalised cost is amortised over the productive life of the operation on
a straight-line basis.
1.13 Financial instruments
Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity, trade and other receivables, cash
and cash equivalents, loans and borrowings, and trade and other payables.
Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair
value through profit and loss, any directly attributable transaction costs. Subsequent to initial
recognition non-derivative financial instruments are measured as described below.
Held-to-maturity investments
Held-to-maturity investments are measured at amortised cost less any impairment losses.
Financial assets at fair value through profit or loss
An instrument is classified at fair value through profit of loss if it is held for trading or it is designated
as such upon initial recognition. Financial instruments are designated at fair value through profit or
loss if the Group manages such investments and makes purchase and sale decisions based on their
fair value in accordance with the Group's documented risk management or investment strategy.
Upon initial recognition attributable transaction costs are recognised in profit or loss when incurred.
Financial instruments at fair value through profit or loss are measured at fair value, and changes
therein are recognised in profit or loss. 34 Pangea DiamondFields plc      Annual Report 2007
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2007
1. Significant accounting policies continued
1.13 Financial instruments continued
Non-derivative financial instruments continued
Other 
Other non-derivative financial instruments are measured at amortised cost using the effective interest
method, less any impairment losses.
Trade and other receivables
Trade and other receivables are stated at cost less provision for doubtful debts.
Loans and borrowings
Loans and borrowings are recognised at amortised cost, comprising original debt less principal
payments and amortisations.
Compound financial instruments
Compound financial instruments issued by the Group comprise convertible notes that can be
converted to share capital at the option of the holder, and the number of shares to be issued does not
vary with changes in their fair value.
The liability component of a compound financial instrument is recognised initially at the fair value of a
similar liability that does not have an equity conversion option. The equity component is recognised
initially at the difference between the fair value of the compound financial instrument as a whole and
the fair value of the liability component. Any directly attributable transaction costs are allocated to the
liability and equity components in proportion to their initial carrying amounts.
Subsequent to initial recognition, the liability component of a compound financial instrument is
measured at amortised cost using the effective interest method. The equity component of a
compound financial instrument is not remeasured subsequent to initial recognition.
Interest, dividends, losses and gains relating to financial liability are recognised in profit or loss.
Distributions to the equity holders are recognised against equity, net of any tax benefit.
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary
shares and share options are recognised as a deduction from equity, net of any tax effects.
Recognition and de-recognition of financial instruments
Financial instruments are recognised when, and only when, the Group becomes a party to the
contractual provisions of the particular instrument.
The Group de-recognises a financial asset when, and only when, the contractual rights to the cash
flows arising from the financial asset have expired or have been forfeited by the Company or it
transfers the financial asset including substantially all the risks and rewards of ownership of the asset,
neither retaining nor transferring substantially all the risks and rewards of ownership of the asset, but
no longer retains control of the asset. Pangea DiamondFields plc      Annual Report 2007      35
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2007
1. Significant accounting policies continued
1.13 Financial instruments continued
Recognition and de-recognition of financial instruments continued
A financial liability is de-recognised when, and only when, the liability is extinguished, that is when
the obligation specified in the contract is discharged, cancelled or has expired.
All financial instruments are recognised and de-recognised using trade date accounting.
The difference between the carrying amount of a financial liability (or part thereof) extinguished or
transferred to another party and consideration paid, including any non-cash assets transferred or
liabilities assumed, is recognised in the income statement.
1.14 Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits.
1.15 Revenue
Revenue from the sale of diamonds is measured at the fair value of the consideration received or
receivable, net of returns and allowances, trade discounts and volume rebates. Revenue is recognised
when the significant risks and rewards of ownership have been transferred to the buyer, recovery of
the consideration is probable, the associated costs and possible return from diamonds can be
estimated reliably, and there is no continuing management involved with the diamonds.
1.16 Interest income
Interest income is recognised in the income statement as it accrues, using the effective interest rate
method.
1.17 Borrowing costs
Borrowing costs are not capitalised.
1.18 Share-based payments
When share options are awarded to employees, the fair value of the options at the date of grant is
charged to the income statement, with a corresponding increase in equity, over the vesting period.
Non-market vesting conditions are taken into account by adjusting the number of equity instruments
expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised
over the vesting period is based on the number of options that eventually vest. Market vesting
conditions are factored into the fair value of the options granted. As long as all other vesting
conditions are satisfied, a charge is made irrespective of whether the market vesting conditions are
satisfied. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
Where the terms and conditions of options are modified before they vest, the increase in the fair value
of the options, measured immediately before and after modification, is also charged to the income
statement over the remaining vesting period. 36 Pangea DiamondFields plc      Annual Report 2007
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2007
1. Significant accounting policies continued
1.18 Share-based payments continued
Where equity instruments are granted to persons other than employees, the income statement is
charged with the fair value of goods and services received.
1.19 Segment reporting
A segment is a distinguishable component of the Group that is engaged either in providing products
or services (business segment) or in providing products or services within a particular economic
environment (geographical segment), which is subject to risks and rewards that are different from
those of other segments.
The Group currently has one primary segment, which is exploration activities. Its secondary segment
classification is based on the geographical location of the exploration projects.
1.20 Earnings per share
The Group presents basic and diluted earnings per share (“EPS”) data for its ordinary shares. Basic
EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company
by the weighted average number of ordinary shares outstanding during the year. Diluted EPS is
determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted
number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which
comprises share options granted to employees or consultants.
2. New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations are not yet effective for the year
ended 31 December 2007 and have not been applied in preparing these consolidated financial statements. 
IFRS 8 Operating segments – effective for periods beginning on or after 1 January 2009.
Revised IAS23 Borrowing costs – effective for periods beginning on or after 1 January 2009.
The statements would not have any impact on the Group's financial statements.
3. Segment reporting
Segment information is presented in respect of the Group's business and geographical segments. The
primary format, business segments, is based on the Group's management and internal reporting structure.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that
can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets and expenses.
Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are
expected to be used for more than one period.
Business segments
The Group has a single business segment, exploration activities. Accordingly, no primary business segment
disclosure has been provided as it would mirror the amounts disclosed in the balance sheet, income
statement and cash flow statement. Pangea DiamondFields plc      Annual Report 2007      37
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2007
3. Segment reporting continued
Geographical segments
The Group currently only has major exploration projects in Africa. The exploration activities are located in
Angola, the Democratic Republic of Congo ("DRC"), Central African Republic ("CAR") and South Africa.
In presenting information on the basis of geographical segments, segment assets are based on the
geographical location of the assets.
Total Angola DRC CAR South Africa
2007 US$ US$ US$ US$ US$
Total assets 14 757 608 5 243 199 3 991 774 3 969 724 1 552 910 
Cash utilised by operating activities (11 297 201) (241 562) (3 353 563) (5 864 575) (1 837 502)
Cash utilised by investing activities (6 369 301) (134 667) (4 221 731) (1 600 172) (412 731)
Cash generated by financing 
activities –––––
Capital expenditure (6 351 163) (134 667) (4 203 593) (1 600 172) (412 731)
Revenue 4 816 980 4 702 736 – – 114 244 
Total Angola DRC CAR South Africa
2006 US$ US$ US$ US$ US$
Total assets 11 425 512 6 008 458 – 3 277 474 2 139 580 
Cash utilised by operating activities 5 714 507 519 169 990 390 2 419 818 1 785 130 
Cash utilised by investing activities 7 204 017 4 037 056 – 3 166 961 –
Cash generated by financing activities 1 844 362 1 844 362 – – –
Capital expenditure 5 218 707 2 051 746 – 3 166 961 –
Revenue 3 092 223 3 092 223 – – –
The following items have not been allocated to any of the geographical locations as they relate to the
corporate head office located in the Isle of Man:
2007 2006
US$ US$
Total assets 5 638 452 25 926 583 
Cash utilised by operating activities (3 887 272) 3 295 362 
Cash utilised by investing activities (591 883) 169 287 
Cash generated by financing activities (56 126) 37 998 271  38 Pangea DiamondFields plc      Annual Report 2007
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2007
GROUP GROUP
2007 2006
US$ US$
4. Mineral properties
Cost
Balance at the beginning of the year 3 170 390 3 222 749 
Impairment charge for the year – (1 609 444) 
Acquisition of business – Sub Sahara – Angola – 1 530 516 
Foreign currency translation differences – 26 569 
Carrying value at the end of the year 3 170 390 3 170 390
5. Plant and equipment
Carrying value
Plant and equipment 10 142 962 7 009 725 
Vehicles 828 365 381 049 
Furniture and office equipment 172 043 149 988 
11 143 370 7 540 762 
Cost
Balance at the beginning of the year 8 930 121 1 765 228 
Acquisition of businesses –   3 454 053 
Additions: 6 532 542 5 387 994 
Plant and equipment 5 802 422 4 955 716 
Vehicles 683 534 309 788 
Furniture and office equipment 46 586 122 490 
Disposals
Plant and equipment (181 379) –
Impairment charge for the year –   (1 679 164)
Foreign currency translation differences –   2 010 
Balance at the end of the year 15 281 284 8 930 121 
Accumulated depreciation
Balance at the beginning of the year 1 389 359 84 806 
Depreciation charge for the year 2 748 555 1 745 960 
Plant and equipment 2 487 806 1 492 759 
Vehicles 236 218 94 757 
Furniture and office equipment 24 531 158 444 
Impairment charge for the year –   (441 407)
Balance at the end of the year 4 137 914 1 389 359  Pangea DiamondFields plc      Annual Report 2007      39
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2007
GROUP GROUP
2007 2006
US$ US$
5. Plant and equipment continued
Movement
Carrying value at the beginning of the year 7 540 762 1 680 422 
Acquisition of businesses –   3 454 053 
Additions 6 351 163 5 387 994 
Impairment charge for the year –   (1 237 757)
Depreciation (2 748 555) (1 745 960)
Foreign currency translation differences –   2 010 
Carrying value at the end of the year 11 143 370 7 540 762 
6. Unlisted investment
Available-for-sale asset
Lesotho Diamond Corporation plc 1 409 059 –   
The investment comprises 495 000 000 shares stated at cost.
Directors’ valuation 1 409 059
7. Other receivables
Trade receivables 315 261 89 103 
Other receivables 486 619 458 142 
801 880 547 245 
8. Outside shareholders’ loans
Loan to Empresa Nacional de Diamantes E.P ("Endiama") –   36 000 
Loan to Sociedade de Representacoes Lunda – Norte SARL ("Soreluno") –   18 000 
–   54 000 
Less: Impairment losses –   (54 000)
–   –   
9. Capital and reserves
9.1 Share capital and share premium
Share capital  
Authorised
2007: 200 000 000 shares of US$0,005 cents each 1 000 000 1 000 000 
(2006: 200 000 000 shares at US$0,005 cents each)
Issued 
2007:  117 349 718 shares at US$0,005 cents each 586 749 585 415 
(2006: 117 083 051 shares at US$0,005 cents each) 40 Pangea DiamondFields plc      Annual Report 2007
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2007
9. Capital and reserves continued
9.1 Share capital and share premium continued
Reconciliation of the share movement for the year ended 31 December
Price per  Number of  Total
share US$ shares consideration US$ 
Balance at 31 December 2005 40 000 000 10 337 708 
Share issued pre-AIM admission 2,00 5 300 000 10 600 000 
Total shares in issue 45 300 000 20 937 708 
Share split of 1:1 45 300 000 –   
Total shares in issue after share split 90 600 000 20 937 708 
Shares issued at AIM admission 1,13 26 483 051 29 853 054 
Share issue expenses –   (2 204 783)
Balance at 31 December 2006 117 083 051 48 585 979 
Shares issued 0,62 266 667 166 667 
Balance at 31 December 2007 117 349 718 48 752 646 
The equity structure in terms of the number of authorised and issued shares appearing in this note reflects
the equity structure of the legal parent, Pangea DiamondFields plc.
9.2 Translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the
financial statements of foreign operations.
GROUP GROUP
2007 2006
US$ US$
10. Loans and borrowings
Non-current liabilities
Non-interest bearing loans
Chartered Holdings Limited –   148 125 
("Chartered Holdings") (refer note 20)
Dayspring Holdings (Pty) Limited –   74 668 
("Dayspring") (refer note 20)
Luembe Mining (Pty) Limited (refer note 20) 3 786 601 3 786 601 
3 786 601 4 009 394
The loans are unsecured, interest-free and with no fixed terms of 
repayment. The Group cannot avoid the obligation to repay these 
loans, accordingly they are classified as liabilities.
Current liabilities
Short-term loans
The short-term loans are non-interest bearing and are payable 
on demand 201 316 727 041  Pangea DiamondFields plc      Annual Report 2007      41
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2007
GROUP GROUP
2007 2006
US$ US$
11. Trade and other payables
Trade payables 150 527 204 273
Accrued expenses 142 987 –   
293 513 204 273
12. Impairment losses attributable to Project Lumuanza
Mineral properties –   1 609 444 
Plant and equipment –   1 237 757 
Other loans –   78 986 
–   2 926 187 
13. Equity-settled share-based payment transactions
Equity-settled share-based payment transactions recognised 
in the income statement 2 576 306 1 286 011 
Executive Share Option Plan ("ESOP")
The Company adopted an ESOP with effect from March 2006 that was formally approved by the board of
directors on 7 July 2006. The Company offers any suitable person who is either a bona fide employee
(including directors) of any member of the Group, or has provided or is providing services to the Group,
the right to participate in the ESOP .
The vesting period shall, unless the remuneration committee decides otherwise, be one year in respect of
one-third of the Shares under option, two years in respect of the next one-third and three years in respect
of the remainder.
The number and exercise prices of the share options is as follows:
Details of outstanding share options at 31 December 2007:
Granted at
Exercise Outstanding GBP0.600 or Outstanding
Recipients price (US$) 31-12-2006 GBP0.535 Exercised Forfeited 31-12-2007 
Executive
Management 0.625 7 400 000 750 000 266 667 583 333 7 300 000 
Consultants 0.625 800 000 1 650 000 – 1 000 000 1 450 000 
Staff 0.625 600 000 350 000 – – 1 450 000
8 800 000 3 250 000 266 667 1 583 333 10 200 000 
Expiry date 7 July 2016 21 May 2017
25 September
2017 42 Pangea DiamondFields plc      Annual Report 2007
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2007
13. Equity-settled share-based payment transactions continued
Details of outstanding share options at 31 December 2006:
Granted at
Expiry Exercise Outstanding 0,600 or Outstanding
Recipients date price (US$) 31-12-2006 0,535 Exercised Forfeited 31-12-2007 
Executive
management 7 July 2016 0,625 –   7 400 000 –   –   7 400 000 
Consultants 7 July 2016 0,625 –   800 000 –   –   800 000 
Staff 7 July 2016 0.625 –   600 000 –   –   600 000 
–   8 800 000 –   –   8 800 000 
The fair value of services received in return for share options granted is measured by reference to the fair
value of share options granted. The estimate of the fair value of the services received is measured based
on a binomial lattice model. The contractual life of the option (10 years) is used as an input into this model.
Expectations of early exercise are incorporated into the binomial lattice model.
Fair value of share options and assumptions
Executive Executive
management management
and staff Consultants and staff Consultants
2007 2007 2006 2006
GBP GBP US$ US$ US$ US$
Fair value at measurement date 0.600 0.535 0.625 0.600 0.560 0.560 
Share price 0.600 0.535 0.625 0.600 1.200 1.200 
Exercise price 0.600 0.535 0.625 0.600 0.625 0.625 
Expected volatility (expressed as 
weighted average volatility used in 
the modelling under binomial 
lattice model) 30% 30% 30% 30%
Option life (expressed as weighted 
average life used in modelling under
binomial lattice model) 8,5 years 8,5 years 9,6 years 9,6 years
Expected dividends –   – 
Risk-free interest rate (based on 
US national government bonds) 4,00% 4,00% 4,6% 4,6%
The expected volatility is based on the historic volatility (calculated based on the weighted average
remaining life of the options), adjusted for any expected changes to future volatility due to publicly
available information. Pangea DiamondFields plc      Annual Report 2007      43
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2007
GROUP GROUP
2007 2006
US$ US$
14. Operating losses
Operating losses are stated after accounting for the following:
Depreciation – plant and equipment 2 748 555 1 745 960 
Foreign exchange losses/(gains) 56 278 (86 440)
Audit fees 143 883 25 414 
Impairment of loans 28 683 –   
15. Interest income and expenses
Interest income
Interest received on bank deposits 799 038 395 525 
Interest expense
Interest expense on financial liabilities 4 091 8 049 
16. Taxation
Current tax
No provision for income taxation has been made as all of the Group's 
operations are currently in a tax loss position.
Deferred tax
No deferred tax assets have been raised on computed tax losses 
because of uncertainty regarding their utilisation.
–  Company –   –
–  Subsidiaries 10 052 676 8 500 000 
10 052 676 8 500 000 
17. Personnel expense
Directors’ fees 790 619 –
Salaries and wages transactions 4 226 716 2 154 828 
Equity-settled share-based payment transactions (refer to note 13) 2 576 306 1 286 011
18. Loss per share US cents US cents
The loss per share for the Group has been calculated using the 
weighted average number of shares in issue during the period. 
The weighted average number of shares in the period was 
117 199 946 (2006: 91 403 915) and the loss after tax for the Group 
was US$18 691 186 (2006: US$14 283 476) (15,95) (15,63)
Diluted loss per share
Due to the losses incurred during the year, a diluted loss per share has not been calculated as this would
serve to reduce the basic loss per share. 44 Pangea DiamondFields plc      Annual Report 2007
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2007
GROUP GROUP
2007 2006
US$ US$
19. Notes to the cash flow statement
19.1 Cash utilised by operations
Loss before taxation (19 019 176) (14 854 837)
Less interest received (799 038) (395 525)
Adjustments for non-cash flow items:
Depreciation of plant and equipment 2 748 555 1 745 960 
Equity-settled share-based payment transactions 2 576 306 1 286 011 
Impairment losses attributable to Project Lumuanza –   2 926 187 
Adjusted for changes in working capital:
Increase in other receivables (254 635) (2 058)
Increase in short-term loans (525 725) 485 750 
Increase/(decrease) in trade and other payables 89 240 (201 357)
(15 184 473) (9 009 869)
19.2 Changes in the Group
Acquisition of subsidiary – Sub Sahara –   1 985 310 
With effect from 31 December 2005, the Group acquired an 
additional 24% of Sub Sahara, bringing its total interest in the
Company to 50%.
Mineral properties –   1 530 516 
Plant and equipment –   3 454 053 
Other receivables –   21 000 
Trade and other payables –   (65 273)
Long-term borrowings –   (1 804 986)
Cash on hand –   14 690 
Net asset value –   3 150 000 
Less: Investment acquired in prior year – 26% –   (1 150 000)
Acquisition of additional 24% of Sub Sahara –   2 000 000 
Purchase consideration paid –   2 000 000 
Less: Cash acquired –   (14 690)
–   1 985 310  Pangea DiamondFields plc      Annual Report 2007      45
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2007
GROUP GROUP
2007 2006
US$ US$
19. Notes to the cash flow statement continued
19.3 Taxation paid
Amounts unpaid at beginning of year –   –   
Tax charge per income statement –   –   
Amounts unpaid at end of year –   –   
Taxation paid –   –   
19.4 Cash and cash equivalents
Bank balances 3 722 312 26 093 698 
Petty cash 149 048 –   
Cash and cash equivalents 3 871 360 26 093 698
20. Related party transactions
Identification of related parties
The Group has related party relationships with:
– its subsidiaries that are listed in the Directors' Report on page 22
– certain of its shareholders
– associates of certain shareholders, and
– Pangea Exploration (Pty) Limited ("Panex").
The directors of the Company are listed on page 15.
Chartered Holdings Limited ("Chartered Holdings") and Dayspring Holdings (Pty) Limited ("Dayspring")
The Group has transactions with Chartered Holdings and Dayspring. Dayspring is a company associated
with Chartered Holdings which, in turn, is a shareholder of the Company.
Pangea Exploration (Pty) Limited ("Panex")
Panex performs technical and administrative services and provides infrastructural and purchasing facilities
on behalf of the Group in terms of a services agreement entered into between the Company and Panex for
which it receives a management fee. Mr RG Still has an indirect interest, and Brait South Africa Limited, an
associate of Brait International Limited, a shareholder, has a direct interest in Panex.
Luembe Mining ("Luembe")
The Group has a related party relationship with Luembe. Luembe is a shareholder of Sub Sahara.
Marsanto-Pesca e Sua Industrializacao I Exportacao Lda ("Marsanto")
The Group has a related party relationship with Marsanto, the holder of the mining licence over Project
Cassanguidi area. Sub Sahara provides capital and technical expertise to Marsanto in return for an agreed
percentage of the net profits so derived. 46 Pangea DiamondFields plc      Annual Report 2007
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2007
GROUP GROUP
2007 2006
US$ US$
20. Related party transactions continued
Directors' remuneration
Executive directors 686 036 439 090 
– for services as a director 60 120 25 050 
– for executive services 625 916 414 040 
Non-executive directors
– for services as a director 104 583 88 750 
790 619 527 840
Transactions with related parties
Reimbursement of direct project costs on behalf of the Group with 
no mark-up 8 953 315 3 209 074 
– Panex 8 953 315 3 089 703 
– Luembe –  59 371 
– Marsanto –   60 000 
Capital expenditure
– Luembe –   990 807
Loans receivable
– Luembe –   294 838 
Loans payable 3 987 917 4 571 010 
– Chartered Holdings –  148 125 
– Dayspring –  74 668 
– Panex 201 316 442 246 
– Luembe 3 786 601 3 845 971 
– Marsanto –   60 000 
During the year, the Group’s option to obtain a further 26% interest 
(2006: 26%) in Pangea Diamonds for a consideration of US$2.1 million 
(2006: US$1.2 million) was extended at a revised price of S2.125 million.
Material transactions 
Management fees paid to Panex 409 000 420 000  Pangea DiamondFields plc      Annual Report 2007      47
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2007
21. Financial instruments
The Group's financial instruments, other than investments, comprise cash, loans and items directly arising
from its operations such as trade creditors. The Group has overseas subsidiaries in South Africa whose
expenses are denominated in South African Rand. The Group has no specific policy to manage foreign
exchange risk from a Group perspective.
As at 31 December 2007, the Group had a cash balance of US$3 871 360 (2006: US$26 093 698), which was
being held in deposit accounts at the Royal Bank of Scotland and Absa Bank Limited (South Africa). There
is no material difference between the book value and the fair value of the Group's cash.
The Group has no interest rate risk as all cash balances earn interest at variable rates.
22. Financial risk management
Credit risk
The Group establishes an allowance for impairment that represents its estimates of incurred losses in respect
of trade and other receivables and investments. The main components of this allowance are a specific loss
component that relates to individually significant exposures  and a collective loss component established for
groups of similar assets in respect of losses that have been incurred but not yet identified. The collective loss
allowance is determined based on historical data of payment statistics for similar financial assets.
The carrying amount of financial assets represents the maximum exposure to credit risk at reporting date.
Carrying amounts
2007 2006
US$ US$
Other receivables 801 880 547 245
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
The Group's approach to managing liquidity is to ensure as far as possible that it will always have sufficient
liquidity to meet its liabilities when due  under both normal and stressed conditions  without incurring
unacceptable losses or risking damage to the Group's reputation.
The following are the contractual maturities of financial liabilities.
Carrying 6 months 5 years 
amount or less 6-12 months 1-2 years 2-5 years and more
US$ US$ US$ US$ US$ US$
Trade and other payables 293 513 293 513––––
Loans and borrowings 3 987 917 – 201 316 – – 3 786 601
4 281 430 293 513 201 316 – – 3 786 601
Market risk
Market risk is the risk that changes in market prices such as foreign exchange rates  interest rates and equity
prices will affect the Group's income or the value of its holdings of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters
while optimising the return. 48 Pangea DiamondFields plc      Annual Report 2007
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
for the year ended 31 December 2007
22. Financial risk management continued
Interest rate risk
The Group adopts a policy of ensuring that a substantial portion of its exposure to changes in interest rates
on borrowings is on a fixed rate basis.
Other market risks
Material investments within the portfolio are managed on an individual basis and all buy and sell decisions
are approved by the board of directors.
Fair values
Fair value versus carrying amount
The fair value of financial assets and liabilities  together with the carrying amounts shown in the balance
sheet are as follows:
31 December 2007 31 December 2006
Carrying amount Fair value Carrying amount Fair value
US$ US$ US$ US$
Cash and cash equivalents 3 871 360 3 871 360 26 093 698 26 093 698
Other receivables 801 880 801 880 547 245 547 245
4 673 240 4 673 240 26 640 943 26 640 943
Loans and borrowings 3 987 917 3 987 917 4 736 435 4 736 435
Accounts payable 293 513 293 513 204 273 204 273
4 281 430 4 281 430 4 940 708 4 940 708
23. Post-balance sheet event
The following material event has occurred subsequent to year end:
•  On 12 February 2008 the Company issued 16 500 000 ordinary shares at a price of 0.46p, raising gross
proceeds of US$15 million. After share issue and related expenses, the Company received US$13 904 829. Pangea DiamondFields plc      Annual Report 2007      49
NOTICE OF ANNUAL GENERAL MEETING
Registered office:
Falcon Cliff
Palace Road
Douglas
Isle of Man IM2 4LB
Notice is hereby given that the annual general meeting of Pangea Diamondfields Plc (“the Company”) will be
held at Falcon Cliff, Palace Road, Douglas, Isle of Man on 29 April 2008 at 12.00 noon.
Special Business
To consider and, if thought fit, pass the following resolution which will be proposed as a special resolution:
That the articles contained in the document submitted to this meeting and initialled by the chairman be and are
approved and adopted as the new Articles of Association of the Company in substitution for and to the
exclusion of the existing Articles of Association of the Company.
A summary of the material changes proposed to be made to the Articles of Association of the Company is
attached to this notice marked “Annexure A”.
Ordinary Business
1. To receive and adopt the Reports of the Directors and Auditor and the Consolidated Financial Statements
for the year ended 31 December 2007.
2. To elect directors of the Company:
The following directors retire in accordance with the Company’s Articles of Association and being eligible,
offer themselves for re-election:
2.1 Mr Patrick Randal Cooke;  and
2.2 Mr Brett Peter Thompson.
3. To re-appoint KPMG as Auditor of the Company to hold office until the conclusion of the next general
meeting at which accounts are laid before the Company and to authorise the directors to fix their
remuneration.
By order of the Board
MC Weipers
Secretary
8 April 2008
Registered Address
Falcon Cliff
Palace Road
Douglas
Isle of Man IM2 4LB 50 Pangea DiamondFields plc      Annual Report 2007
NOTICE OF ANNUAL GENERAL MEETING continued
NOTES
1. A member of the Company entitled to attend and vote is entitled to appoint one or more proxies to attend
and, on a poll, vote instead of him or her.  A proxy need not be a member of the Company.  A form of
proxy is enclosed with this notice.  Instructions for use are shown on the form.  A form of proxy must be
received by the Company’s Registrars, Maitland Services Limited, no later than 12.00 noon on 28 April 2008.
Completion and return of a form of proxy does not preclude a member from attending and voting in
person.
2. Pursuant to regulation 41 of the Uncertificated Securities Regulations 2001, the Company specifies that in
order to have the right to attend and vote at the meeting (and also for the purpose of calculating how many
votes a person entitled to attend and vote may cast), a person must be entered on the register of members
of the Company by no later than 12.00pm on 25 April 2008, being not more than two working days before
the time fixed for the meeting. Changes to entries on the register after this time shall be disregarded in
determining the rights of any person to attend or vote at the meeting.
3. The Register of Directors’ Interests in the share capital and debentures of the Company, together with
copies of service agreements under which directors of the Company are employed, are available for
inspection at the Company’s Registered Office during normal business hours from the date of this notice
until the date of the Annual General Meeting and will also be available for inspection at the place of the
Annual General Meeting for at least 15 minutes prior to and during the meeting. Pangea DiamondFields plc      Annual Report 2007      51
ANNEXURE A
Pangea Diamondfields Plc
Summary of Material Changes to the Articles
The following material changes are proposed to the Articles of Association of the Company. The changes
described in paragraphs 1, 5 and 6 are being made in order to make the Articles of Association comply with the
requirements of the Toronto Stock Exchange (“TSX”). The Company is considering a TSX listing and is therefore
proposing to make these changes now at the same time as the other changes described in paragraphs 2, 3 and
4, which had been planned in any case. This would avoid the Company having to call another general meeting in
the event that the Board does decide to pursue a TSX listing. The proposed changes described in paragraph 2
have some impact in relation to a TSX listing as described therein if such a listing occurs:
1. Article 4: Unissued Shares
1.1 Article 4 of the existing Articles deals with unissued shares.Two amendments to this Article are
proposed by way of the introduction of two proposed new Articles. Proposed new Article 4.3 provides
that where shares are to be issued wholly or partly paid up otherwise than in cash, the Board of
Directors of the Company is required to satisfy themselves, acting in good faith, that the non cash
consideration represents fair value for the shares being issued in return. This change reflects TSX
requirements while at the same time effectively replacing the existing Article 7 which is unworkable in
practice and is proposed to be deleted (see paragraph 3 below).
1.2 Proposed new Article 4.4 provides that the Board shall not issue partly paid up and/or assessable
shares except where such issuance is generally permitted (or approved in advance) by all stock
exchanges on which the Company’s shares are listed.
2. Article 6: Offers to Shareholders to be on a pre-emptive basis 
2.1 Article 6 contains restrictions on the issue of equity securities (as defined in the Articles) unless the
Board has made an offer to each person who holds equity securities of the same class to allot such
number of the new equity securities on the same or more favourable terms in such proportion as
equals the proportion the existing holding of equity securities of the same class represents of all the
issued shares of that class (the “Pre-emption Right”).
2.2 Under the existing Article 6.2, the Pre-emption Right does not apply to (i) equity securities wholly or
partly paid up otherwise than in cash, (ii) securities allotted under an employee share scheme, (iii)
securities allotted pursuant to a placing undertaken at or around the time of first admission of the
Company’s shares to AIM and (iv) the first allotments of equity securities after the date of adoption of the
Articles on 7 July 2006 (other than under (i) to (iii) above) up to US$50,000 nominal value (the “cumulative
headroom amount”). The US$50,000 cumulative headroom amount was increased to US$100,000 at last
year’s AGM, but since then most of the cumulative headroom amount as so increased has been utilised,
particularly in the private placement of 16,500,000 Ordinary Shares undertaken in February 2008. 
2.3 In order to simplify and update the Articles and allow shareholders to know what amount of nominal
equity share capital can be issued on a non-pre-emptive basis going forward, the proposed new Article
6.2 (which replaces the old Article 6.2 in its entirety) provides that the Pre-emption Right does not
apply to (i) equity securities wholly or partly paid up otherwise than in cash, (ii) securities allotted under
an employee share scheme,  (iii) the allotment of equity securities pursuant to a placing undertaken at
or around the time of first admission of the Company’s shares to a non-United Kingdom stock
exchange and (iv) the first allotments of equity securities after the date of adoption of the new Articles
at this year’s AGM (other than under (i) to (iii) above) up to US$150,000 nominal value. Shareholders
should note that the US$150,000 figure does not take account of any non-pre-emptive issues made
prior to the date of adoption of the new Articles at this year’s AGM, in other words the cumulative
headroom amount has been both refreshed and increased. The reference in (iii) above would allow a
non-pre-emptive issue to take place if the Company decided to list on another stock exchange in 52 Pangea DiamondFields plc      Annual Report 2007
ANNEXURE A continued
addition to AIM.  As mentioned above, the Company is considering whether or not to pursue a listing
on the TSX and if it does pursue such listing, the new Article 6.2 would permit a non-pre-emptive issue
in connection with that listing.
3. Article 7: Non-cash consideration to be valued before allotment
3.1 Article 7 of the existing Articles contains detailed provisions in relation to an allotment of shares for a
non-cash consideration in terms of which the consideration for the allotment was required to be
independently valued by an auditor of the Company, prior to the allotment being made. These
provisions broadly replicate the provisions of section 103 and 108 of the UK Companies Act 1985,
which did not apply to Isle of Man Companies. Sections 103 and 108 have been replaced by equivalent
provisions in the UK Companies Act 2006, which also do not apply to the Isle of Man companies.
3.2 The provisions of the existing Article 7 are extremely difficult to operate in practice for a mining
exploration company and put the Company at a commercial disadvantage in bidding for assets. They
are not required by Isle of Man law or by the AIM Rules. The Board has been advised that certain other
Isle of Man incorporated mining companies listed on AIM (for example Nikanor plc) do not have
equivalent provisions in their articles. For this reason under the proposed new Articles, the existing
Article 7 has been deleted in its entirety.
4. Article 45: Disclosure of relevant notifiable interest and suspension of rights where non-disclosure of
interests in shares 
Under Article 46, each member is required to notify the Company of any “relevant notifiable interest” which it
has in shares (and of any “relevant notifiable interest” which any other party has in shares registered in the
name of that member and of which that member is aware) and of any “relevant changes” to those interests, in
each case in accordance with the provisions of sections 198 to 202 of the United Kingdom Companies Act
1985. Article 46 was incorporated in order to enable the Company to comply with its obligation to provide the
required notifications in respect of significant shareholdings pursuant to Rule 17 of the AIM Rules. Sections 198
to 202 of the United Kingdom Companies Act 1985 were repealed by the United Kingdom Companies Act
2006 and in part replaced by other statutory provisions. In order to avoid making unnecessary changes and as
the Company is still required to comply with its obligations in terms of the AIM Rules, it makes sense to retain
Article 46 in broadly its existing form despite the fact that the relevant sections of the 1985 Companies Act
have been repealed. For this reason, the proposed new Articles include a change to Article 46.1 to include the
wording “as if those sections of the United Kingdom Companies Act 1985 were still in force”.
5. Article 53:  Quorum at General Meetings
Under the existing Article 53, the quorum for general meetings is currently three (3) members, and at any
adjourned general meeting at which a quorum is not present within 15 minutes from the time appointed the
quorum is two (2) members. The new Article 53 imposes an additional requirement that the 3 (or 2)
members shall hold or represent in aggregate at least 25% of the voting rights of all members entitled to
attend and vote at that meeting.
6. Article 123: Capitalisation of reserves and employees’ share schemes. Re-pricing of share options
Article 123 of the existing Articles deals with capitalisation of reserves and employees’ share schemes.
One amendment to this Article is proposed which is the introduction of proposed new Article 123.6 which
provides that where share options have been granted to subscribe for shares, the option price applicable to
such options shall not be adjusted downwards except in the event of any alteration of the ordinary share
capital of the Company by way of capitalisation or rights issue, or sub-division, consolidation or reduction or
any other variation in the share capital of the Company, or with the prior consent of an ordinary resolution of
the shareholders of the Company. The circumstances in terms of which an adjustment can be made to the
exercise price of an option have been taken from Rule 14.1 of the Rules of the Company’s Employee Share
Option Plan (“ESOP”). This new Article 123.6 would comply with TSX requirements, though in substance it
does not change anything as the Company would not have re-priced existing options downwards except as
specifically permitted by the Rules of the ESOP in any case except with shareholder consent. Pangea DiamondFields plc      Annual Report 2007      53
PROXY FORM
Please insert the member's(s’) full name(s) and address(es) in BLOCK LETTERS
I/We of 
being a member/members of Pangea DiamondFields plc hereby appoint the Chairman of the Meeting, or failing
him 
as my/our proxy to vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held
at Falcon Cliff, Palace Road, Douglas, Isle of Man on 29 April 2008 and at any adjournment thereof.
If you wish to appoint your own proxy delete the words “the Chairman of the Meeting” and insert in BLOCK
LETTERS the name of your proxy in the space provided.
Please indicate with an X in the spaces below how you wish your votes to be cast. If you do not specify how you
wish your votes to be cast, then you will be deemed to have authorised your proxy to vote or abstain from voting
as he/she thinks fit.
FOR AGAINST
SPECIAL BUSINESS
The Articles contained in the document submitted to the 
meeting and initialled by the chairman be and are approved 
and adopted as the new Articles of Association of the Company 
in substitution for and to the exclusion of the existing Articles 
of Association of the Company
ORDINARY BUSINESS
1. To receive and adopt the Reports of Directors and Auditor 
and the Consolidated Financial Statements for the year 
ended 31 December 2007
2a To re-elect Mr Patrick Randal Cooke as a director of the 
Company
2b To re-elect Mr Brett Peter Thompson as a director of the 
Company
3. To re-appoint KPMG as Auditor and to authorise the directors 
to fix their remuneration
Date                                                  2008 Signature NOTES TO PROXY
A proxy need not be a member of the Company and more than one proxy may be appointed to attend the
meeting.
The appointment of a proxy will not preclude the member from attending and voting at the meeting in person.
This form should be signed by the member or his/her attorney duly authorised in writing. In the case of joint
shareholders, the signature of the first named joint shareholder on the register will be accepted to the exclusion
of all other joint shareholders.
If the member is a corporation the form should be executed, either under seal or under the hand of an officer or
attorney duly authorised.
To be valid, the form of proxy and any authority under which it is signed (if the form is executed on behalf of the
member) must be lodged with the Registrars of the Company, Maitland Services Limited, no less than 48 hours
before the time fixed for the meeting. Designed by
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