Amendment of Warrant Indenture

SouthernEra Diamonds Announces Amendment of Warrant Indenture Resulting
        from Southern Platinum Corp Share Reclassification

 

    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
    UNITED STATES./

    Shares Issued and Outstanding: 102,066,601

    TSX: SDM

    AIM: SRE

 

    TORONTO and LONDON, July 29 /CNW/ - SouthernEra Diamonds Inc.

("Diamonds") (TSX: SDM; AIM: SRE) has been advised by Southern Platinum Corp.

("Platinum") and Lonmin Investments Canada Inc. ("Lonmin") that Lonmin has

completed a compulsory acquisition transaction for all of the shares of

Platinum. Further, Lonmin has advised Diamonds that effective today it has

completed a reclassification (the "Reclassification") of the common shares of

Platinum to change such shares into redeemable preferred shares with a

redemption price of C$2.66.

    Subsequent to the plan of arrangement of SouthernEra Resources Limited

("SouthernEra") effective September 1, 2004, warrants ("Warrants") issued

under the warrant indenture between SouthernEra and Computershare Trust

Company of Canada ("Computershare") dated November 17, 2003, entitled holders

("Warrantholders") to obtain one common share of Platinum and one common share

of Diamonds upon valid exercise of a Warrant including payment of the C$10.00

exercise price. The exercise price was to have been divided as to C$8.00 to

Platinum and C$2.00 to Diamonds.

    Recognizing that subsequent to the Reclassification Platinum would be

entitled to receive C$8.00 in exchange for a preferred share redeemable for

C$2.66 Platinum has agreed to terminate its rights to receive such funds and

its obligation to issue a preferred share of Platinum upon exercise of a

Warrant.

    Consequently, Platinum, Diamonds and Computershare have entered into a

supplemental indenture as of the date hereof. From today forward, upon the

valid exercise of a Warrant, including the payment of an exercise price of

C$2.00, Warrantholders are entitled to receive one common share in the capital

of Diamonds. The provisions of the Warrant Indenture relating to Platinum have

been deleted and Warrantholders shall hereafter have no rights to acquire

shares of Platinum upon exercise of the Warrants.

    The Warrants will continue to trade on the Toronto Stock Exchange

(TSX:SDM.WT)

 

    SouthernEra Diamonds is Canada's largest fully integrated diamond company

with extensive diamond exploration in six countries including Canada,

Australia, Gabon, the DRC, Zimbabwe and South Africa. This represents the

fourth most active global diamond exploration program after the majors

DeBeers, BHPB and Rio Tinto. The Company also operates the Klipspringer

Diamond Mine in South Africa and maintains an 18 percent free-carried interest

in the Camafuca Diamond Project in Angola.

 

    For further information: SouthernEra Diamonds Inc., Mr. Chris Reynolds,

SVP and CFO, Telephone: [phone], Fax: [phone], E-mail:

[e-mail], www.southernera.com

    (SDM. SRE)