Capital Reorganisation

SouthernEra Secures C$69.75 million in Equity Financing

 

    Shares Issued and Outstanding: 52,327,193

    TSX: SUF

    AIM: SRE

 

    TORONTO, Feb. 3 /CNW/ - The Board of Directors of SouthernEra Resources

Ltd. announced today that it has accepted a bought deal equity proposal to

sell 9 million common shares at C$7.75/share for gross proceeds of

$69.75million to a syndicate led by Griffith's McBurney & Partners. The

syndicate also has the option to acquire an additional 3 million shares on the

same terms and conditions at closing which is expected to occur on or before

February 20th, 2003.

    The proceeds of the financing will be used to support debt restructuring,

further develop the greater Messina platinum group metal mine, working capital

requirements and for general corporate purposes. Completion of the offering is

subject to all necessary regulatory and other approvals.

    The securities offered have not been registered under the U.S Securities

Act of 1933, as amended, and may not be offered or sold in the United States

absent registration or applicable exemption from the registration

requirements. This press release shall not constitute an offer to sell or the

solicitation of an offer to buy nor shall there be any sale of the securities

in any State in which such offer, solicitation or sale would be unlawful.

    SouthernEra Resources is an independent producer of platinum group metals

(PGM's) and diamonds. The company also has an extensive PGM and diamond

exploration program. The common shares are listed on the Toronto Stock

Exchange and the London Stock Exchange AIM.

 

    NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISTRIBUTION TO US

NEWSWIRE SERVICES

 

    For further information: SouthernEra Resources Limited: Patrick C.

Evans, President and CEO; or Dr. Sally Eyre, Vice President Corporate Affairs,

Telephone: [phone], Fax: [phone], e-mail:

inbox(at)southernera.com

    (SUF.)