Drilling Report

SouthernEra Diamonds JV Kimberlite Exploration Program Producing Positive
Results in the Democratic Republic of Congo

    Shares issued and outstanding: 165,754,229
    TSX: SDM
    AIM: SRE

   
    -   Macro Diamonds Recovered from Stream Samples
    -   Over 64 Airborne Kimberlite Pipe-Like Targets Generated to Date
   

    TORONTO and LONDON, Oct. 26 /CNW/ - SouthernEra Diamonds Inc. (TSX: SDM;
AIM: SRE) is pleased to report on the Company's positive progress and results
from the extensive kimberlite diamond programs in the Democratic Republic of
Congo ("DRC"). The kimberlite exploration program, joint ventured with BHP
Billiton that covers over 13,000 km(2) of mineral permits, is producing
high-interest diamond results and is progressing to the target drill testing
stage. The mineral permits are located within the diamond-mining Kasai
Provinces that have produced two of the 'top-ten' largest diamonds in the
world and is producing over 20 million carats of diamonds per year.
    To date 5 permit blocks have returned high interest visual kimberlitic
indicator minerals ("KIMs") with some probe confirmed as kimberlitic. In
addition, macro diamonds continue to be recovered from the stream samples.
SouthernEra is highly encouraged with the total of 23 diamonds in the 0.5mm to
1mm size range, and a total of 6 diamonds greater than 1mm and up to 4.5mm in
diameter being recovered from 16 different exploration stream samples. The
KIMs and diamonds are often recovered from samples that were collected from
small high level drainage basins. These results are indicative of possible
proximal diamondiferous kimberlite sources.
    Airborne magnetic and radiometric geophysical surveys (ranging from 100m
to 200m flight line spacing) are 60% complete These surveys which are designed
to recognize small to large scale kimberlite pipes, as well as aid in the
geological interpretation of areas never previously mapped have already
identified over 64 airborne kimberlite pipe-like targets ranging in size from
170m to 1050m in diameter. Some targets lie in positive KIM drainage basins
with evidence of extensive artisanal alluvial diamond workings.
    Priority airborne magnetic targets continue to be evaluated with soil
sampling follow-up, as well as ground geophysical surveys and already 8
targets have been prioritized for drill testing follow up. One drill is in the
field and it is anticipated that two drill rigs will be operating throughout
2007 in a large drilling campaign as more data is collected and processed.
    The majority of SouthernEra's permits lie within a 'kimberlite
emplacement corridor' that extends from the renowned diamond-producing Lunda
Norte Province in neighboring Angola, northeast into the DRC. The section of
this corridor in the DRC has yet to be fully explored with only 11 kimberlites
identified to date as opposed to over 700 in the Angolan section. This
corridor is regarded as the world's most prospective and largest new diamond
exploration opportunity. The known kimberlites in the region are of
exceptional size and grade, and the potential for new kimberlite discoveries
is rated high.
    SouthernEra's Western Exploration Manager, Mr. Uwe Naeher, Professional
Geologist, is the qualified person, under NI 43-101, responsible for the
technical information in this release. Mr. Naeher has read the contents of
this release. Stream and soil samples collected for the recovery of
kimberlitic indicator minerals and diamonds are processed at SouthernEra's
in-house diamond laboratory located in Kinshasa, DRC and in Polokwane, South
Africa, as well as BHP Billiton's laboratory in South Africa.

    SouthernEra Diamonds is one of Canada's fully integrated diamond
companies with extensive kimberlite diamond exploration and alluvial programs
in the DRC as well as other countries including Canada, Gabon, Zimbabwe and
South Africa. The Company also holds a 57% interest in the Klipspringer
Diamond Mine in South Africa and maintains an 18 percent free-carried interest
in the Camafuca Diamond Project in Angola.

    Some statements contained in this news release are forward-looking and,
    therefore, involve uncertainties or risks that could cause actual results
    to differ materially. Such forward-looking statements include comments
    regarding exploration work. Actual results could differ materially from
    those anticipated. The Company disclaims any obligation to update
    forward-looking statements.


For further information: SouthernEra Diamonds Inc., Howard M. Bird, Senior
Vice President, Exploration, or Sharon Allan, Investor Relations, Telephone:
[phone], Fax: [phone], E-mail: inbox(at)southernera.com,
www.southernera.com; London: 4C-Burvale, Carina Corbett, Director, Telephone:
++44 (0) 207-907-4761, Fax: ++44 (0) 207-907-4769, Email:
Corbett(at)4c-burvale.co.uk
(SDM. SRE)