Drilling Report

Modeled valuations of DO-27 diamond parcel completed - WO Project, Northwest
Territories, Canada

    Shares issued and outstanding: 165,954,229
    TSX: SDM
    AIM: SRE

    TORONTO and LONDON, Nov. 6 /CNW/ - SouthernEra Diamonds Inc. (TSX: SDM;
AIM: SRE) announced today that it has been advised by Peregrine Diamonds Ltd.
("Peregrine"), operating partner of the WO that they have received the
valuation report by WWW International Diamond Consultants Ltd. ("WWW") on the
2005 and 2006 diamond parcels, comprising 508.9 carats from the Main Lobe and
Northeast Lobe pyroclastic kimberlite of DO-27, WO Diamond Project, NWT,
Canada.
    The average modeled valuation ranged from US$45 to US$73 per carat using
WWW's September, 2005 diamond price book.
    The average modeled valuation ranged from US$41 to US$62 per carat using
WWW's September, 2006 diamond price book, reflecting the significant drop in
certain rough diamond prices over the last year.

    Highlights from the WWW comprehensive report include:

    -  Normally with a sample of only 510 carats, the average spot price
       (primary producer sales price at the day of valuation) assigned to the
       sample would be in the order of plus 40 to minus 25 percent (90%
       confidence limits) of the true value of the resource. This highlights
       the inherent uncertainties of valuing a small parcel of diamonds.
       Modeled valuation calculations start with a spot price and therefore
       variations in spot prices will affect the ultimate modeled valuation.

    -  Given the small size of the DO-27 sample, diamond values have more
       upward potential than downward, and diamond values per size class in
       the larger sizes could be higher than those used in the model.

    -  Based on analysis of the 2005 and 2006 bulk samples, WWW believes it
       is highly unlikely that the average price will be lower than US$41 per
       carat based on current (September, 2006) diamond prices.

    -  WWW is forecasting rough diamond prices to increase by around 20
       percent over the next five years.

    -  At 90 percent confidence limits, 7,000 carats would give a modeled
       average price within 10 percent of the true value and within 15
       percent of the true value with 3,000 carats. WWW would recommend that
       at least 3,000 carats be extracted from DO-27 as with modeling the
       confidence limits will tighten to within 10 percent.
   
    As the incidence of larger, higher value stones will have the most impact
on average diamond values from DO-27, at least 3000 carats will be needed from
the pipe to give an acceptable degree of confidence that those types of stones
have been recovered in typical proportion. Determining the economic viability
of a diamond project is complicated. It involves extensive geostatistical
analysis due to the highly variable nature of diamond distribution in
kimberlite pipes and the fact that both diamond grade and average diamond
value play important roles in determining the viability of any given diamond
deposit. Since no two diamonds are exactly alike, a significant parcel of
diamonds (3000 to 7000 carats) is needed to gain the confidence levels on
diamond size distribution and average diamond value necessary to make any
realistic decisions regarding the future development of DO-27.
    In that regard, Peregrine will soon announce plans for the upcoming
winter 2007 bulk sampling program at DO-27 with specifics on various drilling
methods and equipment that will be employed to attempt to significantly
increase the total carats recovered.
    WWW International Diamond Consultants Ltd. have reviewed and approved the
contents of this release. This release has also been reviewed and approved by
Jennifer Pell, Ph.D., P.Geo., Peregrine's internal Qualified Person ("Q.P."),
and Howard Coopersmith, P. Geo., Peregrine's external Q.P. SouthernEra's
Western Exploration Manager, Mr. Uwe Naeher, Professional Geologist, qualified
person, under NI 43-101, has read the contents of this release.
    SouthernEra holds a 4.9% interest in the WO Diamond Project.

    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.)