Drilling Report

SouthernEra DRC alluvial project returns high diamond grades and values

 

                    1,809 diamonds weighing 222.26 carats

                  Average grade 0.67 carats per cubic meter

               Top stone 1.37 carats valued at $730 per carat

    Shares issued and outstanding: 128,343,101                               

    TSX: SDM

    AIM: SRE

 

    TORONTO and LONDON, March 13 /CNW/ - SouthernEra Diamonds Inc. (TSX: SDM,

AIM: SRE) ("the Company") today reported on very encouraging diamond results

from its extensive Tshikapa alluvial exploration program in the Democratic

Republic of the Congo (DRC).

    A total of 1,809 diamonds weighing 222.26 carats have been recovered from

samples processed through SouthernEra's onsite diamond plant. The average

recovered diamond grade was 0.67 carats per cubic meter with the highest

diamond grade being 13 carats per cubic meter. An independent De Beers

valuation of 213.69 carats has returned an average value of US$41.60 per

carat. The largest diamond weighing 1.37 carats was valued at $730 per carat.

    SouthernEra controls a 34 kilometer stretch of Kasai River and

2 kilometers of the Tshikapa Riverwithin this rich diamond producing area of

southwestern DRC. SouthernEra owns a 100% interest in four permits covering

80.35km2 and a 70 percent interest in a further four permits covering

77.73km2.

    In order to accelerate this diamond exploration program, SouthernEra is

preparing to:

 

    -  Conduct a geophysical survey of the highly prospective confluence area

       of the Kasai and Tshikapa rivers to target the bedrock-based trap-

       sites in the active river for definition of an indicated resource.

    -  Commence drilling next month of low-lying terraces adjacent to the

       Kasai River using a mobile Conrad PP150 Banka 8 inch drill rig.

       Depending on these results, a follow-up bulk sampling campaign will

       enable these extensive potentially bulk-mineable deposits to be moved

       to an inferred resource category.

    -  Commission a 10 tonne-per-hour diamond recovery plant that is

       currently en route from South Africa to the DRC. This larger plant

       will improve diamond recoveries.

 

    The diamond potential of this alluvial project is highlighted by a

Ministry of Mines report that during 2005 approximately 1.5 million carats

were mined in the Tshikapa area. The average value of these diamonds was

US$85.86 per carat. SouthernEra's dollar per carat value is expected to

increase with improved recovery from the larger diamond plant and a larger and

more representative sample.

    The program is also focused on delineating and proving mineralization in

the current floodplain deposits (known as "flats") that host more extensive

potentially bulk mineable gravel deposits and a suite of distinct

diamondiferous terraces within the Kasai River valley above the present river

course. Remote sensing data is being utilized to map these areas. This will be

followed by shallow seismic geophysical surveys to map the bedrock topography

hosting potential diamond deposits.

    Based on preliminary exploration results and historical data, five high

interest and readily accessible targets area have been identified. These areas

have the potential to host approximately 300,000 carats at grades of

approximately 0.5 carats per cubic meter. The five target areas represent less

than 5 percent of SouthernEra's total alluvial project area. The 2006

exploration program is geared primarily towards bringing these five high

priority targets into more confident resource categories with a view to

commencing commercial production in 2007.

 

    Mr. Uwe Naeher, Professional Geologist, is the qualified person, under

NI 43-101, responsible for the technical information in this release.

 

    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., Alasdair MacPhee,

President and CEO or Howard 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

    (SRE SDM.)