Issue of Equity

SouthernEra Secures C$64 million in Bought Deal Equity Financing

 

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

    NEWSWIRE SERVICES/

    Shares Issued and Outstanding: 61,674,459

    TSX: SUF

    AIM: SRE

 

    TORONTO, Oct. 29 /CNW/ - The Board of Directors of SouthernEra Resources

announced today that it has entered into an agreement with a syndicate of

underwriters co-led by RBC Capital Markets and BMO Nesbitt Burns to issue and

sell 10 million units, each unit consisting of one common share and one half-

share purchase warrant, at an issue price of $6.40 per unit for gross proceeds

of $64 million. Each full warrant shall entitle the holder to acquire at any

time up to 5 years following closing of this offer, one common share from

SouthernEra at a price of $10.00 per share. The syndicate also has the option

to acquire an additional 2.5 million units on the same terms and conditions

prior to closing, which is expected to occur on or before November 17, 2003.

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

within the Group, further develop the greater Messina platinum group metal

mine, 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's AIM.

 

    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.)