Offer Update

SouthernEra Diamonds Response to Mwana Offer

    TSX: SDM
    Shares issued and outstanding: 173,550,562

    TORONTO, Aug. 15 /CNW/ - SouthernEra Diamonds Inc. (TSX: SDM)
("SouthernEra" or the "Company") today announced its formal response to the
unsolicited offer by Mwana Africa PLC to acquire all of the outstanding common
shares of SouthernEra. The Company's response and related materials (the
"Directors' Circular") will be mailed to SouthernEra shareholders today and
filed on SEDAR (www.sedar.com). The Directors' Circular is also available from
the Company's website (www.southernera.com).
    The Board of Directors of SouthernEra (the "Board") has concluded that it
requires further time to consider the merits of Mwana's offer. The Board has
determined to make no recommendation to SouthernEra shareholders in respect of
the offer at this time. The Board intends to communicate with SouthernEra
shareholders on a timely basis prior to the expiry of the Mwana offer.
    The Mwana offer is open for acceptance until September 5, 2007 and is
subject to a number of conditions. Accordingly, there is no necessity for
SouthernEra shareholders to take any action with respect to the Mwana offer at
this time.
    RBC Capital Markets is acting as financial advisor to the Company.
Canadian legal counsel to the Company is Fraser Milner Casgrain LLP.

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

For further information: SouthernEra Diamonds Inc., Mr. Alasdair MacPhee, CEO
or Mr. Chris Reynolds, SVP, CFO and Secretary, Telephone: [phone], Fax:
[phone], E-mail: inbox(at)southernera.com, www.southernera.com; London:
4C-Burvale, Carina Corbett, Director, Telephone: [phone], Fax:
[phone], Email: Corbett(at)4c-burvale.co.uk
(SRE)