Scheme of Arrangement

SouthernEra Diamonds Inc. and Southern Platinum Corp. Complete Plan of

    Arrangement

 

    SouthernEra Diamonds Inc.

    Shares Issued and Outstanding: 85,335,411

    TSX: SDM

    AIM: SRE

    Southern Platinum Corp.

    Shares Issued and Outstanding: 85,335,411

    TSX: SPC

 

    TORONTO, Sept. 1 /CNW/ - SouthernEra Resources Limited ('SouthernEra')

(formerly TSX:SUF; AIM:SRE) effective today completed a plan of arrangement

(the 'Plan') pursuant to which SouthernEra continues its diamond business

through the current public company which has been renamed 'SouthernEra

Diamonds Inc.' ('Diamonds') while its platinum and gold businesses are now

carried on by a new public company Southern Platinum Corp. ('Platinum') The

shares of Diamonds will continue to trade on the Toronto Stock Exchange (the

'TSX') and the Alternative Investment Market of the London Stock Exchange

('AIM'). The shares of Platinum will trade on the TSX.

    In order to effect the Plan, SouthernEra entered into an agreement with

Platinum and Southern Platinum Canada Corp. which provided for a

reorganization of the assets of SouthernEra in two discrete business units for

each of the (i) diamond exploration and development business and (ii) the

platinum group metals mining, exploration and development business. Each

shareholder at the close of business today will automatically become the

holder of one common share of SouthernEra Diamonds Inc. and will receive one

common share of Southern Platinum Corp. The existing warrants of SouthernEra

will, as of today's date, entitle a holder on exercise of the warrants to

obtain one share of Diamonds and one share of Platinum per whole warrant

exercised.

    Pursuant to the Plan, Diamonds will continue as a reporting issuer with a

year-end of December 31 and Platinum will become a reporting issuer with a

year-end of December 31. Each of Diamonds and Platinum will file interim

financial statements for the period ended September 30 pursuant to the

governing legislation.

    As announced on July 29, 2004, the Plan was approved, with the support of

99.7% of the shareholders, at their meeting on July 27, 2004 and was approved

by the final Order of the Superior Court of Justice (Ontario) on July 29,

2004. Details of the Plan were included in the proxy circular sent to

SouthernEra's shareholders in advance of their July 27, 2004 meeting.

 

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    Platinum is an independent producer of platinum group metals (PGM's). The

company also has an extensive PGM exploration program. The common shares of

Platinum are listed on the Toronto Stock Exchange.

    Diamonds is an independent producer of diamonds and has an extensive

diamond exploration program. The common shares of Diamonds are listed on the

Toronto Stock Exchange and the London Stock Exchange AIM.

 

   

    For further information: SouthernEra Diamonds Inc., Patrick C. Evans,

President and CEO; or Chris Reynolds, Vice President Finance, Controller and

Secretary, Telephone: [phone], Fax: [phone], e-mail:

inbox(at)southernera.com; Southern Platinum Corp., Patrick C. Evans, President

and CEO; or Chris Reynolds, Vice President Finance, Controller and Secretary,

Telephone: [phone], Fax: [phone], e-mail:

inbox(at)southernera.com

    (SRE)