Capital Reorganisation

SouthernEra Shareholders Provide Overwhelming Support for the

    Reorganization of the Company

 

    Shares Issued and Outstanding: 85,339,411

    TSX: SUF

    AIM: SRE

    -  99.7 per cent voted in favour on July 27

    -  Court approval obtained today, July 29

    -  TSX listing application to be heard August 13

    -  Effective date planned for August 31

 

    TORONTO, July 29 /CNW/ - SouthernEra Resources Limited ('the Company')

announced today that at the annual and special meeting of the Company held on

Tuesday July 27, shareholders voted overwhelmingly in favour of the proposed

reorganization of the Company into two separately listed companies. Of the

shares represented at the meeting, 99.7% were voted in favour of the

reorganization.

    As a result of this vote, and subject to certain preconditions,

SouthernEra Resources Limited is to be reorganized into two separately listed

public companies. The Company's platinum assets will be held by a newly listed

company called Southern Platinum Corp. and the continuing company, which will

hold the SouthernEra's diamond assets, will be renamed SouthernEra Diamonds

Inc.

 

    Prior to the reorganization becoming effective, the Board shall require:

 

    -  TSX approval for the listing of Southern Platinum Corp. The Company

       expects the listing application will be considered on August 13; and

    -  A tax ruling from the Canada Revenue Agency, which is anticipated by

       the end of August.

 

    If the approval and ruling are received, the effective date for the

reorganization is planned to be August 31, 2004, however that date is subject

to final approval by the Board of Directors. Shareholders will be provided

with updates on progress in the days and weeks ahead.

    SouthernEra Resources is an independent producer of platinum group metals

and diamonds. The company also has an extensive PGM, gold and diamond

exploration program. The common shares are listed on the Toronto Stock

Exchange and the London Stock Exchange's AIM market.

 

    NOTE: Certain statements contained herein are 'forward-looking' and are

based on the opinions and estimates of management, or on the opinions and

estimates provided to and accepted by management. These opinions and estimates

include those that relate to all the geological, development, mining and

commodity price and market parameters used by management. Forward-looking

statements are subject to a variety of risks and uncertainties and other

factors that could cause actual events or results to differ, possibly

significantly. Readers are therefore cautioned not to place undue reliance on

any forward-looking statement.

 

        For further information: SouthernEra Resources Limited: Mr. Patrick

Evans, President and CEO, or Mr. Christopher Reynolds, VP Finance, Controller

and Secretary, Telephone: [phone], Fax: [phone], E-mail:

inbox(at)southernera.com, www.southernera.com

    (SRE SUF.)