Drilling Report

SouthernEra Completes Drill Testing of the Sue and Sputnik Kimberlite

    Pipes at Yamba Lake Project

 

    Shares Issued and Outstanding: 51,611,800

    TSX: SUF

    AIM: SRE

 

    TORONTO, Aug. 30 /CNW/ - SouthernEra is pleased to announce the

completion of the drill programme at the Company's Yamba Lake Project in the

Northwest Territories of Canada.

    Following the significant microdiamond results announced from the first

drill hole at the Sue kimberlite pipe (see SouthernEra's news release dated

July 8, 2002) a further six holes were drilled during August. Three additional

holes were drilled at Sue in order to determine the diamond stone size

distribution from a larger sample and also to better understand the structure

of the Sue pipe. The Sputnik kimberlite pipe was also tested with one drill

hole. In addition, two airborne targets were drill tested returning negative

results.

    In its July 8 news release, SouthernEra reported: 'The Sue is one of

seven known kimberlite pipes at Yamba Lake. Its surface expression is

estimated to be 150 metres by 100 metres - similar in size to those at Ekati.

The first hole at Sue, drilled at a minus 45-degree angle, intersected 172

metres of kimberlite yielding a sample of 226.7 kilograms. This sample,

independently tested by Saskatchewan Research Council's Geoanalytical

Laboratory, returned 77 microdiamonds (using a 0.106 millimetre mesh bottom

screen) plus 18 macrodiamonds having one dimension greater than or equal to

0.50 millimetres. Within this sample, the best results were generated within a

71.35-kilogram portion returning 52 microdiamonds and 17 macrodiamonds. The

hole was stopped in kimberlite.'

    All three holes drilled at the Sue pipe during August intersected

kimberlite, as did the drill hole at the Sputnik pipe. Microdiamond results

from the Sue and Sputnik pipes will be announced in approximately 6 weeks.

    SouthernEra can earn a 60% interest at Yamba Lake by completing a

bankable feasibility study by the end of 2006. Under certain project financing

arrangements, the Company can increase its interest to 65%. SouthernEra's

partners at Yamba Lake are Tanqueray Resources Ltd., Mill City International

Inc. and Techsite Strategies Corp.

    SouthernEra Resources is a fully integrated international mining company,

which generates projects offering exceptional rates of return. The Company's

focus is on platinum group metals and diamonds. Its operations in South Africa

include the 70.4 percent owned Messina Platinum Mine and the 50 percent owned

Klipspringer Diamond Mine. The common shares of SouthernEra are traded on the

Toronto Stock Exchange (SUF) and the London Stock Exchange's AIM (SRE).

 

    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