Drilling Report

SouthernEra Awarded 41 Diamond Exploration Permits in the

    Democratic Republic of Congo (DRC)

 

    43,000 line-kilometer Airborne Magnetic/Radiometrics Survey

    Set to Commence

    Shares Issued and Outstanding: 74,707,883

    TSX: SUF

    AIM: SRE

 

    TORONTO, May 20 /CNW/ - SouthernEra Resources Limited ('SouthernEra')

(TSX: SUF, AIM: SRE) announced today that it has been awarded 41 exploration

permits in the Democratic Republic of the Congo (DRC) for diamonds. These

permits are focused around the historical diamond-mining centre of Mbuji-Mayi

in the Kasai-Oriental Province. In the mid-1980's this province was producing

up to 20 million carats of diamonds per year and has produced two of the  

'top-ten' largest gem quality diamonds in the world.

    In June 2003 the DRC Mining Registry (Geological Survey) was opened for

the first time under the new World Bank-funded Mining Code (Law 007/2002). The

new Mining Code, which conforms to world best practice, has resulted in

renewed interest in the DRC on the part of international exploration and

mining companies. The low level of exploration in previous decades has now

been reversed with most of the prospective ground within the Kasai Province

already under permit. The geological basement in the DRC is Archaean   

granite-gneiss of the Congo Craton, and extends into the rich producing

diamond fields of northeast Angola. The known kimberlites in the region are of

exceptional size and grade and the potential for new kimberlite discoveries in

this part of the DRC is therefore very high.

    Based on a comprehensive two-year study of historical diamond

information, and kimberlitic indicator minerals obtained from artisinal

miners' abandoned tailings, SouthernEra has over the past 8 months accumulated

an excellent portfolio of exploration permits covering in excess of 13,000

km(2). This ground is prospective for both primary diamond deposits

(kimberlites/lamproites) and alluvial deposits. The majority of permits lie

within what is considered a 'kimberlite emplacement corridor' extending into

the DRC from the world rich diamond producing Lunda Norte Province in

neighbouring Angola.

    The implementation of the new Mining Code under the leadership of the

Ministry of Mines and the Mining Registry (Geological Survey) has been carried

out in an efficient, transparent and investor-friendly manner. The new

permitting process has enabled SouthernEra to aggressively advance its diamond

exploration program in the DRC.

    In the next week SouthernEra will commence with a 43,000 line-kilometre

airborne magnetic/radiometrics geophysical survey over 21 of its permit areas,

under contract with Fugro Airborne Surveys (Pty) Ltd. The anticipated rapid

generation of kimberlite targets by means of this airborne survey should  

fast-track the diamond exploration program to the drill testing stage by the

end of 2004.

    In addition, SouthernEra is currently reviewing the alluvial diamond

potential within its permits and systematic reconnaissance kimberlitic

indicator mineral sampling will commence during the next quarter.

    The DRC is one of six countries in which SouthernEra is engaged in

diamond exploration. Others include Canada, Gabon, Australia, South Africa and

Botswana. The Company is currently drilling kimberlite targets in Canada and

South Africa. Drilling of kimberlite targets is also set to commence this

quarter in Gabon and Australia. The Company also maintains its 18 percent 

free-carried interest in the Camafuca Diamond Project in Angola. This

represents the fourth most active global diamond exploration program after the

majors DeBeers, BHPB and RTZ.

    SouthernEra Resources is also an independent producer of platinum group

metals (PGMs) and has an extensive PGM and gold exploration program. The

Company's common shares are listed on the Toronto Stock Exchange (SUF) and the

London Stock Exchange's AIM market (SRE).

 

        For further information: SouthernEra Resources Limited, Mr. Patrick

Evans, President and CEO, or Howard Bird, Vice President Exploration,

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

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

    (SUF.)