Drilling Report

SouthernEra reports diamonds from DD17-11 kimberlite monument property,
Northwest Territories, Canada

    Shares issued and outstanding: 160,054,229
    TSX: SDM
    AIM: SRE

    - 182 diamonds recovered from 280.3 kg. of DD17-11 drill core

    TORONTO and LONDON, Sept. 7 /CNW/ - SouthernEra Diamonds Inc. (TSX: SDM;
AIM: SRE) is pleased to report on microdiamond results for kimberlite pipe
DD17-11 on the Monument Diamond Project at Lac de Gras, Northwest Territories,
Canada. The kimberlite sample represents total core from two holes drilled in
the spring 2006 program.
    Kennecott Canada Exploration Inc. (Kennecott) first discovered the
DD17-11 kimberlite pipe in 1994. Kennecott drilled a single -45 degrees
inclined drill hole in DD17-11 that intersected kimberlite between 29.9m and
86.1m, ending the hole in metasediments at 92.0m. Kimberlite DD17-11 was
tested in spring 2006 by the joint venture partners with two inclined drill
holes collared from the same setup. Drill hole MON06-04, inclined at -45
degrees intersected kimberlite between 24.0m and 57.0m, ending at 67.6 meters
depth. Drill hole MON06-05, inclined at -70 degrees, intersected kimberlite
between 41.6m to 93.1m, ending at 101 meters depth. The drill holes sampled
pyroclastic kimberlite, which was mineralized with kimberlite indicator
minerals, including large chrome diopside xenocrysts and abundant mantle
xenoliths. Drill core was logged, photographed, and sampled with select core
samples retained for reference. All remaining BQ thinwall size diamond drill
core from DD17-11 was analyzed for microdiamonds.
    In total 280.3 kilograms of kimberlite DD17-11 drill core was submitted
for microdiamond analysis to Saskatchewan Research Council Geoanalytical
Laboratories (SRC). Whole core sampling was successful in assembling a
meaningful population of microdiamonds. The number of diamonds reporting to
each square mesh sieve from both diamond drill holes is presented in the
following table:


    Combined 0.075  0.106  0.15  0.212  0.3  0.425  0.6  0.85  1.18  1.70
     Weight   mm     mm     mm    mm     mm    mm    mm   mm    mm    mm
      (kg)   Sieve  Sieve  Sieve Sieve Sieve Sieve Sieve Sieve Sieve Sieve
    ------------------------------------------------------------------------
     280.3    68     40     33    25     8     3     1     2     1     1
    ------------------------------------------------------------------------
                                                                      Total
                                                                    Diamonds
                                                                    ---------
                                                                       182
                                                                    ---------

    (1)  Saskatchewan Research Council Geoanalytical Laboratories (SRC) are
         accredited to the ISO/IEC 17025 standard by the Standards Council of
         Canada as a testing laboratory for specific tests.
    (2)  The two largest diamonds measured 2.56 x 2.30 x 1.80 mm and
         2.60 x 1.86 x 1.52 mm.

    The joint venture partners are pleased with the larger stones that
improve the DD17-11 microdiamond distribution curve. The partners are also
encouraged with the recently announced microdiamond results returned from the
RIP and DD17 kimberlite pipes which are in close proximity to DD17-11 and are
planning to conduct additional drilling. DD17-11 is located 200 meters east of
kimberlite RIP, which is located 50 meters east of kimberlite DD17.
Photographs of the larger microdiamonds are posted on SouthernEra's website.
    Outstanding from the spring 2006 drill program are diamond results from
two new kimberlite discoveries, Nic and Sonja, which are located west of DD17
within the 1.2 km long blue-pearl kimberlite cluster. Results are expected in
the third quarter of 2006.
    In addition to the spring 2006 drill program, the partners recently
completed the collection of 91 regional and detail till samples on the
Monument Property. The sampling program will better define existing
kimberlitic indicator mineral dispersal trains that have not been effectively
explained by kimberlite discoveries to date and generate additional drill
targets. Till samples have been shipped to SRC for processing. Results are
expected prior to the spring 2007 program.
    The Monument Property consists of three mining leases located on the
south shore of Lac de Gras, NWT at the south end of a kimberlite emplacement
corridor that hosts the Ekati Diamond Mine (operated by BHP Billiton).
Kimberlite pipes discovered on the property to date include DD17, DD17-11,
DD39, DD42, RIP, Nic and Sonja. Of these kimberlites DD17, DD17-11, DD39, DD42
and RIP are known to be diamond bearing. Five kimberlite pipes (Sonja, Nic,
DD17, RIP and DD17-11) are located centrally on the property in close
proximity to each other. Kimberlite pipe DD42 and two kimberlite dykes DD2002
and DD42 East are located in the north portion of the property and kimberlite
pipe DD39 is located in the south east portion.
    The project is operated by New Nadina under supervision of Mr. K. R.
Kivi, P.Geol., an independent Qualified Person as defined by National
Instrument 43-101. Field operations were supervised by Mr. Uwe Naeher,
P.Geol., Western Exploration Manager for SouthernEra Diamonds. Mr. Kivi and
Mr. Naeher have reviewed the content of this news release.
    The Monument project is owned 22.11% by SouthernEra Diamonds Inc., 57.49%
by New Nadina Explorations Limited and 20.4% by Archon Minerals Ltd. with a 1%
Royalty payable to each Kennecott Canada Exploration Inc. and DHK Diamonds
Inc.

    SouthernEra Diamonds is one of Canada's fully integrated diamond
companies with extensive kimberlite diamond exploration and alluvial programs
in the DRC as well as other countries including Canada, Gabon, Zimbabwe and
South Africa. The Company also holds a 57% interest in the Klipspringer
Diamond Mine in South Africa and maintains an 18 percent free-carried interest
in the Camafuca Diamond Project in Angola.

    Some statements contained in this news release are forward-looking and,
therefore, involve uncertainties or risks that could cause actual results to
differ materially. Such forward-looking statements include comments regarding
exploration work. Actual results could differ materially from those
anticipated. The Company disclaims any obligation to update forward-looking
statements.

For further information: SouthernEra Diamonds Inc. - Howard M. Bird, Senior
Vice President, Exploration, or Sharon Allan, Investor Relations, Telephone:
[phone], Fax: [phone], E-mail: inbox(at)southernera.com,
www.southernera.com; London: 4C-Burvale, Carina Corbett, Director, Telephone:
++44 (0) 207-907-4761, Fax: ++44 (0) 207-907-4769, Email:
Corbett(at)4c-burvale.co.uk
(SRE)

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