Drilling Report

SouthernEra Diamonds commences bulk sampling at Badibanga Alluvial Project

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    TORONTO and LONDON, Jan. 25 /CNW/ - SouthernEra Diamonds Inc. (TSX: SDM,
AIM: SRE;) today reported that bulk sampling has commenced at its 100% owned
Badibanga Alluvial Diamond Project ("Badibanga") in the Democratic Republic of
Congo ("DRC"). The bulk sample is designed to confirm historical information
indicating that the alluvial flats system, within the project area, contains
significant diamond deposits. The diamond recovery plant has been commissioned
and the treatment of alluvial gravels has commenced. A 2,000 carat diamond
parcel will be recovered to establish the average diamond value in the area
and confirm the grade. Badibanga is one of SouthernEra's two large alluvial
diamond projects and is located in Kasai Oriental Province approximately 60 km
to the northwest of the producing Mbuji-Mayi Kimberlite diamond region.
Historical reports indicate that, between 1926 and 1955, the Belgian mining
companies Forminiere, E.K.L. and Socieite de Miniere du Beceka mined over 194
million carats from the area within and adjacent to SouthernEra's permits.

    HISTORICAL REPORTS
    ------------------

    A recently completed follow-up research report "Contribution to the
Badibanga Project (Republique Democratique Du Congo)" prepared by the Royal
Museum for Central Africa ("RMCA"), Department of Geology and Mineralogy,
Tervuren, Belgium, dated July 2006 was commissioned by SouthernEra and
enhances the Company's understanding of the historical and geological data
previously obtained by the Company.
    The report follows the first RMCA study commissioned by the Company
"Contribution to Economic Geology of the Lubi, Kegne-Kegne, Mulenda and
Pania-Mutombo Deposits, S6/23-Dimbelenge (Republique Democratique Du Congo)".
The RMCA studies are based on public-domain information that includes
historical reports, notes and maps dated between 1916 and 1974 available in
the archives of the RMCA. The first RMCA research report illustrates
potentially significant alluvial diamond deposits that were sampled by
Forminiere within SouthernEra's Badibanga permit. This initial study also
reports on historical non-43-101 compliant, unmined, diamond deposits totaling
3.49 million carats within the alluvial flats drainage system historically
termed the "Lubi-Lukula Triangle".
    The second report provides additional, non-43-101 compliant, information
within the "Lubi-Lukula Triangle" including historical exploration methods and
data. A sample exploration pit/trench location map listing the diamond grades
recovered from each pit site is presented. This documentation and level of
information will significantly aid SouthernEra in quickly advancing ground
work. The historical map indicates that the average diamond grades in the
alluvial flats approximate 1 carat per cubic meter (ct/m(3)) with average
grades of individual flats on the Lubi River as high as 1.7 ct/m(3). The
highest individual sample pit was documented at 10.61 ct/m(3).

    2007 BADIBANGA EVALUATION PROGRAM
    ---------------------------------

    The 2007 initial program is targeting an alluvial flats area, named Flats
D-E and F, where historical information reports a diamond deposit of
approximating 1.28 million carats within the "Lubi-Lukula Triangle".
    The bulk sampling program consists of the excavation of trenches within
Flats D-E and F. By the end of February 2007, 500m(3) (~1,000 tonnes) of
non-classified diamond-bearing gravels will be processed by the "hands off"
fully automated grease table diamond recovery plant. Each exploration sample
trench will be approximately 50 by 10 meters in size. The first trench
excavated in the flats contained gravel thickness ranging between 0.7 and 1.3
meters and was covered by up to 3 meters of sand.
    In addition to the alluvial flats diamond deposits previously explored by
Forminiere, SouthernEra recently located significant diamond-bearing terraces
mentioned in the Forminiere historical data but unexplored by Forminiere.
These terraces are situated above the flats within the "Lubi-Lukula Triangle".
The potential of these terraces will be investigated concurrently with the
bulk sampling program. Two of the larger terraces, lying adjacent, but
downstream of the current bulk-sampling program have been provisionally mapped
by SouthernEra personnel and have a surface area of approximately    
1,400,000 m(2). These terraces could add significant upside potential to the
project.
    Despite the diamond values for the area being unknown, historical
Forminiere documentation stated that the Lubi River was known to contain a
high concentration of good quality stones (~ 60% being 'white', the rest being
'coloured' and 'boart').
    The 2,000 carat bulk sample is Phase One of the Badibanga program and
based on positive results Phase Two will be conducted and will entail
methodical pitting and drilling to bring the alluvial flats into a more
confident resource category. Phase Three will follow and entail mining the
deposits. Phase One, is expected to be completed in the second quarter of
2007. Badibanga photographs are posted on SouthernEra's website.
    SouthernEra has not classified the historical estimates as current
mineral resources/reserves and is not treating the historical data as mineral
resources/reserves. The reader is warned that historical estimates and current
studies on historical reports should not be relied upon.
    SouthernEra is also evaluating a second alluvial project area in the DRC.
The 70% owned Tshikapa alluvial diamond project is underway in joint venture
with two local companies. The Company will report on progress of the Badibanga
and Tshikapa alluvial evaluation projects as results become available.
    Mr. Uwe Naeher, Professional Geologist and SouthernEra's Western
Exploration Manager, is the qualified person, under NI 43-101, responsible for
the technical information in this release. Mr. Naeher has reviewed the
contents of this release.
    SouthernEra Diamonds is one of Canada's fully integrated diamond
companies with extensive alluvial and kimberlite diamond exploration in the
DRC as well as other countries including Canada and South Africa. The Company
also holds 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 Bird, Senior Vice
President Exploration or Sharon Allan, Investor Relations, Telephone: (416)
359-9282, Fax: [phone], E-mail: inbox(at)southernera.com,
www.southernera.com; London: 4C-Burvale, Carina Corbett, Director, Telephone:
++44 (0) 207-907-4761, Fax: [phone], Email:
Corbett(at)4c-burvale.co.uk
(SRE SDM.)