Drilling Report

New micro-diamond results indicate main vent of DO-27 kimberlite may grade greater than 1 carat per tonne 0.42, 0.22, 0.12 & 0.11 CARAT DIAMONDS FOUND IN N.Q. DIAMETER (47mm) CORE HOLES Shares issued and outstanding: 128,343,101 TSX: SDM AIM: SRE TORONTO, ON and LONDON, UK, Jan. 26 /CNW/ - SouthernEra Diamonds Inc. (TSX: SDM; AIM: SRE) has received the following report from Peregrine Diamonds Ltd, operating partner of the WO Project Joint Venture, with regards to recent core drilling results at the DO-27 kimberlite, NWT, Canada. The core drilling program has returned consistent micro-diamond values indicating that the main vent of the plus 9 hectare pipe may grade greater than 1 carat per tonne. All grade predictive curves based on micro-diamond sampling of the main vent have reached or exceeded 1 carat per tonne and have not approached asymptote. In the Spring and Summer of 2005, subsequent to the completion of a 151 tonne, mini-bulk sample of the main vent of DO-27, which graded 0.98 carats/tonne from the central portion of the pipe as previously reported, a total of 2245 meters in 11 N.Q. core holes was drilled into DO-27. Four holes were drilled into the main vent of the pipe and the remaining holes were drilled into the north-eastern subsidiary lobe of DO-27. The purpose of the core drilling was: - To better understand the internal geology and diamond distribution of DO-27 in relation to the two apparently different kimberlite phases encountered during the reverse circulation ("RC"), mini-bulk sample, drilling program, - To gain information on the extent and geology of the DO-27 pipe below 200 meters, and - To better understand the geology and diamond distribution of the north-eastern lobe of DO-27, and how it relates to the main pipe. The complete micro-diamond results have now been received from the Saskatchewan Research and Geo-Analytical Council ("SRC") for three holes (DO-27-05-02, DO-27-05-03, and DO-27-05-08) drilled into the main vent of DO-27, and all returned values consistent with a strongly diamondiferous kimberlite, as also evidenced by the 2005 mini-bulk sample. The presence of large diamonds, up to 0.42 carats, in micro-diamond samples is extremely encouraging. The fact that relatively small diameter core holes (47 mm) are consistently encountering diamonds of this size bodes well for the ultimate grade of the pipe. The micro-diamond results were also quite consistent throughout the pipe, with grade predictive plots indicating grades greater than 1 carat/tonne from the main vent which represents the majority of the DO-27 pipe. Furthermore, the grade plots indicate that diamond grade is expected to be consistent at depths greater than 200 meters. The grade predictive plots and a location map for the three holes can be viewed on SouthernEra's web site under "News". The micro-diamond results per sieve classes (in mm for square mesh), are summarized as follows: ---------------------------------------------- ------------------------- Hole No. DO27-05-02 - LPK DO27-05-02 - OMPK ---------------------------------------------- ------------------------- Intercept in metres 56 to 341 m 341 to 459.5 m ---------------------------------------------- ------------------------- Total Total Total Total Lower Sieve Stones Carats Stones Carats ---------------------------------------------- ------------------------- +4.75 mm 0 0 0 0 ---------------------------------------------- ------------------------- +3.35 mm 0 0 0 0 ---------------------------------------------- ------------------------- +2.36 mm 0 0 0 0 ---------------------------------------------- ------------------------- +1.70 mm 1 0.11879 0 0 ---------------------------------------------- ------------------------- +1.18 mm 2 0.07447 2 0.050745 ---------------------------------------------- ------------------------- +0.85 mm 14 0.121565 3 0.038305 ---------------------------------------------- ------------------------- +0.60 mm 33 0.10451 10 0.046225 ---------------------------------------------- ------------------------- +0.425 mm 51 0.07444 29 0.049485 ---------------------------------------------- ------------------------- +0.300 mm 103 0.05033 41 0.0262 ---------------------------------------------- ------------------------- +0.212 mm 136 0.024335 71 0.015335 ---------------------------------------------- ------------------------- +0.150 mm 164 0.0113 109 0.007285 ---------------------------------------------- ------------------------- +0.106 mm 254 0.006935 148 0.00465 ---------------------------------------------- ------------------------- +0.075 mm 367 0.004195 284 0.00336 ---------------------------------------------- ------------------------- Sample Weight (kg) 340.70 kg 247.78 kg ---------------------------------------------- ------------------------- Stones per kg 2.88 2.81 ---------------------------------------------- ------------------------- ---------------------------------------------- ------------------------- Hole No. DO27-05-03 - PK DO27-05-08 - PK Intercept in metres 59 to 230 m 30.5 to 238 m ---------------------------------------------- ------------------------- Total Total Total Total Lower Sieve Stones Carats Stones Carats ---------------------------------------------- ------------------------- +4.75 mm 0 0 0 0 ---------------------------------------------- ------------------------- +3.35 mm 1 0.422525 0 0 ---------------------------------------------- ------------------------- +2.36 mm 2 0.308825 0 0 ---------------------------------------------- ------------------------- +1.70 mm 3 0.224845 0 0 ---------------------------------------------- ------------------------- +1.18 mm 8 0.20091 4 0.13436 ---------------------------------------------- ------------------------- +0.85 mm 10 0.10042 5 0.048425 ---------------------------------------------- ------------------------- +0.60 mm 45 0.167025 14 0.055455 ---------------------------------------------- ------------------------- +0.425 mm 80 0.10269 18 0.023415 ---------------------------------------------- ------------------------- +0.300 mm 123 0.062265 36 0.01804 ---------------------------------------------- ------------------------- +0.212 mm 188 0.032515 41 0.006835 ---------------------------------------------- ------------------------- +0.150 mm 290 0.018345 66 0.004495 ---------------------------------------------- ------------------------- +0.106 mm 364 0.01 127 0.003285 ---------------------------------------------- ------------------------- +0.075 mm 455 0.005355 119 0.001675 ---------------------------------------------- ------------------------- SampleWeight (kg) 536.70 kg 148.05 ---------------------------------------------- ------------------------- Stones per kg 2.92 2.90 ---------------------------------------------- ------------------------- (x) Lower sieve size given in mm, for square mesh. Hole DO-27-05-02 was drilled to a depth of 459.5 meters (1509 feet), and ended in kimberlite, confirming that the DO-27 pipe extends to at least this depth. All four holes drilled into the main vent of DO-27 intersected pyroclastic kimberlite (PK), which can be broadly subdivided into 3 textural varieties. In the central part of the pipe, hole DO27-05-02 encountered a sequence of layered pyroclastics (LPK) to a depth of 341 meters. This hole was drilled approximately 10 meters to the north of mini-bulk sample hole RC05-02 (which returned a grade of 0.96 carats/tonne) and is considered, at this time, to be representative of the central portion of the main vent. Between 341 and 459.5 meters, at depths beyond what was tested in the 2005 RC, mini-bulk sample program, this hole intersected olivine macrocrystal pyroclastic kimberlite (OMPK) with grade predictive plots indicating grades consistent with the upper horizons. Hole DO27-05-03, which was drilled approximately 10 meters to the south of mini-bulk sample hole RC05-03 (which returned a grade of 0.70 carats/tonne), intersected massive green pyroclastics (PK) to a depth of 230 meters. The grade predictive plot from DO27-05-03 indicates grades may be higher than those in DO27-05-02, as the grade predictive curve for this hole has not yet reached asymptote at 3 carats per tonne. These encouraging micro-diamond results suggest that RC05-03 possibly under-stated the true grade of this part of the pipe possibly due to the smaller size of the sample for this zone. Hole DO27-05-08 was drilled from the north-eastern lobe into the main vent of DO-27. This hole also encountered mainly massive green pyroclastics, texturally similar to those in Hole DO27-05-03. Micro- diamond results from Hole DO27-05-08 are consistent with those from the central part of the pipe. The fourth hole drilled into the main vent has not been sampled at this time as the 2006 bulk sample will be extracting kimberlite from this zone. These micro-diamond results suggest that all the pyroclastic kimberlite units (PK, LPK & OMPK) encountered thus far in the main vent of DO-27 are likely to grade 1 carat per tonne or better. The geology of the north-eastern lobe of DO-27 is more complex than the main vent, consisting of an upper volcaniclastic unit, a pyroclastic unit similar to, and apparently contiguous with, the main vent (PK unit) and a lower, highly variable volcaniclastic unit underlain by a variety of volcaniclastic microbreccias and hypabyssal rocks. Complete micro-diamond results for the 7 N.Q. core holes drilled into this zone will be released when all the results are received from SRC. A large bulk sample of DO-27 is scheduled to begin shortly. More information concerning this bulk sample will be released as the program progresses. The WO project diamond programs are conducted under the direction of Dr. Jennifer Pell, Vice President Exploration, P. Geo., (BC), P.Geol (NT/NU) of Peregrine Diamonds, a qualified person under NI 43-101. SouthernEra holds a 4.9% interest in the WO Diamond Project. SouthernEra Diamonds is one of Canada's largest fully integrated diamond companies with extensive diamond exploration in five countries including Canada, Gabon, the DRC, Zimbabwe and South Africa. This represents one of the most active global diamond exploration programs after the majors DeBeers, BHPB and Rio Tinto. The Company also operates 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: (416) 359-9141, 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 (SDM. SRE)

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