Drilling Report

SouthernEra Diamonds reports recovery of 0.17 carat stone monument diamond
property, Northwest Territories, Canada

    -   NIC PIPE: 165 diamonds recovered from 167.95 kg. of drill core
    -   SONJA PIPE: 50 diamonds recovered from 80.0 kg. of drill core

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

    TORONTO, ON, and LONDON, UK, Oct. 2 /CNW/ - SouthernEra Diamonds Inc.
(TSX: SDM; AIM: SRE) is pleased to report on microdiamond results for the new
kimberlite pipes, NIC and SONJA, discovered during the spring 2006 drilling
program on the Monument Diamond Project at Lac de Gras, Northwest Territories,
Canada.
    Kimberlite NIC is located 450 meters WNW of diamondiferous kimberlite
DD17. Drill hole MON06-06 inclined at -45 degrees intersected kimberlite
between 60 and 79.5 meters, and hole MON06-07 inclined at -45 degrees,
collared perpendicular to MON06-06, intersected kimberlite between 35 and 69
meters. Drilling targeted a 450 nT magnetic low anomaly. The kimberlite is
coarse-grained pyroclastic kimberlite with abundant accretionary lapilli,
coarse chrome diopside and pyrope garnet xenocrysts.
    Kimberlite SONJA is located 280 meters NW of NIC and was discovered by
drill hole MON06-08 inclined at -45 degrees. Kimberlite was intersected
kimberlite between 54 and 82 meter depth. The geophysical target was a strong
magnetic low response. The kimberlite is dark grey, macrocrystic pyroclastic
kimberlite with olivine up to 5 mm and coarse chrome diopside. The size of
this pipe is not known as only one hole was drilled.
    Drill core was logged, photographed, and sampled with select samples
retained for reference. All remaining BQ thinwall size diamond drill core from
both NIC and SONJA was submitted to Saskatchewan Research Council
Geoanalytical Laboratories (SRC) for caustic fusion diamond testing.
    The small samples confirm that the NIC and SONJA pipes are both
diamondiferous and further testing is required to provide the sizes of the
pipes and diamond potential.
    The number of diamonds reporting to each square mesh sieve from all
diamond drill holes is presented in the following tables:


    Kimberlite NIC Diamond Results:
    -------------------------------------------------------------------------
    Combined
     Weight    0.075mm  0.106mm   0.15mm  0.212mm    0.3mm  0.425mm    0.6mm
      (kg)       Sieve    Sieve    Sieve    Sieve    Sieve    Sieve    Sieve
    -------------------------------------------------------------------------
     167.95         64       34       27       16       10        8        4
    -------------------------------------------------------------------------

    -------------------------------------------------------
    Combined
     Weight     0.85mm   1.18mm   1.70mm   2.36mm    TOTAL
      (kg)       Sieve    Sieve    Sieve    Sieve
    -------------------------------------------------------
     167.95          1        0        0        1      165
    -------------------------------------------------------
    (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 largest diamond measured 4.2 x 3.5 x 1.28 mm and weighed
        34.049 mg (0.17 carats).



    Kimberlite SONJA Diamond Results:
    -------------------------------------------------------------------------
    Combined
     Weight    0.075mm  0.106mm   0.15mm  0.212mm    0.3mm  0.425mm    0.6mm
      (kg)       Sieve    Sieve    Sieve    Sieve    Sieve    Sieve    Sieve
    -------------------------------------------------------------------------
     80.0           15        9        8       11        5        1        0
    -------------------------------------------------------------------------

    -------------------------------------------------------
    Combined
     Weight     0.85mm   1.18mm   1.70mm   2.36mm    TOTAL
      (kg)       Sieve    Sieve    Sieve    Sieve
    -------------------------------------------------------
    80.0             1        0        0        0       50
    -------------------------------------------------------
    (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 largest diamonds measured 1.38 x 1.1 x 0.64 mm.

    The joint venture partners are pleased with the significant diamond count
of 165 diamonds from only 167.95 kg of core sampled from kimberlite NIC and
the recovery of a large diamond measuring 4.2 x 3.5 x 1.28 mm weighing 0.17
carats. In addition, the small 80.0 kg sample of drill core from SONJA
recovered a high-interest count of 50 diamonds. The partners are very
encouraged with the NIC and SONJA diamond results as well as with the recently
reported diamond results from kimberlite pipes, DD17-11, RIP and DD17. All of
the pipes are significantly diamondiferous and are located in close proximity
to one another within 1.2 km. Kimberlite DD17 lies under a small pond, RIP and
DD17-11 lie under a shallow swamp, and NIC and SONJA occur on land. All of
these kimberlites can be sample tested year round.
    Based on the positive diamond results from the kimberlites the joint
venture partners are planning a follow-up mini bulk sampling program. The
partners are currently considering the various methods that can be used to
complete the sampling program. The joint venture will proceed with permitting
applications, contractors and equipment quotes for the extraction of a
mini-bulk sample. Decisions to drill test other identified targets in the
vicinity of DD17 will be announced at a later date.
    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). To date
kimberlites on the property include DD17, DD17-11, DD39, DD42, RIP, NIC and
SONJA. All kimberlites are diamond bearing, and five kimberlite pipes (Sonja,
Nic, DD17, RIP and DD17-11) have demonstrated significant diamond populations
with coarse diamonds, and 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, who reviewed the content of this news release. Field
operations were supervised by Mr. Uwe Naeher, P.Geol., Western Exploration
Manager for SouthernEra Diamonds. Mr. Naeher has reviewed the contents 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)