Drilling Report

Update on DO-27, WO Diamond Project, NWT, Canada

 

    Shares issued and outstanding: 159,428,601   

    TSX: SDM

    AIM: SRE

 

    TORONTO/LONDON, May 11 /CNW/ - SouthernEra Diamonds Inc. (TSX: SDM; AIM:

SRE) announced today that it has been advised by Peregrine Diamonds Ltd.

("Peregrine"), operating partner of the WO Project Joint Venture, that large

diameter RC ("LDRC") drilling on the lake-ice at DO-27 has been completed for

this year. LDRC drilling on the land-based portion of DO-27 (Northeast Lobe)

is scheduled to begin in August, 2006. LDRC drilling of the DO-18 kimberlite

is scheduled to begin October, 2006.

    A total of eighteen LDRC holes totaling 3202 meters have been completed

to date at DO-27 by Peregrine including twelve holes totaling 2424 meters

completed this winter.

    Approximately 566 tonnes of kimberlite were extracted during the winter

2006 bulk sampling program for a total of over 717 tonnes of kimberlite

extracted from DO-27 to date by Peregrine through LDRC drilling. The 2006

program recovered material from vertical depths of up to 403 meters as

compared to 209 meters in the 2005 program.

    This year's bulk sample consisting of 444 samples have been delivered to

the Ekati(TM) Diamond Mine for diamond recovery processing which is scheduled

for June/July, 2006.

    A total of twenty-four NQ and HQ core holes totaling 5233 meters have

been completed to date at DO-27 by Peregrine including twelve holes totaling

2929 meters this winter. Core drilling is currently continuing with the

following objectives:

 

    -  Delineation drilling of DO-27, particularly the Northeast Lobe which

       is land based.

    -  Geotechnical drilling at DO-27.

    -  Exploration drilling in the area between DO-27 and DO-18 where

       previous core drilling intersected kimberlite and where geophysical

       gravity data suggests that DO-27 and DO-18 may be connected at depth.

 

    The WO Diamond Project is a joint venture with Peregrine holding a

54.475% interest plus Operatorship. The other partners' project interests are

as follows: Archon Minerals Ltd 13.275%, Aber Diamond Corp. 7.35%, DHK

Diamonds Inc. 20% (1/3 controlled by each of Dentonia Resources Ltd.,

Horseshoe Gold Mining Inc., and Kettle River Resources Ltd.), and SouthernEra

Diamonds Inc. 4.9%.

    Peregrine's diamond exploration programs are conducted under the

direction of Dr. Jennifer Pell, Vice President Exploration, P. Geo., (BC),  

P. Geo. (NT/NU), a qualified person under NI 43-101.

 

    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, Gabon, Zimbabwe 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:

[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

    (SDM. SRE)