Drilling Report

Attention Business Editors:

    SouthernEra reports diamonds from kimberlite DD17 Monument Property,

    Northwest Territories, Canada

 

    -  354 DIAMONDS RECOVERED FROM 464.5 KG OF DD17 DRILL CORE

    Shares issued and outstanding: 159,428,601

    TSX: SDM

    AIM: SRE

 

    TORONTO and LONDON, June 7 /CNW/ - SouthernEra Diamonds Inc. (TSX: SDM;

AIM: SRE) reported today on microdiamond results from kimberlite pipes DD17

and DD42, and from the kimberlite dike DD42 East, located on the Monument

Diamond Project, Northwest Territories ("NWT"), Canada.

    Kimberlite DD17 was drilled in 2005 to better define the shape of the

pipe and sample the kimberlite for diamonds. In March 2006, 58 samples of

kimberlite were submitted for microdiamond analysis to Saskatchewan Research

Council Geoanalytical Laboratories(1)("SRC"). SouthernEra is pleased to report

the program was successful in recovering 354 diamonds, including 2 diamonds(2)

greater than 0.85 mm from 464.5 kg of split BQ Thinwall size diamond drill

core. The number of diamonds from the DD17 pipe that report to each square

mesh sieve is as follows:

 

    -------------------------------------------------------------------------

    Combined  0.075  0.106  0.15   0.212   0.3   0.425   0.6   0.85

     Weight    mm     mm     mm     mm      mm    mm      mm    mm     Total

      (kg)    Sieve  Sieve  Sieve  Sieve  Sieve  Sieve  Sieve  Sieve Diamonds

    -------------------------------------------------------------------------

      464.5    143    82     53     28      27    10       9     2      354

    -------------------------------------------------------------------------

 

    (1) Saskatchewan Research Council Geoanalytical Laboratories 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 1.72 x 1.26 x 0.82 mm and 1.66 x

        1.04 x 0.40 mm.

 

    The company also reports microdiamond results received from SRC for

kimberlite pipe DD42 drill tested in 2005. A total of 20 microdiamonds were

recovered from nine split BQ Thinwall size drill core samples having a

combined weight of 62.1 kg. In addition, microdiamond results from the narrow

DD42 East kimberlite dike drilled in 2005, reports one diamond from a

composite sample weight of 3.95 kg collected from three narrow intersections.

 

    -------------------------------------------------------------------------

            Combined  0.106  0.15   0.212   0.3   0.425   0.6   0.85   Total

    Kimber-  Weight    mm     mm     mm      mm    mm      mm    mm     Dia-

     lite     (kg)    Sieve  Sieve  Sieve  Sieve  Sieve  Sieve  Sieve  monds

    -------------------------------------------------------------------------

    DD42

     Pipe     62.1      8      7      4      1      0      0      0      20

    -------------------------------------------------------------------------

    DD42 East

     Dike     3.95      0      0      1      0      0      0      0       1

    -------------------------------------------------------------------------

 

    The company is pleased to increase the size and improve the shape of DD17

with the 2005 drilling, and now has modern diamond data to better evaluate the

kimberlite pipe. DD17 is 0.93 hectares in size. The results are being

interpreted and modeled and will guide the joint venture to its next decision

in the evaluation process.

    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 to date include DD17, DD17-11, DD39, DD42, RIP,

Nic and Sonja. Pipes DD17, DD17-11, DD39 and DD42 are diamond bearing. During

April 2006 the RIP, Nic and Sonja pipes were discovered and DD17-11 was

redrilled. Kimberlite drill core samples from RIP, Nic, Sonja and DD17-11 are

currently being analyzed for diamond content at SRC. The diamond results are

expected during the third quarter 2006. 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 dikes DD2002

and DD42 East are located in the north portion of the property and kimberlite

pipe DD39 is located in the south east.

    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 conducted by SouthernEra

Diamonds Inc. and supervised by Mr. Uwe Naeher, P.Geol., Western Exploration

Manager for SouthernEra Diamonds. Mr. Kivi has 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 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

    (SDM. SRE)