Drilling Report

SouthernEra reports diamonds from RIP kimberlite Monument property, Northwest
Territories, Canada
    Shares issued and outstanding: 159,464,229
    TSX: SDM
    AIM: SRE
    - 198 DIAMONDS RECOVERED FROM 384.95 KG. OF RIP DRILL CORE
    TORONTO, ON and LONDON, UK, Aug. 2 /CNW/ - SouthernEra Diamonds Inc.
(TSX: SDM; AIM: SRE) is pleased to report on microdiamond results for
kimberlite pipe RIP, discovered in spring 2006 on the Monument Diamond Project
at Lac De Gras, Northwest Territories.
    Kimberlite RIP is delineated by two drill holes set perpendicular to one
another. Drill hole MON06-01 intersected kimberlite between 43.0 and 98.8 m,
and drill hole MON06-03 intersected kimberlite between 18.0 to 120.6 m. The
latter drill hole collared in kimberlite, therefore RIP's size will increase
eastward with additional drilling. The drill holes sampled volcaniclastic
kimberlite, which was mineralized with kimberlite indicator minerals and
contained fossil carbonized wood. Drill core was logged, photographed, and
sampled with select core samples retained for reference. All remaining BQ
thinwall size diamond drill core from RIP was analysed for microdiamonds.
    In total 384.95 kilograms of kimberlite RIP drill core was submitted for
microdiamond analysis to Saskatchewan Research Council Geoanalytical
Laboratories (SRC). Whole core sampling was successful in assembling a
meaningful population of microdiamonds. The number of diamonds reporting to
each square mesh sieve is presented in the following table:
    <<
    -------------------------------------------------------------------------
    Combined   0.075  0.106  0.15  0.212  0.3   0.425  0.6   0.85  1.18
     Weight     mm     mm     mm    mm     mm    mm     mm    mm    mm
      (kg)    Sieve  Sieve  Sieve Sieve  Sieve Sieve  Sieve Sieve Sieve TOTAL
    -------------------------------------------------------------------------
     384.95     56     57     32    24     18     3      3     4     1   198
    -------------------------------------------------------------------------
    (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 2.3 x 1.7 x 1.6 mm, 1.36 x 1.16 x
        1.0 mm, 1.14 x 1.02 x 0.94 mm, 1.74 x 1.4 x 0.6 mm, and 1.6 x 1.1 x
        0.6 mm.
    >>
    RIP is located 50m east of diamond-bearing kimberlite DD17, which is 0.93
hectares in size. The JV Partners are encouraged that two significantly
diamondiferous kimberlites lie so close to one another, and are considering
additional diamond drilling and sampling. The partners await diamond results
from Nic, Sonja and DD17-11, the other members of the 1.2 km long blue-pearl
kimberlite cluster. Results are expected from SRC at regular intervals in the
third quarter of 2006.
    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 on the property to date include DD17, DD17-11,
DD39, DD42, RIP, Nic and Sonja. Of these kimberlites DD17, DD17-11, DD39, DD42
and RIP are known to be diamond bearing. 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 dykes 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 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.
-0-                           08/02/2006
/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/
(SRE SDM.)