Drilling Report

SouthernEra Diamonds reports on the Badibanga Alluvial Project, Democratic
Republic of Congo


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    - Sampling and Diamond Recovery Plant en route to Confirm Historical
      Diamond Results

    TORONTO, ON and LONDON, UK, Aug. 3 /CNW/ - SouthernEra Diamonds Inc.
(TSX: SDM, AIM: SRE;) today reported on historical information which indicates
that SouthernEra's 100% owned Badibanga Alluvial Diamond Project ("BADP") in
the Democratic Republic of Congo ("DRC") may contain significant diamond
deposits within the alluvial flat system (floodplain deposits). Following the
previously announced SouthernEra Tshikapa Alluvial Diamond Project, the BADP
is SouthernEra's second large alluvial diamond project and is located
approximately 60 km to the northwest of the producing Mbuji-Mayi Kimberlite
diamond mining area in the Kasai Oriental Province. Between 1926 and 1955, the
Belgian mining companies Forminiere, E.K.L. and Socieite de Miniere du Beceka
mined over 194 million carats from the region.

    HISTORICAL REPORTS
    ------------------

    Research on the BADP area by the Royal Museum for Central Africa
("RMCA"), Department of Geology and Mineralogy, Tervuren, Belgium was recently
commissioned by SouthernEra. The RMCA research report, "Contribution To
Economic Geology of the Lubi, Kegne-Kegne, Mulenda and Pania-Mutombo Deposits,
S6/23-Dimbelenge (Republique Democratique Du Congo)" is dated March 2004. The
RMCA study was based on public-domain information that includes historical
reports, notes and maps dating between 1916 and 1974 available in the archives
of the RMCA. The RMCA study reports on potential significant alluvial diamond
deposits that were sampled by Forminiere within SouthernEra's BADP permit.
This study reports on historical non-43-101 compliant unmined diamond deposits
totaling 3.49 million carats within the alluvial flat drainage system which
was termed the "Lubi-Lukula Triangle" located within SouthernEra's BADP permit
area.
    The diamond grade of the "Lubi-Lukula Triangle" flats was not
ascertainable from the archived information however SouthernEra estimates that
diamond grades may be in the 1.5 carat/cubic meter range based on current
local artisanal mining information as well as from the recovered grade of 1.53
carats/cubic meter from the past producing Forminiere Kegne-Kegne alluvial
diamond mine located approximately 20 km downstream of Lubi-Lukula Triangle.
    A qualified person has not classified the historical estimates as current
mineral resources/reserves and SouthernEra is not treating them as current
mineral resources/reserves and the historical estimates should not be relied
upon.
    SouthernEra has planned an aggressive sampling and evaluation campaign to
confirm Forminiere's historical results. The first phase of the program is
designed towards recovering a 3000 to 5000 carat diamond parcel to establish
the average dollar per carat value and grade of the alluvial flats that have
bulk mineable potential. Based on the first phase program returning positive
results the second phase program will be geared towards bringing the alluvial
flats into a more confident resource category followed by mining. The area
also hosts a suite of extensive potential bulk mineable diamondiferous terrace
gravel deposits that are located adjacent to the alluvial flats. The potential
of these terraces will also be investigated concurrently with phase one and
two.
    The BADP program to date has consisted of utilizing remote sensing data
to map these areas followed by ground truthing. A central base camp has been
established. Gravel sampling equipment and a diamond recovery plant are en
route to the project site. The first phase program is expected to be completed
in 10 months. Results will be released as they become available during the
program.
    Mr. Uwe Naeher, Professional Geologist and SouthernEra's Western
Exploration Manager, is the qualified person, under NI 43-101, responsible for
the technical information in this release.

    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: (416)
359-9282, 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 SDM.)