Scheme of Arrangement

SouthernEra Announces Effective Date for Reorganization into

    Separately Listed Platinum and Diamond Companies

 

    Shares Issued and Outstanding: 85,335,411

    TSX: SUF

    AIM: SRE

 

    TORONTO, Aug. 27 /CNW/ - SouthernEra Resources Limited ('SouthernEra')

(TSX:SUF; AIM:SRE) announced today that its Board of Directors has approved an

effective date (the 'Effective Date') of September 1, 2004 for implementation

of the plan of arrangement (the 'Plan'). Pursuant to the Plan, SouthernEra

will continue its diamond business through the current public company which

will be renamed 'SouthernEra Diamonds Inc.' and transfer its platinum and gold

businesses to a new public company, Southern Platinum Corp. The shares and

warrants of SouthernEra Diamonds Inc. will continue to trade on the Toronto

Stock Exchange under a new symbol 'SDM' and the Alternative Investment Market

('AIM') of the London Stock Exchange ('SRE'). The shares of Southern Platinum

Corp. will trade on the TSX under the symbol 'SPC'.

    As announced on July 29, 2004, the Plan was approved with the support of

99.7% of the shareholders voting at the Annual and Special Meeting of

Shareholders ('the Meeting') held on July 27, 2004 and was approved by the

final Order of the Superior Court of Justice (Ontario) on July 29, 2004.

    At the open of trading on the Toronto Stock Exchange (TSX) on Monday,

August 30, 2004, the common shares of SouthernEra will be posted for trading

on an ex-dividend basis under its new name SouthernEra Diamonds Inc. The

common shares of Southern Platinum Corp. will commence trading at the open on

Monday, August 30, 2004, on a when-issued basis under the stock symbol 'SPC'.

    SouthernEra will distribute to common shareholders of record as of the

close of trading on the TSX on Wednesday, September 1, 2004, one common share

of Southern Platinum Corp. for each common share of SouthernEra held. It is

anticipated that share certificates of Southern Platinum will be mailed to

shareholders on or about September 8, 2004. Pursuant to the Plan, as of the

effective date, each holder of common shares of SouthernEra will receive one

common share of Southern Platinum Corp. and one common share of SouthernEra

Diamonds Inc. Share certificates formerly representing SouthernEra common

shares will be deemed to represent common shares of SouthernEra Diamonds Inc.

    Commenting on the reorganisation, SouthernEra President and CEO Patrick

Evans said: 'The reorganisation of the Group into separate platinum and

diamond companies represents a significant milestone on our Company's history.

We believe the reorganisation will unlock the considerable value of our

diamond assets, which in recent years has been eclipsed by the growth in the

value of our platinum assets. We are pleased with the overwhelming support we

have received from our shareholders and anticipate that the two separate

companies are well placed to enjoy broad market support as two of the

strongest growth companies in their sectors'.

    The Plan remains subject to certain conditions being fulfilled. The Board

of Directors of SouthernEra believe that the remaining conditions can be

fulfilled by the Effective Date and propose to implement the Plan on such

date.

    Details of the Plan were included in the proxy circular sent to

SouthernEra's shareholders in advance of the Meeting.

 

    SouthernEra is an independent producer of platinum group metals (PGM's)

and diamonds. The company also has an extensive PGM and diamond exploration

program. The common shares are listed on the Toronto Stock Exchange and the

London Stock Exchange's AIM.

 

    For further information: SouthernEra Resources Limited, Patrick C.

Evans, President and CEO; or Chris Reynolds, Vice President Finance,

Controller and Secretary, Telephone: [phone], Fax: [phone],

e-mail: inbox(at)southernera.com

    (SUF. SRE)