SouthernEra Closes Private Placement of Shares

SouthernEra Diamonds Closes non-brokered C$2.5 million Private Placement of
Flow-Through Common Shares

    Shares issued and outstanding: 165,754,229
    TSX: SDM
    AIM: SRE

    TORONTO and LONDON, Oct. 12 /CNW/ - SouthernEra Diamonds Inc. (the
"Company") (TSX: SDM, AIM: SRE) announced today that it has closed the
previously announced non-brokered private placement for the sale of 5,700,000
Flow-through Common Shares for gross proceeds of approx. C$2.5 million.
    The proceeds from the placement will be used to advance SouthernEra's
Canadian diamond exploration projects.
    The securities placed have not, nor will they be registered under the
United States Securities Act of 1933, as amended, and may not be offered or
sold within the United States or to, or for the account or benefit of U.S.
persons absent U.S. registration or an applicable exemption from U.S.
registration requirements. This release does not constitute an offer for sale
of securities in the United States.

    SouthernEra Diamonds Inc. is a Canadian, fully integrated, diamond
company focused on discovering a large high grade primary kimberlite,
providing sustainable long-term profitable production.

    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
(SRE)