SouthernEra Diamonds Announces Private Placement

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

    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
    UNITED STATES/

    Shares issued and outstanding: 160,054,229
    TSX: SDM
    AIM: SRE

    TORONTO and LONDON, Sept. 29 /CNW/ - SouthernEra Diamonds Inc. (TSX: SDM;
AIM: SRE) today announced a non-brokered private placement agreement with
institutional investors for the sale of 5,700,000 flow-through common shares
at C$0.44 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.
    All securities issued pursuant to the closing of the private placement,
will be subject to a four month hold period. The Placement is subject to
regulatory and stock exchange acceptance.

    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.

    The securities offered have not been registered under the U.S. Securities
Act of 1933, as amended, and may not be offered or sold in the United States
absent registration or any applicable exemption from the registration
requirements. This press release does not constitute an offer to sell or the
solicitation of an offer to buy nor will there be any sale of the securities
in any state in which such offer, solicitation or sale would be unlawful.

    This press release includes forward-looking statements. All statements
other than statements of historical fact included in this press release, and
all statements regarding plans, objectives and expected performance, are
forward-looking statements. These forward-looking statements have been based
on current expectations and projections about future events, including
numerous assumptions. Forward-looking statements generally can be identified
by the use of forward-looking terminology such as "ambition", "may", "will",
"expect", "intend", "estimate", "anticipate", "believe", "plan", "seek" or
"continue" or negative forms or variations of similar terminology. Such
forward-looking statements involve known and unknown risks, uncertainties,
assumptions and other factors related to SouthernEra Diamonds Inc.
    Forward-looking statements involve risks, uncertainties and assumptions.
Actual results may differ materially from those expressed in forward-looking
statements. Given these risks, uncertainties and assumptions, you are
cautioned not to put undue reliance on any forward-looking statements. In
addition, the inclusion of such forward-looking statements should under no
circumstances be regarded as a representation by SouthernEra Diamonds Inc.
that it will achieve any results set out in such statements or that the
underlying assumptions used will in fact be the case.


For further information: SouthernEra Diamonds Inc., Chris Reynolds, Senior
Vice President, CFO, or Sharon Allan, Investor Relations, Telephone: (416)
359-9282, Fax: [phone], E-mail: inbox(at)southernera.com,
www.southernera.com
(SRE)