SouthernEra Diamonds Commences Trial Mining

SouthernEra Diamonds Commences Trial Mining at Klipspringer Diamond Mine

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

    TORONTO, ON, and LONDON, UK, Sept. 7 /CNW/ - SouthernEra Diamonds Inc.
(the "Company") (TSX: SDM, AIM: SRE) today announced the commencement of a
trial mining operation at the Company's 57% owned and operated Klipspringer
Diamond Mine ("Klipspringer") in South Africa.
    Klipspringer was developed as a 50:50 joint venture between SouthernEra
and De Beers Consolidated Mines Limited ("De Beers"), with De Beers fully
funding the R50 million development capital. The mine was commissioned in
January 2002, shortly before an unprecedented steep appreciation of the South
African Rand ("R") against the US$, which strengthened from a low of R11.60 in
2002 to high of R6.50 in 2003. As a consequence, Klipspringer became
unprofitable and was placed on care and maintenance in January 2004.
    While on care and maintenance several alternative mine plans were
investigated with the objective of returning the mine to profitable production
at the earliest opportunity. The new mine plan proposes a modified mining
method focussing on grade control, reduced manpower and reduced operating
costs. If successful, the re-engineered mine is expected to produce
approximate 160,000 tonnes per annum, yielding approximately 80,000 carats per
annum. Preparations for the trial mining have not required a significant
capital investment. Under the improving foreign exchange environment the trial
mining is expected to generate a modest cash flow.
    The trial mining program is likely to continue for the balance of 2006
with the objective of assessing the revised mining method and other
productivity initiatives. During this period SouthernEra will also be able to
assess the impact of increased diamond prices since 2004 when the operation
was placed on care and maintenance. Based on these results and exchange rate
trends a decision will be made on the prospect of commencing full operations
in 2007.
    President and CEO Alasdair MacPhee said, "With the recent devaluation of
the Rand and the robustness of the diamond market, this is a good opportunity
for the Company to assess the potential of returning Klipspringer to
profitability. At the same time we will continue to assess other opportunities
to unlock the value of Klipspringer for our shareholders."

    Klipspringer Resource Statement as of 31st December, 2005
    ---------------------------------------------------------

                                                                 Attributable
                          Mining        Mining        Block           to
                          Tonnes     Grade (cpht)    Carats      SouthernEra

    Indicated Resource     761,826          49.1       374,004       213,182
    Inferred Resource    3,389,431          49.1     1,663,976       948,466

    Mr. Uwe Naeher (Professional Geologist), SouthernEra's Western
Exploration Manager, is a qualified person, under NI 43-101, responsible for
the technical information in this release. Mr. Naeher has reviewed the content
of 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 a 57 percent interest in 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., Alasdair MacPhee,
President and CEO, Telephone: + 27 11 206 5820; 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)