Statement re Closing of Private Placement

SouthernEra Diamonds Closes Private Placement Through Canaccord Capital

    (Europe)

 

    Shares Issued and Outstanding: 100,566,601

    TSX: SDM

    AIM: SRE

 

    TORONTO and LONDON, UK, March 31 /CNW/ - SouthernEra Diamonds Inc. (the

"Company") (TSX: SDM, AIM: SRE) announced today that it has closed the

previously announced placement through Canaccord Capital (Europe). In terms of

the placement, 13,888,900 units (each unit consisting of one common share and

one-half of one common share purchase warrant) were sold to institutional

investors in the UK and Europe. The units were placed at a price of 18p

(approximately C$0.42) each for gross proceeds of pnds stlg 2,500,000

(approximately C$5.8 million). Each whole warrant will entitle the holder to

purchase one common share of the Company at a price of 27p (approximately

C$0.64) for 24 months from the closing date.

    The proceeds from the private placement will be used to support the

Company's global exploration program and for general corporate purposes.

    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 is one of Canada's largest fully integrated diamond

companies with extensive diamond exploration in five countries, including

Canada, Australia, Gabon, the Democratic Republic of the Congo and South

Africa. This represents one of the most active global diamond exploration

programs. The Company also operates the Klipspringer Diamond Mine in South

Africa and maintains an 18 percent free-carried interest in the Camafuca

Diamond Project in Angola.

   

    For further information: SouthernEra Diamonds Inc., Mr. Patrick Evans,

President and CEO, Telephone: [phone], Fax: [phone], E-mail:

inbox(at)southernera.com, www.southernera.com

    (SDM. SRE)