Statement re Private Placement

SouthernEra Diamonds Announces Private Placement Through

    Canaccord Adams Limited

 

    Shares Issued and Outstanding: 128,343,101

    TSX: SDM

    AIM: SRE                   

 

    TORONTO and LONDON, April 4 /CNW/ - SouthernEra Diamonds Inc. (the

"Company") (TSX: SDM, AIM: SRE) announces today that it has conditionally

placed 31.1 million common shares to institutional investors in the UK and

Europe. The shares will be placed at a price of C$0.43 (21.2p) each for gross

proceeds of approximately C$13.4 million.

    Application will be made for the common shares placed to be admitted to

trading on AIM and admission and dealings in these shares are expected to

commence on April 10, 2006. Canaccord Adams Limited acted as broker to the

placing. The placement is subject to regulatory and stock exchange approval.

    The proceeds from the private placing will be used primarily to

accelerate the Company's alluvial diamond evaluation programs in the

Democratic Republic of Congo. During 2006 one program will concentrate on the

recently reported Tshikapa project which is primarily focussed on bringing 5

high priority targets into more confident resource categories with a view to

commence production in 2007. In addition, at the Badibanga project (located

250km from the Tshikapa project), the Company will investigate historical

information compiled from archived reports and maps dating from 1906 to 1961

when the company, Forminiere, explored and reported on significant diamond

deposits within the project area.

 

    The securities being offered 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 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.

 

   

    For further information: SouthernEra Diamonds Inc., Mr. Alasdair

MacPhee, President and CEO, 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

    (SDM. SRE)