Camafuca Diamond Project -

SouthernEra announces positive progress on Camafuca Diamond Project -
    Mining licence issued

 

    Shares issued and outstanding: 112,279,101

    TSX: SDM

    AIM: SRE

 

    TORONTO and LONDON, Oct. 24 /CNW/ - SouthernEra Diamonds Inc. (TSX: SDM;

AIM: SRE): announced today that commencement of the construction of the

Camafuca Diamond Project in Angola has taken a crucial step forward. This

follows meetings with SouthernEra's partners of the Camafuca operating

company, Camafuca Sociedade Mineira, Lda ("CSM"), in August and October this

year.

    The mining licence for the Camafuca project has been issued following the

joint Government approval and ratification for the formation of CSM, and the

Angolan Council of Ministers' approval of the project. These approvals

guarantee that no further consent from the Angolan authorities will be

required.

    The board of directors (and executive management) of CSM has been

constituted at a General Assembly of CSM and shall consist of the Managing

Director (to be appointed by Endiama, the State owned diamond company,

together with Minex, the financial partner), a Mining Director (appointed by

SouthernEra), a Financial Director (appointed by Minex) and a Human Resources

Director (appointed by the fourth partner in the project, Comica).

    All appointments to the board have occurred, with the exception of the

Managing Director appointment, which is to be announced shortly.

    The first meeting of the board is expected to be held within the next few

weeks, pending the appointment of the Managing Director, and it will consider

the budgets, for approval, so that orders can be placed for the project to

commence. Minex will provide the funding for Phase 1 of the project.

 

    The shareholding in CSM is as follows:

    Minex          38%

    Endiama        37%

    SouthernEra    18%

    Comica          7%

 

    SouthernEra Diamonds is one of Canada's largest fully integrated diamond

companies with extensive diamond exploration in six countries including

Canada, Gabon, the DRC, Zimbabwe and South Africa. The Company maintains an 18

percent free-carried interest in the Camafuca Diamond Project in Angola and

also operates the Klipspringer Diamond Mine in South Africa.

 

    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: Toronto: SouthernEra Diamonds Inc., Mr.

Alasdair MacPhee, President and CEO, or Sharon Allan, Investor Relations,

Telephone: [phone], Fax: [phone], E-mail:

[e-mail], www.southernera.com; London: 4C-Burvale, Carina

Corbett, Director, Telephone: ++ 44 (0) 207-907-4761, Fax:

++ 44 (0) 207-907-4769, Email: [e-mail]

    (SRE)