Drilling Report

SouthernEra Diamonds commences drilling of diamond-bearing BK16 kimberlite
pipe in Botswana

    Government approval received for earn in of up to 70% in BK16

    Shares issued and outstanding: 173,316,179
    TSX: SDM

    TORONTO, May 16 /CNW/ - SouthernEra Diamonds Inc. ("SouthernEra" and the
"Company") (TSX: SDM) today reported that Botswana's Minister of Minerals,
Energy and Water Resources has approved an agreement whereby the Company
recently acquired an interest in the BK16 kimberlite project in Botswana.
    SouthernEra has commenced a drilling program to evaluate the BK16
kimberlite pipe which is located within the Orapa Kimberlite Field, 40
kilometers to the east and 12 kilometers to the north of De Beers' Orapa and
Letlhakane diamond mines, respectively. Together with De Beers' Jwaneng mine
in southern Botswana, this region is the world's largest diamond producer by
value, accounting for 34 million carats annually valued at $3.67 billion.
Botswana produces approximately 27 percent of the world's supply of rough gem
diamonds by value.
    SouthernEra is fast-tracking the BK16 evaluation program with the
commencement of a 10 hole 6-inch in diameter percussion drilling program. This
program will provide the information required to define the dimensions of the
BK16 pipe. Once the dimensions are established, a large diameter drill (LDD)
program will be initiated to recover a bulk sample to establish grade and
diamond value.
    The BK16 kimberlite has only had limited evaluation since it was
discovered in the early 1970's. An historical De Beers report, "Final
Relinquishment Report for PL16 and PL17 of 1999," dated 5th October 1999,
states that BK16 pipe has a surface impression of 3.5 Hectares (Ha) with a
grade of 0.32 carats per cubic meter (ct/m(3)) and pipe AK6 is 3.3 Ha and
grades 0.42ct/m(3). Noteworthy is the similarity between pipes BK16 and AK6 in
the De Beers report and the fact that since the time that African Diamonds
acquired AK6 in early 2000, re-evaluation has resulted in the AK6 project
developing towards a mine. The AK6 pipe is now believed to be 9.9 hectares in
size containing 48.5 million tonnes grading at 24 carats per hundred tonnes,
with a modeled diamond value of $150 per carat. It is evident that the
historical evaluation techniques underestimated the grade and size of AK6 and
SouthernEra's BK16 systematic evaluation program is designed to test for a
similar potential grade and size upside on BK16. Recently completed ground
magnetometer and gravity surveys over BK16 indicate that the pipe has a
potential size range of between 3.5Ha and over 10Ha.
    On May 10th, 2007 Botswana's Minister of Minerals, Energy and Water
Resources approved the agreement between SouthernEra and Kenrod Engineering
Services (Proprietary) Limited, a Botswana registered company which owns the
BK16 prospecting license. Under the agreement SouthernEra has immediately
earned a 55% interest in the BK16 pipe and has the right to earn up to a 70%
interest in the project by funding exploration to the completion of a
definitive feasibility study.

    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, Botswana 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.

    Mr. Uwe Naeher, Professional Geologist and SouthernEra's Western
Exploration Manager, is the qualified person, under NI 43-101, responsible for
the technical information in this release. Mr. Naeher has reviewed the
contents of this release.

    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., Howard Bird, Senior Vice
President Exploration, or Telephone: [phone], Fax: [phone],
E-mail: inbox(at)southernera.com, www.southernera.com; London: 4C-Burvale,
Carina Corbett, Director, Telephone: [phone], Fax: +44 (0) 20
7559 6501, Email: Corbett(at)4c-burvale.co.uk
(SRE)