Private Placement

SouthernEra Diamonds Announces Private Placement Through Canaccord

    Capital (Europe)

 

    Shares Issued and Outstanding: 86,677,701

    TSX: SDM

    AIM: SRE

 

    TORONTO and LONDON, UK, March 23 /CNW/ - SouthernEra Diamonds Inc. (the

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

placed 13,888,900 units, each unit consisting of one common share and one-half

of one common share purchase warrant, 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.

    Application has been 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 30 March 2005. Canaccord Capital (Europe) Limited acted as broker

to the placing.

    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 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

    (SRE)