SouthernEra Diamonds Responds to Unsolicited Offer

SouthernEra Diamonds Responds to Unsolicited Tender Offer

    TSX: SDM
    Shares issued and outstanding: 173,483,896

    TORONTO, July 31 /CNW/ - SouthernEra Diamonds Inc. (TSX: SDM)
("SouthernEra" or the "Company") has been advised that Mwana Africa PLC
("Mwana") (AIM: MWA-L) has filed documents with the Canadian securities
authorities formally commencing an unsolicited offer to acquire all of the
outstanding common shares of SouthernEra not already owned by Mwana and its
affiliates on the basis of one (1) ordinary share of Mwana for every 2.3333
Class A common shares of SouthernEra.
    Consistent with its fiduciary duties, SouthernEra's Board of Directors
(the "Board") will carefully review and consider the offer and will advise
SouthernEra shareholders of the Board's recommendation in due course.
Accordingly, SouthernEra urges its shareholders to defer making any decision
with respect to the Mwana offer until they have been advised of the Board's
recommendation.
    RBC Capital Markets is acting as financial advisor to the Company.
Canadian legal counsel to the Company is Fraser Milner Casgrain LLP.

    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 Botswana, South Africa and Canada.
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, CEO
or Mr. Chris Reynolds, SVP, CFO and Secretary, Telephone: [phone], Fax:
[phone], E-mail: inbox(at)southernera.com, www.southernera.com; London:
4C-Burvale, Carina Corbett, Director, Telephone: [phone], Fax:
[phone], Email: Corbett(at)4c-burvale.co.uk
(SRE SDM.)