SouthernEra to Underwrite Messina Platinum Rights

SouthernEra to Underwrite Messina Platinum Rights Issue

    Shares Issued and Outstanding: 51,580,800

    TSX: SUF

    AIM: SRE

    TORONTO, Aug. 21 /CNW/ - SouthernEra Resources Limited announced today

that it has agreed to underwrite a rights issue by its 70.4% owned subsidiary

Messina Limited, listed on the Johannesburg Stock Exchange.

    The Messina rights offering will consist of 20 rights for every 100

shares currently in issue. Each right enables the purchase of one common share

of Messina Limited at a price of R60. A total of 2,592,979 rights will be

issued to the shareholders of record of the 12,964,895 Messina shares

currently issued and outstanding for total proceeds of R155,578,740. The

rights issue is subject to South African regulatory approval.

    The proceeds from the exercise of the rights will be used by Messina to

reduce its unsecured debt obligations to SouthernEra Resources, which as of

June 30, 2002 totaled R155,970,280 (US$15m). SouthernEra advanced these funds

to Messina to finance the construction of the Messina platinum project in

South Africa. By underwriting this rights issue, SouthernEra could increase

its ownership in Messina to as much as 75.3%. SouthernEra expects to provide

further financing to Messina over the next year, which could result in further

Messina rights issues to convert these additional shareholder loans to equity.

    SouthernEra Resources Limited is an independent producer of platinum

group metals and diamonds. The Company also has an extensive PGM and diamond

exploration program. The common shares of SouthernEra are traded on the

Toronto Stock Exchange (SUF) and the London Stock Exchange's AIM (SRE).

    For further information: SouthernEra Resources Limited, Patrick C.

Evans, President and CEO, Telephone: [phone], Fax: [phone],

e-mail: inbox(at)southernera.com

    (SUF. SRE)