Trading Statement

Attention Business Editors:

    SouthernEra Comments on Trading Activity

 

    Shares Issued and Outstanding: 74,499,193

    TSX: SUF

    AIM: SRE

 

    TORONTO, March 12 /CNW/ - SouthernEra Resources Limited announced today

that it has come to the Company's attention that a block of shares previously

controlled by subsidiaries of Rio Tinto plc has been traded. The block,

comprising approximately 6.8 million shares, represents 9.2 percent of

SouthernEra's issued and outstanding shares.

    The sale of this block of shares is not surprising considering the

following statement by Rio Tinto's Chief Executive in the Company's 2003

annual report: 'In 2003, we pursued opportunities for asset disposal in a

patient and disciplined manner. We sold our interests in Minera Alumbrera,

Peak Gold, Kaltim Prima Coal and a number of exploration projects that did not

fit our investment criteria. The sale of Fortaleza in Brasil was also agreed

in 2003'.

 

    Since the start of 2004 Rio Tinto has also announced the following asset

sales:

    January 16 - the sale of Mineracao Serra da Fortaleza Ltda to Votorantum

                 Metais

    January 20 - the sale of an interest in the Sepon Project to Oxiana Ltd

    March 4 - the sale of Zinkgruvan Mining AB to South Atlantic Ventures

    March 10 - the sale of an interest in Neves Corvo to EuroZinc

 

    Commenting on this development, SouthernEra President and CEO, Patrick

Evans, said: 'SouthernEra has been fortunate to have the support of Rio Tinto

as a major shareholder of the Company since its formation approximately twelve

years ago. In that time, Rio Tinto has provided strong support to our Company,

particularly by taking down a C$9.375 million private placement in 2001 and

also advancing a US$2.4 million loan in 2002. It is natural that companies

change their strategic direction from time-to-time, and it is clear that Rio

Tinto is actively disposing of what it considers non-core assets. While we

regret the departure of Rio Tinto as a major shareholder, we now welcome the

new shareholders who have acquired this block of shares.'

    SouthernEra's business plan and strategy remain unchanged. The Company is

continuing to support the development of the 24.4 million ounce Greater

Messina Platinum Project in South Africa. As reported on March 2, production

from the Phase 1 mine (Voorspoed Section) in 2003 increased by 223 percent

over 2002 as two new production levels - the 275-meter and 350-meter levels -

were brought into production. Prior to that, production was limited to the

150-meter and 200-meter levels.

    With the four upper levels of the Phase 1 mine now in production the mine

is able to support a production rate of 80,000 tonnes per month. As the

productivity of Messina's newly trained workforce continues to improve, the

production ramp-up is expected to increase steadily. Development is currently

underway to bring the next production level - the 370-meter level - into

production, which will support the mine's build-up to 120,000 tonnes per

month, which we expect to achieve by mid-year.

 

    SouthernEra Resources is an independent producer of platinum group metals

and diamonds. The company also has an extensive PGM, gold and diamond

exploration program. The common shares are listed on the Toronto Stock

Exchange and the London Stock Exchange's AIM market.

 

 

    For further information: PLEASE CONTACT: SouthernEra Resources Limited -

Mr. Patrick Evans, President and CEO, Telephone: [phone],           

Fax: [phone], E-mail: inbox(at)southernera.com, www.southernera.com

    (SUF. SRE)