Amendment of Warrant Indenture

29th Jul 2005 15:05

SouthernEra Diamonds Announces Amendment of Warrant Indenture Resulting from Southern Platinum Corp Share Reclassification /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./ Shares Issued and Outstanding: 102,066,601 TSX: SDM AIM: SRE TORONTO and LONDON, July 29 /CNW/ - SouthernEra Diamonds Inc.("Diamonds") (TSX: SDM; AIM: SRE) has been advised by Southern Platinum Corp.("Platinum") and Lonmin Investments Canada Inc. ("Lonmin") that Lonmin hascompleted a compulsory acquisition transaction for all of the shares ofPlatinum. Further, Lonmin has advised Diamonds that effective today it hascompleted a reclassification (the "Reclassification") of the common shares ofPlatinum to change such shares into redeemable preferred shares with aredemption price of C$2.66. Subsequent to the plan of arrangement of SouthernEra Resources Limited("SouthernEra") effective September 1, 2004, warrants ("Warrants") issuedunder the warrant indenture between SouthernEra and Computershare TrustCompany of Canada ("Computershare") dated November 17, 2003, entitled holders("Warrantholders") to obtain one common share of Platinum and one common shareof Diamonds upon valid exercise of a Warrant including payment of the C$10.00exercise price. The exercise price was to have been divided as to C$8.00 toPlatinum and C$2.00 to Diamonds. Recognizing that subsequent to the Reclassification Platinum would beentitled to receive C$8.00 in exchange for a preferred share redeemable forC$2.66 Platinum has agreed to terminate its rights to receive such funds andits obligation to issue a preferred share of Platinum upon exercise of aWarrant. Consequently, Platinum, Diamonds and Computershare have entered into asupplemental indenture as of the date hereof. From today forward, upon thevalid exercise of a Warrant, including the payment of an exercise price ofC$2.00, Warrantholders are entitled to receive one common share in the capitalof Diamonds. The provisions of the Warrant Indenture relating to Platinum havebeen deleted and Warrantholders shall hereafter have no rights to acquireshares of Platinum upon exercise of the Warrants. The Warrants will continue to trade on the Toronto Stock Exchange(TSX:SDM.WT) SouthernEra Diamonds is Canada's largest fully integrated diamond companywith extensive diamond exploration in six countries including Canada,Australia, Gabon, the DRC, Zimbabwe and South Africa. This represents thefourth most active global diamond exploration program after the majorsDeBeers, BHPB and Rio Tinto. The Company also operates the KlipspringerDiamond Mine in South Africa and maintains an 18 percent free-carried interestin the Camafuca Diamond Project in Angola. For further information: SouthernEra Diamonds Inc., Mr. Chris Reynolds,SVP and CFO, Telephone: (416) 359-9282, Fax: (416) 359-9141, E-mail:[email protected], www.southernera.com (SDM. SRE) ENDSOUTHERNERA DIAMONDS INC

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