private placement of shares

19th Jan 2005 07:01

SouthernEra Directors Subscribe to Private Placement Shares Issued and Outstanding: 85,380,418 TSX: SDM AIM: SRE TORONTO, Jan. 18 /CNW/ - SouthernEra Diamonds Inc. (the "Company") (TSX:SDM, AIM: SRE) announced today that the directors of the Company propose toenter into a non-brokered private placement subscription agreement with theCompany. It is proposed that the directors will subscribe for 1.25 million commonshares of the Company at a price of C$0.47 per common share. This represents apremium of approximately 24 percent over the closing price on January 17, 2005and approximates the 30-day closing price average of the Company's commonshares. No warrants or options will be issued or granted and the placementcommon shares will be subject to a mandatory hold period. The proceeds fromthis private placement will be used to support the Company's globalexploration program and for general corporate purposes. SouthernEra Diamonds is one of Canada's largest fully integrated diamondcompanies with extensive diamond exploration in five countries, includingCanada, Australia, Gabon, the Democratic Republic of the Congo and SouthAfrica. This represents one of the most active global diamond explorationprograms. The Company also operates the Klipspringer Diamond Mine in SouthAfrica and maintains an 18 percent free-carried interest in the CamafucaDiamond Project in Angola. For further information: Please contact: SouthernEra Diamonds Inc., Mr. Chris Reynolds, Senior Vice President and CFO, or Ms. Sharon Allan,Investor Relations, Telephone: (416) 359-9282, Fax: (416) 359-9141, E-mail:inbox(at)southernera.com; www.southernera.com (SDM. SRE) END

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