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Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: Goalie who wrote (853)	4/17/1998 9:11:00 AM
From: Goalie	Respond to of 7235

To all: SouthernEra press release April 17/98: LUO PROJECT - ANGOLA DIAMOND SALES SouthernEra Resources Limited (SUF-TSE) is pleased to announce that a 5,120.57 carat parcel of diamonds from the Luo Concession was sold earlier this month for U.S. $1,147,724. The single 100.78 carat stone was sold separately for an additional U.S. $400,000. The sale parcel represented approximately six weeks of production during February and March from the existing Chicapa River diversion and floodplain deposits. The proceeds to SouthernEra from these sales totalled U.S. $755,000, representing the Company's share of the revenue and a payment towards operating costs. The average value received for this parcel, not including the large stone, was U.S. $224.33 dollars per carat. This represents almost a 50% increase in value over the February sale where the stones returned an average of U.S. $151.18 per carat, and confirms the historic overall high average value of the diamonds. Ongoing production continues at Luo, with some recent curtailment of activities caused by unusually high rainfall. Work on the new river diversion continues as weather conditions permit, with completion scheduled for late June. CAMAFUCA PROJECT Kimberlite samples from the recently completed drill program at Camafuca are now undergoing microdiamond testing, and results are expected by mid-May. Continuing work will involve additional drilling and bulk sampling of selected areas of the pipe. Under the terms of an agreement related to the acquisition of exploration rights to Camafuca,SouthernEra was required to make a payment of U.S. $7.0 million to one of its partners on April 10th, 1998. This agreement has been renegotiated and the Company will now issue 173,770 SouthernEra common shares valued at U.S. $1.5 million. A further, and final payment of U.S. $6.5 million is now required to be made on or before April 20th, 1999. Up to 50% of this last payment may be made, at SouthernEra's election, by the issuance of common shares at the prevailing share price at that time. KLIPSPRINGER PROJECT, DEVELOPMENT and PRODUCTION Over 22,000 carats of diamonds from recent production at Klipspringer are being prepared for sale. Approximately 19,000 carats came from the Sugarbird Blow, and the remainder from the Leopard Fissure. These stones will be submitted to a number of European and South African based diamantaires for valuations prior to their sale in early May. Mining of the Blow continues, with production through the plant varying from 1000-2000 tonnes per day depending on the development schedule. Underground development work is also underway on the Leopard Fissure, and long term mine development planning has begun. For more information please contact: Christopher M.H. Jennings, President A. Lee Barker, Vice President Frank van der Water, Chief Financial Officer Kim Freeman, Chief Mining Engineer Nicholas Sayce, Investor Relations Phone: (416) 359-9282 Fax: (416) 359-9141 e-mail: inbox@southernera.com