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

To: VAUGHN who wrote (2330)	1/7/1999 3:16:00 PM
From: Gord Bolton	Respond to of 7235

Angola Alluvial Mining Operations Discontinued TORONTO, Jan. 7 /CNW/ - SouthernEra Resources Limited (SUF-TSE) wishes to announce that the Company's role as operator of the alluvial and fluvial mining operations at the Luo and Cassanguidi concessions in the Lunda Norte Province of Angola will not be resumed in 1999. These concessions, operated at a profit for some months in 1998 have been rendered marginal by decreasing recoveries of diamonds and considerable increases in security costs along with logistical resupply problems. Most of the production equipment currently located at Luo will be transported to the Company's Camafuca-Camazambo project (SUF-51%), where the Company has recently completed trench bulk sampling at five locations for a total of about 15,000 tonnes of material. A test plant is being shipped and will be assembled on site to process the material and verify the grades indicated by previous large diameter reverse circulation bulk sampling completed in the 1980s. The current program at Camafuca is testing the higher grade areas of the property which have an estimated resource of 8.7 million carats contained in 26 million cubic metres of kimberlite from surface to a depth of 80 metres. Core from the 3,000 metre large diameter core drilling program completed late in 1998 is being bagged for shipment to South Africa for diamond recovery testing. The Company's investment in the alluvial operations that are being discontinued in Angola is approximately Cdn. $7 million and will be written off as at December 31, 1998. Should the operations be continued by the Company's partners on the Luo and Cassanguidi concessions, the Company will be eligible to receive its 10% share in profits from the operations, at no further cost to SouthernEra. %SEDAR: 00004535E -30- For further information: please contact: Christopher M.H. Jennings, President, A. Lee Barker, Senior Vice-President, Frank van de Water, Vice-President Finance, Kim Freeman, Vice-President Operations, Nicholas Sayce, Investor Relations, Phone: (416) 359-9282, Fax: (416) 359-9141, e-mail: inbox@southernera.com, southernera.com