DIAMOND PRODUCTION NEWS Klipspringer Closed

LIMPOPO PROVINCE, South Africa Mining has ceased at the Klipspringer joint venture belonging to SOUTHERNERA RESOURCES of Toronto (50%), DE BEERS CONSOLIDATED MINES and NAKA DIAMOND MINING. SouthernEra said the closing was necessary because of the strong South African rand compared to the United States dollar. The result was an unprofitable operation.

Stockpiled ore will be treated until later this month, and then the mine will be placed on care-and-maintenance. Klipspringer only achieved full production in 2003. More information is available at www.southernera.com.