Nkout Update - Maiden Resource (4210A)

TIDMAAAM

RNS Number : 4210A

African Aura Mining Inc.

01 February 2011

NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWS WIRE SERVICES.

1 February 2011

TSX-V: AUR

AIM: AAAM

MAIDEN RESOURCE AT NKOUT EXCEEDS 1 BILLION TONNES

African Aura Mining Inc. ("African Aura" or the "Company"), the TSX--V (AUR) and AIM (AAAM) listed exploration and development company is pleased to announce an initial independent National Instrument 43-101 compliant Mineral Resource Estimate at its 100% owned Nkout iron ore project in southern Cameroon.

-- Maiden Inferred mineral resource estimate of 1.04 billion tonnes of iron ore at 34% Fe

-- Management targeting 4 billion tonnes at Nkout and surrounding anomalies

-- Estimate covers a 3km section of a 20km long magnetic anomaly

-- Metallurgical test work on the magnetite BIF proves high grade concentrate

-- Metallurgical test work on the oxidized BIF shows sinter fines potential

-- Potential for direct shipping ore ("DSO") being investigated

-- 2011 drilling campaign underway and expected to total 25,000m

Luis da Silva, Chief Executive of African Aura, commented:

"This is an excellent maiden resource achieved for the first 3km of the Nkout deposit and with the recently announced excellent metallurgical results, testifies to the world class potential of the project. Aggressive expansion of the resource base by drilling along strike both east and west of Nkout Centre is underway. The Nkout project is extremely well located, being 30km from the proposed iron ore rail line linking the 2.4Bt Mbalam project 160km to the east with a proposed deep water Atlantic port 310km to the west. The project will undoubtedly form a major part in the development of the regional iron ore infrastructure which has yet to be built. With the new resource at Nkout, the preliminary economic assessment for New Liberty and an updated resource statement on Putu pending, the value opportunity in African Aura is increasingly visible and the rationale for the proposed split into separate gold and iron companies even more compelling."

Mineral Resource Estimate

This Nkout Mineral Resource Estimate, issued by independent engineers SRK Consulting (UK) Ltd ("SRK") has been prepared for the Company and made compliant with Canadian National Instrument 43-101 (NI43-101).

The report serves as an independent report prepared by a Qualified Person as defined by the Canadian National Instrument 43-101 and the companion policy 43-101CP. The definitions of Measured, Indicated and Inferred Resources, as well as reserves as used by the author, conform to the definitions and guidelines of the CIM (Canadian Institute of Mining, Metallurgy and Petroleum) reporting codes.

SRK undertook a site visit in September 2010 to assist in the drillhole planning with the exploration scope being to generate Inferred Mineral Resources for the Nkout Centre asset.

Table 1: Nkout Centre, Mineral Resource Estimate

 
                                          Tonnes           SiO2   AL2O3 
       Zone          Resource Category      (Mt)    Fe %     %      %     P % 
------------------  -------------------  --------  -----  -----  ------  ----- 
        110 
  (oxidized, >55% 
        Fe)               Measured           -       -      -       -      - 
------------------  -------------------  --------  -----  -----  ------  ----- 
                         Indicated           -       -      -       -      - 
------------------  -------------------  --------  -----  -----  ------  ----- 
                         Meas + Ind          -       -      -       -      - 
                    -------------------  --------  -----  -----  ------  ----- 
                Inferred                   7.01     58.0   5.3     5.6    0.11 
 --------------------------------------  --------  -----  -----  ------  ----- 
        120 
   (oxidized, 50 
     to 55% Fe)           Measured           -       -      -       -      - 
------------------  -------------------  --------  -----  -----  ------  ----- 
                         Indicated           -       -      -       -      - 
------------------  -------------------  --------  -----  -----  ------  ----- 
                         Meas + Ind          -       -      -       -      - 
                    -------------------  --------  -----  -----  ------  ----- 
                Inferred                   22.5     51.2   11.8    7.5    0.11 
 --------------------------------------  --------  -----  -----  ------  ----- 
        130 
   (oxidized, 30 
     to 50% Fe)           Measured           -       -      -       -      - 
------------------  -------------------  --------  -----  -----  ------  ----- 
                         Indicated           -       -      -       -      - 
------------------  -------------------  --------  -----  -----  ------  ----- 
                         Meas + Ind          -       -      -       -      - 
                    -------------------  --------  -----  -----  ------  ----- 
                Inferred                   131.0    40.1   29.8    6.4    0.08 
 --------------------------------------  --------  -----  -----  ------  ----- 
        210 
  (Magnetite BIF)         Measured           -       -      -       -      - 
------------------  -------------------  --------  -----  -----  ------  ----- 
                         Indicated           -       -      -       -      - 
------------------  -------------------  --------  -----  -----  ------  ----- 
                         Meas + Ind          -       -      -       -      - 
                    -------------------  --------  -----  -----  ------  ----- 
                Inferred                   878.6    32.7   46.0    2.2    0.05 
 --------------------------------------  --------  -----  -----  ------  ----- 
       TOTAL              Measured           -       -      -       -      - 
------------------  -------------------  --------  -----  -----  ------  ----- 
                         Indicated           -       -      -       -      - 
------------------  -------------------  --------  -----  -----  ------  ----- 
                         Meas + Ind          -       -      -       -      - 
                    -------------------  --------  -----  -----  ------  ----- 
                Inferred                  1,039.1   34.2   43.0    2.9    0.05 
 --------------------------------------  --------  -----  -----  ------  ----- 
 

Notes:

(1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability

(2) The effective date of the Mineral Resource is 28 January 2011

(3) The Mineral Resource Estimate for the Nkout deposit was constrained within lithological and grade based solids and within a Lerchs-Grossman optimised pit shell defined by the following assumptions; metal price of USD1.40/dmtu; slope angles of 35 and 44 in the oxide and fresh material; a mining recovery of 97.5%; a mining dilution of 2.5%; a base case mining cost of USD1.40/t and an incremental mine operating costs of USD0.05/t/10 m below the 80 m reference RL and USD0.05/t/10 m above the 80 m reference RL; process operating costs of USD4.39/t crushed DSO, USD2.3/t crushed oxide and USD4.49/t crushed BIF ore; and G&A costs of USD 2.31/t crushed ore.

In total, SRK has estimated an Inferred Mineral Resource for Nkout Project of 1.04 billion tonnes ("Bt") grading 34.2% Fe, 43.0% SiO2 and 2.9% Al2O3 and 0.05% P. Of this, 7 million tonnes ("Mt") grading 58% Fe lies within a near surface high grade oxidized zone (Zone 110, >55% Fe), 22.5 Mt grading 51.2% Fe lies within the oxidized zone 120 (50 to 55% Fe) and 131 Mt lies within the oxidized zone 130 (30 to 50% Fe). 878.6 Mt lies within the fresh magnetite BIF domain (Zone 210) and grades 32.7% Fe.

Nkout Centre Resource Potential

The Nkout Centre model is open at depth and SRK recognises that there is potential to increase the Mineral Resource Statement by targeting material that falls below the optimised pit shell but remains potentially economic. This material, based on a metal price of USD1.40/dmtu is considered by SRK to be potentially economic, should sufficient exploration data be collected that confirms the geometry and continuation of the orebody and that enables a classified resource to be estimated. SRK has identified that an additional 300 to 600 Mt lies below the optimised pit shell used for constraining the Inferred Mineral Resources. The potential quantity of tonnes is conceptual in nature as there has been insufficient exploration or demonstration of economic viability to report these in the Inferred Mineral Resource category at the current time. It is uncertain if further exploration will result in these targets being defined and reported in a future Mineral Resource Estimate. These potential tonnages reflect a range of material within SRK's wireframe solid models outlining the interpreted down dip extent of mineralisation. Database Validation

The QA/QC program for Company's Nkout project consists of alternating the insertion of a blank, standard and duplicate sample on a regular basis within the sample train. The Company uses standards with varying grades which are also alternated. All samples have been assayed at the accredited OMAC laboratory in Ireland. SRK found that the results of the above described QA/QC program indicate that the Company's Nkout assay databases were appropriate for Mineral Resource Estimation.

Data Verification

Howard Baker as qualified person completed the verification of data on which the Nkout Resource Estimate was based. This verification included an assessment of QA/QC data, sample preparation and assay methodologies, density data, data inputs and survey data used in the estimate. Data was validated by using field checks, statistical methods and evaluating the Company's protocols.

Geological Modelling, Resource Estimation Assumptions, Parameters and Methods

Nkout Centre, being a 3.5 km portion of a larger 20 km strike length magnetic anomaly, forms an east-west trending magnetite Banded Iron Formation ("BIF") with an oxidized cap of dominantly haematite mineralisation. SRK created a geological model based on the lithological logging and magnetic susceptibility data enabling the hangingwall and footwall contacts of the BIF unit to modelled and a three dimensional solid to be created. A statistical review of the validated drillhole data enabled grade based domains to be created within the oxidized cap. Internal metasedimentary waste domains created within the BIF and oxidized cap were based on lithology logging, magnetic susceptibility data and predominantly Al2O3- assay grades.

A 5 m composite file was used in a geostatistical study (variography and Quantitative Kriging Neighbourhood Analysis, "QKNA") that enabled Ordinary Kriging ("OK") to be used as the main grade interpolation method. The interpolation used an elliptical search following the predominant dip and dip direction of the geological domains. The results of the variography and the QKNA were utilised to determine the most appropriate search and estimation parameters.

The interpolated block model was validated through visual checks and a comparison of the mean input composite and output model grades. SRK is confident that the interpolated block grades are a reasonable reflection of the available sample data.

Metallurgical Test Work

Metallurgical test work is currently underway on a composite sample of saprolite ore (Zone 120 and 130 combined) from the Nkout Centre project. The test work is being undertaken by SGS Minerals in the UK. The sample is a composite sample with approximately equal proportions of material from three drill line sections drilled during the 2010 programme. Samples were taken from eight drill holes and the target Fe head grade of the sample was 44%, being in-line with the average grade of this domain.

The gravity separation tests showed little potential for lump production; however, the results indicated that the production of a sinter fines product from the saprolite ore has potential. For each size fraction below 3 mm, a high specific gravity ("SG") fraction with an Fe content of the order of 65% Fe or greater was produced, with Fe recoveries in some size fractions exceeding 70%.

While significant further test work is required, the early indications are that the Nkout saprolite presents the potential for the production of a sinter fines product through a flowsheet largely based on gravity separation.

Based on the assay results obtained from the first two completed drillholes, SRK selected 94 representative samples for Davis Tube Testwork (DTT). The DTT results, based on a grind size of P90 less than 100u, have been reviewed by SRK to evaluate the quality of the Fe concentrate that can be produced from the Nkout Centre project in relation to the feed grade.

The DTT shows that a high grade concentrate averaging greater than 70% Fe can be attained with low levels of contaminants. The mass recovery shows an average of 42.2% and 87% of the Fe relates to a recoverable magnetite mineral phase.

Mineral Resource Classification

The Nkout project has been classified as containing Inferred Mineral Resource in the fresh BIF and oxidised domains. This is mostly due to the wide spaced drilling and the poor geological continuity of the internal metasediments and areas around the interpreted faults. Inferred Mineral Resources have been extrapolated no more than 200 m down dip of the deepest drillhole intersection. It is the opinion of SRK that the down dip extension of Inferred Mineral Resources is justified in areas of unsupported blocks due to the known down-dip extensions as observed through the deep drilling at Nkout that has intersected magnetite BIF up to 390 m from surface.

Cautionary Statement

The effective date of the Nkout Mineral Resource Estimate is January 28, 2011. The Fe % presented in the above table is not meant to imply recoverable product. Mineral Resources for the Nkout Iron Project have been classified according to the "CIM Standards on Mineral Resources and Reserves: Definitions and Guidelines (December 2005) by Howard Baker (MAusIMM) an Independent Qualified Person as defined by National Instrument 43-101. Mineral Resources were estimated in conformity with generally accepted CIM "Estimation and Mineral Resource and Mineral Reserve Best Practices Guidelines". SRK is not aware of any known environmental, permitting, legal, title, taxation, socio-economic, marketing or other relevant issues that could potentially affect the estimate of Mineral Resources. The Mineral Resource may be affected by further exploration drilling which may increase or decrease the estimate. The Mineral Resource may also be affected by subsequent assessments of mining, environmental, processing, permitting, taxation, socio-economic and other factors. There is insufficient information at this stage to assess the extent to which the Mineral Resource will be affected by these factors that are more fully assessed in a feasibility study. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. Mineral Reserves can only be estimated based on the results of an economic evaluation as part of a preliminary feasibility or feasibility study. No Mineral Reserves have been estimated by SRK as part of the current assignment. There is no certainty that all or any part of the Mineral Resource will be converted to a Mineral Reserve. The quantity and grade of reported Inferred Mineral Resource in this estimate are uncertain in nature and there has been insufficient exploration to define these Inferred Mineral Resources as an Indicated or Measured Mineral Resource; and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.

Qualified Person

Howard Baker has some ten years experience in the exploration, definition and mining of iron ore Mineral Resources. Howard Baker is a full-time employee of SRK Consulting (UK) Ltd, an independent Consultancy and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a Qualified Person in accordance with NI43-101 and a Competent Person as defined in the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies. Howard Baker consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.

The NI 43-101 compliant Technical Report on the Mineral Resource Estimate will be filed on www.sedar.com within 45 days.

About African Aura Mining Inc.

African Aura is an established exploration and development company listed on the TSX-V (AUR) and London's AIM (AAAM). The Company operates two divisions that are currently being split and becoming effective at the end of March 2011:

- The iron ore division includes its 38.5% interest in the 1Bt Putu iron ore project in Liberia, which is subject to a resource expansion drilling programme and moving through pre-feasibility managed by joint venture partner Severstal Resources (the mining division of Moscow listed OAO Severstal). In September 2010 Putu was granted a 25 year renewable Mineral Development Agreement by the Government of Liberia. The division also includes a 100% interest in the Nkout 1Bt iron ore project and surrounding iron targets in Cameroon which is subject to a resource expansion drilling programme.

- The gold assets, to be held in "Aureus Mining Inc." when listed independently, include the New Liberty gold deposit in western Liberia which has a resource of 1.51 million ounces of gold grading 3.78 g/t (comprising 5,599,000 tonnes grading 4.17 g/t in the indicated category and 7,040,000 tonnes grading 3.40 g/t in the inferred category) which is being advanced through a bankable feasibility study, and the proximal Ndablama, Weaju, Silver Hills and Gondoja gold projects all within the Company's Bea Mountain 25 year renewable Mineral Development Agreement.

In addition, the Company has a 22% interest in AIM-listed diamond producer Stellar Diamonds Plc (AIM: STEL, www.stellar-diamonds.com).

The Company has a highly motivated and experienced team with a track record of discovering mines and taking projects through development and into production. As a pioneer, African Aura has attracted some excellent strategic partners and shareholders, always with the objective of preserving or enhancing shareholder value. For further information on the Company you are invited to visit its website at www.african-aura.com or SEDAR's website at www.sedar.com, or contact one of the following:

African Aura Mining Inc.

Luis da Silva, President & CEO Tel: [phone]

Evolution Securities Limited

Rob Collins / Tim Redfern Tel: [phone]

Pelham Bell Pottinger

Charles Vivian / James MacFarlane Tel: [phone]

Forward-looking Statements

This press release includes certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding the future plans and objectives of African Aura, are forward-looking statements that involve various known and unknown risks and uncertainties as well as other factors. Such forward-looking statements are subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations, including delays in obtaining or failure to obtain required regulatory approvals. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Any forward-looking statements speak only as of the date hereof and, except as may be required by applicable law, African Aura disclaim any obligation to update or modify such forward-looking statements, either as a result of new information, future events or for any other reason.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

Ends

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