Nkout Update (6996Z)

TIDMAAAM

RNS Number : 6996Z

African Aura Mining Inc.

19 January 2011

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

19 January 2011

TSX-V: AUR

AIM: AAAM

NKOUT DELIVERS HIGH GRADE CONCENTRATE OF 70% IRON -

MAIDEN RESOURCE ESTIMATE NEARS COMPLETION

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 update for its iron ore project at Nkout, southern Cameroon.

-- A 33 hole drilling programme has been completed at Nkout totalling over 4,200m

-- Excellent Davis Tube Recovery ("DTR") results from Nkout with an average Fe (total) concentrate grade of 70% using a grind size of P90 of less than 100u

-- No deleterious materials present with the final concentrate low in silica, phosphorous and alumina

-- Mass recovery of 42%

-- Oxidised cap material grading between 40-62% Fe (total) with metallurgical testwork underway

-- An additional target at the adjacent Ngoa was drilled, 10 shallow holes for 550m completed

-- Maiden resource statement is anticipated by early February 2011

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

"This is a major step forward in establishing Nkout as a significant regional iron ore project. The progress made in less than twelve months is significant and this will culminate with a maiden resource statement in the coming weeks. After demonstrating the underlying value in the company with the delivery of the gold PEA which supports the current market capitalisation of the Company, Nkout will further demonstrate the under-valuation of African Aura and making the rationale for the proposed demerger more compelling."

The Company recently completed a 4,200m core drill programme on the Nkout property in southern Cameroon. The drilling has confirmed the occurrence of an east-west trending and concordant magnetite bearing banded iron formation ("BIF") that was discovered after the completion of regional grab sampling and aerial and ground magnetic surveys within the Djoum license area that is 100% owned by African Aura.

Drilling has focused on the Nkout Centre target that makes up approximately 3km of a regional magnetic anomaly that extends for some 18km within the Djoum license area.

The drill programme that has been completed was designed to target the magnetite BIF and overlying oxidized cap material with 11 inclined drillholes intercepting on average a 200m thick BIF unit and 22 vertical drillholes targeting the weathered BIF and intercepting up to 60m in thickness. All assays have now been received for the exploration programme and SRK Consulting (UK) Limited ("SRK") are currently in the process of undertaking the inaugural Mineral Resource Estimation ("MRE") for the Nkout Centre project. The results of the MRE are expected to be announced in early February 2011.

The magnetite BIF averages approximately 40% Fe (total) with SRK selecting 86 representative samples for DTR testwork. The Davis Tube results are highly encouraging and show that when using a grind size of P90 of less than 100u, that a very high grade concentrate averaging 70% Fe, 0.17% Al2O3, 2.2% SIO2 and 0.01% P is attained at a mass recovery of 42.2%. The Davis Tube results also show that 87% of the Fe within the BIF relates to a magnetite mineral phase.

The oxidized cap material shows elevated Fe grade that ranges from 40% Fe (total) to 61.8% Fe (total) and is a result of the natural enrichment of the BIF after Silica dissolution, this being a typical weathering profile of Fe deposits in Central and West Africa. SRK has selected a composite sample of the key mineralization domain within the oxidized cap that is currently undergoing testwork at the SGS laboratory in Truro UK, to test the amenability to upgrade through standard gravity circuits into a saleable concentrate. The results of the testwork are expected to available for integration into the results of MRE.

Qualified Person

The summary of the Exploration results has been completed by Howard Baker, a Principal Mining Geologist with SRK Consulting (UK) Ltd, who is a Member of the Australian Institute of Mining and Metallurgy (MAusIMM). 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 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.

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, namely: iron ore and gold:

- The iron ore division includes its 38.5% interest in the Putu iron ore project in Liberia, which is 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 iron ore project and surrounding iron targets in Cameroon which is subject to a resource definition drilling programme.

- The gold division includes 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

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCUWVKRAOAAAAR