PEA on New Liberty Gold Project (4305Y)

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RNS Number : 4305Y

African Aura Mining Inc.

22 December 2010

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

22 December 2010

TSX-V: AUR

AIM: AAAM

African Aura Mining Inc.

AFRICAN AURA FILES PRELIMINARY ECONOMIC ASSESSMENT STUDY ON NEW LIBERTY GOLD PROJECT

22 December 2010, African Aura Mining Inc. ("African Aura" or the "Company") the TSX-V (AUR) and AIM (AAAM) listed exploration and development company with divisions focused on iron ore and gold projects in sub-Saharan Africa, announces the filing of a Preliminary Economic Assessment study pursuant to National Instrument 43-101, relating to the Company's 100% owned New Liberty gold project located in western Liberia.

With this news release, the Company is reporting the filing as required under the National Instrument 51-101. A copy of the document may be obtained via www.sedar.com and on the Company's corporate website www.african-aura.com.

-- Study highlights potential for robust open pit gold mine with strong economics

-- First five year's production with minimum 100,000oz pa in initial 8.5 year mine life

-- Pre-tax NPV of $234m (GBP148m) based on $1,100/oz Au and 10% discount rate

-- Initial capex of $92m, average cash cost of $484/oz and head grade of 3.6 g/t Au

-- IRR of 73% and capital payback in under two years

-- Definitive Feasibility Study underway and on track for 4Q 2011 completion

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.

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

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