Aura Silver Closes Private Placement Financing

Aura Silver Resources Inc. (TSX VENTURE:AUU)

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Aura Silver Resources Inc. ("Aura Silver" or the "Company") announces that it
has closed the second and final tranche of its non-brokered private placement.
In total, for both tranches, 4,000,000 units were issued for proceeds of
$200,000. Each unit consists of one common share and one common share purchase
warrant (the "Units"). Each Unit was offered at a price of $0.05 per Unit. Each
Unit contains a whole warrant exercisable for a period of two years from the
closings of the offering at $0.10 per common share. 


Mr. Robert Boaz, President & CEO and director of the Company subscribed for a
total of 2,000,000 Units for $100,000 in this first tranche of the private
placement. Mr. Nick Tintor a director of the Company subscribed for 200,000
Units for $10,000. Following the private placement, Mr. Boaz will hold
approximately 3.5% of the issued and outstanding shares of the Company and Mr.
Tintor will hold 0.2%. The participation of Mr. Boaz and Mr. Tintor in the
private placement constitutes a Related Party Transaction within the meaning of
Multilateral Instrument 61-101 Protection of Minority Security Holders in
Special Transactions ("MI 61-101"). The board of directors of the Company
determined that the transaction is exempt from the formal valuation and minority
shareholder approval requirements of MI 61-101 and approved the private
placement, with Mr. Boaz and Mr. Tintor abstaining from the vote. A previous
press release dated May 29, 2012, indicated that the private placement may
involve insider participation. The material change report in respect of the
transaction was not filed 21 days in advance of the closing of the private
placement because insider participation had not been confirmed. The shorter
period was necessary in order to permit the Company to close the first tranche
of the private placement in a timeframe consistent with usual market practice
for transactions of this nature. 


As consideration for the services of an agent in connection with the private
placement, the Company has provided cash compensation of $2,400 and agent
options exercisable for 48,000 Units. Each agent option is exercisable at $0.05
per Unit and will expire August 9, 2014.


All securities issued in the first and second tranche are subject to four month
hold periods from the closing dates of the private placement offering which will
expire November 4, 2012 and December 10, 2012, respectively. This offering is
subject to final acceptance of the TSX Venture Exchange.


Aura Silver intends to use the proceeds of this offering to fund exploration
program costs at the Company's East Taviche and Alma Delia properties in Oaxaca,
Mexico and for working capital and general corporate requirements. 


The offered securities will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or
sold within the United States or to or for the account or benefit of U.S.
persons, except in certain transactions exempt from the registration
requirements of the U.S. Securities Act. This press release does not constitute
an offer to sell, or the solicitation of an offer to buy, securities of the
Company in the United States.


About Aura Silver

Aura Silver is a TSX Venture listed company engaged in the acquisition,
exploration and development of precious metal prospects in Canada (100% owned
Greyhound project) and in Oaxaca, Mexico. Including the shares issued in this
private placement Aura Silver has 101,680,844 common shares outstanding.


FORWARD-LOOKING STATEMENTS:

This press release may contain forward looking statements that are made as of
the date hereof and are based on current expectations, forecasts and assumptions
which involve risks and uncertainties associated with our business including the
uncertainty as to whether further exploration will result in the target(s) being
delineated as a mineral resource, capital expenditures, operating costs, mineral
resources, recovery rates, grades and prices, estimated goals, expansion and
growth of the business and operations, the private placement financing
activities of the Company, plans and references to the Company's future
successes with its business and the economic environment in which the business
operates. All such statements are made pursuant to the 'safe harbour' provisions
of, and are intended to be forward-looking statements under, applicable Canadian
securities legislation. Any statements contained herein that are statements of
historical facts may be deemed to be forward-looking statements. By their
nature, forward-looking statements require us to make assumptions and are
subject to inherent risks and uncertainties. We caution readers of this news
release not to place undue reliance on our forward-looking statements as a
number of factors could cause actual results or conditions to differ materially
from current expectations. Please refer to the risks set forth in the Company's
most recent annual MD&A and the Company's continuous disclosure documents that
can be found on SEDAR at www.sedar.com. Aura Silver does not intend, and
disclaims any obligation, except as required by law, to update or revise any
forward-looking statements whether as a result of new information, future events
or otherwise.