AuraSource Patents Clean Coal Technology That Significantly Improves Yield

  AuraSource, Inc. (OTCQB: ARAO) (OTCBB: ARAO), a developer of hydrocarbon clean fuel and mineral beneficiation technology, today announced that it has received a patent for its proprietary clean coal technology, AuraCoal™, from the State Intellectual Property Office of the People's Republic of China.

The AuraCoal™ patent covers a methodology for preparing an ultra-low ash coal-water-slurry that can significantly improve the yield of coal and improve the granularity of coal slurry fuel by improving the fluidity and increasing fuel particle concentration.

Philip Liu, President and CEO of AuraSource, stated: "AuraCoal™ is a clean coal technology solution that not only has strong environmental benefits, but also has economical scalability for mass production and applications. This patent on our process strongly enhances AuraSource's technology and intellectual property portfolio."

AuraSource is constructing a large scale AuraCoal production demonstration plant in Wuxi, China and plans to commercialize such AuraCoal technology in 2013.

About AuraCoal

• An ultra-low ash, coal-water-slurry preparation technology that shows compelling economic and environmental benefits.
• Can be used in lieu of heavy oil using a 2:1 ratio -- that is, two tons of AuraCoal™ can replace one ton of heavy oil.
• Has fine granularity that reduces ash content due to a more complete burn, while increasing combustion efficiency above 96% in small coal burning boilers.
• Can be used by large power stations to cut down on coal usage and reduce the electricity required, since a milling system is no longer required.
• Can be used in metallurgical furnaces to decrease energy consumption by 10% to 20%, with lower burning temperatures, less smoke/dust, and fewer NOx and SO2 emissions.

About AuraSource

AuraSource, Inc. is focused on the development and production of environmentally friendly and cost effective industrial energy sources and feedstock used for industrial applications. AuraSource's core technology includes ultrafine grinding and impurities removal processes. Initial industrial applications of AuraSource technology are ultra-fine coal water mixture for heavy oil substitution, and low grade iron ore fine and slimes beneficiation.

For more information about AuraSource, please visit www.aurasourceinc.com.

SAFE HARBOR STATEMENT

This Press Release may contain certain forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. AuraSource has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect AuraSource's current beliefs and are based upon information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause AuraSource's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. AuraSource undertakes no obligation to update or provide advice in the event of any change, addition or alteration to the information catered in this Press Release including such forward-looking statements.

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