Aura Gold Inc.

Aura Gold Inc.

May 29, 2006 19:57 ET

Aura Gold Inc. Completes $6,900,000 Private Placement & Adjusts Property Portfolio

TORONTO, ONTARIO--(CCNMatthews - May 29, 2006) - Aura Gold Inc. is pleased to announce that it has completed arm's length non-brokered private placement financings consisting of the sale of 17,000,000 Units at a price of $0.40 per Unit for aggregate gross proceeds of $6,800,000. Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to acquire one common share for $0.50 until November 30, 2007. In conjunction with the financing, finders were paid a cash finder fee of 7.0% of the gross proceeds of the financing ($490,000), and a cash structuring fee of 1.0% of the gross proceeds of the financing ($70,000). Finders were also issued 1,700,000 broker warrants. Each whole broker warrant entitles the holder to acquire one Unit for $0.40 until November 30, 2007.

The proceeds of these private placements will be applied to gold and precious metal exploration in Brazil, and to working capital. All securities issued pursuant to these private placements are subject to resale restrictions expiring on September 11, 2006 and September 26, 2006. After the private placements, Aura Gold has 52,430,718 common shares issued and outstanding on a non-diluted basis, and 70,880,718 shares on a fully diluted basis.

On March 30, 2006, Aura gold announced a series of property acquisitions in Brazil. One of the acquisitions was the Aldebaran Project, a potential epithermal gold system in southeastern Amazonas State, in northwest Brazil. Further reconnaissance work has been completed and it has been determined not to proceed with the Aldebaran Project. The option agreement has been terminated and no property payments were made.

About the Company

Aura Gold Inc. is a Canadian based junior exploration company focusing on exploration in Brazil. Further information is available on our website, www.auragoldinc.com.

CAUTIONARY STATEMENT: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of Aura Gold, are forward-looking statements that involve various risks and uncertainties. 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. Important factors that could cause actual results to differ materially from Aura Gold's expectations are the risks detailed herein and from time to time in the filings made by Aura Gold with securities regulators.

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