Aura Gold Inc.

Aura Gold Inc.

March 31, 2006 19:56 ET

Aura Gold Inc. Completes Private Placement

TORONTO, ONTARIO--(CCNMatthews - March 31, 2006) - Aura Gold Inc. announces that it has completed a further tranche of the third private placement announced on January 5, 2006. An additional 1,325,000 shares were sold at $0.20 per share in a non-brokered private placement financing for total gross proceeds of $265,000.

In total, the third private placement consisted of the sale of 15,500,000 common shares at $0.20 per share for total gross proceeds of $3,100,000. These shares were sold to a group of private and institutional investors.

The securities issued pursuant to this private placement are subject to resale restrictions expiring on August 1, 2006. After the private placements, Aura Gold has 34,930,718 common shares issued and outstanding on a non-diluted basis, and 42,330,718 shares on a fully diluted basis.

The proceeds of these private placements will be applied to a search for gold and precious metal exploration properties in Brazil, for exploration on such properties, and to working capital.

Of this private placement, a total of 475,000 shares were sold to insiders at $0.20 per share for gross proceeds of $95,000. This private placement was a related party transaction under Ontario Securities Commission Rule 61-501 - Insider Bids, Issuer Bids, Business Combinations and Related Party Transactions (the "OSC Rule"). The private placement was approved by all of the independent directors of the Corporation. The non-arm's length private placement was exempt from the related party valuation and minority securityholder approval requirements of the OSC Rule on the basis that (i) the amount of the private placement was less than 25% of the market capitalization of Aura Gold, and (ii) no securities of Aura Gold are listed or quoted on any specified markets, such markets specified by the OSC Rule to be the Toronto Stock Exchange, the New York Stock Exchange, the American Stock Exchange, the NASDAQ Stock Market, or a stock exchange outside of Canada and the United States.

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 Inc., 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 Inc.'s expectations are the risks detailed herein and from time to time in the filings made by Aura Gold Inc. with securities regulators.

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