Aura Minerals Announces Private Placement for Gross Proceeds of CAD$6.1 Million

TORONTO, ON--(Marketwired - May 28, 2015) - Aura Minerals Inc. ("Aura" or the "Company") (TSX: ORA) is pleased to announce it has entered into a non-brokered private placement (the "Private Placement") for gross proceeds of CAD$6,100,000 (approximately US$5.0 Million).

Pursuant to the Private Placement, the Company intends to issue 57,009,346 common shares to a private company at a price of $0.107 per share, representing a premium of approximately 15% to the five day VWAP of the common shares as of May 27^th, for gross proceeds of CAD$6,100,000. The Company intends to use the proceeds of the Private Placement for debt reduction, to complete the updated NI 43-101 studies for its Aranzazu and Serrote projects and for working capital.

The Private Placement is expected to close on or before June 1^st, and is subject to certain conditions, including the approval and acceptance by the Toronto Stock Exchange. All securities to be issued pursuant to the Private Placement will be subject to a four month hold period from the closing date.

Mr. Jim Bannantine, the Company's President & CEO stated, "With current market conditions and the limited ability to raise financing for junior mining companies and developers such as Aura, we see this financing as a show of confidence in Aura and our revised strategy. This Private Placement will be beneficial to all shareholders. Not only will this allow Aura to strengthen its balance sheet by reducing our debt, but also give the Company more flexibility and options moving forward as we refocus in 2015. The shares are being placed at a premium to market to a new, non-related, overseas, diversified, value-oriented private investor.

Moving forward, Aura's strategy is to: (i) continue to reduce its debt, which we expect to be almost nil by the end of the first quarter of 2016; (ii) further its operational improvements at San Andres, Aura's principal cash flow generator; (iii) proceed with the NI 43-101 studies for the Ernesto Pau-a-Pique project, which will replace gold production from its Sao Francisco mine; and (iv) update the NI 43-101 studies for Aranzazu and Serrote as the basis for a financing to restart or re-market Aranzazu and procure a partner in combination with project financing for Serrote. Aura is highly undervalued relative to its peers and we believe that the market will realize this as results from our strategy are displayed to the market."

Cautionary Note

This news release contains certain "forward-looking information" and "forward-looking statements", as defined in applicable securities laws (collectively, "forward-looking statements"). All statements other than statements of historical fact are forward-looking statements. Forward-looking statements relate to future events or future performance and reflect the Company's current estimates, predictions, expectations or beliefs regarding future events and include, without limitation, statements with respect to: the Private Placement and the use of proceeds, Aura's strategy going forward, the amount of mineral reserves and mineral resources; the amount of future production over any period; the amount of waste tonnes mined; the amount of mining and haulage costs; cash costs; operating costs; strip ratios and mining rates; expected grades and ounces of metals and minerals; expected processing recoveries; expected time frames; prices of metals and minerals; mine life; and gold hedge programs. Often, but not always, forward-looking statements may be identified by the use of words such as "expects", "anticipates", "plans", "projects", "estimates", "assumes", "intends", "strategy", "goals", "objectives" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions.

Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements in this news release are based upon, without limitation, the following estimates and assumptions: the presence of and continuity of metals at the Company's mines at modeled grades; the capacities of various machinery and equipment; the availability of personnel, machinery and equipment at estimated prices; exchange rates; metals and minerals sales prices; appropriate discount rates; tax rates and royalty rates applicable to the mining operations; cash costs; anticipated mining losses and dilution; metals recovery rates, reasonable contingency requirements; and receipt of regulatory approvals on acceptable terms.

Known and unknown risks, uncertainties and other factors, many of which are beyond the Company's ability to predict or control could cause actual results to differ materially from those contained in the forward-looking statements. Specific reference is made to the most recent Annual Information Form on file with certain Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements, which include, without limitation, gold and copper or certain other commodity price volatility, changes in debt and equity markets, the uncertainties involved in interpreting geological data, increases in costs, environmental compliance and changes in environmental legislation and regulation, interest rate and exchange rate fluctuations, general economic conditions and other risks involved in the mineral exploration and development industry. Readers are cautioned that the foregoing list of factors is not exhaustive of the factors that may affect the forward-looking statements.

All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.