Aura Minerals Inc.
TSX : ORA

Aura Minerals Inc.

February 28, 2012 19:32 ET

Aura Minerals Provides Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 28, 2012) - Aura Minerals Inc. ("Aura Minerals" or the "Company") (TSX:ORA) is pleased to provide the following update on the upsizing of the revolving credit facility, the implementation of a gold hedging program and the status of the feasibility study on the Serrote de Laje Project (formerly known as the Arapiraca Project) in Brazil (the "Serrote Project").

Credit Facility Upsizing

Although the Company expects to generate positive free cash flow in 2012 based on current metal prices, management has negotiated an increase in the revolving credit facility to $45 million, from $25 million, to fund working capital for growth. Closing of the upsizing is expected to be in late March or early April, 2012.

Gold Hedging Program

In conjunction with the implementation of the new mine plans at the Sao Francisco and Sao Vicente gold mines in Brazil and the upsizing of the credit facility, the Company has implemented a gold hedging program to take advantage of current high gold prices and secure cash flows at these higher cost operations. Under this program, the Company has hedged 80,000 ounces of gold production between April 2012 and June 2014, using a series of zero-cost put/call collars having a put/floor price of $1,700 per ounce and an average call/ceiling price of $1,812 per ounce.

Serrote Project Feasibility Study

On July 12, 2011, Aura Minerals announced that SNC-Lavalin Inc. and its Brazilian subsidiary, SNC-Lavalin Minerconsult Engenharia Ltda., had been awarded the definitive feasibility study on the Serrote Project. Work on the design and sizing of the mine is ongoing, with the feasibility study now scheduled for completion in the second quarter of 2012 as opposed to the first quarter of 2012.

The feasibility study will focus on developing the Serrote Project as an open pit mine that will supply sulphide ore to a concentrator at a rate of 8-12 million tonnes per year, producing copper in concentrate with gold credits, with potential for iron in magnetite concentrate. With all critical permits in place, and with the excellent infrastructure in the vicinity of the project, and assuming a positive result of the feasibility study, the Company expects to commence development, contracting and negotiations for project financing during the last half of 2012.

About Aura Minerals Inc.

Aura Minerals is a Canadian mid-tier gold and copper production company focused on the exploration, development and operation of gold and base metal projects in the Americas. The Company's producing assets include the San Andres gold mine in Honduras, the Sao Francisco and Sao Vicente gold mines in Brazil and the copper-gold-silver Aranzazu Mine in Mexico. Other significant assets include the feasibility-stage copper-gold-iron ore Serrote Project in Brazil.

For further information, please visit Aura Minerals' web site at www.auraminerals.com.

Cautionary Note Regarding Forward-Looking Statement:

This document contains "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as "forward-looking statements" are made as of the date of this news release or as of the effective date of information described in this news release, as applicable. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, without limitation, statements with respect to expected time frames. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "projects", "estimates", "envisages", "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) are not statements of historical fact and may be forward-looking statements.

All forward-looking statements are based on the Company's current beliefs as well as various assumptions made by and information currently available to them. These assumptions include, without limitation: (i) the presence of and continuity of metals at each mine at modeled grades; (ii) the capacities of various machinery and equipment; (iii) the availability of personnel, machinery, equipment and key consumables at estimated prices; (iv) exchange rates; (v) metals and minerals sales prices; (vi) appropriate discount rates; (vii) tax rates and royalty rates applicable to the mining operations; (viii) cash costs; (ix) anticipated mining losses and dilution; (x) metals recovery rates, (xi) reasonable contingency requirements; and (xiii) receipt of regulatory approvals on acceptable terms. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Many forward-looking statements are made assuming the correctness of other forward looking statements. The cost information is also prepared using current values, but the time for incurring the costs will be in the future and it is assumed costs will remain stable over the relevant period.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. The Company cautions readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur, but specifically include, without limitation, risks relating to variations in the mineral content within the material identified as mineral reserves and mineral resources from that predicted, changes in development or mining plans due to changes in logistical, technical or other factors, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices (such as gold, copper, silver, nickel and iron ore), currency exchange rates (such as the Canadian dollar, Brazilian Real, Mexican Peso and the Honduran Lempira versus the United States dollar), possible variations in ore grade or recovery rates, changes in accounting policies, changes in the Company's corporate resources, changes in project parameters as plans continue to be refined, changes in project development and production time frames, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, final pricing for concentrate sales, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, successful completion of proposed acquisitions, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation and labour disputes, as well as those risk factors discussed or referred to in the Company's Annual Information Form, dated March 30, 2011, under the heading "Item 4.2 - Risk Factors" and in the annual financial statements and management's discussion and analysis of the Company for the year ended December 31, 2010. The foregoing list of factors that may affect future results is not exhaustive.

When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on behalf of the Company, except as required by law.

The forward-looking statements contained herein are presented for the purpose of assisting investors in understanding the Company's expected financial and operational performance and results as at and for the periods ended on the dates presented in the Company's plans and objectives and may not be appropriate for other purposes.

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