Aura Silver Resources Inc.

Aura Silver Resources Inc.

February 27, 2007 09:00 ET

Aura Silver Signs MOU with Tribune Resources Corp. to Advance Exploration on the Potonico Project, El Salvador

BRAMPTON, ONTARIO--(CCNMatthews - Feb. 27, 2007) - Aura Silver Resources Inc. (TSX VENTURE:AUU) announces that the Company has entered into a memorandum of understanding ("MOU") with Tribune Resources Corp. ("Tribune") whereby Tribune can acquire the Company's wholly owned Salvadoran subsidiary (Martinique Minerals S.A. de C.V.) and all of its Salvadoran assets. The assets, including Aura's 50% interest in the Petancol Licence, comprise four contiguous exploration licenses covering a total of 149.5 square kilometers where a large low-sulphidation epithermal gold system has been identified but not fully explored.

Under the terms of the MOU, Tribune will work towards solving environmental permitting and social license issues. At the end of this period, Tribune can continue with the project by issuing to Aura Silver 400,000 common shares of Tribune stock in three tranches over a period of three years. Aura Silver will retain a 2% NSR royalty, subject to a buy-out payment of US$3 million. Upon satisfactory completion of due diligence by Tribune, the parties intend to negotiate a definitive agreement. Tribune plans to finalize and resolve environmental permitting and social issues prior to undertaking an exploration program.

The exploration licenses are currently part of a 50/50 Joint Venture agreement with Intrepid Mines Limited. Work by the Joint Venture has included mapping, surface sampling and alteration and metal zoning studies and has identified a broad area of quartz veining hosted by mid-Tertiary andesite volcanics. The area of veining is at least 12 square kilometres in size with individual veins traceable for up to two kilometres. Gold-quartz vein orientations are northeast to northwest and form an intricate intersecting pattern. These veins range in width from less than one metre up to about 10 metres. Gold values are variable, from trace amounts up to 52.2 grams per tonne. The highest values occur in the central part of the Ojo Blanco prospect where surface erosion appears to be deeper.

Paul Pitman, President reports, "We are very pleased to welcome Tribune to El Salvador. The principals of the company have excellent credentials including extensive experience in Central America. This agreement will further the development of our gold assets in El Salvador and will allow us to focus on the evaluation of our high quality silver prospects in Mexico, the United States and Canada."

About Aura Silver

Aura Silver Resources is a TSX Venture listed company engaged in the acquisition, exploration and development of precious metal prospects. The Company has 28,219,687 common shares outstanding.


This Press Release may contain forward looking statements that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange has neither approved nor disapproved the information contained in this press release.

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