AFRICAN AURA MINING INC. - Publication of Quarter 2 2010 Accounts

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWS WIRE SERVICES./

    
    TSX-V: AUR
    AIM: AAAM
    

TORONTO, Aug. 31 /CNW/ - The Board of African Aura is pleased to release the Unaudited Interim Consolidated Financial Statements of the Company for the quarter ended, June 30, 2010 which should be read in conjunction with the accompanying Management Discussion and Analysis. These documents have been filed on Sedar and are available on the Company's website (http://www.african-aura.com) or at www.sedar.com.

Luis da Silva, President and CEO of African Aura commented:

"The Company finds itself at a very exciting period of growth. The first half capital raise means that the Company can carry out its planned strategy and key projects are adequately funded.

The Board believes that the current value of the Company does not recognise fully its key assets. With this in mind the Board is considering splitting African Aura into two separate companies, one focussed on developing its gold assets and the main surviving entity developing the iron ore assets. This process, being a Canadian incorporated company, would follow the most tax efficient means for the Company and its shareholders. At the appropriate time in the near future, the Board will announce the results of its review.

Meanwhile, at project level, the Putu iron ore project in which the Company has a 38.5% interest is making excellent progress. The drilling for the pre-feasibility study commenced in quarter two and the study itself will complete at the latest in 2012. The definitive feasibility study is then expected to be completed 18 months thereafter. A project update with metallurgical and current drilling progress will follow in September.

The Nkout Iron ore project in the Cameroon is an exciting prospect over which the Company has commenced a resource drilling programme in late July 2010. The Board believes there is currently no value attributed to the Cameroon iron ore assets in the Company's market capitalisation. Having commenced the year with an iron ore exploration licence the intention is to deliver an inferred resource statement by year end or early next year, depending on drilling progress.

The gold strategy is based around progressing New Liberty towards a definitive feasibility study during the first half of 2011. Further definition drilling in the Latiff zone has been completed and assays are expected during September. The resource statement to NI 43-101 level and results of the scoping study are expected towards the end of October.

The Company is also stepping out along strike with extension drilling to further test the geology of the system. Additional targets within the same Bea Mountain licence area are being reviewed in order to provide further near surface mineable gold ounces. Of particular note are Silver Hills, Weaju, and Ndablama, all located within 15-30 kilometres of New Liberty. These near surface target ounces will allow for truckable ore to be transported to New Liberty."

    
    On behalf of the Board of African Aura Mining Inc.

    Luis da Silva
    President and CEO
    

About African Aura Mining Inc.

African Aura is an established exploration and development company listed on the TSX-V (AUR) and London's AIM (AAAM). The Company operates two divisions, namely: iron ore and gold:

    
    -   The iron ore division includes its 38.5% interest in the Putu iron
        ore project in Liberia, which is moving through pre-feasibility
        managed by joint venture partner Severstal Resources (the mining
        division of Moscow listed OAO Severstal). The division also includes
        a 100% interest in the Nkout iron ore project and surrounding iron
        targets in Cameroon.
    -   The gold division includes the multi million ounce potential New
        Liberty greenstone gold deposit, which is being advanced through a
        bankable feasibility study, and the proximal Weaju, Gondoja, Ndablama
        and Silver Hills projects, all in western Liberia.
    

In addition, the Company has a 30.8% interest in AIM-listed diamond producer Stellar Diamonds Plc (AIM: STEL, www.stellar-diamonds.com).

The Company has a highly motivated and experienced team with a track record of discovering mines and taking projects through development and into production. As a pioneer, African Aura has attracted some excellent strategic partners and shareholders, always with the objective of preserving or enhancing shareholder value.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

For further information: on the Company you are invited to visit its website at www.african-aura.com, or SEDAR's website at www.sedar.com, or contact one of the following: African Aura Mining Inc., Luis da Silva, President & CEO, Tel: [phone]; Evolution Securities Limited, Simon Edwards, Tim Redfern, Neil Elliot, Tel: [phone]; Pelham Bell Pottinger, Charles Vivian, James MacFarlane, Tel: [phone]