African Aura Mining Inc. - CONVERSION OF CONVERTIBLE DEBENTURES

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

TSX-V:  AUR
AIM:  AAAM

TORONTO, Oct 6 /CNW/ - African Aura Mining Inc. ("African Aura" or the "Company"), the TSX-V (AUR) and AIM (AAAM) listed exploration and development company focused on gold and iron ore in sub-Saharan Africa, announces that, pursuant to the terms of its Convertible Debentures dated 27 September 2007, which matured on 28 September 2010, the holders of the £2.3 million Convertible Debentures have elected to convert these Convertible Debentures into Common Shares in the capital of the Company at a price of £1.12 per Common Share.

Following this conversion, African Aura will be debt free, leaving the company's balance sheet in a flexible position to enable future financing of its assets, in particular the iron ore portfolio which is developing better than expected a year ago and now targeting significant iron ore resources at both Putu and Nkout. The strong cash position will be further enhanced with US$4.2m due into treasury from Severstal as per the 2008 agreement.

Application has been made to the London Stock Exchange for 2,053,569 Common Shares to be admitted to trading on AIM (the 'Admission') and to listing on the TSX Venture Exchange.  It is expected that such Admission will become effective and that dealings will commence no later than 12 October 2010.

The shares will, when issued, rank pari passu in all respects with the existing Common Shares, including the right to receive dividends and other distributions declared following issue. 

Following Admission, the total issued share capital of the Company will be 72,336,795 Common Shares, all of which have voting rights.

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

''We financed our 2007 activities with this three year convertible when a private placement would have come at a discount.  Together with the Severstal joint venture in 2008 and the merger with AAR in 2009 the prudent management of our treasury has aided us to greatly reduce dilution over the past four years. Value has been added to the gold and iron ore portfolios and the benefits can now be seen."

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). In 2010 Putu was granted a 25 year renewable Mineral Development Agreement by the Government of Liberia. The division also includes a 100% interest in the Nkout iron ore project and surrounding iron targets in Cameroon which is subject to a resource definition drilling programme.
• 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 Ndablama, Weaju, Silver Hills and Gondoja gold projects all within the Company's Bea Mountain 25 year renewable Mineral Development Agreement. .

In addition, the Company presently has a 30% 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. 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:

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:

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]