African Aura Mining Inc. - HIGHLY ENCOURAGING MET-TEST RESULTS FOR PUTU IRON
ORE PROJECT

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TSX-V:   AUR

AIM:       AAAM

TORONTO, Oct 7 /CNW/ - African Aura Mining Inc. ("African Aura" or the "Company"), the TSX-V (AUR) and AIM (AAAM) listed exploration and development company focused on iron ore and gold in sub-Saharan Africa, announces the results of independent metallurgical testwork undertaken by Amdel Mineral Laboratories ("Amdel") in Australia on samples from the Putu iron ore project in Liberia.

Highlights:

• Modelled iron recoveries increased by 19% to 95%
• Modelled concentrate grades increased by 9% to 70%
• Higher grade concentrate estimated to increase revenues by 8%
• Significant reductions in processing, mining & CAPEX costs envisaged

Luis da Silva, President and CEO of African Aura commented:
"We are incredibly pleased with the metallurgical test results from the Putu project which indicate substantially improved recoveries and higher concentrates to what had previously been modelled by Amdel on early-stage less representative samples taken in 2008. With our joint venture partner, Severstal Resources, the project is moving forward rapidly, with four drill rigs conducting an initial 62,000m resource definition programme, of which over 14,000m had been completed as at mid-September 2010. The existing 43-101 resource of 1.08 billion tonnes sits within 22% of the project's estimated 13km strike length. As the current drilling campaign covers an increasingly higher percentage of the total ridge and as we learn more about the structure of the ore body and types of ore, we anticipate an increase in confidence of the resource as we progress towards our minimum target of 2 billion tonnes. Putu is shaping up to be a significant iron ore deposit and we look forward to keeping shareholders updated on progress."

Summary of metallurgical test work
Metallurgical test work was completed by Amdel on five samples collected from the four mineralisation types identified so far at the Putu project.  Samples comprised two types of fresh magnetite banded iron formation ("BIF"), fresh hematite BIF, transitional zone BIF, and weathered BIF; the total weight of these samples exceeded 2,000kg. The samples were taken from two holes of the 2008 campaign drilling locations.  Further metallurgical test work will be required to asses the extent to which the samples tested are representative of the entire resource at Putu.

The comminution test work suggests that from a crushing/AG/SAG and ball milling perspective the Putu fresh BIF (representing the majority of the resource and mineralisation) is moderately hard, and potentially amenable to AG milling.  There is a greater variability in comminution characteristics for the other iron ore types, being the transition zone BIF, weathered BIF and fresh hematite BIF samples.

Davis Tube test work on samples at a P80 of 40-60 microns (i.e. 80% of comminuted material will pass through a 60 micron mesh size), demonstrates that high quality concentrates (Fe content 69-71%, SiO₂ content of 1-4%, Al₂O₃ content below 0.3%) can be produced from the fresh magnetite BIF mineralisation with mass recoveries ranging between 50-70%.  Similar quality concentrates were produced from the transition zone BIF and weathered BIF samples but at significantly lower mass recoveries.  Further metallurgical test work will be required to determine the economics of ores from the transition zone BIF, fresh haematite BIF and weathered BIF.

Relative to the assessment completed by Amdel in May 2008, the mass recoveries achieved from the fresh magnetite BIF samples are significantly higher (50-70% vs. 50%) as is the concentrate iron content (68-70% vs. 64%).  The higher mass recoveries would enable the same volume of saleable concentrate to be extracted from a lower amount of ore feed, thus reducing both total mining and processing opex and capex.  The higher concentrate grade would also result in an improved selling price for the concentrate, with no additional processing costs.  Furthermore, the implied iron recovery from fresh magnetite BIF samples is in the order of 95%, again significantly higher than the 80% recovery figure implied by the Amdel analysis.

Follow up metallurgical test work
As part of the pre-feasibility study further laboratory and pilot scale testwork will be undertaken on drill core and bulk samples in order to provide data for comminution and beneficiation plant design purposes. Testwork will include point load tests for calculating the rock strength characteristics and grind, regrind and magnetic separation testwork to identify the optimum grind size, guide equipment selection and future design capacity considerations and ore moisture in feed tests in order to produce process flow diagrams.

About the Putu Iron Ore Project
The Putu iron ore project is a 13km long iron rich ridge, located only 120km inland from the deepwater shoreline of eastern Liberia. In 2009 the Company announced an Independent Mineral Resource of 1.08 billion tonnes of iron ore at 37.6% total iron (Fe) from drilling undertaken on a 2.6km section of the ridge. The best drill results to date are 91m at 61.3% Fe oxidised BIF haematite and 232m at 40.8% Fe magnetite. The deposit is being advanced in joint venture with Severstal Resources that is currently investing US$30m towards completion of a Pre-Feasibility Study, anticipated to be completed in 2012, in order to earn a 61.5% interest in the project. A Mineral Development Agreement detailing the fiscal and legal terms for the development and mining of the Putu iron ore deposit was granted and ratified by the Government of Liberia on 9^th September 2010.

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, Ndablama, Gondoja and Silver Hills projects, all in western Liberia.

In addition, the Company 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.

About Severstal Resources
Severstal Resources is the mining division of international steel and mining company OAO Severstal (www.severstal.com) Severstal is 3.5% shareholder in African Aura and is earning a 61.5% interest in the Putu iron ore project by expending $30m. Severstal Resources is one of Russia's biggest mining companies. It consists of two iron ore mining complexes (Karelsky Okatysh and Olcon), a coking coal complex (Vorkutaugol) in northwest Russia, a ferroniobium producer (Stalmag) in east Russia, a coking coal complex in the US (PBS Coals) and a mine design company (SPb-Giproshakht).  Severstal Resources also includes a significant gold business with assets in Russia, Kazakhstan and Burkina Faso and Guinea.

OAO Severstal is listed on the Russian Trading System, Moscow Interbank Currency Exchange and the London Stock Exchange. Incorporated in 1993, the company focuses on high value added and unique niche products and has a track record of acquiring and operating assets in North America and Europe. Severstal owns mining assets in Russia and in the US, thus securing its supplies of raw materials. Its enterprises are located in Russia, Ukraine, Kazakhstan, United Kingdom, France, Italy, United States and Africa. In 2009, Severstal produced 16.7 million tonnes of steel.

Forward-looking Statements
This press release includes certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding the future plans and objectives of African Aura, are forward-looking statements that involve various known and unknown risks and uncertainties as well as other factors. Such forward-looking statements are subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations, including delays in obtaining or failure to obtain required regulatory approvals. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Any forward-looking statements speak only as of the date hereof and, except as may be required by applicable law, African Aura disclaim any obligation to update or modify such forward-looking statements, either as a result of new information, future events or for any other reason.

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:

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]