African Aura Mining Inc. - GRANTING AND RATIFICATION BY GOVERNMENT OF LIBERIA
OF THE MINERAL DEVELOPMENT AGREEMENT FOR PUTU IRON ORE PROJECT

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

TSX-V:  AUR

AIM: AAAM

TORONTO, Sept. 15 /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 that the Government of Liberia has granted a Mineral Development Agreement ('MDA') for the Putu iron ore project.

Highlights:

• 25-year agreement providing for construction and development of the Putu iron ore project in eastern Liberia
• Fiscal regime and social development conditions fixed
• Putu has a current NI 43-101 resource of 1.08bt at a grade of 37.6% iron
• Current resource has been estimated from 22% of project's 13km strike length
• Four drilling rigs undertaking a 62,000m resource delineation programme
• Estimated base case economic analysis:
• 20Mt pa magnetite concentrate production
• Up to $2.5b capital expenditure required to bring Putu in to production
• Royalties to government of Liberia of $1.6 billion over initial 20yr mine life
  
  

Ellen Johnson Liberia September 3 ^rd September 9 ^th

Luis da Silva, President and CEO of African Aura commented:
"The granting of the Mineral Development Agreement for the Putu iron ore project is a significant milestone for African Aura and our joint venture partner Severstal Resources. It provides a win-win scenario for both investor and Liberia where the development of Putu will ultimately be the main regional economic driver.  The agreement fixes the fiscal terms for the development and mining of the Putu project and provides assurances for substantial investment in the social welfare and sustainable development under the guidance of a stakeholder committee."

"Since May of this year, Putu has been advancing swiftly with its 62,000m resource delineation programme underway. We are anticipating a more detailed project update in the near future once the final metallurgical work has been completed which is anticipated imminently. We graciously appreciate the support and confidence of the government of the Republic of Liberia, its President, Her Excellency Ellen Johnson Sirleaf and its Legislature. We look forward to moving the Putu project into production and to creating lasting direct and indirect benefits to the country and to the project's surrounding communities."

Principal terms of the MDA
The principal fiscal terms of the MDA are stabilised for the first fifteen years after completion of the project's definitive feasibility study, thereafter the terms are subject to five yearly reviews. All terms are in accordance with the draft Revenue Code, which is currently under consideration by the legislature of Liberia, with certain concessions in respect of customs fees, tax rate on profits (set at 25%), withholding tax and service charges. The project will also be the subject to a production royalty of 4.5%, based on arms-length sales prices. The MDA also provides for a two year extension of exploration until September 2012.

Corporate and Social Responsibility commitments
The MDA incorporates commitments for total social contributions of US$15.75m up to 2017 and thereafter the greater of US$3m / year (inflation-adjusted) or 0.5% of prior year taxable income. The use of funds will be determined by a dedicated committee comprising representatives from all key stakeholders. In addition to the ongoing commitment to train local staff, the MDA ensures an annual contribution of $100,000 pa (rising to $250,000 pa post DFS) for education, scholarships and training. The project and local community will also benefit from the paving of the 185km road that links the costal port of Greenville with the town of Zwedru, located to the north of Putu, by June 2017.

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 NI43-101 compliant 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 who are 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.

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 London and Moscow listed OAO Severstal). The African Aura's iron 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 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. 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:

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:

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]