Toronto, Ontario–(Newsfile Corp. – January 25, 2021) – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (FSE: 20Q) (“Aurania” or the “Company”) reports that the on-going MobileMT (“MMT”) geophysical survey has identified an extensive target area that lies on the edge of the very large Tsenken Central magnetic feature in the Company’s Lost Cities – Cutucu Project (“Project”) in southeastern Ecuador. The new target area, called Tsenken West, extends westward for 3.5 kilometres (“km”) from Tsenken N1. Final preparations are being made for the start of drilling at Tsenken N1 and Tsenken West (Figure 1).

Aurania’s Chairman & CEO, Dr. Keith Barron commented, “The MMT data is providing us with a three-dimensional image of the Tsenken target area in which we are able to see the sedimentary layering through differences in the electrical conductivity of the various strata. The new Tsenken West target is large and strong, and lies right on the edge of the massive Tsenken Central magnetic feature. We assume that the conductive zone is an area of electrically conductive sulphides perhaps in some way linked to the adjacent magnetic centre. We’re excited to start the drilling at Tsenken N1 – Tsenken West.”

Features of the Tsenken West Target

The MMT data shows the sedimentary layering in the Tsenken target area clearly beneath the conductive layer near surface that is due to the presence of conductive clay in the weathered rocks. The red-beds appear as a band of greater electrical resistivity compared with the underlying black shale and limestone beds (Figure 2). The Tsenken West target is a conductive area that measures approximately 3.5km by 2km that disrupts the layering of the red-beds and black shale-limestone. These areas of stronger electrical conductivity could be caused by an accumulation of sulphides related with mineralization or with clay minerals that are typically formed around and above mineralized systems, be they epithermal gold-silver, porphyry copper or iron oxide copper-gold (“IOCG”). The area of weak magnetism that coincides with the broad conductive area could be a response to magnetic iron minerals being replaced by non-magnetic sulphide minerals related to the mineralization. The proximity of copper-silver in sediment outcrops to the periphery of this anomaly may perhaps indicate a copper concentration at depth.

The conductive columns that spike upward from the main conductive feature represent specific targets that are being prioritized for scout drilling (Figure 2). The Tsenken N1 breccia target also lies on the margin of the large conductive feature as illustrated in Figure 1.

Figure 1.

a) Map of magnetic data showing the main features in the Tsenken North, Tsenken West and Tsenken Central target areas, with the location of the area shown in more detail in b) and c).

b) Detail of magnetic data showing the magnetic Tsenken Central feature and the low levels of magnetism that characterize the Tsenken West area. The location of the Tsenken West conductive zone is shown in the white outline on the image of the magnetic data.

c) Image of resistivity data from the MMT geophysical survey shown for the same area as in b). The MMT data shown are from 500m above sea level. The crest of the dome-shaped conductive zone lies 200m-300m below surface as illustrated in Figure 2. Cool colours (blue and green) are areas that are more resistive while warm colours (yellow, orange, red and pink) are areas that are more efficient at conducting electrical current.

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Figure 2. Vertical cross section through the Tsenken West target area showing sedimentary layering identified by the Mobile MT survey. Columns of higher conductivity are specific targets since they may represent areas of sulphide related to mineralization and or clay alteration associated with mineralized systems. The 500m elevation above sea level is shown on the cross section, its dome-shaped crest being 200m to 300m below surface through the Tsenken West target area.

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MMT Geophysical Survey

Heliborne MMT is currently being flown in the northern part of Tiria-Shimpia. The MMT survey is being undertaken by MPX Geophysics Ltd. in association with Expert Geophysics Limited, both of Toronto, Canada.

Planning

Next steps on the various targets in the Project are as follows:

• Commence drilling of the Tsenken N1 – Tsenken West target area.
• Finalize integration of MMT geophysical data with results from scout drilling and recent field work in the Yawi target area. Extend the MMT to fully cover a newly identified area of interest.
• Prepare the first of the targets within the Tiria-Shimpia silver-zinc-lead system for scout drilling.
• Continue with reconnaissance exploration.

This plan is subject to change, as results come in from the MMT survey and targets are shuffled in priority.

Qualified Persons

The geological information contained in this news release has been verified and approved by Jean-Paul Pallier, MSc. Mr. Pallier is a designated EurGeol by the European Federation of Geologists and a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

The geophysical information contained in this news release, has been verified and approved by Dr. Alex Prikhodko, Vice President & Chief Geophysicist of Expert Geophysics Limited and Mr. Robert Hearst, Chief Geophysicist – Americas, Southern Geoscience Consultants. Dr. Prikhodko and Mr. Hearst are registered with the Association of Professional Geoscientists of Ontario, among other professional organizations, and are Qualified Persons as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

About Aurania

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America. Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.

For further information, please contact:

Carolyn Muir
VP Investor Relations
Aurania Resources Ltd.
(416) 367-3200
[email protected]

Dr. Richard Spencer
President
Aurania Resources Ltd.
(416) 367-3200
[email protected]

Forward-Looking Statements

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

This news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Aurania. Forward-looking statements include estimates and statements that describe Aurania’s future plans, objectives or goals, including words to the effect that Aurania or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Aurania, Aurania provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to Aurania’s objectives, goals or future plans, statements, exploration results, potential mineralization, the corporation’s portfolio, treasury, management team and enhanced capital markets profile, the estimation of mineral resources, exploration, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, the effects of COVID-19 on the business of the Company including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restrictions on labour and international travel and supply chains, and those risks set out in Aurania’s public documents filed on SEDAR. Although Aurania believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Aurania disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

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