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Press Release, Aurania Provides Update on Drilling as Mobile MT Geophysical Survey Identifies Probable Centre of Tsenken North System

Toronto, Ontario--(Newsfile Corp. - January 20, 2021) - Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (FSE: 20Q) ("Aurania" or the "Company") reports that though significant copper mineralization was intersected in the last three boreholes drilled on the Tsenken N2 and N3 targets, no economic grades were encountered. Copper and pathfinder elements increase in grade from Tsenken N2, through N3, towards the northeast, corroborating the vector determined from geological studies of the drill core. Data from the on-going Mobile MT ("MMT") geophysical survey have now identified the likely centre of the Tsenken North system located along-trend of the vector, approximately 1.5 kilometres ("km") to the north of the area in which holes TS-001 to TS-006 were drilled (Figure 1). The Tsenken North target area is located in Aurania's Lost Cities - Cutucu Project ("Project") in southeastern Ecuador.

Aurania's Chairman & CEO Dr. Keith Barron commented, "We're delighted that the MMT survey has identified the location of the possible core of the IOCG system related to the area that we were drilling at Tsenken N2 and N3. Without that scout drilling, we are unlikely to have recognized the relevance of the electrically conductive zone along trend of the vectors that we established in the Tsenken North area.

The original plan was to drill the Tsenken N1 target next, and we're sticking to that plan. In parallel, we are fully integrating the new geophysical data from the MMT survey with our other exploration data to refine the target to the north of Tsenken N2/N3. Drilling is scheduled to start shortly at Tsenken N1."

Details of the Drilling at Tsenken N2/N3

A total of 1,891 metres ("m") were drilled in the Tsenken N2 and N3 targets. The last hole, TS-006, reached a depth of 522m.

Copper and pathfinder elements increase in grade from Tsenken N2, through Tsenken N3, towards the northeast, confirming the vector determined from alteration minerals observed in the drill core. In addition, results from the ongoing MMT geophysical survey identified two closely - spaced conductive features that are likely to be the sulphide-rich centres of the target area, which lies approximately 1.5 kilometres ("km") to the north of the area in which holes TS-001 to TS-006 were drilled (Figure 1). The conductive features have roots that extend vertically downwards to at least 700m below surface.

The conductive zones related with Tsenken N2 and N3 are too far from the current exploration camp to be serviced by it and a new camp is needed to support further scout drilling there. In the meantime, another camp has been established to support drilling of the Tsenken N1 target.

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Figure 1.

a) Map of magnetic data showing the main features in the Tsenken North 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 features drilled in the Tsenken N2 and N3 areas and the vector that indicates the direction in which the centre of the Tsenken North system should lie, based on observations from the drill core. The magnetic data shown is the negative reduction to the equator. Drill hole collar positions are labelled TS-001 to TS006.

c) Image of resistivity data from the MMT geophysical survey shown for the same area as in b). The MMT data shown are from 700m to 800m below surface to illustrate the depth to which the roots of the pair of conductive zones reach. Cool colours (blue and green) are areas that are more resistive to conducting electrical current while warm colours (yellow and orange) are areas that are more efficient at conducting electrical current.

To view an enhanced version of Figure 1, please visit:
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MMT Geophysical Survey

Heliborne MMT has been flown over the Yawi and Tsenken areas and is now underway in the northern part of Tiria-Shimpia. Initial results have surpassed the Company's expectations - these new data dovetail and complement geophysical features from the prior magnetic survey, as well as observations from the field and soil and rock-chip sample results.

The MMT survey is being undertaken by MPX Geophysics Ltd. in association with Expert Geophysics Limited, both of Toronto, Canada.

Planning

The current planning for exploration of the various targets in the Lost Cities - Cutucu Project is as follows:

  • Evaluate the cost-effectiveness of extending the MMT survey to completely cover features that extend beyond the margins of the blocks flown at Yawi and Tsenken, and consider flying MMT over targets that were not originally scheduled to be flown.
  • Commence drilling of the Tsenken N1 breccia target.
  • Plan the continuation of scout drilling of more clearly-defined targets at Yawi, based on results from the MMT survey after the hiatus there.
  • 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 and drill-related 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
carolyn.muir@aurania.com

Dr. Richard Spencer
President
Aurania Resources Ltd.
(416) 367-3200
richard.spencer@aurania.com

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.

Forward-Looking Statements

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.