Elevated Silver-Zinc Has Been Discovered At Tiria-Shimpia

TORONTO - Aurania Resources Ltd. reported that follow-up of a high-grade boulder found in a stream has led to the discovery of silver-zinc mineralization in outcrop over 2.7 kilometers (km) in the Tiria-Shimpia target area in the Company's Lost Cities - Cutucu Project in southeastern Ecuador. Follow-up exploration, together with the on-going channel sampling of the mineralized layers where they are exposed at surface, is providing key information on the distribution of grade on surface within the 15km trend along which silver-zinc is located at Tiria-Shimpia. This trend was recently extended to a total of 22km after the discovery of a 7km long mineralized zone at Shimpia North. Within the 2.7km mineralized zone, there is a 500 meter (m) segment of high-grade material with silver up to 73 grams per tonne (g/t) and zinc up to 49%. The high-grade mineralization is open to the north where there is a gap in outcrop of about 1km.

The mineralized sedimentary layer corresponds closely with silver enrichment in soil and remains open to the south. In fact, there is a second band of elevated silver in soil that suggests that there is a second mineralized layer in the sedimentary strata, but no outcrop has yet been found of the suspected second layer. A third level of mineralization has been found to the west with the discovery of low-grade outcrop that returned up to 2% zinc. Zinc and silver enrichment continues to the southern limit of ridge and spur soil sampling, and there is therefore potential for the silver-zinc zone to extend further south.

Silver-zinc mineralization is concentrated in the sedimentary layering in crackle-brecciated dolomitic limestone. Sphalerite and barite occur in veinlets and as fill between rock fragments in the breccia. The mineralization occurs in sedimentary layering that is folded across north-northwest - trending hinge lines.