AUU Gold79 Mines Ltd

Aura Silver Resources Inc. (TSX VENTURE:AUU) ("Aura Silver" or the "Company")
announces that it has submitted the final deliverables required under the terms
of the option agreement (the "Option Agreement") for the Taviche Project, Mexico
to Plata Panamericana S.A. de C.V. ("Plata", Pan American Silver Corporation's
wholly-owned Mexican subsidiary) in order to exercise the option to vest the
Company's working interest in the Taviche Project. The Option Agreement was
recently amended to extend the final earn-in period from September 1, 2011 to
September 30, 2011.


Final deliverables required under the terms of the Option Agreement include:
delivery of a preliminary assessment under NI 43-101; payment of the final
option payment of US$250,000; and, details supporting the direct exploration
expenditures incurred for the Taviche Project over the earn-in period. Under the
terms of the Option Agreement, Plata has a period of time to evaluate these
earn-in deliverables and may request certain additional back-up documentation.


Upon satisfactory completion of the earn-in, the Option Agreement contemplates
that a joint venture agreement amongst Plata, Aura Silver and Intrepid Mines
would be established. 


Inferred Resource Estimate 

The preliminary NI 43-101-compliant technical report entitled "Taviche Project,
Resource Estimate and Preliminary Economic Assessment for the Higo Blanco
Project" (the "43-101 Report") was prepared by Geoffrey S. Carter, P. Eng. of
Broad Oak Associates and is dated September 28, 2011. The 43-101 Report provides
estimates of an Inferred silver resource of 865,000 tonnes at a grade of 119 g/t
for 3.3 million ounces of contained silver and an Inferred gold resource of 3.3
million tonnes at a grade of 0.51 g/t for 54,000 ounces of contained gold. The
resource estimate is based on intercepts from 14 drill holes undertaken by the
Company with core lengths ranging from 63.5 metres to 161.6 metres. The
intercept values for gold and silver provided have been weighted and summed as a
global estimation of grade within a geometric envelope referred to as the
'deposit'. The grades utilized in this estimate are 118.6 g/t Ag and 0.51 g/t
Au. Each intercept has been selected on the basis of assay grades rather than
geologic or mineralogic characteristics; there has not been any compositing of
values within the selected intervals. Weighting of the individual intercepts has
been done as an attempt to recognize broad, low grade zones.


The silver and gold zones have been modeled on the basis of detailed geologic
sections and boundaries and limits have been designed on the basis of "what
appears to be reasonable" - no specific conventions have been applied. A
polygon, thought to represent the 'deposit' on any given section, is assigned an
estimate of area and an influence defined by adjacent holes to arrive at a
volume estimate.


The Company believes that the complexity of the geology and the diverse nature
of past drilling have limited the calculation of the NI 43-101 compliant
Inferred resources. The Company intends to file the finalized 43-101 Report
within the required timelines of NI 43-101 so that it will be publicly available
under Aura Silver's profile at www.sedar.com.


Mineral Potential Estimate 

Additionally, the 43-101 Report includes an estimation of "Mineral Potential"
located near or within its seven kilometre-long by 300 metre-wide Higo Blanco
jasperoid -altered area on the East Taviche and Alma Delia concessions. This
Mineral Potential is estimated to be between 6.0 million and up to 29.0 million
ounces of silver (2 to 6 million tonnes at a grade of 100 to 150 g/t) and
between 108,000 and up to 450,000 ounces of gold (10 to 20 million tonnes at a
grade of 0.4 to 0.7 g/t).(i) As reported in the 43-101 Report the basis for this
Mineral Potential estimate: "The extensive silicification and other minerals,
along the strike length of the mineralizing hydrothermal system, and geologic
model suggesting that the Higo Blanco Project is in the upper part of this
extensive hydrothermal system, would indicate that there is significant
potential for both mineralized material at depth, and along strike as well as
further separate mineralized zones. Both the strike length of the hydrothermal
alteration and depth potential of the hydrothermal system suggest that this is a
highly prospective area for both further exploration and perhaps a
re-interpretation of all the geological data obtained to date."


(i) The potential quantity and grade is conceptual in nature, there has been
insufficient exploration to date to define this as a mineral resource and it is
uncertain if further exploration will result in the target being delineated as a
mineral resource.


Preliminary Economic Assessment

This preliminary economic assessment is preliminary in nature, and has been
prepared using inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them that would
enable them to be categorized as mineral reserves. There is no certainty that
the preliminary economic assessment will be realized. Mineral resources that are
not mineral reserves do not have demonstrated economic viability.


The preliminary economic analysis section of the 43-101 Report does not comply
with CIM Definition Standards (Nov. 22, 2005) for Mineral Resources and Mineral
Reserves, and therefore does not meet CIM best practices. A Quote from CIM
definitions and standards is as follows:


Due to the uncertainty that may be attached to Inferred Mineral Resources, it
cannot be assumed that all or any part of an Inferred Mineral Resource will be
upgraded to an Indicated or Measured Mineral Resource as a result of continued
exploration. Confidence in the estimate is insufficient to allow the meaningful
application of technical and economic parameters or to enable an evaluation of
economic viability worthy of public disclosure. Inferred Mineral Resources must
be excluded from estimates forming the basis of feasibility or other economic
studies.


A summary of the significant assumptions and results of the preliminary economic
assessment are as follows:


Input parameters for Base Case:



--  Operating costs $83.00 per tonne 
--  Mill silver recovery 80% 
--  Silver price $35 per ounce 
--  Capital costs $7.29 million 
--  Working capital $3.00 million (3 months of operating costs) 
--  Reclamation $0.50 million



Base Case Cash Flow Model:

A 6 year mine life at 500 tonnes per day has been assumed, along with a
reconditioned mill. Net present values (NPV) derived in the base case cash flow
model are summarized as follows:




--  NPV @ 5% -$1.433 million 
--  NPV @ 7% -$1.987 million 
--  NPV @ 10% -$2.674 million



This preliminary economic analysis indicates the project would be quite
difficult to finance at its present stage of exploration. It is necessary to
upgrade the small inferred resource in order to support a positive economic
analysis.


The Company will be planning another drill program focusing on the Higo Blanco
prospect in order to identify the zone, likely at depth, of the high grade
silver and gold mineralization close to surface.


Geoffrey S. Carter, P. Eng. of Broad Oak Associates is an independent qualified
person (as defined by National Instrument 43-101) and is the author of the
43-101 Report and Dr. James M. Franklin, P. Geo. is Aura Silver's qualified
person, both have reviewed and approved the scientific and technical information
in this press release.


About Aura Silver 

Aura Silver is a TSX Venture listed company engaged in the acquisition,
exploration and development of precious metal prospects in Canada (100% owned
Greyhound project) and in Oaxaca, Mexico. Aura Silver has 97,680,844 common
shares outstanding.


FORWARD-LOOKING STATEMENTS

This press release may contain forward looking statements that are made as of
the date hereof and are based on current expectations, forecasts and assumptions
which involve risks and uncertainties associated with our business including the
uncertainty as the preliminary nature of the preliminary economic assessment,
the conceptual nature of exploration, the completion of the earn-in requirements
under the option agreement, the joint venture arrangements with Plata and
Intrepid, as to whether further exploration will result in the target(s) being
delineated as a mineral resource, capital expenditures, operating costs, mineral
resources, recovery rates, grades and prices, estimated goals, expansion and
growth of the business and operations, the private placement financing
activities of the Company, plans and references to the Company's future
successes with its business and the economic environment in which the business
operates. All such statements are made pursuant to the 'safe harbour' provisions
of, and are intended to be forward-looking statements under, applicable Canadian
securities legislation. Any statements contained herein that are statements of
historical facts may be deemed to be forward-looking statements. By their
nature, forward-looking statements require us to make assumptions and are
subject to inherent risks and uncertainties. We caution readers of this news
release not to place undue reliance on our forward-looking statements as a
number of factors could cause actual results or conditions to differ materially
from current expectations. Please refer to the risks set forth in the Company's
most recent annual MD&A and the Company's continuous disclosure documents that
can be found on SEDAR at www.sedar.com. Aura Silver does not intend, and
disclaims any obligation, except as required by law, to update or revise any
forward-looking statements whether as a result of new information, future events
or otherwise.

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