Amara Mining Regulatory News (AMA)

21 October 2014 AIM: AMA

Amara Mining plc("Amara" or "the Company")

COMPLETION OF DRILLING CAMPAIGN AT YAOURE GOLD PROJECT

Amara Mining plc, the AIM-listed West African-focused gold mining company, is pleased to announce that 2014 drilling programme at its Yaoure Gold Project ("Yaoure") in Côte d'Ivoire is complete. The programme comprised 85,574 metres of drilling, including 2,957 metres of geotechnical drilling.

HIGHLIGHTS:

· Presence of high grade areas confirmed in Yaoure Central zone and strong continuity demonstrated in high grade CMA zone

· 251 diamond drill ("DD") holes drilled for a total of 68,936 metres (including 8 geotechnical holes - 2,957 metres); results of 176 holes have been announced to date

· 80 reverse circulation ("RC") holes drilled for a total of 16,638 metres; results of 55 holes have been announced to date

· Samples from remaining 75 DD holes (19,697 metres) and 25 RC holes (5,899 metres) have been sent for assay - results expected to be received in the coming two weeks

· First Mineral Resource update delivered in September 2014 delivering a 248% increase in Indicated resources and more ounces at a higher grade in the economic pit shells to be used for mine design

· Second Mineral Resource update is anticipated in December 2014, which will incorporate all of the results from the 2014 drilling campaign and is expected to upgrade the majority of the Inferred resources within the US$950 per ounce pit design to the Indicated category, from which ore reserves can be determined

· Fully-funded to deliver a Pre-Feasibility Study ("PFS") in Q1 2015

John McGloin, Chairman and Chief Executive Officer of Amara, commented:

"The extensive drilling programme at Yaoure has substantially improved our understanding of the deposit and increased our confidence in it. The results have demonstrated significant high grade areas within the Yaoure Central zone and confirmed strong continuity within the high grade CMA zone, as well as correlating robustly to the holes drilled in the earlier 2012/2013 drilling campaign. With 331 boreholes drilled and eleven rigs on site, the 2014 Yaoure campaign was the largest drilling programme in Africa this year and it was completed on time and on budget. We will use the data to deliver a second Mineral Resource update for the project in December 2014 and this will form the basis of the PFS, which is expected to further confirm that Yaoure has the potential to be one of the top 10 African gold mines by production."

Overview of 2014 drilling programme

The 85,574 metre drilling programme at Yaoure, which commenced in April 2014, has now concluded. Due to its scale, Amara was able to negotiate preferential rates with its drilling contractor and the programme was completed on time and within the expected budget.

The results received to date have confirmed the presence of significant very high grade areas within the Yaoure Central zone, with intercepts including 17 metres at 7.3g/t and 5 metres at 17.0g/t.

Previously announced significant intercepts from the Yaoure Central zone:

The results have also demonstrated strong continuity of the high grade CMA zone and it is clear that mineralisation is consistent between holes drilled in the 2012/2013 drilling campaign and holes drilled in the 2014 campaign. The CMA zone has potential for selective mining at the start of Yaoure's mine life.

Previously announced significant intercepts from the CMA zone:

Notes to tables

1. Interval lengths are not true widths. Composite intersections are based on a minimum width of 2m and a cut-off of 0.40 g/t Au. Internal dilution of up to 2.00m at less than 0.40 g/t has been allowed for continuity

2. Result included in the September Mineral Resource estimate

3. Steep cross-cutting shear zone with alteration and quartz veining

4. Aggregated composite intersection in which internal dilution of 3m at less than 0.4 g/t has been allowed for continuity

This extensive drilling campaign has significantly de-risked the deposit and increased the Company's confidence in it. As the remaining assays are received, Amara's geological knowledge of Yaoure continues to increase and it is this thorough understanding of the structural controls on mineralisation that will inform the second Mineral Resource update, which is anticipated in December 2014. This Mineral Resource estimate will be used as the basis for the PFS, which is expected to be delivered in Q1 2015.

Background on Yaoure Gold Project

Amara delivered a Preliminary Economic Assessment for Yaoure in Q1 2014. It demonstrated that the project has the potential to be one of the top 10 gold mines in Africa by production and top 50 in the world. With average production of 325,000 ounces per annum over a 12 year mine life and all-in sustaining costs of US$691 per ounce, the headline 8Mtpa scenario delivers an IRR of 32% at a gold price of US$1,250 per ounce and an NPV of US$688 million. Yaoure is one of the few development projects in West Africa that remains resilient at low gold prices, with an IRR of 23% at US$1,100 per ounce. The project is flexible and delivers similarly strong returns over a range of alternative throughput scenarios. The compelling economics are driven by the excellent existing infrastructure in Côte d'Ivoire, with low cost hydro-electric power from the Kossou dam (5km from site) and a dual carriageway to within 40km of site. With 85,574 metres of drilling completed in 2014, there is expected to be strong exploration upside potential on the current NI 43-101 compliant 6.3 million ounce resource base[i].

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About Amara Mining plc

Amara is a gold explorer/developer with assets in West Africa. The Company is focused on unlocking the value in its development projects. At Yaoure in Côte d'Ivoire, this will be done by increasing the confidence in the existing Mineral Resource and economics at the project as the Company progresses it through to Pre-Feasibility Study and Bankable Feasibility Study. At Baomahun, this will be achieved by gaining an improved understanding of the exploration upside potential and underground opportunity. With its experience of bringing new mines into production, Amara aims to further increase its production profile with highly prospective opportunities across both assets.

Peter Brown is a "Qualified Person" within the definition of National Instrument 43-101 and has reviewed and approved the information contained within this announcement. Dr Brown (MIMMM) is the Group Exploration Manager.

The RC and DD drilling programmes at Yaoure were undertaken by an independent drilling contractor. Typically samples for assaying were taken at one metre intervals. Sample preparation was carried out at the Company's facility at Yaoure, prior to fire assay at Actlabs in Ouagadougou, Burkina Faso. The samples were crushed down to minus 2mm and then pulverised down to 90% passing 75 microns, prior to analysis for gold by 50g fire assay. As part of the Company's QA/QC procedures, internationally recognised standards, duplicates and blanks were inserted. Check assays are being carried out at ALS Geochemistry in Johannesburg, South Africa. The laboratories used are independent of the Company.