Amara Mining Regulatory News (AMA)

16 August 2013 AIM:AMA / TSX:AMZ

Amara Mining plc

("Amara" or "the Company")

FILING OF TECHNICAL REPORT FOLLOWING BAOMAHUN FEASBILITY STUDY

Amara Mining plc, the dual AIM and TSX-listed West African focused gold mining company, is pleased to announce that the Feasibility Study ("FS") for its 100% owned Baomahun Gold Project in Sierra Leone ("Baomahun" or "the Project") was filed on SEDAR yesterday. The National Instrument 43-101-compliant technical report is entitled 'Feasibility Study of the Baomahun Project in Sierra Leone - NI43-101 Technical Report' and has an effective date of 28 June 2013. This follows the news release dated 02 July 2013 detailing the results of the Baomahun FS.

A copy of the technical report may be obtained via www.sedar.com and on Amara's website at http://www.amaramining.com/Investor-Relations/NI43-101-Reports. A copy of the news release may also be obtained via SEDAR and on Amara's website.

The previously announced highlights of the Baomahun FS are as follows:

Overview

· The FS outlines a robust and economically viable project

· The Project is expected to generate a post-tax Internal Rate of Return (IRR) of 22% and a post-tax NPV of US$127 million at a discount rate of 8% and a gold price of US$1,350/oz

· Life of mine average total cash costs of US$799 per ounce (including royalty and refining)

· Maiden Probable Mineral Reserve defined for Baomahun of 1.21 million ounces (23.3Mt at 1.62g/t) at a gold price of US$1,100oz

· Amara intends to immediately investigate the recommendations generated by the FS to optimise capital intensity, initial capital outlay and payback period

Operational

· Average gold production of 148,550 ounces per annum over the first six years at an average grade of 2.53g/t, with production of 203,970 ounces in the first year at 3.90g/t

· Average recovery of 93.4% through a 2 Mtpa processing plant incorporating single stage crushing, SAG milling and a carbon-in-leach circuit

· The Project is fully permitted with a Mining Lease granted on 11 July 2008 for a period of 25 years and an Environmental Permit granted on 19 April 2012

Financial

· Total revenue of US$1.53 billion and post-tax cash flow of US$273 million based on an average gold price of US$1,350 per ounce

· Upfront capital cost of US$151 million and a rapid capital payback period of three years

· Strategic alliance with Samsung C&T Corporation with the potential to provide cornerstone financing for Baomahun project, capable of satisfying a significant portion of the total Baomahun financing needs

Notice of Results

Amara will announce its results for the half year and quarter ended 30 June 2013 on Tuesday 10 September 2013. A briefing will be held for analysts, with a simultaneous conference call and webcast, at 09:30am UK time and a second conference call will be held for North American analysts and investors at 2:30pm UK time/09:30am EST. Details of the conferencecall numbers will be announced at the time of the H1/Q2 results.

For more information please contact:

This report includes certain "forward-looking information" within the meaning of applicable Canadian securities legislation.

All statements other than statements of historical fact included in this report, including, without limitation, the positioning of the Company for future success, statements regarding exploration, production estimates, future objectives of Amara and the results of the FS including the economic analysis are forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Amara's expectations include, among others, risks related to international operations, the actual results of current exploration and drilling activities, the assumptions and parameters used in the Baomahun FS, the results of the optimisation opportunities, changes in project parameters as plans continue to be refined as well as the future price of gold. Although Amara has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Amara does not undertake to update any forward-looking statements that are included herein, except in accordance with applicable securities laws.

Non IFRS Measures - cash cost per ounce is a financial measure used by many investors to compare mining companies on the basis of operating results, asset value and the ability to incur and service debt. Amara considers cash cost per ounce as a key measure in evaluating the Company's operating performance. However, it is not a measure of financial performance, nor does it have a standardized meaning prescribed by IFRS, and may not be comparable to similar measures presented by other companies. This measure has been described and presented in this document in order to provide shareholders and potential investors with additional information regarding the Company's operational performance, liquidity and its ability generate funds to finance its operations.

Richard Quarmby is a "Qualified Person" within the definition of National Instrument 43-101 and has verified the data disclosed in this news release and reviewed and approved the information contained within this announcement. Mr Quarmby is the Company's Group Project Manager.

Neil Senior (Pr.Eng, MSc, FSAIMM) is a "Qualified Person" within the definition of National Instrument 43-101 and was responsible for compiling the FS. Mr Senior is Joint Managing Director of SENET, independent consultants to the Company. SENET assumed overall responsibility for the report's compilation including processing and infrastructure disciplines.

Ciaran Molloy (BSc Eng.) is a "Qualified Person" within the definition of National Instrument 43-101 and was responsible for the social and environmental aspects of the Project, including the TSF and water storage design. Mr Molloy is Associate Director - Engineering of AMEC, independent consultants to the Company, and a member of the Institute of Materials, Minerals and Mining.

The estimates of Mineral Resources were calculated in accordance with National Instrument 43-101 and carried out by Dr John Arthur (CGeol FGS; MIMMM CEng), Principal Consultant (Resource Geology) of SRK, independent consultants to the Company. Dr Arthur is a "Qualified Person" within the definition of National Instrument 43-101 has also reviewed and approved the Mineral Resource data in this news release.

The Reserve Study was prepared by Bruce van Brunt (MSc Mining Engineering, Fellow AusIMM). Mr van Brunt is a "Qualified Person" within the definition of National Instrument 43-101 and he has approved the Mineral Reserve data in this news release. Mr van Brunt is Amara's General Manager of Technical Services and Business Development.