Amara Mining Regulatory News (AMA)

08 July 2014 AIM:AMA

Amara Mining plc

("Amara" or "the Company")

FURTHER ENCOURAGING DRILLING RESULTS FROM YAOURE GOLD PROJECT, INCLUDING 18M AT 3.6G/T

Amara Mining plc, the AIM-listed West African-focused gold mining company, is pleased to announce the initial diamond drill ("DD") results and further reverse circulation ("RC") results from its 2014 in-fill drilling programme at its Yaoure Gold Project ("Yaoure") in Côte d'Ivoire.

HIGHLIGHTS:

· Targeting of 'information gaps' confirms presence of mineralisation, with a significant proportion of waste expected to be converted to mineralised material

· First 26 DD results confirm the continuity of the deposit and the moderate grade nature of the Yaoure Central zone along strike and at depth, with localised high grade zones

· Significant DD intercepts include:

o 18m at 3.6g/t from 60m in hole YDD0173

o 18m at 2.9g/t from 115m in hole YDD0183

o 22m at 2.3g/t from 244m in hole YDD0184

· Results from the remaining seven RC holes in the first phase of the in-fill drilling programme continue to confirm high grade nature and continuity of the CMA zone

· Significant RC intercepts include:

o 27m at 4.4g/t from 117m in hole YRC0694

o 36m at 4.2g/t from 108m in hole YRC0698

· Five DD rigs and one RC rig now at site, expected to increase to eight DD rigs and two RC rigs in the coming weeks

· On track to deliver two Mineral Resource updates in H2 2014 to expand the current resource base and to upgrade the Inferred resources within US$950 per ounce pit design to the Indicated category

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

John McGloin, Executive Chairman of Amara, commented:

"The drilling results from Yaoure increase our conviction in the accuracy of the resource model and the results from the first boreholes drilled into the 'information gaps' highlight the potential to expand Yaoure's 6.3 million ounce resource base further. I am confident that a significant proportion of waste will be converted to mineralised material, reducing the strip ratio (currently 5.2:1 in the 8Mtpa scenario) and further increasing Yaoure's strong economics. With five DD rigs and one RC rig on site, and ramping up to eight DD rigs in the near term, I believe Amara is undertaking the largest drilling campaign in Africa. I look forward to maintaining regular news flow from Yaoure over the coming months, culminating in two Mineral Resource updates in H2 2014."

DD programme at Yaoure

Fifty-two DD holes have been completed and five are in progress for a total advance since 02 May 2014 of 13,578 metres (to 03 July 2014). The results for the first 26 holes have been received and are reported in the Appendix.

The DD programme focuses on increasing the density of the drilling and has initially targeted 'information gaps' from the previous exploration campaigns. This is expected to allow Amara to improve its understanding of the deposit and extend the mineralised zone into the areas previously defined as waste due to a lack of information.

The 52 DD holes were drilled to the east of the existing Yaoure Central pit and within the pit itself to investigate the potential extension of the mineralisation between the two pits and on the western margin to further increase confidence in the Yaoure Central zone. The gold mineralisation is hosted by sheared and quartz veined basalts in the vicinity of a granodiorite intrusive. The results confirm that there is ore below the existing pit in the 'information gap' that had not previously been drilled due to lack of access caused by water in the pits (the pit has now been de-watered), which increases Amara's confidence in its ability to expand Yaoure's National Instrument ("NI") 43-101 compliant 6.3 million ounce Mineral Resource. The conversion of waste to mineralised material is also expected to have a positive impact on the project's strip ratio (currently 5.2:1 in the headline 8Mtpa scenario) and thus improve Yaoure's robust economics further. These boreholes also confirm the moderate grade nature and strong continuity of the deposit.

Significant intercepts from DD holes testing the Western 'information gap' (area previously defined as waste) below the middle and southern portions of the Yaoure Central pit1:

Notes

1. Information gap extends from 7100N to 6400N

2. 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

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

Significant intercepts from DD holes testing the 'information gap' between the two pits, Yaoure Central and CMA North-Central:

Notes

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

RC programme at Yaoure

The first 26 RC holes (5,763 metres) were completed on 17 May 2014, focusing on the CMA zone. The CMA zone is a north-south striking, easterly-dipping, mineralised shear zone, typically 20 metres thick and located approximately 140 metres above the Yaoure Central body. The results of the first 19 holes were announced on 30 May 2014. The assay results from the remaining 7 holes have now been received and are reported in the Appendix. The results from the first phase of RC drilling confirm the continuity and high grade nature of the CMA zone, increasing Amara's confidence in the deposit.

Significant intercepts from RC holes drilled into the high grade CMA zone:

Notes

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.

In conjunction with this programme, Amara conducted a statistical exercise over a limited strike length of the CMA zone (200m) to compare the resource estimates generated by the previously drilled 100m spaced holes with the newly drilled 50m spaced holes. The higher density drilling compared favourably to the previous drilling, confirming the continuity of the high grade areas and increasing the gold content.

A drilling map is available on Amara's website at http://www.amaramining.com/Operations/Yaoure on the page named 'Exploration', along with a series of section diagrams.

Amara is on track to deliver two Mineral Resource updates for Yaoure in H2 2014. The first update is expected to increase the current 4.2 million ounces within the US$950 per ounce pit design and the second is expected to upgrade the Inferred resources to the Indicated category. This will allow Amara to deliver a PFS for Yaoure 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 80,000 metres of drilling planned 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].

For more information please contact:

About Amara Mining plc

Amara is a gold developer-producer with assets in West Africa. The Company generates cash flow through its Kalsaka/Sega gold mine in Burkina Faso. Amara 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 done by gaining an improved understanding of the exploration upside potential and underground opportunity. With its experience of bringing new mines into production and a project pipeline spanning four countries, Amara aims to further increase its production profile with highly prospective opportunities across all assets.

APPENDIX

Results of initial 26 DD holes

Results of remaining 7 holes from first phase of RC drilling

Notes

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

3. Borehole drilled into mine waste dump above CMA zone

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 are being undertaken by two independent drilling contractors. 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.