Amara Mining Regulatory News (AMA)

03 September 2014 AIM: AMA

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

DRILLING RESULTS CONTINUE TO CONFIRM HIGH GRADE NATURE OF CMA ZONE AT YAOURE GOLD PROJECT, INCLUDING 31M AT 4.2G/T

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

HIGHLIGHTS:

· Focus of the Yaoure drilling programme has largely transferred to the CMA zone, with latest 22 DD and 11 RC holes continuing to confirm its strong continuity and higher grade nature - significant intercepts include:

o 31m at 4.2g/t from 116m in hole YDD0256

o 16m at 4.7g/t from 117m in hole YRC0711

o 19m at 3.6g/t from 155m in hole YDD0236

o 22m at 2.7g/t from 91m in hole YRC0717*

o 10m at 6.1g/t from 158m in hole YDD0240

o 11m at 5.2g/t from 98m in hole YRC0715

o 8m at 5.9g/t from 151m in hole YRC0714

· Latest 15 DD holes testing the Yaoure Central zone continue to demonstrate high grade areas - significant DD intercepts include:

o 4m at 25.2g/t from 261m in hole YDD0242G

o 8m at 8.5g/t from 117m in hole YDD0264

o 17m at 3.7g/t from 275m in hole YDD0233

· 2014 drilling campaign is two-thirds complete - over 53,000 metres drilled to 31 August 2014 out of the total 80,000 metre planned 2014 programme

· On track to deliver the first Mineral Resource update this month, which is expected to expand the current 6.3 million ounce resource base and increase the head grade

· In-fill drilling continues and a second Mineral Resource update is anticipated in Q4 2014, which is expected to upgrade the majority of the Inferred resources within the US$950 per ounce pit design to the Indicated category

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

*Intercept from CMA South

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

"With the shift in focus of the drilling campaign to the CMA zone during late July and August, the latest results continue to demonstrate its strong continuity and high grade nature, with intercepts including 31 metres at 4.2g/t and 16 metres at 4.7g/t. This further increases our confidence in the Yaoure deposit and underlines the potential for selective mining of the CMA zone. Furthermore, the closer-spaced drilling being undertaken is expected to result in the conversion of a significant proportion of the Inferred resources into the Indicated category, from which ore reserves will be determined. With over 53,000 metres drilled, we are now two thirds of the way through our 80,000 metre campaign and we remain on track to deliver the first of two Mineral Resource updates later this month."

DD and RC programmes at the CMA zone

The focus on the DD programme in late July and the majority of August transferred to the CMA zone, with 22 of the latest 37 DD holes and a further 11 RC holes testing the CMA zone. These results will be used to calculate the second Mineral Resource update, as these holes targeted the current Inferred resources in the CMA zone with the aim of upgrading them to the Indicated category. It is expected that a significant proportion of Yaoure's resources in both the CMA and Yaoure Central zones will be converted to the Indicated category, further increasing Amara's understanding of Yaoure.

The results from both the RC and DD drilling continue to confirm the CMA zone's strong continuity and high grade nature, with good correlation between the latest RC and DD holes and previous DD holes within 50 metres.

Significant intercepts from DD and RC holes testing 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

2. Intercept from CMA South

DD programme at the Yaoure Central Zone

The results of a further 15 DD holes have been received testing the Yaoure Central zone. These holes continue to confirm the presence of high grade areas.

Significant intercepts returned from DD holes testing the Yaoure Central 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

At the start of September the focus of the drilling programme largely transferred back to the Yaoure Central zone and work is underway on the calculation of the first Mineral Resource update. The drilling programme will continue at Yaoure until early October 2014 to provide further data for the second Mineral Resource update, which is expected in Q4 2014.

Background on 2014 Yaoure Drilling Programme

148 DD holes have been completed since 02 May 2014 and 9 are in progress for a total advance by 31 August 2014 of 42,186 metres, out of 57,000 metres budgeted for the total DD programme. The results of 70 holes have been announced to date and the latest 37 holes are reported in the Appendix.

The first phase of RC drilling, which comprised 26 RC holes (5,763 metres), was completed on 17 May 2014, focusing on the CMA zone. The second phase commenced on 26 June 2014 and continues to focus on the CMA zone. 51 holes have been completed over both phases and one is in progress, with a total advance by 31 August 2014 of 10,899 metres, out of 23,000 metres budgeted for the total RC programme. The results of nine holes from the second phase have been announced to date and the latest 11 holes are reported in the Appendix.

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 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.

APPENDIX

Latest 37 DD results

Latest 11 RC results

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

2. Awaiting check assay

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 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.