Amara Mining Regulatory News (AMA)

25 March 2013 AIM:AMA / TSX:AMZ

Amara Mining plc

("Amara" or "the Company" or "the Group")

RESOURCE UPDATE FOR YAOURE GOLD PROJECT

Amara Mining plc, the dual AIM and TSX-listed West African focused gold mining company, is pleased to announce an updated NI 43-101 compliant Mineral Resource estimate for its 90% owned Yaoure Gold Project ("Yaoure") in Côte d'Ivoire.

HIGHLIGHTS

·; 1.7 million ounce sulphide Inferred Mineral Resource delineated at Yaoure (34.6Mt at 1.52g/t) 1

·; Indicated Mineral Resource upgraded to 0.3 million ounces (8.0Mt at 1.31g/t) 1, 2

·; Mineral Resources contained within 40% of the total mineralised volume drilled to date

·; Further Mineral Resource update expected in H2 2013 from on-going in-fill drilling campaign

·; Resource grade is expected to be updated through definition of additional resources via in-fill drilling below the higher grade CMA North-Central pit

·; Resource is open at depth and along strike with all 106 holes drilled in 2011/12 encountering mineralisation

·; Initial metallurgical testwork has confirmed the non-refractory nature of the gold mineralisation with 94% recovery in a conventional carbon-in-leach ("CIL") circuit

·; Preliminary Economic Assessment ("PEA") is expected to be completed in Q4 2013

·; Location of Yaoure is highly advantageous due to close proximity to Kossou dam, which offers cheap hydo-electric power and abundant water, excellent roads and accommodation

1. Using a 0.8g/t cut-off

2. Previously 0.2 million ounces Measured and Indicated (4.9Mt at 1.6g/t) using a 0.5g/t cut-off, an uplift of 90,000 ounces

Peter Spivey, Chief Executive Officer of Amara, commented:

"The delivery of a significant Mineral Resource update confirms Yaoure's position as an important part of Amara's portfolio. It is particularly exciting that the volume of the resource is only 40% of the total volume drilled and excludes much of the anticipated higher grade CMA zone, suggesting substantial upside potential. We have commenced in-fill drilling and we expect to deliver a further Mineral Resource update in H2 2013."

Yaoure Strategy

Amara conducted a 106-hole drilling campaign at Yaoure in 2011/2012 with the objective of defining a large scale, moderate grade sulphide deposit underlying the previously mined oxide resources. Yaoure had existing Measured and Indicated sulphide Mineral Resources of 249,000 ounces (4.9Mt at 1.6g/t)[i] and Amara's aim was to deliver a significant increase on these existing resources. The area drilled has an across-strike width of 1.1km covering both the historic open pits (Yaoure Central and CMA North-Central) and an along-strike length of 1.5km. All holes encountered mineralisation suggesting the full extent of the deposit has not yet been defined.

The Yaoure mineralisation is an epithermal-mesothermal, quartz-carbonate vein-style gold deposit. The mineralisation is controlled by a thick zone of shearing (imbricate thrusting from the east), resulting in multiple zones of alteration, quartz veining and gold mineralisation. The drilling has focused primarily on two targets:

·; The north-south trending Yaoure Central mineralised package in the west - a 200m thick low-grade body with higher grade lenses, extending down to the east from the Yaoure Central pit at a dip of 30 degrees

·; The north-south trending CMA set of mineralised zones in the east, including a more discrete, relatively continuous 20m thick zone, about 140m above the Yaoure Central body, extending down to the east from the CMA North and Central pits

Mineralisation within later cross-cutting high-grade sub-vertical quartz veins with visible gold is evident in the Yaoure Central body. Although these veins potentially enhance the overall grade of the deposit, they were not a primary target of the outline drilling programme.

The drilling programme was designed to delineate a large-scale opportunity at Yaoure. The drilling in the central portion has a higher density (approximately 120 metres by 120 metres) than the drilling in the CMA zone to the east (approximately 200 metres by 200 metres). The resource update announced today relates to the central area, which covers approximately 40% of the total mineralised volume drilled.

Mineral Resource Upgrade

Amara has delivered an Inferred Mineral Resource of 1.7 million ounces (34.6Mt at 1.52g/t) and an upgraded Indicated Mineral Resource of 0.3 million ounces (8.0Mt at 1.31g/t) at Yaoure. The Company invested US$14 million in exploration at the project in 2012 and this increase in Mineral Resources represents an average discovery cost of approximately US$8/oz.

The Mineral Resource estimate has been prepared by AMC Consultants (UK) Limited ("AMC") in accordance with the Canadian Institute of Mining and Metallurgy and Petroleum ("CIM") Standards on Mineral Resources and Reserves as recognised by National Instrument 43-101 "Standards of Disclosure for Mineral Projects" of the Canadian Securities Administrators ("NI 43-101"). The Mineral Resource estimate is reported above a 0.8g/t cut-off derived using a US$1,500/oz gold price. Further details of the resource estimation parameters and cautionary statements relating to the statement of Mineral Resources are set out in Appendix 1.

Yaoure Mineral Resource estimate, including cut-off grade sensitivity, as of 25 March 2013[ii]

A 0.8g/t cut-off has been used on the basis of a US$1,500/oz gold price and costs consummate to similar types of deposits in West Africa.

Further Exploration Potential

A total of 31,955 metres were drilled at Yaoure in late 2011 and 2012. Outside of the areas where an Indicated and Inferred resource has been defined the exploration has outlined an along-strike and down-dip exploration target of 2 to 3 million ounces of gold contained within 50Mt to 60Mt of mineralisation grading 1.3g/t to 1.5g/t. The potential tonnages and grade are conceptual in nature and are based on drill results that defined the approximate length, thickness, depth and grade of the deposit. There has been insufficient exploration to date to define this additional potential as a CIM-compliant resource currently and the Company cautions that there is a risk that further exploration will not result in the delineation of a resource.

A significant portion of the exploration target relates to the continuation of the higher grade CMA zone, which is expected to increase the overall grade of the mineralisation if further drill results confirm the continuity and grade of this mineralisation.

Following the delineation of this Mineral Resource at Yaoure, Amara has commenced in-fill diamond drilling at the project to reduce the drill spacing. This campaign is focused on promoting the mineralisation lying outside the currently defined Inferred Mineral Resource envelope, which covers 40% of the total mineralised volume drilled. The Company expects to announce an updated Mineral Resource in H2 2013.

Next Steps

Alongside the 2011/12 drilling campaign, Amara conducted a metallurgical testwork programme at Yaoure to understand the leaching kinetics of the mineralised material. This reported a recovery rate through a traditional CIL circuit of 94%, confirming the non-refractory nature of the gold mineralisation. Phase two metallurgical testwork is expected to be completed by the end of Q2 2013, which is designed to identify the optimal processing route. This will include comminution testwork together with an analysis of the amenability of the ore to heavy medium separation, gravity and flotation.

In addition, Amara intends to begin assessing the economic potential of the updated Mineral Resource through a Preliminary Economic Assessment that is expected to be completed in Q4 2013. Yaoure's location presents a number of advantages that will enhance the prospects for a CIL plant to be developed at site. These include excellent existing infrastructure, such as close proximity to the Kossou dam, which offers the potential for lower operating and capital costs through the utilisation of hydro-electric power. In addition, Yaoure benefits from an existing mining licence and environmental permits, which is expected to reduce the timeline from exploration to development.

Full Year 2012 Results

Amara will announce its results for the year ended 31 December 2012 on Wednesday 27 March 2013. A conference call and webcast will be held for analysts and investors 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 on 27 March, which will also cover the on-going work at the Yaoure Gold Project. Details of the conference call numbers will be announced at the time of the FY2012 results.

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About Amara Mining plc

Amara (formerly Cluff Gold plc) is a gold developer-producer with assets in West Africa. The Company generates significant cash flow through its Kalsaka gold mine in Burkina Faso, where the production profile has been enhanced by the recent acquisition of the neighbouring Sega project. Amara remains focused on its objective of becoming a mid-tier producer through the development of its Baomahun project in Sierra Leone and its Yaoure project in Côte d'Ivoire. With its experience of bringing new mines into production and a project pipeline spanning Burkina Faso, Côte d'Ivoire and Mali, Amara aims to further increase its production profile with its highly prospective exploration work across all assets.

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, drilling results, resource calculations and potential future production at Yaoure, and future capital plans and objectives of Amara, 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, the Company's ability to delineate sufficient sulphide resources for the development of a CIL/CIP operation, risks related to international operations, the actual results of current exploration and drilling activities, changes in project parameters as plans continue to be refined as well as 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.

The diamond drilling programme at Yaoure was undertaken by two independent drilling contractors. Drill cores for assaying were taken at a maximum of two metre intervals, typically one metre, and were cut with a diamond saw with one-half of the core placed in sealed bags. The core samples were sent mainly to the Intertek sample preparation facility in Yamoussoukro, Côte d'Ivoire, prior to fire assay, mainly at Intertek Minerals Ltd in Accra, Ghana, and also to the SGS sample preparation facility in Yamoussoukro prior to fire assay at the SGS laboratory in Tarkwa, Ghana). In addition, two batches of samples (two holes) were sent to Bureau Veritas in Abidjan, Côte d'Ivoire, for sample preparation and fire assay. The core samples were crushed down to minus 2 mm, with half the sample then being pulverised down to 85% passing 75 microns, prior to analysis for gold by fire assay using a 50 g sample. As part of the Company's QA/QC procedures, internationally recognised standards, duplicates and blanks were inserted. Check assays were carried out at ALS Geochemistry in Johannesburg, South Africa. The laboratories used are independent of the Company.

Non IFRS Measures - Discovery cost per ounce is a financial measure used by many investors to compare mining companies on the basis of results of exploration expenditure. It is used because Amara's exploration expenditure and Mineral Resource updates alone do not give a full picture of the success of the Company's exploration work. Management believes that discovery cost per ounce is an important measure in evaluating the Company's performance, and in determining whether to invest in Amara. However, discovery cost per ounce 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.

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.

Chris Arnold is a "Qualified Person" within the definition of National Instrument 43-101 and is responsible for the estimation of the Yaoure mineral resource. He has reviewed and approved the relevant technical information relating to the resource estimates in this release. Mr Arnold MAusIMM CP(Geo) is Geology Group Manager of AMC Consultants (UK) Limited.

Appendix 1: Resource Estimation Parameters

1. The estimates of mineral resources were calculated in accordance with the definitions adopted by the Canadian Institute of Mining Metallurgy and Petroleum ("CIM") and incorporated into NI 43-101. The mineral resource estimate was carried out by Justin Glanfill and David Boakye, and supervised by Chris Arnold, all of AMC.

2. Block model preparation and resource estimation has been completed using Datamine and Isatis. One-metre primary samples were used to define mineralised outline wireframes, whilst five-metre down hole composites were used for statistical analysis, variography and resource estimation. High grade capping of 20 g/t Au was applied prior to compositing.

3. Resource estimation has been completed using the geostatistical technique, Localised Multiple Indicator Kriging ("Localised MIK"). Localised MIK is a form of Multiple Indicator Kriging ("MIK") where the grades are 'mapped' directly into selective mining unit-sized blocks ("SMU") from a MIK estimate. Bulk density has been estimated into the block model using ordinary kriging. A total of 11 indicator cut offs were used to define the metal distribution within the model cells.

4. The estimate of mineral resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues. Mineral exploration and development involves a high degree of risk and few properties which are explored are ultimately developed into producing mines. With respect to Yaoure, substantial expenditures will be made by Amara to confirm Mineral Reserves which are sufficient to commercially mine such property, and to conclude appropriate fiscal stability agreements required to commence commercial operations. There can be no assurance that the Mineral Resources at Yaoure can be commercially mined or that the metallurgical processing will produce economically viable, saleable products. The decision as to whether a property contains a commercial mineral deposit and should be brought into production depends upon the results of exploration programs and/or feasibility studies, and the recommendations of duly qualified engineers and/or geologists, all of which involves significant expense. This decision will involve consideration and evaluation of several significant factors including, but not limited to: (1) costs of bringing Yaoure into production, including exploration and development work, preparation of feasibility studies and construction of production facilities; (2) availability and costs of financing; (3) ongoing costs of production; (4) market prices for the minerals to be produced; (5) environmental compliance regulations and restraints; and (6) political climate and/or governmental regulation and control. With respect to Yaoure, Amara has not yet prepared a feasibility study or economic analysis of the proposed operations. Until such is done, there can be no assurance that the Company's proposed operations at Yaoure will be profitable and there can be no assurance when the feasibility study will be completed. Amara's ability to sell, and profit from the sale of any eventual mineral production from any of our properties will be subject to the prevailing conditions in the minerals marketplace at the time of sale. The global minerals marketplace is subject to global market conditions and changing attitudes of investors, consumers and other end-users' demand for gold. Many of these factors are beyond Amara's control and therefore represent a market risk which could impact the long term viability of the Company and its operations.

5. Ounces represent estimated gold content present in the tonnes of ore which would be mined and processed. Mining recovery, dilution and mill recovery rates have not been applied in calculating the contained ounces.

6. In accordance with the guidelines set out by the CIM and contained within NI 43-101, this mineral resource estimate for the Yaoure property uses a 0.8 g/t Au cut-off using a US$1,500/oz Au to represent that portion of the resource which has "reasonable prospects for economic extraction" from an open pit mining scenario.

7. Amara's attributable portion of the mineral resource estimate is 90%.

8. Tonnes and gold figures are rounded to levels of precision that reflect respective resource categories. As a result, numbers may not add up due to rounding.

9. The classification methodology used was based on a combination of drill density, data quality, and evaluations of the statistical and spatial characteristics of the gold mineralisation.

10. Glossary

"Mineral Resource": A mineral resource is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals in or on the Earth's crust in such form and quantity and of such grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.

"Inferred Mineral Resource": is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

"Indicated Mineral Resource": is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonable assumed.

"Measured Mineral Resource": is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.

The above definitions of "mineral resource", "measured mineral resource", and "indicated mineral resource" conform to Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") definitions as defined in the CIM Standards on Mineral Resources and Reserves - Definitions and Guidelines as required by National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators.

"Epithermal": deposited from warm waters at rather shallow depth under conditions in the lower ranges of temperature and pressure -used of mineral veins and ore deposits.

"Mesothermal": deposited from warm waters at intermediate depth under conditions in the medium ranges of temperature and pressure -used of mineral veins and ore deposits.