Amara Mining Regulatory News (AMA)

22 September 2014 AIM: AMA

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

LATEST DRILLING RESULTS FROM YAOURE GOLD PROJECT CONFIRM STRONG CONTINUITY

OF HIGH GRADE CMA ZONE

Amara Mining plc, the AIM-listed West African-focused gold mining company, is pleased to announce further encouraging results from its 2014 drilling programme at its Yaoure Gold Project ("Yaoure") in Côte d'Ivoire, which continue to confirm the strong continuity of the high grade CMA zone.

HIGHLIGHTS:

· Latest 18 diamond drill ("DD") results from the high grade CMA zone received, with significant intercepts including:

o 7m at 16.1g/t from 279m in hole YDD0292

o 25m at 4.1g/t from 90m in hole YDD0278

o 9m at 7.0g/t from 145m in hole YDD0268

o 11m at 5.4g/t from 109m in hole YDD0291

· Section diagrams of the CMA zone demonstrate the strong continuity between boreholes drilled in the 2012/2013 campaign and the 2014 campaign, increasing confidence in the deposit

· Latest 16 DD results from the Yaoure Central zone continue to demonstrate high grade areas - significant intercepts include:

o 20m at 4.1g/t from 239m in hole YDD0273

o 2m at 41.2g/t from 233m in hole YDD0274

o 26m at 3.1g/t from 321m in hole YDD0290

· 2014 drilling campaign is three quarters complete - over 61,000 metres drilled to 14 September 2014 out of the total 83,000 metre planned 2014 programme, including 3,000 metres of geotechnical drilling

· On track to deliver the first Mineral Resource update this month, based on results received by 08 August 2014 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, 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 latest drilling results from the CMA zone continue to highlight its high grade nature, with intercepts including 7m at 16g/t and 25m at 4g/t. Looking at the latest section diagrams, it is clear to see the strong continuity between boreholes drilled in the 2012/2013 campaign and the current 2014 campaign, which further increases our confidence in the deposit. With three-quarters of the 2014 Yaoure drilling programme now complete, our geological knowledge of the deposit also continues to improve. We remain on track to complete the first of two Mineral Resource updates later this month and I look forward to delivering further drilling results, metallurgical test work results and the second Mineral Resource update in Q4 2014."

DD programme at the CMA zone

During late July and August the drilling programme focused on the high grade 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.

Within the CMA zone, the weighted average intercept of all holes drilled in 2014 is 13 metres at 3.7g/t, although there is a thicker higher grade core which plunges to the North-North-East at 15 degrees. There is strong continuity throughout the 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, for example those on Section 7050mN, including YDD0270 announced today. The latest section diagrams are available at www.amaramining.com/Operations/Yaoure and the intercepts for section 7050mN are as follows:

Section 7050mN CMA Intersections

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. Borehole drilled during the 2012/2013 drilling campaign. All other holes were drilled during the 2014 campaign

3. Aggregated composite intersection in which internal dilution of 4m at less than 0.4 g/t has been allowed for continuity and which includes 8m at 1.30g/t from 233m, 5m at 6.23g/t from 245m and 4m of waste rock (4m at 0.17 g/t)

These latest results continue to de-risk the deposit and increase the Company's confidence in it. As the drilling programme progresses, Amara's geological knowledge of Yaoure is increasing and it is this thorough understanding of the structural controls on mineralisation that will inform future Mineral Resource updates. Further information on Amara's understanding of Yaoure's geology at present is included in Appendix A.

Significant intercepts from DD 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

DD programme at the Yaoure Central Zone

At the start of September the focus of the drilling programme returned to the Yaoure Central zone. The results of a further 16 DD holes have been received. Although the average grade of the Yaoure Central zone is moderate, significant intercepts such as 4m at 17.1g/t and 2m at 41.2g/t have been recorded, confirming the presence of very 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

Amara expects to convert the current, large Inferred Mineral Resource into the Indicated category, from which ore reserves can be determined. 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 DD Programme

178 DD holes (including 4 geotechnical holes) have been completed since 02 May 2014 and 9 are in progress for a total advance by 14 September 2014 of 50,836 metres, out of 60,000 metres budgeted for the total DD programme, including 3,000 metres of geotechnical drilling. The results of 107 holes have been announced to date and the latest 34 holes are reported in Appendix B.

RC drilling with two rigs resumed on 14 September 2014, with the remaining 12,000 metres of the 23,000 metre programme now underway.

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 basei.

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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.

APPENDIX A

Overview of Yaoure's geology

Yaoure is a structurally controlled, mesothermal, quartz-carbonate vein-style gold deposit hosted by Early Proterozoic (Birimian) basaltic metavolcanics, granodiorite intrusions and subvolcanic intrusive rocks, at greenschist facies metamorphic grade.

The North-South trending CMA mineralisation is a discrete continuous body, on average 13m thick, within a 20m to 45m wide brittle-ductile shear zone, dipping between 24 degrees and 30 degrees to the east. The North-South trending Yaoure Central mineralization is a 200m (150-250m) thick zone, approximately 140m (70-220m) below the CMA zone, dipping at approximately 30 degrees to the east. The Yaoure Central mineralisation reaches its peak under the Yaoure Central pit where the moderately dipping Yaoure Central zone intersects a subvertical N-S trending granodiorite stock.

The principal mineralised zones at both Yaoure Central and in particular at CMA, are centred on low-angle, brittle-ductile, reverse shear zones which acted as first-order conduits for hydrothermal fluid flow. Examples of these are the CMA Zone, the Yaoure Central Main zone and the Prospect 3 zone which is possibly the basal shear to the Yaoure deposit. The CMA zone is the main continuous shear zone; this discrete zone has been delineated along a North-South strike length of 1.2km. The core of the CMA mineralisation plunges to the North-North-East at 15 degrees. The main alteration in these structures consists of quartz, Fe-carbonate, tourmaline and pyrite. More subtle brittle peripheral mineralisation is associated with tourmaline+ chlorite+pyrite alteration.

Significant mineralisation at Yaoure Central is also controlled by second-order structures, although extensive low-grade peripheral mineralisation is found between these structures which include:

· Conjugate subvertical fault-vein systems striking NE/ENE and ESE

· The subvertical North-South trending granodiorite stock, which has been traced for 900 metres in a North-South direction at Yaoure Central, and which contains brittle "stockwork" style mineralisation. This rigid body acted to concentrate shear strain in the bounding basalts resulting in mineralisation in these chemically favourable Fe-rich host rocks, particularly on the eastern margin of the granodiorite

· Peripheral mineralisation to dykes of granodiorite, hornblende porphyry and quartz porphyry, which typically dip moderately to the east and which acted in a similar fashion to the granodiorite stock, but on a more local scale

· An array of other orientations of shearing and fracturing including: (i) steep East-West corridors, and (ii) conjugate shear zones which dip 45-70 degrees to the West

APPENDIX B

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 re-assay

3. Steep cross-cutting vein

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.