AUU Gold79 Mines Ltd

Aura Silver Resources Inc. (TSX VENTURE:AUU)

NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO U.S
NEWS WIRE SERVICES


Aura Silver Resources Inc. (TSX VENTURE:AUU) ("Aura Silver" or the "Company")
announces that it has closed the first tranche of its non-brokered private
placement issuing 2,000,000 units for proceeds of $100,000. Each unit consists
of one common share and one common share purchase warrant (the "Units"). Each
Unit was offered at a price of $0.05 per Unit. Each Unit contains a whole
warrant exercisable for a period of two years from the closing of the offering
at $0.10 per common share. 


The total maximum offering of Units would give rise to the issuance of a total
of 10,000,000 Units. It is anticipated that subsequent tranches of this private
placement will be concluded within 30 days from the closing of this first
tranche.


Mr. Robert Boaz, President & CEO and director of the Company subscribed for a
total of 2,000,000 Units for $100,000 in this first tranche of the private
placement. Following the private placement, Mr. Boaz will hold approximately
3.6% of the issued and outstanding shares of the Company. The participation of
Mr. Boaz in the private placement constitutes a Related Party Transaction within
the meaning of Multilateral Instrument 61-101 Protection of Minority Security
Holders in Special Transactions ("MI 61-101"). The board of directors of the
Company determined that the transaction is exempt from the formal valuation and
minority shareholder approval requirements of MI 61-101 and approved the private
placement, with Mr. Boaz abstaining from the vote. A previous press release
dated May 29, 2012, indicated that the private placement may involve insider
participation. The material change report in respect of the transaction was not
filed 21 days in advance of the closing of the private placement because insider
participation had not been confirmed. The shorter period was necessary in order
to permit the Company to close the first tranche of the private placement in a
timeframe consistent with usual market practice for transactions of this nature.



The Units issued in this first tranche are subject to a four month hold period
from the closing date of the private placement offering which will expire
November 4, 2012. This offering is subject to final acceptance of the TSX
Venture Exchange.


Aura Silver intends to use the proceeds of this offering to fund exploration
program costs at the Company's East Taviche and Alma Delia properties in Oaxaca,
Mexico and for working capital and general corporate requirements. 


The offered securities will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or
sold within the United States or to or for the account or benefit of U.S.
persons, except in certain transactions exempt from the registration
requirements of the U.S. Securities Act. This press release does not constitute
an offer to sell, or the solicitation of an offer to buy, securities of the
Company in the United States.


About Aura Silver

Aura Silver is a TSX Venture listed company engaged in the acquisition,
exploration and development of precious metal prospects in Canada (100% owned
Greyhound project) and in Oaxaca, Mexico. Including the shares issued in this
tranche of the private placement Aura Silver has 99,680,844 common shares
outstanding.


FORWARD-LOOKING STATEMENTS:

This press release may contain forward looking statements that are made as of
the date hereof and are based on current expectations, forecasts and assumptions
which involve risks and uncertainties associated with our business including the
uncertainty as to whether further exploration will result in the target(s) being
delineated as a mineral resource, capital expenditures, operating costs, mineral
resources, recovery rates, grades and prices, estimated goals, expansion and
growth of the business and operations, the private placement financing
activities of the Company, plans and references to the Company's future
successes with its business and the economic environment in which the business
operates. All such statements are made pursuant to the 'safe harbour' provisions
of, and are intended to be forward-looking statements under, applicable Canadian
securities legislation. Any statements contained herein that are statements of
historical facts may be deemed to be forward-looking statements. By their
nature, forward-looking statements require us to make assumptions and are
subject to inherent risks and uncertainties. We caution readers of this news
release not to place undue reliance on our forward-looking statements as a
number of factors could cause actual results or conditions to differ materially
from current expectations. Please refer to the risks set forth in the Company's
most recent annual MD&A and the Company's continuous disclosure documents that
can be found on SEDAR at www.sedar.com. Aura Silver does not intend, and
disclaims any obligation, except as required by law, to update or revise any
forward-looking statements whether as a result of new information, future events
or otherwise.

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