Aurania Finds High-Grade Copper-Silver at Tsenken Target in Ecuador

Toronto, Ontario, July 16, 2020 – Aurania Resources Ltd. (TSXV: ARU) (OTCQB: AUIAF) (Frankfurt: 20Q) (“Aurania” or the “Company”) is pleased to report that grades of up to 7% copper with 55 grams per tonne (“g/t”) silver have been found in the Tsenken N1 target area in its Lost Cities – Cutucu Project (“Project”) in southeastern Ecuador.

Dr. Keith Barron, Chairman and CEO of Aurania commented, “We’re delighted to have found high-grade copper-silver at Tsenken N1 in what appears to be a very large breccia body.  This represents a relatively simple target that is likely cylindrical in shape – and this will be readied for scout drilling using an ultra-lightweight rig as soon as possible behind the drilling that is planned for the Tsenken N2 and N3 targets. We are seeing a common theme in this area: we have copper-silver in breccia, sedimentary-hosted mineralization, and also in intrusive rocks.  The combination of copper with silver without significant enrichment of other metals is unusual – and hence we believe that all three “types” of mineralization are likely linked. We expect to provide further updates on the Tsenken targets as our understanding of the mineralization evolves.”

The next steps at the Tsenken target area are more detailed mapping and sampling, soil sampling, and a heliborne Mobile MT geophysical survey is being considered to provide more detail on the possible shape of the mineralized breccia and to further investigate the rest of the 5km wide Tsenken magnetic feature.  The intention is to ready the target for scout drilling with an ultra-lightweight drill rig.  Drilling is expected to commence at Tsenken targets N2 and N3 prior to the end of Q3, and the N1 target to be drilled immediately thereafter.

Details of the Copper-Silver at Tsenken N1

The high-grade copper-silver has been found in boulders protruding from beneath the jungle floor over an area of 500 metres (“m”) by 400m on the northern margin of the large magnetic feature at Tsenken – and this target is termed Tsenken N1 (Figure 1).  The host rock is “breccia” – a rock that consists of rock fragments within a fine-grained matrix.  Importantly, the matrix of the breccia is mineralized, not just the fragments, and hence the whole breccia body is a target for copper-silver (Figure 2).

Location of breccia

Figure 1.  Location of breccia with high-grade copper-silver from the Tsenken N1 target area shown on a background of magnetic data (negative reduction to the equator, which is roughly equivalent to reduction to the pole (“RTP”).

Figure 2.  Photo of a piece of Sample Y991449 showing green copper mineral (malachite) in the matrix as well as in fragments in the breccia.  The sample contains 7.10% copper and 55g/t silver.  Scale bar is in centimetres.

Details of the Breccia Target at Tsenken N1

The breccia occurs in deep jungle-cover – and contains poorly-sorted, polylithic clasts up to 15cm in diameter that range from angular to rounded in shape.  The rock fragments are supported by a matrix of sand-sized granules and rock flour.  Copper minerals include malachite, chrysocolla, chalcocite and traces of bornite.  Mineralization is primarily in the matrix, but also extends into the fragments along fractures, which suggests that mineralization occurred after the breccia was formed – and therefore that the breccia body itself is the target.

This is different from the situation at the Yawi target where fragments of mineralized rock were found in an otherwise unmineralized breccia.  These fragments were plucked off the side of the breccia pipe and detailed geophysics is required to determine where those fragments came from, and how much of the associated mineralized systems remains intact on the edge of the diatreme.

Update on Field Work in Ecuador

Aurania’s exploration teams re-entered the field in mid-June and the first teams deployed have now returned safely to base.  Other teams have rotated into the field, doing two-week exploration campaigns in isolated areas.  The Company is strictly complying with the government-imposed COVID restrictions that require a maximum 50% capacity in the field office at any one time.   Exploration teams are working in six target areas including Tsenken N3, Tsenken N4, Tiria, Kirus, Awacha and Crunchy Hill.  Teams are also working on the establishment of the remote camp from which scout drilling at Tsenken N2 and N3 is planned to be undertaken.

Sample Analysis & Quality Assurance / Quality Control (“QAQC”)

Laboratories: The soil samples were prepared for analysis at MS Analytical (“MSA”) in Cuenca, Ecuador, and the analyses were done in Vancouver, Canada.

Sample preparation: The rock samples were jaw-crushed to 10 mesh (crushed material passes through a mesh with apertures of 2 millimetres (“mm”)), from which a one-kilogram sub-sample was taken.  The sub-sample was crushed to a grain size of 0.075mm and a 200 gram (“g”) split was set aside for analysis.

Analytical procedure:  Approximately 0.25g of rock pulp underwent four-acid digestion and analysis for 48 elements by ICP-MS.  For the over-limit samples, those that had a grade of greater than 1% copper and 100g/t silver, 0.4 grams of pulp underwent digestion in four acids and the resulting liquid was diluted and analyzed by ICP-MS.

QAQC: Aurania personnel inserted a certified standard pulp sample, alternating with a field blank, at approximate 20 sample intervals in all sample batches. Aurania’s analysis of results from its independent QAQC samples showed the batches reported on above, lie within acceptable limits.  In addition, the labs reported that the analyses had passed their internal QAQC tests.

Qualified Person

The technical information contained in this news release has been verified and approved by Jean-Paul Pallier, MSc.  Mr. Pallier is a designated EurGeol by the European Federation of Geologists and is a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

About Aurania

Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests, with a focus on precious metals and copper in South America.  Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.

Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at  https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.

For further information, please contact:

Carolyn Muir

VP Investor Relations

Aurania Resources Ltd.

(416) 367-3200

carolyn.muir@aurania.com

Dr. Richard Spencer

President

Aurania Resources Ltd.

(416) 367-3200

richard.spencer@aurania.com

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Forward-Looking Statements

This news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Aurania. Forward-looking statements include estimates and statements that describe Aurania’s future plans, objectives or goals, including words to the effect that Aurania or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Aurania, Aurania provides no assurance that actual results will meet management’s expectations. Risks, uncertainties, and other factors involved with forward-looking information could cause actual events, results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, Aurania’s objectives, goals or future plans, statements, exploration results, potential mineralization, the corporation’s portfolio, treasury, management team and enhanced capital markets profile, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in Aurania’s public documents filed on SEDAR. Although Aurania believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Aurania disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.