Dr. Richard Spencer reports

AURANIA REPORTS HIGH-GRADE COPPER FROM A NEW TARGET FROM ITS PROJECT IN ECUADOR AND APPROVAL OF WARRANT EXTENSION

Aurania Resources Ltd. has released copper grades of 4 per cent to 7 per cent from grab samples of rock taken during reconnaissance exploration of the Kirus and the Tsenken targets, adding to the high-grade copper recently reported from the Jempe target in the company's Lost Cities-Cutucu project in Ecuador. Silver grades are also high, ranging from 20 to 79 grams per tonne (g/t) in these samples.

Copper is present as the minerals chalcocite, cuprite and malachite in slabs of fine-grained, bedded tuffs and sedimentary rocks. These are considered secondary copper minerals and are believed to represent the remobilization and precipitation of copper, derived from weathering of primary porphyry copper occurrences nearby and transported laterally in the water table. Such secondary zones are termed supergene and can form economically valuable and shallow enrichment zones known as copper blankets. The humid tropical environment typically promotes the generation of supergene-enrichment zones at shallow levels in proximity to copper porphyry occurrences; however, erosion often strips them away. To the south of Aurania's concession area in the Cordillera del Condor only one example of supergene enrichment above and adjacent to a copper porphyry body has been preserved. Within the company's concession area, its geological observation suggests that the degree of recent erosion has been minimal. What this means is that the geological environment is favourable for the preservation of copper blankets if they occur.

Secondary copper minerals have been found in an area of one kilometre by 1.5 km in extent adjacent to the Kirus magnetic target. Additionally, a grab sample taken from the Tsenken magnetic feature that lies eight km from Kirus contains a very high copper grade of 7.1 per cent and moderate silver at 19 g/t. Results previously reported in the company's Oct. 4, 2018, press release included 3 per cent copper and 47 g/t silver from a grab sample of rock in a stream draining an area of conspicuously strong magnetism at Jempe. Jempe lies 12 km from the new Tsenken target and 20 km from Kirus.

Chairman and chief executive officer Dr. Keith Barron commented: "It is early days yet, but I believe it is very significant that our geologists are finding secondary copper minerals in proximity to our magnetic targets. This is unlike elsewhere in Ecuador in porphyry copper exploration. By analogy with the Cordillera del Condor to the south, we always believed that at least a proportion of our magnetic targets would be porphyry copper occurrences. Our findings would suggest that in the Cutucu, copper blankets have been at least partially preserved over a 20 km wide area, and that substantial copper enrichment and natural upgrading has taken place. Elsewhere in the world, such as at Morenci in Arizona, the primary porphyry mineralization at depth is not economically interesting but the enrichment blanket has sustained production for many years. We are very encouraged.

"Our approach to copper-gold exploration has been to focus our geochemical and prospecting program on targets selected from the airborne geophysics survey that we flew over the whole project area late last year. This approach has proved highly successful with porphyry characteristics having been found at four of the five magnetic features so far investigated in the field. We plan to drive these targets to readiness for scout drilling through focused fieldwork in the next few months."

Grab sample (rock) results

Kirus target

Analysis of the three grab samples of rock from the Kirus target that exceeded the limit of detection of the assay method used for routine exploration (reported in the company's Oct. 4, 2018, press release) has returned the following values:

• 5.39 per cent copper and 54.5 g/t silver;
• 4.83 per cent copper and 58.8 g/t silver;
• 4.28 per cent copper and 48.4 g/t silver.

A new grab sample with strong malachite and chalcocite mineralization contains 5.3 per cent copper and 79 g/t silver. The new sample was found 1.5 km to the southwest of the high-grade samples listed above, thereby outlining a large target that is at least one km by 1.5 km in extent. These samples were found in rivers that flow northward off the area of strong magnetism shown in an image on the company's website. The area of strong magnetism represents the principal target at Kirus.

Tsenken target

A grab sample taken from the magnetic feature that lies eight km from Kirus contains a very high copper grade of 7.1 per cent and moderate silver at 19 g/t. As with Kirus, the target at Tsenken is likely to be the strongly magnetic feature.

Jempe target

The other area in which secondary copper has been encountered is at Jempe, which is centred on areas of strong magnetism. Results reported in the company's Oct. 4, 2018, press release included 3 per cent copper and 47 g/t silver from a sample of outcrop in a stream draining an area of conspicuously strong magnetism. Jempe lies 12 km from the new Tsenken target.

Sample analysis and quality assurance/quality control (QA/QC)

The samples were prepared for analysis at ALS Global's lab in Quito, Ecuador. The rock samples were jaw crushed to 10 mesh (crushed material passes through a mesh with apertures of two millimetres), from which a one-kilogram subsample was taken. The subsample was crushed to a grain size of 0.075 mm and a 200-gram split was set aside for analysis.

Aurania personnel inserted a certified standard pulp sample, alternating with a field blank, at intervals of approximately 20 samples in all sample batches.

ALS's preparation lab in Quito sent the prepared samples to its analytical facility in Lima, Peru, for analysis. Approximately 0.25 g of rock pulp underwent four-acid digestion and analysis for 48 elements by ICP-MS (inductively coupled plasma mass spectrometry). For the overlimit samples, those that had a copper grade of greater than 1 per cent, 0.4 gram of pulp underwent digestion in four acids and the resulting liquid was diluted and analyzed by ICP-MS.

Apart from being analyzed by ICP-MS, gold was also analyzed by fire assay with an ICP-AES (inductively coupled plasma atomic emission spectroscopy) finish.

ALS reported that the analyses had passed its internal QA/QC tests. In addition, Aurania's analysis of results from its QA/QC samples showed the batches reported on above, lie within acceptable limits.

Update on scout drilling program

The company is awaiting one more permit to clear the way for scout drilling of the epithermal gold-silver target at Crunchy Hill. Tenders have been received from three suitably qualified drill contracting companies and are currently under review. It is currently anticipated that the epithermal gold-silver target at Yawi will be scout drilled after Crunchy Hill.

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 a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

Clarification regarding Noble Capital Markets Inc. agreement

On Oct. 9, 2018, the company announced that it had entered into a capital markets support agreement with Noble Capital Markets Inc. As per the terms of the agreement, the company has agreed to pay to Noble $111,000 (U.S.) the first year, paid as follows: $21,000 paid upon signing the agreement and $30,000 paid each three-month period thereafter throughout the term of the agreement. The agreement commenced on Oct. 1, 2018, and will terminate on the second anniversary, unless extended as by mutual agreement. After a period of eight months following the commencement date, this agreement may be terminated by either party at any time, with or without cause, upon 30 days prior written notice to the other party.

Warrant term extension approved by TSX Venture Exchange

The TSX Venture Exchange has consented to the extension of 1,069,909 non-broker warrants in relation to the company's 2017 private placement financing. Details are as follows:

• Original expiry date of warrants: Oct. 19, 2018, subject to accelerated expiry provision;
• New expiry date of warrants: Oct. 19, 2019, subject to accelerated expiry provision;
• Exercise price of warrants: $3.

About Aurania Resources Ltd.

Aurania is a junior exploration mining company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper. 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.

We seek Safe Harbor.