Dr. Richard Spencer reports

AURANIA RESOURCES ANNOUNCES C$10M OFFERING

Further to Aurania Resources Ltd.'s previously announced overnight marketed public offering of units of the company on Sept. 30, 2020, Aurania Resources has entered into an underwriting agreement with a syndicate of underwriters led by Cantor Fitzgerald Canada Corp. (CFCC), as lead underwriter and sole bookrunner, and including Canaccord Genuity Corp., Echelon Wealth Partners Inc., Eight Capital, Haywood Securities Inc. and Raymond James Ltd., to sell 2.33 million offered units at a price to the public of $4.30 per offered unit for gross proceeds of $10,019,000. Each offered unit comprises one common share in the capital of the company and one-half common share purchase warrant. Each warrant shall entitle the holder to purchase one common share at $5.50 at any time on or before the date that is 24 months after the closing date.

The company has granted to the underwriters an option, exercisable in whole or in part, in the sole discretion of the underwriters, for a period of 30 days from and including the closing of the offering, to purchase up to an additional 349,500 offered units at the offering price. If the overallotment option is exercised in full, the additional total gross proceeds to the company will be approximately $1.5-million.

The offered units will be offered by way of a short form prospectus in Canada in the provinces of Ontario, British Columbia and Alberta and in the United States under a private placement. The offered units will not be offered or sold in the United States or to U.S. persons except under Rule 144A or Regulation D or in such other manner as to not require registration under the U.S. Securities Act of 1933, as amended. The offered units may also be offered in those jurisdictions outside of Canada and the United States as agreed to by the company and the underwriters provided that no prospectus filing or comparable obligation arises and the company does not thereafter become subject to continuous disclosure obligations in such jurisdictions.

The offering is expected to close on or about Oct. 14, 2020, and will be subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange of the listing of the common shares and warrants comprising the units.

Anticipated use of the proceeds of the offering are for exploration and development expenditures at the company's Lost Cities/Cutucu Project in Ecuador, initial exploration in adjacent Peru, and for working capital and general corporate purposes. As stated in its Sept. 14, 2020, press release, the company has commenced drilling on the Tsenken N2 copper-silver target and plans to continue its drill program in southeastern Ecuador throughout the coming months.

The preliminary short form prospectus is available on SEDAR. Alternatively, a written prospectus relating to the offering may be obtained upon request by contacting the company or Cantor Fitzgerald Canada in Canada, attention: equity capital markets, 181 University Ave., Suite 1500, Toronto, Ont., M5H 3M7; e-mail: ecmcanada@cantor.com.

About Aurania Resources Ltd.

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.

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