African Aura Resources has entered into a legally binding Letter of Intent (LOI) with Mano River Resources to conclude an agreement to merge, in order to create a leading sub-Saharan Africa focused explorer and producer with substantial iron and gold assets. The merged entity is to be renamed African Aura Mining, which will be initially owned 25% by African Aura shareholders and 75% by Mano River shareholders. This is an all share transaction whereby African Aura shareholders will receive 1.57 Mano River shares for each African Aura share, representing a premium of 18.7% to African Aura’s 60 day volume weighted average share price at market close on 14 April 2009, based on Mano’s AIM price and an exchange rate of C$1.80 to £1. This represents a value of approximately C$0.099 per African Aura share.The flagship assets of the combined group will include:

– A 100% interest in the 1.4 Moz Liberty gold deposit in Liberia (NI 43-101 compliant 13.53 Mt of Measured and Indicated resources grading 3.18 g/t Au)

– A 38.5% interested in the 13 km long Putu iron project in Liberia being advanced by joint venture partner Severstal Resources

– A 100% interest in the 12 km long Nkout iron project in southern Cameroon

– Three other gold projects at the resource drilling stage and a significant portfolio of additional highly prospective Archaean and Birimian gold prospects in Liberia and Cameroon

– Four uranium exploration licences in Cameroon which leverages the company to the uranium market

– A 60% interest in Stellar Diamonds, which is undertaking hard rock kimberlite and alluvial mining activities in Sierra Leone and Guinea.

Subject to regulatory approval following the merger, the combined company will continue to trade on the Toronto Venture Exchange and the AIM market operated by the London Stock Exchange.