Aura Silver Resources Inc. (TSX-V:AUU) (“Aura Silver” or the “Company”) announces that it has closed the first tranche of its brokered private placement financing issuing 7,670,587 flow-through units (the “FT Units”) for gross proceeds of $1,304,000 and 2,156,667 units (the “Units”) for gross proceeds of $323,500. Union Securities Ltd. (“Union”) acted as agent for this financing.

Each FT Unit consists of one flow-through common share and one-half common share purchase warrant. Each Unit consists of one non-flow-through common share and one-half common share purchase warrant. Each whole warrant in both the FT Units and Units entitles the holder to acquire, upon exercise, one non-flow-through common share at a price of $0.20 per share for a period of 24 months from the closing date (the “Warrants”). Additionally, Warrants will be callable during the 24 month period, at the option of the Company, should the Company’s common shares trade above $0.40 for twenty consecutive trading days on the TSX Venture Exchange. Subscribers will be notified of the call provision being triggered and will have a 30 day period to exercise the Warrants.

In consideration for their services, agents were paid a cash commission of $130,200. In addition, agents will receive non-transferrable agent’s compensation options to acquire 982,725 Units. The agent compensation options will be exercisable for a period of 24 months from the closing date at a price of $0.15 per Unit. Union will also be reimbursed for legal and other direct costs of the offering.

The FT Units and Units issued in the offering will be subject to a four month hold period from the closing date expiring on January 2, 2012. This brokered private placement is subject to final TSX Venture Exchange acceptance.

Aura Silver intends to use the net proceeds from the sale of Units to fund further exploration program costs at the Company’s Taviche property in Oaxaca, Mexico held under option with Intrepid Mines from Pan American Silver Corporation and for working capital and general corporate requirements. Proceeds from the sale of FT Units will be used to fund ongoing drilling programs and related exploration costs for the Company’s 100% owned Greyhound, Nunavut project. The flow-through share proceeds will be used to fund these Canadian exploration expenses prior to December 31, 2012 at the latest. The Company intends to renounce the qualifying expenditures to subscribers for the year ended December 31, 2011.

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. Aura Silver has 97,680,844 common shares outstanding including the shares issued in this offering.

For further information regarding this financing contact: Robert Boaz, President and CEO at (905) 403-8010 or by e-mail at [email protected]. Aura Silver’s web site is located at www.aurasilver.com.