African Aura Resources Ltd closes Initial Public Offering and commences trading on the TSX-V


    TSX-V: AAZ

    TORONTO, March 31 /CNW/ - African Aura Resources Ltd. ("African Aura" or
the "Company", TSX-V: AAZ), a gold exploration company focussed on sub Saharan
Africa, is pleased to announce the closing of its Initial Public Offering
("IPO") and the commencement of trading in its shares on the TSX Venture
Exchange ("the Exchange").

    -   C$7.92 million raised from the issue of 14,405,304 IPO units
    -   Shares will commence trading today on TSX-V under the stock symbol
    -   Approximately C$14 million on hand for drilling gold projects in
        Cameroon and Liberia

    John Gray, President & CEO, commented: "Having commenced exploration in
2004 the completion of our IPO and the start of trading in our shares on the
TSX-V represents another significant milestone in our development. The
proceeds from the IPO increase our cash reserves to approximately C$14 million
and these funds will be primarily applied to drill testing the portfolio of
gold projects we have established in Cameroon and Liberia, commencing with the
Batouri project in eastern Cameroon. We also take this opportunity to welcome
our new institutional and private investors and look forward to keeping all
our shareholders up to date on our progress".

    About the Initial Public Offering

    The Company has issued 14,405,304 units (the "Issue") at a price of
$0.55 per unit, each unit consisting of one common share and one half of one
common share purchase warrant exercisable at a price of $0.80 for a period of
24 months, for total gross proceeds of $7,922,917 to investors in
British Columbia, Alberta, Manitoba, Ontario, Nova Scotia and elsewhere
permitted by law.
    Thomas Weisel Partners Canada Inc. (formerly Westwind Partners Inc.) and
Haywood Securities Inc. acted as Agents (the "Agents") for the Company. The
Company has agreed to pay to the Agents a cash commission equal to 6.5% of the
aggregate gross proceeds of the IPO and non-assignable Warrants up to 6.5% of
the gross proceeds of the placement to purchase Units in the Company at an
exercise price of $0.55 for a period of 18 months. The Company has granted the
Agents an option (the "Over-Allotment Option"), which is exercisable in whole
or in part at the sole discretion of the Agents at any time up to 30 days, to
purchase up to 2,160,796 additional Units on the same terms. If the
Over-Allotment Option is exercised in full, the total number of Units sold in
the Offering will be 16,566,100 and the gross proceeds of the IPO will be
    In accordance with Policy 2.4 of the Exchange, the common shares of
African Aura commenced trading on the Exchange under the ticker symbol "AAZ.V"
at the opening of the market on March 31, 2008.
    The net proceeds received by African Aura from the public offering will
be used to fund further exploration and development of the Company's projects
in Cameroon and Liberia and for general working capital. Actual use of these
proceeds may vary, depending on the Company's operational and capital needs
from time to time. At the commencement of trading, the Company has
67,362,540 common shares on issue. Of these shares an aggregate of
12,745,513 common shares are subject to escrow pursuant to regulatory and
Exchange requirements. Twenty-five percent of these shares will be released
from escrow immediately and twenty-five percent will be released at the end of
the sixth, twelfth and eighteenth months, respectively, following closing.

    Undertaking with the Exchange

    As part of the listing process the Company has entered into an
undertaking with the Exchange which includes a provision that within 90 days
of the listing date it will make certain further amendments to its Memorandum
and Articles of Association (M&AoA) or change its jurisdiction of
incorporation to one which is acceptable to the Exchange. If the Company does
not comply with this undertaking it will accept to have its securities
delisted from the Exchange. The Company therefore intends to amend its M&AoA
to satisfy the requirements of its undertaking with the Exchange and will
commence this process immediately after listing. Acceptance of the amendments
by the Company can be effected by resolution of the board of directors and
does not require shareholder approval.

    About African Aura

    African Aura (TSX-V: AAZ) has a 'first-mover' exploration strategy,
focused on the discovery of economic gold, iron and uranium deposits in
sub-Saharan Africa. The Company commenced exploration in 2004 and has
established a portfolio of exploration licences totalling approximately
7,800km(2) targeting areas of active artisanal gold mining within Archaean
greenstone and Proterozoic volcano-sedimentary belts. The portfolio includes
the Batouri gold project in eastern Cameroon and the Fula Camp gold project in
Liberia and a pipeline of significant prospects for drill testing as well as
numerous other gold, uranium and iron ore targets that require follow up
exploration. For more information on African Aura please visit our website at

    Forward-Looking Statements

    This press release includes certain "Forward-Looking Statements. All
statements, other than statements of historical fact, included herein,
including without limitation, statements regarding potential mineralization
and reserves, exploration results and future plans and objectives of
African Aura, are forward-looking statements that involve various known and
unknown risks and uncertainties as well as other factors. There can be no
assurance that such statements will prove to be accurate and actual results
and future events could differ materially from those anticipated in such
statements. The Company has no obligation to update or modify such
forward-looking statements, either as a result of new information, future
events or for any other reason, and we expressly deny any such obligation in
relation thereto. Important factors that could cause actual results to differ
materially from African Aura's expectations are disclosed under the heading
"Risk Factors" and elsewhere in African Aura's reports and other documents
filed from time-to-time with the TSX Venture Exchange and other regulatory
authorities in Canada.
    The securities described herein have not been and will not be registered
under the United States Securities Act of 1933, as amended, or the securities
laws of any state and may not be offered or sold in the United States absent
an exemption from registration.
    For more information concerning the reports, or to obtain additional
information on the Company, please visit our website at:
and SEDAR's website at:

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this press release.

    %SEDAR: 00026221E

For further information:

For further information: African Aura Resources Ltd, Tel: +44 207 329
4722; John Gray, President & CEO, Cell: +44 779 616 7811,

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