SIX MILLION OUNCE MINERAL RESOURCE AT YAOURE

13 December 2013 AIM:AMA

Amara Mining plc

("Amara" or "the Company" or "the Group")

SIX MILLION OUNCE MINERAL RESOURCE AT YAOURE GOLD PROJECT

Amara Mining plc, the AIM-listed West African focused gold mining company, is pleased to announce an updated NI 43-101 compliant Mineral Resource estimate for its 100% owned Yaoure Gold Project ("Yaoure") in Côte d'Ivoire.

HIGHLIGHTS

· Inferred Mineral Resource of 5.5 million ounces (133Mt at 1.29g/t) representing an increase of 3.3 million ounces 1,2

· Indicated Mineral Resource of 0.8 million ounces (20Mt at 1.20g/t) representing an increase of 0.3 million ounces1, 3

· Mineral Resource remains robust at a lower gold price and includes 0.4 million ounces of oxide material (9.4Mt at 1.33g/t) potentially amenable to low cost heap leach processing 1

· 71% increase in Amara's global Mineral Resources to 3.7 million ounces Measured and Indicated and 6.4 million ounces Inferred

· Minimal discovery cost of US$3.50/oz4 versus average industry discovery cost in Africa of US$16/oz 5

· Metallurgical testwork has confirmed the simple, non-refractory nature of the gold mineralisation and its amenability to a range of processing options - results received in Q3 2013 also demonstrate robust recoveries for low grade samples

· Location of Yaoure is highly advantageous due to close proximity to Kossou dam, which offers cheap hydro-electric power ("HEP") and abundant water, excellent roads and accommodation

· Preliminary Economic Assessment ("PEA") is anticipated to be completed in Q1 2014, focused on a large scale, long life carbon-in-leach ("CIL") or flotation scenario and a short-term heap leach opportunity

Notes

1. Using a 0.5g/t cut-off and a US$1,500 pit shell. At a 0.8g/t cut-off, the Yaoure Mineral Resource contains 0.6 million ounces Indicated (13.2Mt at 1.48g/t) and 4.6 million ounces Inferred (85.7Mt at 1.65g/t)

2. Previously 2.2 million ounces Inferred using a 0.5g/t cut-off or 1.7 million ounces Inferred at a 0.8g/t cut-off

3. Previously 0.5 million ounces Indicated using a 0.5g/t cut-off or 0.3 million ounces Indicated at a 0.8g/t cut-off

4. Based on total Yaoure exploration expenditure of US$22m between Q4 2011 and H1 2013 (2011: US$1.6m, 2012: US$14.0m, 2013: US$6.4m)

5. Source: MinEx Consulting, July 2012

Peter Spivey, Chief Executive Officer of Amara, commented:

"The delivery of the latest Mineral Resource update for Yaoure has confirmed the project as an important part of Amara's portfolio, representing our largest resource in West Africa and the largest deposit in Côte d'Ivoire. It has also increased the Company's global Mineral Resources by over 70% at a minimal discovery cost for the updated Yaoure resource of just US$3.50/oz. It is strategically important that the resource remains strong at lower gold prices, with a robust overall grade of 1.86g/t at a 1g/t cut-off. This demonstrates Yaoure's viability in the current challenging market conditions.

"The next milestone for the project is the completion of the PEA in Q1 2014, which will primarily explore the potential for large scale, long-term production from Yaoure's substantial sulphide resources. The PEA will also evaluate the potential for Amara to maintain its status as a heap leach producer beyond the Kalsaka/Sega minelife through the additional oxide resources defined at Yaoure, offering near-term cash flow. I am confident that it will further demonstrate the project's robust economics as a result of the large-scale, low strip ratio, simple metallurgical nature of the deposit and the excellent existing infrastructure in Côte d'Ivoire."

Mineral Resource Update

The Mineral Resource estimate is reported above a 0.5g/t cut-off and constrained within an open pit shell derived using a long term gold price of US$1,500/oz with a maximum nominal depth of 260 metres. In agreement with its consultant, GeoSystems International Inc, Amara decided that the 0.5g/t cut-off grade was applicable to the Mineral Resource due to the availability of low-cost power through HEP at Yaoure. However, the project is robust at higher cut-off grades as demonstrated in the table below and has been interrogated using pit shells at a range of lower gold prices with encouraging results.

Yaoure Mineral Resource estimate, including cut-off grade sensitivity, as of 11 December 2013

Notes

1. The effective date of the Yaoure Mineral Resource estimate is 11 December 2013.

2. The gold price used in this resource estimate is US$1,500/oz assuming an open pit mining scenario. Oxides are being mined assuming Heap Leach economics, Sulphides assuming Flotation economics. Pit slopes are 35º in oxide, 46 º in sulphide. Recoveries have been assumed at 90%.

3. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability

4. There are no known environmental, permitting, legal, title, taxation, socio-economic, marketing, and political or other relevant issues that may materially affect the resource estimates.

5. Totals and average grades are subject to rounding to the appropriate precision and some columns or rows may not compute exactly as shown.

The geology of the Yaoure deposit area is relatively simple. The majority of the area is underlain by mafic volcanics, predominantly both massive and pillowed basalts. The north part of the area is intruded by a massive granodiorite that locally has a subtle porphyritic texture. Elsewhere, but mainly associated with the main Yaoure Zone, there are numerous porphyry sills. A volcaniclastic unit, mainly of epiclastic origin, is situated near the contact of the granodiorite.

The mineralisation at Yaoure is contained within two shallow dipping gold bearing north-south trending packages controlled by a thick zone of brittle-ductile shearing. The Yaoure Central package is a 200 metre thick, lower grade mineralised zone with higher grade lenses and cross-cutting high-grade sub-vertical quartz veins. The CMA package is a more discrete, relatively continuous 20 metre thick zone approximately 140 metres above the Yaoure Central body.

Metallurgical Testwork

Previously announced metallurgical testwork has demonstrated that the mineralisation is simple and non-refractory, identifying three potential processing options for the material: whole ore leaching, froth flotation and heap leaching. The latest testwork focused on lower grade samples ranging between 0.38g/t and 1.27g/t, with an average head grade of 0.65g/t. This demonstrated that the overall leach recoveries remain high even at these lower grades, averaging 92.7% after 24 hours via CIL compared to 91% for the original higher grade samples.

The material has an average bond ball mill work index of 14.4kWh/t and a low cyanide consumption of 0.2kg/t. Amara estimates conservatively that the ball milling cost for the sulphide material at Yaoure is US$36/oz, which compares favourably to other projects in West Africa that do not have low-cost power available. Due to the significant impact of milling costs on overall economics, such deposits require a significantly higher head grade to deliver similar economic returns. Therefore it is expected that the positive impact of the favourable metallurgy and the existing infrastructure will enable highly economic production from the mid-grade Yaoure deposit.

Ongoing metallurgical testwork will be undertaken to ensure that recoveries, reagent consumptions and bond ball work indices are truly representative of the deposit prior to the issue of a pre-feasibility or feasibility study. Further work will also be performed on the amenability of the oxide resources at Yaoure to recovery via heap leach.

Besides the availability of low cost power, Yaoure's location presents other benefits, such as an abundant water supply and good quality roads. As a brownfield site, the timeline from exploration to development is also expected to be minimised. Amara has participated in consultations between the government of Côte d'Ivoire and the gold mining industry and as a result of these discussions, the Company is cautiously optimistic that Côte d'Ivoire will produce one of the most competitive mining codes in Africa. The announcement of this Mineral Resource, which is the largest announced to date in country, confirms Côte d'Ivoire's position as one of the most prospective addresses in the region.

Preliminary Economic Assessment

Amara intends to assess the economic potential of the updated Mineral Resource through a PEA that is expected to be completed in Q1 2014. The PEA will primarily focus on the long-term, large scale production opportunity at the project through the mining of Yaoure's substantial sulphide resources, which will be processed through a traditional CIL plant or via froth flotation. It will also evaluate the potential for near-term, smaller scale production through the mining and processing of the project's oxide resources through a heap leach plant. The oxide resources total 401,000 ounces and are contained within the Mineral Resource update announced today.

Yaoure oxide Mineral Resource within a US$1,500 whittle shell

Notes

See notes below Mineral Resource table on page 2.

The PEA will be based upon a Mineral Resource optimised at a lower gold price. Initial analysis suggests strong convertibility of the Mineral Resource within a lower priced pit shell.

Gold price and cut-off grade sensitivity: US$900/oz whittle shell

Notes

See notes below Mineral Resource table on page 2, however a US$900/oz gold price was used in this estimate.

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About Amara Mining plc

Amara is a gold developer-producer with assets in West Africa. The Company generates cash flow through its Kalsaka/Sega gold mine in Burkina Faso. Amara remains focused on its objective of becoming a mid-tier producer through the development of its Baomahun project in Sierra Leone and its Yaoure project in Côte d'Ivoire. With its experience of bringing new mines into production and a project pipeline spanning four countries, Amara aims to further increase its production profile with highly prospective opportunities across all assets.

This report includes certain "forward-looking information" within the meaning of applicable Canadian securities legislation.

All statements other than statements of historical fact included in this announcement, including, without limitation, the positioning of the Company for future success, statements regarding exploration, drilling results, resource calculations and potential future production at Yaoure, and future capital plans and objectives of Amara, are forward-looking information that involve various risks and uncertainties. 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. Important factors that could cause actual results to differ materially from Amara's expectations include, among others, the Company's ability to delineate sufficient sulphide resources for the development of a CIL/CIP operation, risks related to international operations, the actual results of current exploration and drilling activities, changes in project parameters as plans continue to be refined as well as future price of gold. Although Amara has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Amara does not undertake to update any forward-looking statements that are included herein, except in accordance with applicable securities laws.

The diamond drilling programme at Yaoure was undertaken by two independent drilling contractors. Drill cores for assaying were taken at a maximum of two metre intervals, typically one metre, and were cut with a diamond saw with one-half of the core placed in sealed bags. The core samples for the first three phases of diamond drilling (31,995m) in 2011-2012 were sent mainly to the Intertek sample preparation facility in Yamoussoukro, Côte d'Ivoire, prior to fire assay, mainly at Intertek Minerals Ltd in Accra, Ghana, and also to the SGS sample preparation facility in Yamoussoukro prior to fire assay at the SGS laboratory in Tarkwa, Ghana). In addition, two batches of samples (two holes) were sent to Bureau Veritas in Abidjan, Côte d'Ivoire, for sample preparation and fire assay. The core samples from the fourth phase of diamond drilling (15,435m) in 2013 were prepared (crushed and pulverised) at the Company's sample preparation facility at Yaoure prior to fire assay only at Intertek Minerals Ltd in Accra. The core samples were crushed down to minus 2 mm, with half the sample then being pulverised down to 85% passing 75 microns, prior to analysis for gold by fire assay using a 50g sample. As part of the Company's QA/QC procedures, internationally recognised standards, duplicates and blanks were inserted. Check assays were carried out at ALS Geochemistry in Johannesburg, South Africa. The laboratories used are independent of the Company.

Non IFRS Measures - Discovery cost per ounce is a financial measure used by many investors to compare mining companies on the basis of results of exploration expenditure. It is used because Amara's exploration expenditure and Mineral Resource updates alone do not give a full picture of the success of the Company's exploration work. Management believes that discovery cost per ounce is an important measure in evaluating the Company's performance, and in determining whether to invest in Amara. However, discovery cost per ounce is not a measure of financial performance, nor does it have a standardized meaning prescribed by IFRS, and may not be comparable to similar measures presented by other companies.

Peter Brown is a "Qualified Person" within the definition of National Instrument 43-101 and has reviewed and approved the information contained within this announcement. Dr Brown (MIMMM) is the Group Exploration Manager.

Mario Rossi is a "Qualified Person" within the definition of National Instrument 43-101 and is responsible for the estimation of the Yaoure Mineral Resource. He has reviewed and approved the relevant technical information relating to the resource estimates in this release. Mr Rossi (Fellow AusIMM, Member CIM, Member SME) is Principal Geostatistician of GeoSystems International, Inc.

Appendix 1: Resource Estimation Parameters

1. The estimates of Mineral Resources were calculated in accordance with the definitions adopted by the Canadian Institute of Mining Metallurgy and Petroleum ("CIM") and incorporated into NI 43-101. The Mineral Resource estimate was carried out by Mario Rossi of GeoSystems International, Inc.

2. Block model preparation and resource estimation has been completed using Datamine and GSLib. One-metre primary samples were used to define mineralised outline wireframes, whilst two-metre down hole composites were used for statistical analysis, variography and resource estimation. High grade capping depended on the estimation method used.

3. Resource estimation has been completed using a combination of Multiple Indicator Kriging (MIK) and Indicator-modified Ordinary Kriging, depending on the estimation domain. Bulk density has been estimated into the block model using ordinary kriging.

4. Ounces represent estimated gold content present in the tonnes of material which would be mined and processed once they are converted to a Mineral Reserve. Mining recovery, dilution and mill recovery rates have not been applied in calculating the contained ounces.

5. In accordance with the guidelines set out by the CIM and contained within NI 43-101, this mineral resource estimate for the Yaoure property uses a 0.5 g/t Au cut-off and a US$1,500/oz Au "Resource Pit" to represent that portion of the resource which has "reasonable prospects for economic extraction" from an open pit mining scenario. The open pit mining scenario considers that oxides are being mined assuming Heap Leach economics; Sulphides assuming Flotation economics. Pit slopes are 35º in oxide, 46º in sulphide; and metallurgical recoveries have been assumed at 90%.

6. Amara's attributable portion of the mineral resource estimate is 100%, although on development the Government of Côte d'Ivoire will be entitled to a 10% free carried interest.

7. The classification methodology used was based on a combination of drill density, data quality, and evaluations of the statistical and spatial characteristics of the gold mineralisation.

8. Glossary

"Mineral Resource": A mineral resource is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals in or on the Earth's crust in such form and quantity and of such grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.

"Inferred Mineral Resource": is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

"Indicated Mineral Resource": is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonable assumed.

 "Carbon-in-leach": a recovery process in which a slurry of gold ore, carbon granules and cyanide are mixed together. The cyanide dissolves the gold content and the gold is absorbed on the carbon; the carbon is subsequently separated from the slurry for further gold removal.

"Froth flotation": a recovery process for physically separating particles based on differences in the ability of air bubbles to selectively adhere to specific mineral surfaces in a mineral/water slurry. The particles with attached air bubbles are then carried to the surface and removed, while the particles that remain completely wetted stay in the liquid phase.

"Heap leach": a recovery process whereby gold is extracted by "heaping" broken ore on sloping impermeable pads and repeatedly spraying the heaps with a weak cyanide solution which dissolves the gold content. The gold-laden solution is collected for gold recovery.

The above definitions of "mineral resource", "inferred mineral resource", and "indicated mineral resource" conform to CIM definitions as defined in the CIM Standards on Mineral Resources and Reserves - Definitions and Guidelines as required by National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators.