ARU.V · 2020-03-31 12:00:00

Provides Quarterly Update

Corporate Updates

TSX

V: ARU

NR 20

AURANIA

PROVIDES QUARTERLY UPDATE

Toronto, Ontario,

June 1

–

Aurania Resources Ltd. (TSXV: ARU)

(OTCQB: AUIAF)

rankfurt

: 20Q)

(“Aurania” or the “Company”)

is pleased to

provide a

n update of

activities

, many of

which are

key points from the

Company’s results for

the three months ended March 31, 2020

contained in

the F

inancial

tatements and

Management’s Discussion and Analysis dated

May 26, 2020

that

are available

on SEDAR at

www.sedar.com

and the Company’s website

http://aurania.com/investors/financial

reports/

Highlights

COVID

19:



All field work was suspended

during the quarter

as a precaution to mitigate the spread of the

COVID

19 virus. All field teams were withdrawn from the operational area by March 21, 2020

;



Our first exploration teams are

now

back in

Macas, the town in which Aurania’s field office is

located,

in quarantine

in preparation

to recommence exploration by June 10. The quarantine period

and associated testing for COVID

19 infection is in accordance with the Company’s COVID

protocol

that was implemented

following approval of the

biosafety protocol

for

the reopening of

mining activities that was approved by Ecuador’s National Committee of Emergency

;



The Company

translated

factual information regarding the COVID

19 virus

prepared by Ecu

ador’s

Ministry of Health

into the Shuar language of the local people

and helped disseminate that

information to

communities in its area of influence

of the

Lost Cities

–

Cutucu Project (“Project”)

;

and



The Company, in co

operation with the Step Forward F

oundation, with assistance with logistics

and transport from the Ministry of Social Inclusion and the Ecuadorian military, made two

eliveries

dried food such as rice, lentils and beans

to communities within the area of interest of

the

Project

The f

irst delivery totaled 8 tonnes

of food

to 970 families in 44 communities and the

second was 10 tonnes to 1,29

families in 49 communities.

Exploration:



LiDAR

data from

seven priority target areas

flown in Q1 is being integrated with geophysical data

from the 2017 survey, as well as with stream sediment and soil sampling results to refine target

areas;



LiDAR data

has

show

a feature that appears to be an old, engineered road along a ridgeline

in th

central part of the Project area

. The structure is completely jungle

covered, and the

re is a footpath

along the structure that is used by the

Shuar people. We believe that the engineered road is part of

an infrastructure network that linked the Spanish

Colonial gold mining centres of Logrono and

Sevilla. LiDAR interpretation is on

going

;



The first phase of scout drilling on the Yawi epithermal

gold

silver

target (3,010m drilled in 7

holes) was

completed. All of the boreholes confirmed the presence of

a maar

diatreme system

and

alteration and pathfinder element distribution provided a clear vector direction towards the core of

the

mineralized

system. Detailed field work in the direction of the vector identified a diatreme

breccia that contains fragment

s of mineralized porphyry and fragments of silica typical of an

epithermal

gold

silver

system. Now that the geological framework of the target area has been

established, the next step is to undertake a geophysical program aimed at identifying sulphides

lated to epithermal and porphyry systems. Two types of

geophysics

are being evaluated, to be

implemented as soon as possible: ground

based CSAMT that detects resistive zones

such as

quartz

related to epithermals

, and heliborne ZTEM or Mobile MT. The heli

borne

geophysics options are

designed to detect conductive and/or chargeable areas such as sulphide

bearing zones, as well as

resistive areas

–

such as

epithermal veins

;

and



A tenth bore hole was drilled at Crunchy Hill just prior to the drill crews and ex

ploration teams

withdrawing due to the COVID

related lockdown.

Hole CH

010 was drilled to a depth of 401m,

bringing the total scout drilling at Crunch Hill to 3,605m.

The bore hole intersected the maar

diatreme target and alteration and pathfinder element distribution between holes CH

009 and 010

showed a vector towards the north. The

next step

is to

undertake

similar geophysics

program

that planned for Yawi

prior

to any

further drilling

Environmental:



Revegetation of

the

drill platforms

at Yawi

was completed

and has been approved by the Ministry

of the Environment;

and



The Company received ISO14001 accreditation for the environmental aspects of its exploration

rogram

. This is an unusual accreditation for an exploration company and is

a sign of recognition,

by an unrelated third party, for the care with which the Company is striving to minimize its

environmental footprint and to engender improved environmental p

ractices in the communities

with which it works

ISO14001 provides a framework for ongoing improvement.

Concessions:



The Company paid a total of

2,077,640 (CAD 2,785,907)

to the Ecuador government for the

renewal

fees

for Aurania’s 42 mineral concessions

that constitute the Project

Financial

orporate

and

egulatory



The Company completed a

non

brokered private placement

for gross proceeds of

$6,

470

, with

the issuance of

2,087,139

common shares;



Dr. Barron

agreed to

extend the maturity date of a 2017 Promissory Note

of $620,699 from May

29, 2020 to May 29, 2021

;



Mr. Alfred Lenarciak, an Independent director since June 2018, was appointed as Lead Director

;



Ms. Carolyn Muir was appointed VP

–

Inves

tor Relations

; and



The Company filed a National Instrument 43

101 report entitled “A Technical Review of the Lost

Cities

–

Cutucu Exploration Project, Morona

Santiago Province, Ecuador”.

Qualified Person

The technical information contained in this news release has been verified and approved by Jean

Paul

Pallier, MSc. Mr. Pallier is a designated EurGeol by the European Federation of Geologists and is a

Qualified Person as defined by National Instrument 43

101, Standards of Disclosure for Mineral Projects

of the Canadian Securities Administrators.

About Aurania

Aurania is a

mineral

exploration company engaged in the identification, evaluation, acquisition and

exploration of mineral property interests, wit

h 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.

Information on Auran

ia and technical reports are available at

www.aurania.com

and

www.sedar.com

, as

well as on Facebook at

https://www.facebook.com

/auranialtd/

, Twitter at

https://twitter.com/auranialtd

and LinkedIn at

https://www.linkedin.com/company/aurania

resources

ltd

For

further information, please contact:

Carolyn Muir

VP Investor

Relations

Aurania Resources Ltd.

(416) 367

3200

[email protected]

Dr. Richard Spencer

President

Aurania Resources Ltd.

(416)

367

3200

[email protected]

Neither the TSX

enture Exchange

nor its Regulation Services Provider (as that term is defined in the

policies of the

TSX Venture Exchange

) accepts responsibility for

the adequacy or accuracy of this release.

Forward

Looking Statements

This news release

may contain

forward

looking information that involves substantial known and unknown

risks and uncertainties, most of which are beyond the control of Aurania. Forward

looking statements

include estimates and statements that describe Aurania’s future plans, objectives or goals, including words

to the effect that Aurania or its management expects a stated condition or result to occur. Forward

looking

statements may be id

entified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”,

“could”, “would”, “will”, or “plan”. Since forward

looking statements are based on assumptions and

address future events and conditions, by their very nature they involve i

nherent risks and uncertainties.

Although these statements are based on information currently available to Aurania, Aurania provides no

assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors

involved with

forward

looking information could cause actual events, results, performance, prospects and

opportunities to differ materially from those expressed or implied by such forward

looking information.

Forward looking information in this news release includes, bu

t is not limited to, Aurania’s objectives, goals

or future plans, statements, exploration results, potential mineralization, the corporation’s portfolio,

treasury, management team and enhanced capital markets profile, the estimation of mineral resources,

xploration and mine development plans, timing of the commencement of operations and estimates of

market conditions. Factors that could cause actual results to differ materially from such forward

looking

information include, but are not limited to, failure

to identify mineral resources, failure to convert estimated

mineral resources to reserves, the inability to complete a feasibility study which recommends a production

decision, the preliminary nature of metallurgical test results, delays in obtaining or fa

ilures to obtain

required governmental, regulatory, environmental or other project approvals, political risks, inability to

fulfill the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of

financing needed in the

future, changes in equity markets, inflation, changes in exchange rates, fluctuations

in commodity prices, delays in the development of projects, capital and operating costs varying significantly

from estimates and the other risks involved in the mineral e

xploration and development industry, and those

risks set out in Aurania’s public documents filed on SEDAR. Although Aurania believes that the

assumptions and factors used in preparing the forward

looking information in this news release are

reasonable, und

ue reliance should not be placed on such information, which only applies as of the date of

this news release, and no assurance can be given that such events will occur in the disclosed time frames or

at all. Aurania disclaims any intention or obligation to

update or revise any forward

looking information,

whether as a result of new information, future events or otherwise, other than as required by law.

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