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AURA Silver Announces Completion of Fully-Subscribed Half-Million Dollar Non-Brokered Private Placement

Financings

P 905.403.8010

Aura Silver Resources Inc.

PO Box 279

Manotick ON K4M 1A3

Press Release # 17-02 TSX-V: AUU February 1, 2017

AURA SILVER ANNOUNCES COMPLETION OF FULLY-SUBSCRIBED

HALF-MILLION DOLLAR NON-BROKERED PRIVATE PLACEMENT

Aura Silver Resources Inc. (TSX -V: AUU) (“Aura Silver” or the “Company”) announces that it has closed the

second and final tranche of its non-brokered private placement of units raising aggregate proceeds of $500,000 in

both tranches (the “Offering”). A total of 14,285,714 units were issued to investors at $0.035 per unit.

Each unit consisted of one common share of the Company and one common share purchase warrant. Each warrant

entitles the holder to purchase one common share of the Company at a price of $0.05 per share for a period of 36

months following the dates of issuance (“Warrants”).

In connection with both tranches of the Offering, t he Company has paid eligible finders cash commission s in the

amount of $11,071 being 8% of the aggregate proceeds from the sale of units to purchasers introduced by the finders

as well as issued an aggregate of 316,309 compensation options (each a “Compensation Option”), which is equal

to 8% of the number of units sold to purchasers introduced by the finders. Each Compensation Option entitles the

finder to acquire a unit (comprising a common share and a Warrant) at an exercise price of $0.05 and is exercisable

for 36 months following the dates of issuance.

The aggregate proceeds raised under the Offering will be used for general corporate costs, working capital purposes

and for concession fee costs related to the Company’s Taviche Mexican silver property. No more than 25 percent

of the proceeds from the Offering will be paid by way of fees or salary to Company management. No other payments

will be made to related parties from the proceeds of the Offering.

The Offering is subject to final acceptance of the TSX Venture Exchange. All securities issued under the Offering

are subject to a statutory hold period until May 17, 2017 (tranche 1) and June 1, 2017 (tranche 2).

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.

Greyhound Project, Spring Drill Program

Noteworthy is the fact that a significant drill program will be initiated in the spring of 2017 by Agnico Eagle Mines

Ltd. (“Agnico Eagle”) on the Company’s Greyhound project in Nunavut. Agnico Eagle will cover all costs of

drilling and associated work such that none of the Offering proceeds is required for exploration of the Greyhound

project. Drilling will follow up on 2016 results where mineralization of 6.41 g/t gold was intersected over 1.5 metres

at the bottom of a drill hole at a vertical depth of approximately 137 metres. This gold intercept lies within a quartz-

stockwork zone of 15 metres of core length. The potential for success of future work following up on the discovery

of high-grade gold and silver boulders is exciting. This will be the third drill program on the project conducted by

Agnico Eagle. The core Greyhound project claims have been converted to a mining lease and all permits required

to initiate drilling are in place.

P 905.403.8010

Aura Silver Resources Inc.

PO Box 279

Manotick ON K4M 1A3

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 under option to Agnico Eagle Mines Ltd. ) and in

Oaxaca, Mexico ( 100% owned Taviche project). Aura Silver has 128,116,558 common shares outstanding

(including those issued in the first and second tranches of the Offering).

Mr. Paul Pitman, B.Sc., P.Geo. is a qualified person as defined by NI 43 -101 and has reviewed and approved the

technical contents of this press release regarding the Greyhound and Taviche projects.

For further information regarding this press release 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.

FORWARD-LOOKING STATEMENTS:

This press release may contain forward looking statements that are made as of the date hereof and are based on current

expectations, forecasts and assumptions which involve ris ks and uncertainties associated with our business including the

uncertainty as to whether further exploration will result in the target(s) being delineated as a mineral resource, capital

expenditures, operating costs, mineral resources, recovery rates, grades and prices, estimated goals, expansion and growth of

the business and operations, the private placement financing activities of the Company, plans and references to the Company’s

future successes with its business and the economic environment in which the business operates. All such statements are made

pursuant to the ‘safe harbour’ provisions of, and are intended to be forward -looking statements under, applicable Canadian

securities legislation. Any statements contained herein that are statements of historical facts may be deemed to be forward -

looking statements. By their nature, forward -looking statements require us to make assumptions and are subject to inherent

risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements

as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to

the risks set forth in the Company’s most recent annual MD&A and the Company’s continuous disclosure documents that can

be found on SEDAR at www.sedar.com. Aura Silver does not intend, and disclaims any obligation, except as required by law,

to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Neither the TSX Venture 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.