AURA Silver Announces the First Tranche Closing of Non- Brokered Private Placement

P 905.403.8010

Aura Silver Resources Inc.

PO Box 279

Manotick ON K4M 1A3

Press Release # 17-01 TSX-V: AUU January 16, 2017

AURA SILVER ANNOUNCES THE FIRST TRANCHE CLOSING OF NON-

BROKERED PRIVATE PLACEMENT

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

first tranche of its non-brokered private placement of up to $500,000 (the “Offering”) announced on November

29, 2016. Aggregate proceeds of approximately $209,000 were raised on this first tranche for 5,977,737 units

issued at $0.035 per unit.

Each unit consists o f 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 date of issuance (“Warrants”).

The Company has paid eligible finders a cash commission in the amount of $9,360.00 being 8% of the aggregate

proceeds from the sale of units to purchasers introduced by the finders as well as issued an aggregate of 267,429

compensation options (each a “Compens ation 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 at an

exercise price of $0.0 5 exercisable for 36 months following the date of issuance , comprising shares and

Warrants.

All securities issued under the first tranche of the O ffering are subject to a statutory hold period until May 17,

2017.

The aggregate proceeds raised under the Offering will be used for working capital purposes and for co ncession

fee costs related to the Company’s Taviche, Mexico property. N o more than 25 percent of the proceeds from the

Offering would be paid by way of fees or salary to Company management. No other payments would be made to

related parties from the proceeds of the Offering.

The second and final tranche of the Offering is expected to close on or about January 31, 2017.

The offered securities will not be registered under the United States Securities Act of 1933, as amended (the

“U.S. Securities Act”) and ma y 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.

This Offering is subject to final acceptance of the TSX Venture Exchange.

About Aura Silver

Aura Silver is a TSX Venture listed company engaged in the acquisiti on, 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 119,808,581 common shares outstanding

(including those issued in the first tranche of the Offering)

P 905.403.8010

Aura Silver Resources Inc.

PO Box 279

Manotick ON K4M 1A3

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 risks and uncertainties associated with our busines s 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 g rowth

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 nu mber 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 SE DAR 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 Exch ange 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.