Through Private Placement for Proceeds of Up to $1.5 Million

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OTTAWA, ONTARIO--(Marketwire - May 30, 2011) - Aura Silver Resources Inc. (TSX VENTURE:AUU)("Aura Silver" or the "Company") announces the appointment of Union Securities Ltd. ("Union") to act as its agent, on a commercially reasonable basis, to offer, by way of a brokered private placement, up to 6,000,000 flow-through units (the "Units") at a price of $0.25 per Unit for gross proceeds of up to $1,500,000 (the "Offering"). Each unit will consist of one flow-through common share and one non-flow-through common share purchase warrant ("Warrant"). Each Warrant will entitle the holder to acquire, upon exercise, one common share at a price of $0.30 per share for a period of 24 months from the closing date of the Offering. Additionally, warrants will be callable during the 24 month period, at the option of the Company, should the Company's common shares trade above $0.60 for twenty consecutive trading days on the TSX Venture Exchange. Subscribers will be notified of the call provision being triggered and will have a 30 day period to exercise the warrants.


In consideration for its services as agent, Union will be paid a commission equal to 8% of the gross proceeds from the Offering, payable in cash. In addition, Union will receive non-transferrable agent's compensation options to acquire that number of non-flow-through units equal to 10% of the number of Units sold and purchased under the Offering. The agent's compensation options will be exercisable for a period of 24 months from the closing date at a price of $0.25 per unit. The Company has agreed to pay certain expenses reasonably incurred by Union in connection with the financing.


The Units issued in the Offering will be subject to a four month hold period from the closing date. This brokered private placement is subject to TSX Venture Exchange acceptance.


Aura Silver intends to use the proceeds of this Offering to fund drilling programs and related exploration costs for its 100% owned Greyhound, Nunavut project. The Company is currently completing additional ground geophysical surveys and has initiated the 2011 drilling program at the Greyhound project (See Press Release #11-04, May 26, 2011). The flow-through share proceeds will be used to incur Canadian exploration expenses prior to December 31, 2012 at the latest. The Company intends to renounce the qualifying expenditures to subscribers for the year ended December 31, 2011.



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) and in Oaxaca, Mexico at the Taviche project. Aura Silver has 81,653,590 common shares outstanding.


FORWORD-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 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 . 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.






FOR FURTHER INFORMATION PLEASE CONTACT: Robert Boaz
Aura Silver Resources Inc.
President and CEO
(905) 403-8010
boaz@aurasilver.com
http://www.aurasilver.com/">www.aurasilver.com