Stellar Diamonds Update

27 October 2009
 
TSX-V:  AUR
AIM:       AAAM
 
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US
                         NEWS WIRE SERVICES.
 
                       African Aura Mining Inc
 
  Proposed Merger between Stellar Diamonds Limited and West African
                          Diamonds Limited
 
African Aura Mining Inc.  ("African Aura" or  the "Company") the  TSX
Venture Exchange ("TSX-V") and  AIM listed exploration to  production
company focused on gold and iron ore in sub-Saharan Africa, announces
that heads  of  agreement have  been  reached between  the  Company's
58.54% owned subsidiary Stellar Diamonds Limited ("Stellar") and  AIM
listed  West  African   Diamonds  Limited  ("WAD)   to  undertake   a
combination of business interests that, if successful will constitute
a reverse takeover  of WAD  by Stellar. It  is the  intention of  the
Boards of  Stellar and  WAD to  readmit the  shares of  the  combined
entity to be called 'Stellar Diamonds Ltd' on to the AIM market.
 
Further details on the proposed business combination will be released
in due course.
 
About Stellar Diamonds Limited (www.stellar-diamonds.com)
Stellar  holds  a  portfolio  of  production  and  development  stage
projects in the countries of  Sierra Leona and Guinea, West  Africa.
Production commenced from the  Mandala alluvial diamond operation  in
Guinea in late April  2009 and to date  some 37,000 carats have  been
produced, with initial  revenues now exceeding  $1million. In  Sierra
Leone, Stellar  holds  two  key properties,  the  Kono  Project  (49%
ownership in Joint Venture with  Petra Diamonds Limited holding  51%)
and the Tongo Project (100% ownership). Both these projects are  host
to high  grade  kimberlite  dyke systems  that  demonstrate  economic
potential. The  strategy  of Stellar  is  to achieve  growth  through
production and  targeted  consolidation within  the  African  diamond
sector.
 
About African Aura Mining Inc.
African Aura is  an established African  exploration and  development
company listed on  the TSX-V  (AUR) and London's  AIM Market  (AAAM).
African Aura is focused  on the development  of world-class iron  ore
and gold deposits in highly prospective, under explored countries  of
sub-Saharan  Africa.  The   Company  has  a   highly  motivated   and
experienced team  with  a  record of  discovering  mines  and  taking
projects through development and into production in African.
 
African Aura's assets include  the New Liberty  gold deposit and  the
Putu iron ore project,  both in Liberia. Putu  is being explored  and
operated by the Company's Joint Venture partner, Severstal  Resources
(the mining division of OAO  Severstal).  Severstal Resources is  one
of the largest  mining companies  in Russia  with EBITDA  in 2008  of
US$859 million.  For  further  information on  the  Company  you  are
invited to  visit its  website  at www.african-aura.com,  or  SEDAR's
website at www.sedar.com, or contact one of the following:
 
African Aura Mining Inc.
Luis da Silva, President & CEO          Tel:  +44 (0) 20 7299 4212
 
Stellar Diamonds Ltd.
Karl Smithson, CEO                      Tel:  +44 (0) 77 837 07971
 
Evolution Securities Limited
Simon Edwards / Chris Sim / Neil Elliot Tel:  +44 (0) 20 7071 4300
 
Pelham Public Relations
Charles Vivian / James MacFarlane       Tel:  +44 (0) 20 7337 1500
 
Forward-looking Statements
This press release includes  certain forward-looking statements.  All
statements,  other  than  statements  of  historical  fact,  included
herein, including without limitation, statements regarding the future
plans and objectives of African Aura, are forward-looking  statements
that involve various  known and  unknown risks  and uncertainties  as
well as other factors. Such forward-looking statements are subject to
a number of risks and uncertainties that may cause actual results  or
events to  differ  materially from  current  expectations,  including
delays  in  obtaining  or  failure  to  obtain  required   regulatory
approvals. 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.   Any
forward-looking statements  speak only  as of  the date  hereof  and,
except as may be  required by applicable  law, African Aura  disclaim
any obligation to update  or modify such forward-looking  statements,
either as a result of new information, future events or for any other
reason.
 
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
 accept responsibility for the adequacy or accuracy of this release.
 
Ends
 
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