Aurania Resources Ltd. announced that positive findings of careful relogging of drill core together with the integration of geophysics and geochemistry from its Tiria-Shimpia target in Aurania's Lost Cities-Cutucu project in southeastern Ecuador has revealed the presence of a chain of three structural grabens occupying the middle of the concession block. Grabens are extremely important in mineral exploration because their bounding faults are often through-going conduits for hydrothermal fluids, and they have very high potential to be mineralized. This underlying work is integral to advancing ongoing joint venture discussions while the Company begins preparations for a drill program at its Tatasham and Awacha porphyry targets expected to commence later in 2022.

Both programs remain in line with Aurania's corporate strategy discussed in February 2022. The north graben is 10 kilometres long and 3.5 kilometres wide, the central graben is 26 kilometres long and 3 kilometres wide; and the south graben is 18 kilometres long and 5 kilometres wide. Structural grabens, also known as pull-aparts or drop-downs, are areas where younger rocks have been faulted downwards vertically, between older rocks by opposing horizontal forces.

It can be thought of as if the rocks have been stretched horizontally in opposite directions to breaking point, and then have subsided downward along vertical bounding cracks (faults). Grabens can be recognized in the field when the rocks abruptly appear out of age sequence. Lundin Gold's Fruta del Norte gold deposit, approximately 100 kilometres south of the Project, lies in a structural graben as does Aurania board member Thomas Ullrich's recent high-grade copper discovery at the Storm deposit of Aston Bay in northern Canada.

A number of mineralizing patterns have now come into focus, which will be explained below, and Management considers that the prospectivity of its sediment-hosted targets within the Project has been very considerably enhanced. The process of review by Aurania's technical team and consultants is ongoing. Dr. Cristian Vallejo, Aurania's Consultant Geological Expert on the Cutucu area, has relogged the Tiria- Shimpia and Tsenken drillcore, placing it in the correct geological context.

It was found that a contracted paleontologist had incorrectly dated several index fossils and that Tiria-Shimpia sits in rocks that are 90 million years younger than previously believed. Dr. Vallejo convincingly correlated the drilling with oil well DRA-29 outside the Project, and also dissolved representative pieces of Tiria-Shimpia core in acid for Palynology. The results definitively place the four Tiria-Shimpia holes in the Hollin and Napo Formations, which are understood to the primary reservoir rocks for oil in Ecuador.

In fact, impregnations of petroleum were found at depths of 345.8 metres ("m") to 357 m in Hole #2 in Shimpia. While Management of Aurania does not consider there to be any potential for economic petroleum in the concessions, the importance of this finding in the context of sediment-hosted base metal deposits cannot be overemphasized. Crude petroleum, bitumen and natural gas have all been implicated as precipitation agents in the formation of sediment-hosted copper deposits, and lead-zinc-silver deposits.

The two styles of mineralization are sometimes found in proximity but are separated horizontally or vertically due to precipitation kinetics. Over the last several years, Aurania has located numerous high-grade copper/silver showings across the Project. but the proper understanding of the ore-deposits framework still eluded to some extent.

To date, salt has been intersected in three drill holes in Tsenken and anhydrite evaporites were found in two other holes. The copper/silver mineralization sits within laterally impersistent and thin beds of carbonaceous trash in the upper Chapiza, stratigraphically above the salt beds, where plant debris and other organics have acted as chemical reductants, precipitating copper and silver from circulating saline brine. The scenario is not unlike the Kupferschiefer of eastern Germany and Poland, but by themselves thin beds are volumetrically too minor to represent orebodies and are not exploration targets.

One exploration target however does leap out as exceptional and will be discussed presently. The Chapiza redbeds would equate with the Rotliegendes directly beneath the Kupferschiefer, an organic-rich "copper shale" which hosts the economic orebodies in Poland. These rocks were formerly not thought to be in the central graben, but the recent study made by Cristian Vallejo has identified the Upper Hollin formation in hole #1 and #2 below the Napo Fm.

Hollin also subcrops within the southern graben, in an area where there is a large MobileMT conductive anomaly that was heretofore considered to be spurious.