Aurania Resources Ltd. reported that preliminary results from the drill holes and surface prospecting at the Company's Tatasham target in southeastern Ecuador indicate the discovery of a large, important epithermal system with similarities to the Fruta del Norte gold deposit located 100kilometres to the south. All three holes drilled to date at Tatasham have intersected an importanthydrothermal system with breccias, strong silicification, and high temperature illite-clay alteration,however no economic precious metal intersections have been encountered as yet. The upper part of thesystem is interpreted as a sinter paleosurface.

Representative samples of drill core will be available for viewing at our booth in the Investors Exchange(booth #2948) at the Prospector's and Developer's Convention in Toronto, March 5th-8th. The discovery of an epithermal system at Tatasham was unexpected, in our pursuit of a copper porphyry target indicated by geophysics. That porphyry target is still valid, but it may lie at considerable depth, or it may lie laterally.

Our recent diamond drilling campaign was designed for a porphyry target and is too widely spaced for a typical epithermal target, but it very fortunately clipped the edges of what appears to be a very large system. Aurania has paused the drill program at Tatasham in order to conduct additional field work in the coming months including a ground based induced polarization (IP) survey to appropriately refine the epithermal target areas prior to additional drilling. This work is necessary to define the limit of the system, which remains open to the north, and to understand the geometry of the system.

The hydrothermal system at Tatasham is characterized by strong silicification surrounding hydrothermalbreccias. The upper part preserves fine, irregular, layers of amorphous silica that has the characteristics ofa sinter. Several textures typical of silica sinter have been identified, in particular, "network fabric" and geyserite lithofacies, the latter interpreted as proximal to the original vent (see fig.1).

Two other sinterswere found nearby, one of which is represented by a boulder located 2.7 km from the collar of TT-003. A sinter is the surface manifestation of geothermal activity; usually accompanied by geysers, hot springs,boiling mud pools, and steaming ground. Gold and silver scaling deposits were discovered clogging thesurface pipework of New Zealand geothermal fields in the routine maintenance of electrical generating installations (Brown, 1986) and this fundamentally established a genetic link between the formation of epithermal gold-silver deposits and ascending hot geothermal fluids.

Extinct geothermal fields have longbeen recognized as favourable settings for gold-silver deposits. Simon Ridgway and Mar-West Resources discovered two gold mines in the 1990's simply by staking active and extinct hotsprings off the topographicmaps of Central America. Fruta del Norte contains a sinter of approximately 1.1 km areal extent,underneath which is the deposit.

Not all of the many tens of thousands of the hot springs around the world will be linked to formation of gold deposits at depth, but the proximity of Tatasham to Fruta del Norte, in the same belt of rocks, is considered highly favourable. Investigation has shown that the depth of formationof gold deposits below a sinter in the proper geological environment can be anywhere from nil to as much as 1,000 metres, though 200-300 metre might be considered typical.Hole TT-003 (see fig.3) was collared in Cretaceous-aged Hollin sandstone which is considered to be post-mineral cover, as it is at Fruta del Norte. The hole continued in a series of continental sediments showingalternations of mudstone, siltstone, lithic sandstone, and polymictic conglomerates up to 18m thickness.

The conglomerate contains rare clasts of vein chalcedony. This assembly of continental sediments is abovea black limestone showing minor disseminated sphalerite mineralization. The sediments overlie a tuffaceousvolcano-sedimentary series.

The clastic sediment-limestone-tuff sequence is interpreted as the filling of a pull-apart basin with an episode of marine incursion at the end of the volcanic activity. Immediately belowthe tuffaceous horizon lies a sinter displaying fine, irregular, layers of amorphous silica, locally over printedby fault breccia. The Santiago Formation andesite below the sinter is propylitically altered (chlorite), withzones of silicification accompanied by barite, iron-oxides and high temperature illite-clay.

Three hydrothermal breccias cross the andesite below the sinter in hole TT-003. One of the breccias iscemented by barite, while the other two are rich in iron and manganese oxides in a silica matrix. It issignificant that the drill core, even at a downhole depth of greater than 300 metres, is highly oxidized andit is believed that this could be a Jurassic-aged weathering horizon as also seen in the uppermost levels of Fruta del Norte.Holes TT-001 and TT-002 crossed zones of silicification and potassic alteration representing the distal partof the epithermal system as reported in the press release dated January 9, 2023.

The presence of the sinterin Hole TT-003, shows that this hole is closer to the centre of the system. To emphasize, mineralization in an epithermal system is typically found somewhere below the sinter; the sinter itself is barren as was thecase with the sinter discovered at Fruta del Norte. Therefore, these first three holes should be regarded as discovery holes of the epithermal system, but there is considerable work and interpretation still to be done before economic drill results are expected.

Qualified Person: The geological information contained in this news release has been verified and approved by Aurania's VPExploration, Mr. Jean-Paul Pallier, MSc. Mr. Pallier is a designated Eur Geol by the European Federation of Geologists and a Qualified Person as defined by National Instrument 43-101, Standards of Disclosurefor Mineral Projects of the Canadian Securities Administrators.