Proposed merger between Stellar Diamonds and West African Diamonds

Wednesday, Nov 04, 2009

African Aura Mining Inc. the TSX Venture Exchange 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 and AIM listed West African Diamonds Limited 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
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 West African exploration and development company with a primary listing on the TSX-V (AUR) and a secondary listing on London's AIM (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 Africa.

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 or SEDAR, 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 8370 7971

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

Source: Stellar Diamonds