27 October 2009 TSX-V: AUR AIM: AAAM 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 Companys 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 West African exploration and development company with a primary listing on the TSX-V (AUR) and a secondary listing on Londons 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 Auras assets include the New Liberty gold deposit and the Putu iron ore project, both in Liberia.

Putu is being explored and operated by the Companys 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 SEDARs 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 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 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
________________________________ Associated File: http://www.african-aura.com/i/pdf/2009News/27-10-09 Final AAM NR07_09 WAD.pdf
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(AAZ) All rights reserved. For more information visit our website at http://www.african-aura.com/ or send email to . Message sent on Tue Oct 27, 2009 at 2:29:32 AM Pacific Time ________________________________