New Intermediate Gold Producer
Investor PresentationMarch 2010
Forward-Looking Statements
All statements made in this presentation, other than statements of historical fact, constitute forward-looking statements. The actual results of Aura Minerals may differsignificantly from those anticipated in the forward-looking statements and readers are cautioned not to place undue reliance on these forward-looking statements. Except asrequired by securities regulations, the Company undertakes no obligation to publicly release the results of any revisions to forward-looking statements that may be made to reflectevents or circumstances after the above-stated date or to reflect the occurrence of unanticipated events.
Forward-looking statements include, but are not limited to, statements with respect to the future price of copper, gold, nickel and iron ore, the estimation of mineral reserves andresources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of thedevelopment of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of miningoperations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and the timing and possible outcome of litigation.In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”,“estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or state that certain actions, events or results“may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements involve known and unknown risks, uncertainties and other factors whichmay cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or impliedby the forward-looking statements. Such factors include, among others, risks related to the integration of acquisitions; risks related to international operations; risks related to jointventure operations; actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; futureprices of copper, gold, nickel and iron ore; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated;accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or constructionactivities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should notplace undue reliance on forward-looking statements.
Disclaimer
Aura Minerals Inc. ("Aura Minerals") ("Aura Minerals" or the "Company") is a Canadian company and a reporting issuer in the Province of British Columbia and the Province ofOntario, Canada. The Company has taken all reasonable care in producing and publishing information contained in this presentation, and will endeavor to do so regularly.Material in this report may still contain technical or other inaccuracies, omissions, or typographical errors, for which Aura Minerals assumes no responsibility. Aura Minerals doesnot warrant or make any representations regarding the use, validity, accuracy, timeliness, completeness or reliability of any claims, statements or information in this presentation.Under no circumstances, including, but not limited to, negligence, shall Aura Minerals be liable for any direct, indirect, special, incidental, consequential, or other damages,including but not limited to loss of profits, whether or not advised of the possibility of damage, arising from use, or inability to use, the material in this presentation. The informationherein is not a substitute for independent professional advice before making any investment decisions. The information in this presentation may be superseded by subsequentdisclosures.
This presentation presents a review of Aura Minerals' proposed acquisition of projects in Brazil and Honduras, and of its existing projects in Brazil and Mexico. Readers arecautioned that Aura Minerals’ existing projects in Brazil and Mexico are at an early stage of exploration and production, respectively, and that estimates and projections containedherein are based on limited or incomplete data. More work is required before the mineralization on the projects and their economic aspects can be confidentially modeled.Therefore, the work results and estimates herein may be considered to be generally indicative only of the nature and quality of the projects. Estimates and projections relating tothe projects Aura Minerals proposes to acquire are based on data published by Yamana Gold Inc. No representation or prediction is intended as to the results of future work, norcan there be any promises that the estimates herein will be confirmed by future exploration or analysis, or that the projects will otherwise prove to be economic.
The Toronto Stock Exchange has not reviewed the information in this presentation and does not accept responsibility for the adequacy or accuracy of it.
TSX:ORA 2
Forward-Looking Statements and Cautionary Notes
Corporate Update
• Creation of new intermediate gold producer through acquisition of three
producing gold mines
• Closed acquisition of the San Andres Gold Mine (Honduras)
– Closing of acquisition of Sao Francisco and Sao Vicente Gold Mines (Brazil),
expected in Q1/2010
– Average annual production of 220,000 oz. gold (Au) anticipated for the next five
years from these three mines
– Ongoing work at all three operations to increase production and reduce cash costs
– Large resource base with excellent potential to add to current reserves
• Updated resource estimate for Aranzazu Project (Mexico); planned restart of
mine in Q2/2010 which will add to production base and further reduce overall
mine site cash costs
• Excellent expansion upside over longer term at Aranzazu – drilling now
commenced to test depth potential
• Completed Preliminary Economic Assessment of Arapiraca Project (Brazil);
demonstrates robust economics
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Post-Acquisition Capital Structure
Share Structure
Issued and outstanding shares
Fully diluted
Pro-forma1
205 mm
218 mm
Ownership
Management and insiders
Institutional
Yamana Gold
Pro-forma1
28%
45%
10%
Financial
Cash (approximately)
Long-term debt
Pro-forma1
US$100 mm
US$70 mm
1 Pro Forma Shares on completion of the Acquisition includes 14 million shares to be issued
to Yamana Gold Inc. on closing of Phase 2 of the Acquisition. Pro Forma Cash on
completion of the Acquisition includes payment of US$56 million to Yamana Gold Inc. on
closing of Phase 2 of the Acquisition.
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5
San Andres Gold Mine
• Targeting greater than 90,000 oz of Au in 2010 at a
cash cost of less than $500/oz Au
Sao Francisco Gold Mine
• Targeting 90,000 oz of Au in 2010 at a cash cost of
approximately $600/oz Au
Sao Vicente Gold Mine
• Targeting 55,000 oz of Au in 2010 at a cash cost of
approximately $600/oz Au
Aranzazu Copper-Gold-Silver Project
• Targeting restart in Q2/2010 with annualized production
of 25 mm lbs Cu and 16,000 oz Au eq. at cash costs of
below $1.00/lb Cu
Arapiraca Copper-Gold- Iron Ore Project
• Advancing to feasibility and reviewing strategic
alternatives
Aranzazu Copper-Gold-Silver Project, Mexico
Arapiraca Copper-Gold-Iron Ore Project, Brazil
San Andres Gold Mine,Honduras
Sao Francisco Gold Mine,
Brazil
Sao Vicente Gold Mine,
Brazil
Inaja Project, Brazil(Under option agreement to Vale)
Operations
Exploration
Advanced development
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Gold Production Growth in 2010
2010 Strategic Focus
2010 Objectives Timeline
• Increase production at San Andres Gold Mine through commissioning of
new crusher/conveyor system and operational improvements, with
corresponding reduction of cash costs
Q1/2010,
ongoing
• Integrate Sao Francisco and Sao Vicente Gold Mines and identify key
cost reductions and throughput and gold recovery improvement
opportunities
2010
• Re-start Aranzazu Project and implement staged production increases Q2/2010
• Test depth potential at Aranzazu as part of a major expansion program Q1/2010
• Advance development of Serrote Deposit (Arapiraca Project) to
feasibility study level
Q3/2010
• Continue to evaluate strategic opportunities focused on private or
undervalued production or advance stage development gold projects
Ongoing
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OPERATIONS
San Andres Gold Mine
Category Tonnage (tonnes) Grade (g/t Au) Contained Metal (oz Au)
Total P&P Reserve 31,122,000 0.63 734,000
Total M&I Resource 120,511,000 0.60 2,328,000
Inferred Resource 4,704,000 0.79 120,000
Forecast
Production
• Approximately 70,000 oz. of gold production for 2009
• Long term production of greater than 80,000 oz. of gold expected annually
at an average cash cost below US$500/oz Au for a 7-year mine life
Capital
Projects
• New crusher/conveyor line to increase throughput and to reduce haulage
and operating costs
• Power connection with the national grid in evaluation
• Continuous gold mineralization between current mining operations at East
Ledge and the proposed mining operations at the Twin Hills zones are
expected to increase gold production
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Note: Resources are inclusive of reserves
San Andres - Operational Improvements
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• Full integration of new mining contractor on site
– Has led to a substantial increase in month-over-month mine production in Q3/2009
• Focus on solution management
– Has led to highest monthly gold production during a rainy season month (6,983 oz. produced in October 2009)
• Construction continuing on the new primary crusher/conveyor system
– Will significantly reduce haulage distances and increase throughput
• Commencement of metallurgical testwork on site
– Will optimize gold leach cycle and reagent dosage to increase recovery
• Implementation of a new stacking and leaching plan
– Will optimize gold recovery and reduce cash costs
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San Andres - Operational Improvements
• Mechanical completion of
the crusher in November
2009, with completion of the
conveyor system in Q1/2010
• Leach pad Phase IV
expansion and Retention
Pond 6 projects approved
for 2010
San Andres – New Crusher Location – Increase
Throughput and Reduce Cash Costs
Current
New
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Sao Francisco Gold Mine
Operating
History
• Producing since 2006
• Gold production of 76,000 oz. in 2008 at cash cost of US$629/oz.
Forecasted
Production
• 75,000 to 85,000 oz. of gold production in 2009
• +/- 90,000 oz. of gold production in 2010
Capital
Projects
• New mine plan implemented in 2008; improvements included better ore
grade estimation and new geological modeling
• New mine fleet in place June 2009 – improved productivity and efficiency
• Enhanced mine productivity and cost reduction focus will continue in 2009 –
gravity plant, heap metallurgy and mine planning
Category Tonnage (tonnes) Grade (g/t Au) Contained Metal (oz Au)
Total P&P Reserve 31,882,000 0.71 727,000
Total M&I Resource 45,150,000 0.69 1,007,000
Inferred Resource 751,000 0.80 19,000
TSX:ORA 12
Note: Resources are inclusive of reserves
Sao Francisco – Key Focus in 2010
• Improve grade control through changes to drilling and blasting practices
• Increase throughput of current crushing plant for improved recoveries
• Investigate potential to crush low grade dump leach ore to significantly
improve recoveries
• Improve heap operational parameters, including lime and cyanide
consumption
• Reconfigure and improve recovery of gravity circuit
• Evaluate reprocessing of existing tailings
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Sao Francisco – Typical Ore Section
QUARTZ VEINS1ST MINERALIZATION
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Sao Francisco – Gold Mineralization
Above (left): Nuggets associated with quartz veins or microscopic crystals associated with sericitic bands and sulphides.
Above (right): In quartz veins – massive and irregular grains, 1mm to 5mm in size. Occurs in lamelar grains.
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Sao Francisco – Current Circuit
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Crushing Plant, Secondary and Tertiary
Gravity PlantCrushing Plant
Tabling of Gravity Gold
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Recovered Gold
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Recovered Gold
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Sao Vicente Gold Mine
Operating
History
• Commenced commissioning December 2008
• Commercial production achieved in Q3/2009
Forecasted
Production
• 40,000 to 50,000 oz. of gold production in 2009
• 50,000 to 55,000 oz. of gold production in 2010
• Estimated mine life of at least five years
• Potential for further upside through continued mine exploration
• 2010 focus – process plant, heap and metallurgy improvements, mine
exploration to convert additional resources to reserves
Category Tonnage (tonnes) Grade (g/t Au) Contained Metal (oz. Au)
Total P&P Reserve 16,018,000 0.65 335,000
Total M&I Resource 25,482,000 0.74 605,000
Inferred Resource 3,623,000 0.87 101,000
TSX:ORA 20
Note: Resources are inclusive of reserves
Sao Vicente – Key Focus for 2010
• Conduct program of definition and expansion drilling to increase resource
base
• Review of current process plant for potential modification to significantly
increase recovery (grinding vs. gravity)
• Drill nearby targets identified for increased production
• Evaluate potential for reprocessing of historic dredge tailings
TSX:ORA 21
TSX:ORA 22
DEVELOPMENT PROJECTS
Aranzazu Copper-Gold-Silver Project
History
• Limited operating history under previous owner
• Basically no exploration on property from early’80’s to 2007
• Located in centre of what appears to be a major copper gold silver district
Forecast
Production
• Planned re-start Q2/2010 at 2,600 tpd
• Planned run rate production of +25 mm lbs copper, +12,000 oz gold and
+250,000 oz silver – excellent upside on gold and silver production
• Stage 2 – next increase to 3,000 tpd
• By-product gold and silver contributes to low projected cash costs below
US$1.00 per lb copper
Capital
Projects
• Estimated capex of approximately US$20 mm in 2009/10
• Mine development and mill upgrades commenced October 2009
Category Tonnes Grade (Cu %)
Grade(Au g/t)
Grade(Ag g/t)
Cu(mm lbs)
Au(000 oz.)
Total M&I Resource 12,847,000 1.34 0.50 11.87 379 207
Inferred 3,217,000 1.17 0.28 6.44 83 29
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Note: Resources at a 0.8% Cu only cut-off
Aranzazu Project – Significant Upside
Potential to Increase Resources
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Aranzazu Project - Arroyos Azules Zone -
Continues to Demonstrate Potential
Hole
#
Dip
(o)
From
(m)
To
(m)
Interval
(m)
Cu1
(%)
Au
(g/t)
Ag
(g/t)
AZC-042 -63 192.00 211.50 19.50 3.07 0.93 34.21
AZC-043 -69 256.40 262.30 5.90 2.30 3.84 43.88
AZC-044 -46 138.00 190.50 52.50 1.56 1.33 14.79
AZC-048 -50 322.50 348.00 25.50 1.80 0.48 22.63
AZC-050 -45 175.50 189.00 13.50 1.62 0.64 19.87
AZC-057 -47 129.00 142.50 13.50 3.41 1.25 21.26
AZC-061 -70 252.00 313.50 61.50 1.89 1.03 26.58
AZC-062 -67 231.00 315.00 84.00 2.19 0.67 16.09
AZR-038 -47 217.90 230.10 12.20 1.07 1.16 12.68
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1. Using a copper cutoff grade of 0.5%
Overall Layout
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Mill Float Plant
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On-Going Plant Modifications
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On-Going Plant Modifications
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Aranzazu Project – Large Resource with
Exploration Upside
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Red – 0.5% Cu grade shellBlack – mined out stopes and underground workingsGrey - untested
Deep High Grade Intercepts
Aranzazu Copper-Gold-Silver Project
Exploration
Upside
• Only 50% of drill holes in database were assayed for gold
• Precious metals grades are likely to improve with additional drilling
• Large resource base, open at depth
• 2010 drill program planned to target +50 million tonnes at lower Cu cut-off
(0.5% Cu) – if successful, will be the basis of a feasibility study on a larger
underground operation (potential sub-level caving)
Category Tonnes Grade
(Cu %)
Grade
(Au g/t)
Grade
(Ag g/t)
Cu
(mm lbs)
Au
(000 oz.)
Measured 2,690,000 1.04 0.47 9.99 65 45
Indicated 21,121,000 1.01 0.39 8.96 470 265
Total M&I Resource 24,082,000 1.01 0.40 9.09 535 310
Inferred 8,674,000 0.82 0.18 4.39 157 50
November 2009: Resources at a 0.5% Cu only cut-off:
TSX:ORA 31
Hole
#
Dip
(o)
From
(m)
To
(m)
Interval
(m)
Cu
(%)
Au
(g/t)
Ag
(g/t)
54200-4 -90 330.00 368.00 38.00 1.21 0.71 13.27
54300-3 -90 338.00 379.48 41.48 2.48 1.15 25.09
54350-2 -80 373.20 428.00 54.80 1.96 1.15 23.28
54375-1 -85 474.00 526.00 52.00 2.24 0.95 16.64
54475-2 -80 400.00 438.00 38.00 1.08 0.40 12.82
54475-2 -80 462.00 468.00 6.00 1.34 0.56 21.90
54475-5 -80 364.34 414.00 49.66 2.06 0.58 19.00
Aranzazu Project – Limited Deep Drill Results
TSX:ORA 32
Aranzazu Project – Major Surface and
Underground Drill Program Planned for 2010/11
TSX:ORA 33
Aranzazu Targets
El Cobre Target
Aranzazu
Strike
Extensions
La Apuesta
Sedimentary
Target
TSX:ORA 34
Arapiraca Project – Feasibility Stage
Copper-Gold-Iron Ore Deposit
Forecasted
Production
• Preliminary Economic Assessment completed September 2009, considers commissioning
Q4/2012
• Average annual production of 137 mm lbs copper, 27,000 oz. gold and 1.3 mm tonnes of
magnetite concentrate grading 67% Fe
• Low projected cash costs of US$0.65 – US$0.82 per lb of copper (net of by-products)
Capital
Projects
• Capex US$490 million
• Construction permit received August 2009 – now fully permitted
• Potential to enhance project economics with addition of oxide plant to produce an
additional 20 mm lbs copper cathode per annum
• Excellent infrastructure – access to roads, railway, ports, towns
Resources • Preliminary Economic Assessment does not consider additional resources at Caboclo
Deposit (drilling underway) – resource estimate update for Caboclo Deposit Q2/2010
TSX:ORA 35
Mineral Resources TonnesGrade
(Cu %)
Grade
(Au g/t)
Grade
(Fe %)
Cu
(mm lbs)
Au
(mm oz.)
Serrote Total M&I Resource 195,727,000 0.49 0.09 15.46 2,139 0.57
Serrote Inferred 31,181,000 0.49 0.09 13.93 337 0.09
Caboclo Total M&I Resource 7,587,000 0.57 0.16 19.34 95 0.04
Caboclo Inferred 4,616,000 0.57 0.11 14.24 58 0.02
Preliminary Economic Assessment Highlights
TSX:ORA 36
Arapiraca Project Years 1 to 3 Life of Mine
Mill Feed (Note 1) 40.2 million tonnes 169.6 million tonnes
Strip Ratio (Note 2) 3.7 to 1 3.12 to 1
Copper Grade 0.60% 0.51%
Gold Grade 0.103g/t 0.09g/t
Iron Grade 17.6% 14.8%
Copper Recovery 85% 85%
Gold Recovery 65% 65%
Magnetite Recovery (Note 3) 92% 92%
Copper Production 155M lbs per annum 137M lbs per annum
Gold Production 29,750 oz per annum 26,850 oz per annum
Iron in Magnetite 874,000 tonnes per annum 767,000 tonnes per annum
Total Cash Cost per Pound Copper (Note 4) $0.65 $0.82
Project Total
Capital Costs $US 490M
Sustaining Capital Costs $US 76M
Mine Life 12 years
Economics – Post Tax (Note 5)
NPV@8% $US 417M
NPV@10% $US 325M
NPV@12% $US 250M
IRR 25.4%
Payback 2.8 Years
Note 1 Mined and processed resource is 92% classified as Measured and Indicated. In-pit Inferredresources amount to 8% of the total in-pit resources, and are mined at the end of the mine life.
Note 2 Strip ratio includes oxide material which may be processed by heap leach not considered in thePreliminary Economic Assessment
Note 3 Average magnetite concentrate production is estimated at 1.3 million tonnes per annum grading67% relative to an 11% mass pull for Fe
Note 4 Total cash cost per pound of copper includes treatment and transportation costs and royalties, aswell as by-product credits for sales of gold and iron ore
Note 5 Commodity prices assumed for financial analysis are US$2.00/lb Cu, US$800/oz Au, andUS¢85/dmtu Fe fines
Arapiraca Project:
Demonstrates
Potential for Strategic
Partnerships
TSX:ORA
LOOKING AHEAD
Compelling Valuation: Comparable Analysis
P/NAV1,2
1. Share Price Information as at February 5, 2010 2. NAV based on a 5% discount rate and the following Canaccord Adams Research forecasts for gold prices: US$1,250/oz in 2010, US$1,100/oz in
2011, US$1,000/oz in 2012, US$900/oz in 2013 and US$850/oz in 2014+3. Aura Minerals market capitalization on a pro-forma basis includes 14 million shares to be issued to Yamana Gold Inc. on closing of Phase 2 of the
Acquisition4. AMC = Basic market cap + net debt + working capital + estimated capexSource: Canaccord Adams Research
AMC/P&P Recoverable Reserves1,3,4
2010E Production Price to Cash Flow 2010E1,2
TSX:ORA 38
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Positioned for Growth
• Gold production continues to generate cash flow in 2010
– Sao Francisco and Sao Vicente Gold Mines expected to close in Q1/2010
– Aranzazu Project to re-start operations in 2010
• Operational plan promotes increased organic growth through mine
improvements and expansion potential
– Initiatives in place for improved efficiencies at all operations
• On-going evaluation of strategic initiatives focused on long-term growth
– M&A activity centred on private or undervalued assets
TSX:ORA 39
TSX:ORA 40
Aura Minerals Inc.
P.O. Box 10434 - Pacific Centre
777 Dunsmuir Street, Suite 1950
Vancouver, BC V7Y 1K4
TEL: 604-669-4777 FAX: 604-696-0212
EMAIL: [email protected]
www.auraminerals.com
TSX:ORA
Gold Mine Acquisition Summary
• Agreement to acquire a 100% interest in three gold mines from Yamana Gold
Inc. in June 2009 (the Acquisition)
– Closed the San Andres Gold Mine in August 2009 (Phase 1)
– Awaiting regulatory approval of Sao Francisco and Sao Vicente Gold Mines
(anticipated in Q1/2010 – Phase 2)
• Consideration includes the following:
– US$40 million in Aura Minerals stock at closing at a deemed price of C$2.00/share
– US$90 million in cash, paid in two tranches
– US$70 million in a 3 year promissory note
– Contingent consideration up to a maximum of US$40 million, based on operations
generating net free cash flow above certain milestones
• All net free cash flow generated from Sao Francisco and Sao Vicente Gold
Mines prior to closing will accrue to Aura Minerals in form of purchase price
adjustment
TSX:ORA 41
42
New ClaimsPaved Roads
Railway
Town of Arapiraca
Original
Claims
TSX:ORA 42
Arapiraca Project - Large Land Position –
Over 177,000 Hectares