The Serrote project is a copper-gold-iron ore exploration project located in the central-southern part of the Brazilian State of Alagoas, approximately 15 kilometres northwest of the town of Arapiraca. The property currently consists of 53 exploration licences totalling 86,400 hectares and one application for a mining concession of 392 and includes the Serrote and Caboclo deposits. The Serrote project is 100% owned by Aura Minerals.

The Serrote project is readily accessible from Maceio, the capital city of the State of Alagoas, via paved highways, located 160 kilometres from the Serrote Project. The Zumbi dos Palmares international airport also serves the area and lies just north of Maceio, approximately 140 kilometres from the Serrote project. Infrastructure in the area is well-established with electric energy, communication and transportation networks, including paved highways, all located within the property boundaries of the Serrote project. A one-metre gauge railroad, four kilometre distance from the Serrote project, passes through the city of Arapiraca and links directly to three deep-sea ports (Suape, Aracaju and Salvador), which are capable of shipping iron-ore and copper concentrates.  In addition, the Serrote project is 586 kilometres by rail to Camacari, Bahia State, the site of Brazil’s only copper smelter (Caraiba Metais).

In September 2009, a Preliminary Economic Assessment was completed on the Serrote deposit, which demonstrates robust economics for a 15 million tonne per annum sulphide concentrator plant producing a copper-gold concentrate and with a magnetic circuit producing a high-grade magnetite concentrate. The Preliminary Economic Assessment did not include resources from the nearby Caboclo deposit, where drilling is ongoing.

For more information on the Preliminary Economic Assessment, please consult the report dated September 30, 2009, and entitled “Preliminary Economic Assessment, Serrote da Laje Deposit of the Arapiraca Copper-Gold-Iron Ore Project, State of Alagoas, Brazil” prepared for Aura Minerals by Gordon Zurowski, P.Eng. of PEG Mining Consultants Inc. in conjunction with Ronald G. Simpson, P.Geo. of GeoSim Services Inc. and Brian Kennedy, P.Eng., a copy of which may be found on SEDAR at www.sedar.com.

On July 12, 2011, Aura Minerals announced the commencement of a definitive feasibility study on the Serrote deposit. The feasibility study is scheduled for completion late in the first quarter of 2012.

The feasibility study will focus on developing the Serrote deposit as an open pit mine that will supply sulphide ore to a concentrator at a rate of 12 million tonnes per year, producing copper in concentrate with gold credits, as well as a magnetite concentrate. The Company expects to commence negotiations for project financing and development during 2012, with a construction decision to follow later that year.