Auger Drilling at Mato Grande Carbonatite Returns Highly Encouraging Assay Results

Aguia has been conducting an auger drilling program over the Mato Grande carbonatite to expand upon historical data that indicated up to 8.38% P₂O₅ in fresh carbonatite samples. The Mato Grande carbonatite is a 700m long by 200m wide intrusion in a structural setting similar to the mineralised carbonatite at the Três Estradas phosphate deposit.

Results from 35 auger holes, totaling 110 assays, have been received and the results are very encouraging. The objective of this auger program is twofold: outline the extent of the carbonatite body and test for oxidised phosphate mineralisation at surface. While approximately 25 holes (42% of the planned program) still need to be completed and sampled, the initial data is positive as it includes individual auger samples grading up to 11.71% P₂O₅ and significant intercepts such as MGT-029 with 9 metres from surface grading 7.37% P₂O₅ and ending in mineralisation.

Of the 35 auger holes, 28 holes encountered phosphate mineralisation and 25 of these have ended in mineralisation at depths up to 9 metres, which is the extent of the auger drilling. The auger program will provide very specific targeting to undertake an efficient reverse circulation drilling program that will precisely define the depth of the oxidised zone on top of the Mato Grande carbonatite and provide an initial resource estimate (see Figure 2).

Commentary

Technical Director Fernando Tallarico commented: “The initial exploration of the Mato Grande Carbonatite has been a success. We are now able to outline the surface extent of the mineralised intrusion and have demonstrated that there is an extensive phosphate-rich oxidized zone at surface. With the data collected from this auger program we will be able to design a very precise reverse circulation program to delineate this oxidised zone and drill deeper to determine how far the phosphate mineralisation extends.”

Managing Director Justin Reid added: “In 2017, our exploration program focused on an infill drilling campaign at Três Estradas with the objective of converting the mineral resource from the Inferred category to Measured and Indicated categories. Those successful results are now being incorporated into the final Bankable Feasibility Study which we expect to finish later in Q1 2018.

“Another key objective has been for Aguia to identify nearby promising targets that could eventually provide additional resources to feed into the overall Três Estradas project, and add considerable scale to our asset base in Rio Grande do Sul. Santa Clara, Porteira and Santa Ines are other nearby properties we are also exploring. The potential for additional scale is most encouraging.”

Aguia will report on further project development, exploration and corporate developments progressively throughout the quarter.

Table 1. Auger drilling results from the Mato Grande Carbonatite.

Table 2. Collar information from the auger drilling program at the Mato Grande Carbonatite.

Qualified Person

The technical information in this press release has been reviewed and approved by Dr. Fernando Tallarico, who is a member of the Association of Professional Geoscientists of Ontario, Technical Director for Aguia and a Qualified Person as defined by National Instrument 43-101. Dr. Tallarico consents to the inclusion of his name in this release.

For further information, please contact:
Justin Reid, Managing Director
E: jreid@aguiaresources.com.au
T: +1 416-216-5446

Spyros Karellas, Investor Relations North America
E: spyros@pinnaclecapitalmarkets.ca
T: +1 416-433-5696

Released through: Ben Jarvis, Six Degrees Investor Relations: +61 413 150 448
Follow Aguia on Twitter: @ Aguia_Resources

About Aguia:
Aguia Resources Ltd., (“Aguia”) is an ASX and TSXV listed company whose primary focus is on the exploration and development of phosphate projects in Brazil. Aguia has an established and highly experienced in-country team based in Belo Horizonte, Brazil with corporate offices in Sydney, Australia. Aguia’s key projects are located in Rio Grande do Sul, a prime farming area which is 100% dependent on phosphate imports. The Rio Grande phosphate deposits exhibit high quality and low cost production characteristics, and are ideally located with proximity to road, rail, and port infrastructure. Aguia’s experienced management team has a proven track record of advancing high quality mining assets to production in Brazil.

Cautionary Statement on Forward Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian and Australian securities legislation. Forward-looking information includes, without limitation, statements regarding the results of exploration activities at the Mato Grande carbonatite target, the results of the Auger drilling program, plans for future drilling and exploration programs, the mineral resource estimates, production targets, the anticipated timetable, permitting, forecast financial information, bankable feasibility study and ability to finance the project, and the prospectivity and potential of the Tres Estradas and Mato Grande projects.

Generally, forward-looking information can be identified by the use of forward-looking terminology 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 information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks inherent in the mining industry and risks described in the public disclosure of the Company which is available under the profile of the Company on SEDAR at www.sedar.com, on the ASX website at www.asx.com.au and on the Company's website at www.aguiaresouces.com.au. These risks should be considered carefully.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Persons reading this news release are cautioned that such statements are only predictions and there can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company disclaims any intent or obligation to update or revise any forward looking statements whether as a result of new information, estimates, options, future events, results or otherwise and does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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