Aguia Identifies Zone of Copper Mineralisation Within 9 Kilometre Target Area in Rio Grande Do Sul, Southern Brazil

Highlights:

• Aguia has staked 23 tenements, totalling 34,000 hectares, within the prolific Rio Grande Copper Belt
  
• High grade copper mineralisation has been identified in outcrops grading up to 4.09% Cu at Aguia’s Canhada target
  
• Mineralisation is hosted in a 100km belt with historical production from Iron Oxide Copper Gold (IOCG) deposits including a new Zn-Cu project being permitted by Nexa Resources (formerly Votorantim)
  
• 12 gossanous outcrops (assays pending) representing weathered sulphide zones have been identified at Aguia’s Big Ranch target
  
• Soil sampling underway with ground geophysics and scout drilling to follow
  
• Copper projects provide potential growth and value creation for Aguia shareholders
  
• AGR’s primary focus remains on the development of its phosphate assets with BFS on track for release in March

TORONTO, Feb. 26, 2018 (GLOBE NEWSWIRE) -- Aguia Resources Ltd. (ASX:AGR) (TSXV:AGRL) (“Aguia” or “Company”) is pleased to announce the identification a new zone of copper mineralisation on ground staked within the Rio Grande Copper Belt, as a result of regional exploration activities in the State of Rio Grande do Sul, Brazil.

The Company is pleased to confirm that it has successfully secured a strategic land package along the Rio Grande Copper Belt, totaling 34,000 hectares across 23 tenements. Aguia has identified two mineralised targets within the belt: Canhada and Big Ranch (see Figure 1 below).

The Canhada target is located 20 km south of the City of Lavras do Sul, where Aguia has its field office, and consists of a 9-km-long by 3-km wide structurally-controlled trend within which a 2km x 1km airborne potassium anomaly (which remains open to the northeast) has been identified with an extensive coincident copper-in-soils anomaly in an area where multiple copper occurrences have been identified in bedrock by Aguia geologists. Mineralisation occurs as stockworks, veins and disseminated sulphides within the alteration zone (Figures 2 and 3). The potassium and associated hematite alteration is a characteristic of IOCG mineralised systems. The host sequence includes andesitic volcanic and pyroclastic rocks that have undergone intense hydrothermal alteration including albitization, cloritization, carbonate alteration and hematite alteration. Copper minerals are associated with potassic and hematitice alteration and include chalcopyrite, bornite, digenite and chalcocite, as well as malachite when weathered, typical of IOCG affinity mineralising systems. Soil sampling along this target will continue and in advance of a systematic exploration program that will include a ground induced polarization (“IP”) survey followed by a scout reverse circulation drilling campaign.

The Big Ranch target is located along the northern edge of the Caçapava Granite and consists of an 8-km-long by 4-km-wide zone where multiple zinc and copper showings were identified including 12 outcrops of gossans suggesting a mineralised and alteration aureole along the northern margin of the intrusion (Figure 4). The multiple copper and zinc showings from early sampling along this target are very encouraging. A soil survey is currently underway to be followed up by ground geophysics and subsequent scout drilling.

Commentary

Technical Director Fernando Tallarico commented: “With the Três Estradas project now focused on BFS activities, our field crews were available to review potential targets in the surrounding region and they have successfully identified broad areas with indications of copper and zinc mineralisation. We were aware that the belt had high potential for copper mineralisation and it had not been explored in recent years and recently we were able to secure ground along the Rio Grande Copper Belt in an area where our team has identified copper mineralization in bedrock.”

The Canhada and the Big Ranch targets are both extremely promising large-scale mineralised and altered zones that merit further exploration. The core of the Canhada anomaly consists of a 2.4 km x 1.4 km copper-in-soil anomaly that is juxtaposed on an airborne potassium anomaly with rock samples from early sampling grading up to 4% Cu. It is part of a bigger anomalous system of about 9 km x 3 km.

The work in Big Ranch is just beginning with most of the rock assays still pending, but we have identified breccias bearing up to 2% Zn from early sampling and gossan outcrops along a zone in excess of 3 km bordering the margins of the Caçapava Granite.”

Managing Director Justin Reid added: “This exciting new discovery could open up a new field of exploration for Aguia in addition to the Três Estradas phosphate project. The knowledge base and experience of our technical team has been instrumental in zeroing in on these new tenements with minimal expenditure so far. This could have the potential for a prolific new base metals discovery and it is well worthwhile undertaking further exploration to better determine the nature, scale and grades of the mineralisation that appears to be evident across very large areas. We have a significant number of soil and assay results pending and I expect that our target area will grow with this work. These impressive discoveries are providing potential growth opportunities for Aguia and we will be considering various options to unlock value for shareholders.”

Meanwhile, we continue to move forward with development of the Três Estradas phosphate project, with our BFS targeted for release in March and this remains our primary focus. Community consultations are ongoing and we are now looking forward to approval of the Environmental Impact Assessment for the project which will come in the form of the Preliminary License, allowing us to move forward towards the construction phase.”

Background to Geological Setting

The mineralisation is hosted within a 100-km long by 60-km-wide belt that hosts numerous base metals deposits and past producers which in this geological environment typically occur flanking the borders of Neoproterozoic granites (Figure 1). The geological environment is highly prospective and includes the past producing Camaqua copper mine, a new Zn-Pb project currently being licensed by Nexa Resources of the Votorantim Group and the Andrade copper deposit owned by Brazilian based Referencial.

Figure 1 is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/7bab1e93-7ff3-4b37-b9ea-30c144c5d5e2

Figure 2 is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/e498aff0-0f81-4011-9c1b-17e4c682b0be

Figure 3 is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/d5005c9b-4178-4755-a2af-587c0a513546

Figure 4 is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/c554e7f9-cb0f-46cc-8288-67acc380a8be

Table 1. Rock sampling results from the Canhada Target - Rio Grande Copper Belt.

Table 2. Rock sampling results from the Big Ranch Target - Rio Grande Copper Belt.

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.

The information in this announcement that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Fernando Tallarico, who is a member of the Association of Professional Geoscientists of Ontario. Dr Tallarico is a full-time employee of the company. Dr Tallarico has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Tallarico consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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.

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 Canhada and Big Ranch Targets, soil and assay results, , progress of the BFS, 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 Canhada and Big Ranch Targets.

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.

NEITHER THE AUSTRALIAN STOCK EXCHANGE, TSX VENTURE EXCHANGE NOR THEIR REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.