Raises GBP30m in Placing

Aurum Mining PLC
26 February 2007


For Immediate Release                                           26 February 2007



                                AURUM MINING PLC

                           ('Aurum' or 'the Company')



    Placing to raise £30 million to fund construction of Andash Zone 1 mine



Aurum Mining plc (AIM: AUR) is pleased to announce that 30 million new ordinary
shares of 1p each in the share capital of the Company (the 'Placing Shares')
have been placed by Arbuthnot Securities Limited, acting as the Company's
Nominated Adviser and Broker, at a price of 100p per share to raise
approximately £30 million before expenses (the 'Placing'). The issue was fully
subscribed and marks the largest fundraising so far this year in the AIM
market's mining sector.



Highlights


  • Aurum has raised £30 million before expenses at 100p per share to fund the
    construction and commissioning of the open-cast mine at the Andash Zone 1
    gold and copper project in the Kyrgyz Republic.


  • Initial production at Andash Zone 1, which contains reserves of 1.1
    million ozs of gold and gold equivalent, is expected to begin in 2008,
    marking Aurum's transition from an exploration company to a gold producer.


  • The Andash Zone 1 mine will be funded entirely through the equity raised
    in the Placing, and there will be no requirement for debt or associated
    hedging.


  • The Placing will also support Aurum's exploration programme within other
    areas of the Andash licence.


Mark Jones, Aurum Mining's Chief Executive, said: 'We are delighted by the
success of this Placing which will fully fund the construction and commissioning
of the Andash Zone 1 mine and which should take the Company through to positive
cashflows. The strength of demand for shares in this Placing underlines the high
quality of the Andash resource and the robustness of our strategy to monetise
both Zone 1 and the other exploration areas within the Andash licence.'


Details of the Placing


A total of 30 million new ordinary shares of 1p each in the share capital of the
Company (the 'Placing Shares') have been placed by Arbuthnot Securities Limited,
acting as the Company's Nominated Adviser and Broker, at a price of 100p per
share to raise approximately £30 million before expenses (the 'Placing').  The
Placing Shares represent approximately 71 per cent of the enlarged issued share
capital of the Company.


The net proceeds of the Placing will enable the Company to wholly fund the
development of the Company's 100 per cent owned Andash Zone 1 gold and copper
project as well as providing on-going working capital and support to continue
the Company's exploration programme. With finance now in place, and following
the announcement of the award of a mining licence and completion of the bankable
feasibility study at the end of 2006, commercial production from Andash Zone 1
is expected during 2008.


As previously announced the Wardell Armstrong International (WAI) compiled
bankable feasibility study increased the measured and indicated resource base by
12.5% to 19.2 million tonnes at 1.1 grams per tonne of gold and 0.4% copper
which equates to 1.1 million ounces of gold and gold equivalent. The feasibility
study anticipates a mining rate of 2 million tonnes per annum with a pit life of
8.5 years and an average cash operating cost of $223 per ounce. Furthermore, the
study confirmed the open-cast operation will combine low costs with high
production rates resulting in a payback period of 3.5 years and an NPV of 36.9%
based on WAI's conservative mineral price assumptions. Further details of the
feasibility study are available at the Company's website (www.aurummining.net).


Application has been made to the London Stock Exchange for the Placing Shares to
be admitted to trading on AIM.  The Placing Shares will rank pari passu with the
existing issued ordinary shares of 1p each in the share capital of the Company
(the 'Ordinary Shares').


The Placing is conditional, inter alia, on the admission of the Placing Shares
to AIM becoming effective ('Admission'), which is expected to occur on
Wednesday, 28 February 2007, when dealings in the Placing Shares are expected to
commence. Upon Admission, the Company's enlarged issued share capital will
comprise 42,429,753 ordinary shares with voting rights.  The Company does not
hold any shares in treasury.  This figure of 42,429,753 Ordinary Shares may be
used by shareholders in the Company as the denominator for the calculations by
which they will determine if they are required to notify their interest in, or a
change in their interest in, the share capital of the Company under the FSA's
Disclosure and Transparency Rules.


On 31 January 2005, a waiver was granted by the Panel on Takeovers and Mergers
from the obligation of the Concert Party (as set out in the admission document
sent to shareholders on 13 January 2005) to make an offer to all shareholders of
the Company pursuant to Rule 9 of the City Code on Takeovers and Mergers. This
waiver related to the potential allotment of up to 3,100,000 new ordinary shares
pursuant to the acquisition of Kaldora Company Limited and options over a
further 1,000,000 Ordinary Shares granted to members of that Concert Party as
set out in the admission document. As a result of the Placing, the percentage
holding of the Concert Party upon Admission will be reduced to 6.8 per cent and
the potential shareholdings of the Concert Party as a result of the issue of
shares and exercise of options for which the waiver has been obtained would be
up to 12.9 per cent.


For further information:
Aurum Mining plc                                              Tel: [phone]
Mark Jones, Chief Executive
Chris Eadie, Chief Financial Officer

Arbuthnot Securities                                          Tel: [phone]
Graham Swindells
John Toll

Buchanan Communications                                       Tel: [phone]
Mark Court / Rebecca Skye Dietrich




Notes to editors

Aurum Mining, which joined the AIM market of the London Stock Exchange in May
2004, is a mining company focussed on gold opportunities in the Former Soviet
Union. Its principal asset is an exploration licence over the Andash gold and
copper project in the Kyrgyz Republic. A mining licence for Andash Zone 1 was
awarded by the Kyrgyz authorities in 2006. The bankable feasibility study
compiled by Wardell Armstrong International, also in 2006, confirmed a measured
and indicated resource base of 19.2 million tonnes at 1.1 grams per tonne of
gold and 0.4% copper, which equates to 1.1 million ozs of gold and gold
equivalent. Initial production at Andash Zone 1 is expected in 2008. The Andash
project also includes Zone 2 and Zone 3 along with Tokhtonysay, Nakhodka and
three other additional exploration areas.

Copies of this announcement may not be published, distributed or transmitted in
or into the United States.  This announcement does not constitute an offer to
sell or the solicitation of an offer to buy the securities discussed herein.
The securities mentioned herein have not been, and will not be, registered under
the United States Securities Act of 1933 (the 'Securities Act') or the laws of
any state, and may not be offered or sold in the United States except pursuant
to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act and applicable state securities laws.  There
will be no public offer of the securities in the United States.


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