Aguia Resources Limited Announces Buyback of Royalty for Tres Estradas

TORONTO, ONTARIO--(Marketwired - July 25, 2017) -

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Aguia Resources Limited ("Aguia", or the "Company") (ASX:AGR)(TSX VENTURE:AGRL) is pleased to announce that the Company has repurchased a Net Smelter Royalty ("NSR") for cancellation. The NSR was granted to Sulliden Mining Capital Inc. ("SMC") on November 3, 2014, at which time SMC invested AUD 2,000,000 in exchange for 40 million ordinary shares and a 1% NSR in respect of the future production at Aguia's Três Estradas phosphate project.

Under the original terms of the NSR agreement, Aguia had the option to buy back the NSR for cancellation in exchange for USD 1,000,000 up until November 3, 2017. After analysing the cost of paying the NSR based on a 14-year mine life, management and the Board of Directors determined that the NSR buyback has substantially greater value and cancellation of the NSR is beneficial to the Company's shareholders and the economics of the Três Estradas project. The NSR value has potential to further increase with any new resources identified at the project.

Managing Director Justin Reid commented, "With a strong balance sheet following the recent $10.5 million private placement, buying back the royalty will deliver much greater value to shareholders over the long term. This is one of numerous steps we have taken into consideration this year as we move forward with the Bankable Feasibility Study and optimise the development plans for the Três Estradas. Decisions we make now will all contribute to a profitable and efficient operating business in the future. This buyback is clearly accretive to Aguia."

"Now that our TSX-V listing is complete, we are 100% focused on completing the BFS and will be providing regular updates to shareholders on our progress."

About Aguia:

Aguia Resources Limited, ("Aguia") is an ASX 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.