Aurcana Reports 2013 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 1, 2014) - Aurcana Corp. ("Aurcana" or the "Company") (TSX VENTURE:AUN)(OTCQX:AUNFF) is pleased to report its audited financial results for December 31, 2013. The summary of the selected financial information should be read in conjunction with the audited financial statements and the related management's discussion and analysis dated April 30, 2014 together referred to as the "Financial Statements", which have been filed on SEDAR (www.sedar.com) and the Company's website (http://www.aurcana.com). All figures are in US dollars unless otherwise noted.

The 2013 Earnings Conference Call will be at 1:00 pm Eastern Time on Friday, May 2. See bottom of press release for details.

The most significant highlights for 2013 were:

1. Silver Equivalent production increased 14% to 2,868,460 ounces in 2013 compared to 2,523,441 ounces in 2012.
   
   
2. Ore mined from La Negra increased 30% to 869,027 tonnes in 2013 from 670,930 tonnes in 2012.
   
   
3. Ore milled from La Negra increased 19% to 825,014 tonnes in 2013 from 691,260 tonnes in 2012.
   
   
4. Upgraded La Negra mill from 2,500 tpd to 3,000 tpd in 2013, a 20% increase in processing capacity.
   
   
5. Earnings from mining operations in 2013 decreased to $11.5 million, compared to $25.0 million in 2012, due to decreases in metals prices and producing lower grade silver.
   
   
6. Revenues decreased to $45.0 million in 2013 from $56.9 million in 2012 due to decreases in metals prices and producing lower grade silver.
   
   
7. Cash cost per tonne milled increased to $34.76 from $34.39 in 2012.
   
   
8. Production cash cost per silver equivalent to $10.00 ounce in 2013, from $9.42 in 2012.
   
   
9. Silver production of 1,255,444 ounces in 2013 compared to 1,374,166 ounces in 2012.
   
   
10. Shafter Silver Mine in Texas was put on care and maintenance on December 19, 2013 mainly as a result of lower metal prices and their impact on the project's mineral resources.
    
    

Earnings

The Company had earnings from mining operations of $11.5 million for the year ended December 31, 2013 (2012: $25.0 million); loss before taxes of ($131.2) million (2012: $15.3 million); earnings ($134.8) million net loss (2012: $10.0 million).

The decrease in earnings from mining operations was related to the decrease in the selling prices of metals produced by the Company in 2013 as well as lower grades of silver. The loss resulting from the impairment of the Shafter property, plant and equipment, and Mineral property assets in Shafter mine, currently on care and maintenance had an effect of $114.1 million plus another $15.9 million expense.

Revenue

During the year ended December 31, 2013, the Company generated revenues from the sale of 10,082 tonnes of copper concentrate (2012: 9,181 tonnes); 15,887 tonnes of zinc concentrate (2012: 15,415 tonnes); 3,006 tonnes of Lead Concentrate (2012: 3,441 tonnes); and 1,073,072 ounces of silver (2012: 1,231,740 ounces) for total net revenues of $45.0 million (2012: $56.9 million).

The average price for sales of copper, silver, zinc and lead during the year were copper; $3.29 (2012: $3.59) per pound; silver $22.92 (2012: $31.12) per ounce; zinc $0.86 (2012: $0.88) per pound and lead $0.97 (2012: $0.94).

On December 31, 2013 the Company had $20.3 million in cash and a working capital deficiency of ($3.7) million.

La Negra Mine Production Highlights

• 19% increase in milled tonnes processed for a total of 825,014 tonnes during the year ended December 31, 2013, (2012: 691,260).
• 7% increase in copper, zinc and lead concentrate for a total of 30,418 tonnes produced during 2013 (2012: 28,363 tonnes).
• Average silver grade per tonne was 60 grams in 2013 compared to 78 grams in 2012. The La Negra mine plan includes a transition to mining higher grade mineralized zones from upper levels of the mine in 2014 and 2015.
• Higher copper grades were mined in 2013 resulting in constrained mill through-put in 2013. A new larger capacity filter press has been commissioned in Q1 2014.
• La Negra's production increase was supported by 13,374 metres of diamond drilling for mining operations and exploration in 2013.

Aurcana has announced its re-financing from Orion Mine Finance (Master) Fund I LP, an affiliate of Orion Mine Finance Group. Details are in the Press Release dated April 29, 2014.

Mr. Lenic Rodriguez, President & CEO stated, "The continued production growth in 2013 and the completion of the expansion at La Negra position Aurcana Corp. to become a mid-tier silver producer in 2014 from the La Negra mine alone."

Summary

During 2013 Aurcana continued to upgrade and expand the La Negra Mine. Metal concentrate prices continued to drop, and the Company continued to adjust its cost structure, both on the operational and administrative side. In December 2013, the Shafter mine was placed on care and maintenance, due to economic conditions and low silver prices. With improved silver prices the Company will re-evaluate initiating mining at Shafter. The Company expects significant increases in production in 2014 and beyond.

To read complete Financial Statement click on this link: http://www.aurcana.com/i/pdf/2013-Q4-FS.pdf

To read complete MD&A click on this link: http://www.aurcana.com/i/pdf/2013-Q4-MDA.pdf

Aurcana Corp. is scheduling a conference call to discuss the audited 2013 results at 1000 Hs PST on Friday, May 2, 2014.

Conference Call Details:

Date: Friday, May 2, 2014

Time: 1:00 PM EDT (10:00 AM Pacific)

Attendee Access Information:

1-800-319-4610 Canada and USA Toll-free

604-638-5340 Vancouver

1-604-638-5340 Outside of Canada & USA

A replay of the conference call will be available immediately following the conference by dialing 1-800-319-6413 in Canada & USA (Toll-free) or 1-604-638-9010 outside of Canada and USA. The required pass code is 2729 followed by the # sign. Please dial-in to the meeting at least 5 minutes prior to the start time using one of the attendee phone numbers.

Corporate

The Company's shares are also traded in the United States on OTCQX under the symbol "AUNFF". Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcqx.com and www.otcmarkets.com.

About Aurcana Corporation: Aurcana Corp. is a primary silver producing company with two properties: the La Negra Mine in Mexico and the Shafter Mine in Texas, US. The latter was put on care and maintenance in December 2013, in part due to depressed silver prices. The Company continues to plan further expansion at its La Negra Mine and to focus on surface exploration on its extensive land holdings in the Maconi Mining District.

The technical information in this release has been reviewed by J. Blackwell (PGeo.), a Qualified Person as defined by National Instrument 43-101.

ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION

Lenic Rodriguez, President & CEO

For further information, visit the website at www.aurcana.com.

This news release contains certain forward-looking statements, including statements regarding forecast silver production, silver grades, recoveries, potential mineralization, exploration result, future plans and objectives of the Company and the business and anticipated financial performance of the Company. These statements are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.

Exploration results that include geophysics, sampling and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classified as a category of mineral resource. A mineral resource which is classified as "inferred" or indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or does not expect", "is expected", anticipates" or "does not anticipate" "plans", "estimates" or "intends" or stating that certain actions, events or results " may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements.

Actual results may differ materially from results contemplated by the forward-looking statements. Important factors that could differ materially from the Company's expectations include, among others,risks related to international operations, unsuccessful exploration results, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as changes in metal prices, changes in the availability of funding for mineral exploration and development, unanticipated changes in key management personnel and general economic conditions. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf. Accordingly, readers should not place undue reliance on forward-looking statements.

Neither the TSX Venture Exchange nor its 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.