Aurcana Corporation: Shafter Silver Mine Update

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/30/10 -- Aurcana Corporation ('Aurcana' or the 'Company') (TSX VENTURE: AUN) is pleased to report on their 100% owned Shafter Silver Mine located in SW Texas.

The successful expansion at Aurcana's La Negra Mine (Mexico) from 1,000 to 1,500 tons per day in Q2, 2010 now allows the company to concentrate its resources on the construction of the Shafter Silver Mine.

Shafter is a historical mine which recovered 35 million ounces of silver between 1883 and 1943, when it closed due to war and low silver prices. In 1979 to 1982, an extensive surface and underground drilling program delineated the extension of the orebody a mile to the east of the old mine. This resulted in a Measured and Indicated Resource of 25 million ounces of silver and an Inferred Resource of 23 million ounces of silver.

The July 2009 Prefeasibility Study (www.aurcana.com and SEDAR) indicates a 25% IRR at $13.55 per ounce of silver, and a 2 year payback period. A silver price of $15.55 per ounce will provide a 44% IRR and an 18 month payback.

Aurcana purchased Shafter fully permitted in 2008, and encouraged by the positive July 2009 Prefeasibility Study and high silver prices, is now engaged in securing financing to start construction in the third quarter of 2010. Company resources are focused on project planning and the publication of a bankable feasibility study in September 2010.

In May 2010, SNC-Lavalin finished basic engineering of the mill and surface infrastructure. Final adjustments are being made to existing permits to exactly match the project's final configuration. Amendments are minor in nature, and the regular interaction with the regulatory agencies has resulted in the Company receiving positive indications that permits will be amended on application.

Construction can proceed immediately on receipt of financing. Project execution planning is substantially complete, and includes selection of key construction personnel such as the mine construction manager, the permitting and environmental manager, the plant construction manager, and the selection of an engineering firm and a construction company. In all cases project resources are local to the US South West.

Mr. Lenic Rodriguez, President and CEO of the Company, comments,

'While the La Negra Mine is a success story for Aurcana, our next step is to start building Shafter to bring it on stream early in 2012. Shafter is a very good fit for this company as it is a straight-forward project with no barriers to construction or operation. It has an excellent orebody, is fully permitted, and is well-served with infrastructure. With a production rate of 3.5 million ounces of silver per year and a cash cost of $7.50 per ounce for the first two years, ($8.50 average life of mine), bringing it into production will significantly boost Aurcana's profitability.'

About Aurcana Corporation:

The Shafter Silver Mine is scheduled to start up production within 18 months of securing permits and financing, producing 3.9 million ounces of silver in the first year. It has a NI 43-101 measured and indicated resource of 24.6 million ounces of silver (2,900,000 tons at 8.48 Ag opt) and an inferred resource of 22.8 million ounces of silver (2,167,000 tons at 10.52 Ag opt) using a 4.0 ounce per ton cut off. The 92% owned La Negra silver-lead-zinc-copper mine is on target to increase production to over 2 million ounces Silver Equivalent annually with the recently completed expansion to 1,500 tonnes per day. The reader should be cautioned the Company has not completed a feasibility study confirming the projected production capacity for La Negra and there is no certainty the Company's plans will be economically viable. Mr. Sandy McVey, P. Eng., is the Company's Qualified Person as defined by National Instrument 43-101 and is responsible for the accuracy of the technical information in this news release.

ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA CORPORATION

Lenic Rodriguez, President

NR#10-13

Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include unsuccessful exploration results, 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.

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.

Contacts:

Aurcana Corporation

Jack Barnes

Corporate Relations

(604) 331-9333 or Toll Free: (866) 532-9333

(604) 633-9179 (FAX)
jbarnes@aurcana.com
www.aurcana.com