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Aurcana to Complete Non-Brokered Private Placement for up to Cdn$4,500,000 on Best Efforts Basis


February 27, 2006

Aurcana Corporation ("Aurcana"or the "Company") is pleased to announce that, subject to TSX Venture Exchange (the "Exchange") approval, the Company will conduct on a best efforts basis, a non-brokered private placement for a minimum of 12,500,000 units at $0.20 (the "Unit") for proceeds of CDN$2,500,000 and up to a maximum of 22,500,000 Units for total proceeds of CDN$4,500,000. Each Unit will consist of one share (a "Share") and one half of a share purchase warrant. One full warrant (a "Warrant") will permit the holder to purchase a further share (a "Warrant Share") for a period of 12 months from closing at a price of $0.25 per Warrant Share, provided that if the closing price of the Company's shares as traded on the Exchange is at or over $0.45 per share for 20 consecutive trading days, the Company will have the right to accelerate the expiry of the Warrants upon giving 30 days notice to the holders thereof. 

Finders' fees in accordance with the Policies of the Exchange will be paid in cash or common shares on a portion of the financing.

The proceeds of the private placement will be used to facilitate due diligence and the acquisition of the La Negra Mine located in Queretaro State, Mexico (previously announced on February 6, 2006), in addition to providing working capital for one year. The proceeds of the exercise of Warrants, if any, will provide general working capital.

In accordance with securities legislation currently in effect, the Shares, the Warrants and the Warrant Shares will be subject to a "hold period" of four months plus one day from the date of closing of the private placement. 

The private placement transaction is subject to acceptance by the Exchange and any other regulatory authority having jurisdiction.

ON BEHALF OF THE BOARD OF DIRECTORS OF
AURCANA CORPORATION

"Ken Booth", President 


For further information, please contact:

Ken Booth, President
Aurcana Corporation
Phone: (604) 331-9333
Web site: www.aurcana.com

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release.

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS

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