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Arranges Non-Dilutive US$25 million To Acquire the High Grade Shafter Silver Mine


June 3, 2008

Aurcana Corporation ("Aurcana" or the "Company") is pleased to announce that it has arranged all the funds required to close the acquisition of 100% of the Shafter Silver Mine ("Shafter") in southwest Texas. The Company has also agreed to enter into negotiations for a silver off-take to finance construction of Shafter. 

As a result of these arrangements, no further equity funding is likely to be required to complete the Shafter project through to production. 

Aurcana has signed an Agreement with Silver Wheaton Corp. ("Silver Wheaton") that will result in Aurcana receiving a US$25 million upfront cash payment from a silver stream financing agreement on life-of-mine silver production from the La Negra mine. In addition to the US$25 million cash payment, upon delivery of the silver, Silver Wheaton will also pay Aurcana a fixed price payment per ounce of silver produced equal to the lesser of $3.90 and the spot price at the time of sale (subject to a 1% annual adjustment staring in the fourth year of silver production. As a result of the silver off-take agreement on La Negra, Silver Wheaton will be entitled to fifty percent of the life-of-mine silver production generated from the mine. Reyna Mining and Engineering S.A. de C.V., Aurcana's 20% partner at La Negra is fully supportive of the transaction with Silver Wheaton.

Historical Reserves: non 43-101 compliant

  Tonnes Ag g/t Pb % Zn % Cu %
Proven 888,000 152 0.83 2.74 0.94
Probable 335,000 177 1.08 3.07 0.94


Historical Resource: non 43-101 compliant

  Tonnes Ag g/t Pb % Zn % Cu %
Inferred 2,145,600 152 0.93 3.03 1.09


The historical reserve and resource calculations pre-date and are non-compliant with the NI 43-101 standards. The historical reserve and resources, although considered relevant, and a good indication of the potential at La Negra, should not be relied upon until verified. Aurcana is actively upgrading selected parts of the historical reserves and resources and have already completed the two NI 43-101 reports as listed below which are available on SEDAR under the Company's profile:

Alacran Zone: 43-101 compliant Reserves

  Tonnes Ag g/t Pb % Zn % Cu %
Proven 244,496 72 0.24 0.99 0.81
Probable 190,329 70 0.26 0.89 0.72


Monica Zone: 43-101 compliant Resources

  Tonnes Ag g/t Pb % Zn % Cu %
Measured 403,497 127 0.79 0.94 0.48
Indicated 184,201 128 0.85 1.40 0.31


The US$25 million upfront cash payment from Silver Wheaton will be used to fund the US$23 million cash component of the Shafter silver mine acquisition from Silver Standard Resources.

Silver Wheaton and Aurcana have also agreed to enter into negotiations on a silver off-take agreement on Shafter in return for Silver Wheaton providing the capital required to re-open the mine. 

Ken Booth, President Aurcana Corporation states, "This is an extremely attractive opportunity for Aurcana and its shareholders. The Company has secured all funding necessary to take the high grade Shafter silver mine from acquisition through to production with no further dilution."

On April 3, 2008 Aurcana announced it had agreed to acquire a 100% interest in the Shafter from Silver Standard Resources. Shafter has a measured and indicated resource of 21,000,000 ounces of silver at 10.06 opt Ag and an inferred resource of 20,200,000 ounces of silver at 12.83 opt Ag. This is based on a previously prepared technical report for Silver Standard by Pincock Allen and Holt on the Shafter Silver Mine dated April 10, 2001 and filed on SEDAR June 3, 2002. A copy of the report is available on SEDAR (www.sedar.com) under Silver Standard's profile. The Company has commissioned a NI 43-101 compliant technical report to confirm and update the resource estimate. 

The Shafter Project is located in Presidio County, southwest Texas, and is fully accessible via paved highway from El Paso, Texas. In 1880 silver was discovered in the Shafter region and in 1883 the Presidio Mining Company began production from the Mina Grande deposit. The mining of silver continued with few interruptions until 1942 when the mine was closed, not from lack of ore, but by the War Act. Total production during that period was 2.3 million tons of ore containing 35 million ounces of silver at an average grade of 15.24 ounces of silver per ton. 

In 1977 Gold Fields Mining Company acquired the project and held it until 1994, during which time over $20 million was spent on project development. In 1994 the project was then acquired by the Rio Grande Mining Company (RGMC) and additional exploration, mine planning, mill design and metallurgical studies were carried out. Over this time period beginning in 1977, a total of 260,000 feet of drilling in 891 drill holes was completed. This systematic surface-drilling program resulted in the discovery of the eastern extension of the Presidio deposit, extending more than 5,000 feet horizontally from the lowest development work in the Presidio Mine. A 1,050 foot vertical shaft was sunk and 5,100 feet of underground development work was completed. Silver Standard Resources subsequently acquired RGMC. In 2003 a 900 ton-per-day mill was acquired and is on site. No significant work has been done on the property since that date. 

All necessary infrastructure, is in place with a major power line and paved highway crossing the property, an electrical sub-station on site, and a 1,050 foot shaft with a lift capacity of 80 ton per hour. Aurcana will use the expertise and experience of its operations team, which successfully refurbished and restarted the La Negra Mine in 13 months, to assemble the mill and restart the mine at Shafter. The Company estimates that the Shafter Mine could be in production in 15 months.

Canaccord Capital Corporation acted as financial advisor to Aurcana on this transaction.

About Aurcana Corporation:

Aurcana Corporation is a Canadian mining company listed on the TSX Venture Exchange, symbol AUN. The acquisition of 100% of the Shafter Silver Mine, in Presidio County, Texas, has transformed Aurcana into an emerging primary silver producer. Shafter is planned for start up in 2009 with projected annual silver production averaging 2.6 million ounces. Additionally, the 80% owned La Negra silver-lead-zinc-copper mine in Queretaro State, Mexico, operates at 1,000 tonnes per day and the 100% owned Rosariosilver-lead-zinc-gold mine in Sinaloa State, Mexico, is also advancing towards production at a planned rate of 800 tonnes per day. The reader should be cautioned the Company has not completed feasibility studies confirming the projected production capacity for La Negra, Shafter or Rosario and there is no certainty the Company's plans will be economically viable. 

Aurcana, together with its proven construction and operating team, is 100% committed to restoring and restarting the historical Shafter silver mine at the earliest opportunity. Additionally, aggressive exploration programs are being carried out at the La Negra Mine and the Rosario Mine in order to increase historical reserves and resources. With continued success, this could lead to further increases in silver production. Aurcana, while committed to advancing its current projects, continues to seek and evaluate additional high quality, producing or near producing silver projects.

The transaction with Silver Wheaton may be subject to regulatory approval.

Ron Nichols, P.Eng. a Director and Vice President of Exploration for Aurcana, and a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this release.

ON BEHALF OF THE BOARD OF DIRECTORS OF
AURCANA CORPORATION

"Ken Booth", President 


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

Or contact:

Ken Booth, President or
Jack Barnes, Investor Relations
Aurcana Corporation
Phone: (604) 331-9333
Toll Free: (866) 532-9333
Fax: (604) 633-9179
Email: jbarnes@aurcana.com

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release.

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