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Mineable Reserves At Alacran Deposit Increase By 98 Per Cent
Work Underway On Resource Estimates For 7 Other Deposits


January 18, 2008

Aurcana Corporation ("Aurcana" or the "Company") is pleased to report that it has received a positive NI 43-101 compliant reserve calculation on the Alacran deposit of the La Negra mine, Queretaro State, Mexico from its independent consultants, Wardrop Engineering Inc. (Wardrop). A copy of the Wardrop report will be filed at www.SEDAR.com within 45 days. Aurcana is very encouraged by the tonnage increase which is a result of the present favourable metal price environment. Other known deposits at La Negra are expected to show similar increases in tonnage. 

Highlights of the 43-101 Report
  • 434,825 tonnes of mineable reserves, a 98% increase from historically reported reserves
  • 36,900 tonnes of mined ore stored in stockpiles ready for processing.
  • 181,239 tonnes of inferred resources in addition to the reserves, not reported historically

Alacran area

Reserves (1)(2)

Tonnes

Silver g/t

Lead%

Zinc %

Copper %

NSR

Proven

244,496

71.87

0.24

0.99

0.81

$54.69

Probable

190,329

69.50

0.26

0.89

0.72

$49.98

Proven + Probable

434,825

71.0

0.25

0.95

0.77

$52.70

Stockpile Ore

36,900

110.0

0.42

1.34

1.23

$81.45

Total Reserves

471,725

74.0

0.26

0.98

0.81

$54.95


Resource

Tonnes

Silver g/t

Lead%

Zinc %

Copper %

NSR

Inferred Resource

181,239

69

0.30

1.55

0.66

$54.79


(1) Recoverable, Diluted 16%, and using a $30/t NSR cut-off
(2) Estimates based on Alacran data as of May 31, 2007

The Wardrop reserve estimate for the Alacran deposit, (using a $30 per tonne NSR cut-off) is 434,825 tonnes which represents a 98% increase from the historically reported reserve in 2000. The Wardrop calculation also determined a present day NSR value which follows a similar format used by the previous owner accounting for dilution and metallurgical recoveries, and uses metal prices of $12.00 per ounce of Silver (Ag), $2.80 per pound of Copper (Cu), $1.40 per pound of Zinc (Zn). (No value was assigned to the Lead (Pb) content since no lead concentrate is being produced from the Alacran ore.) It also factors in concentrate sale terms as negotiated by Aurcana with the concentrate buyer. 

The Wardrop resource calculation also includes an inferred resource category in the estimate which was not included in the previous owners' historically reported reserve estimate. The inferred category included in the table above is a result of a compilation of historical drill holes, and underground sampling completed by Aurcana.

The above reserve estimate is based on ore that was present in the Alacran deposit as of May 31, 2007. Subsequent mining from the reserve blocks that formed a part of the reserve estimate has produced a total of:

Category

Tonnes

Silverg/t

Lead%

Zinc %

Copper%

NSR

Mined ore*

60,702

95.21

0.29

1.11

1.15

$69.45


* Based on mine production records, June 1, 2007 to January 8, 2008

The Alacran deposit, where the Company has focused its mining, accounted for approximately 18% of the historical non-compliant reserve at the time of purchase by Aurcana. Combined with the Alacran deposit, another seven zones comprise approximately 84% of the historically reported reserves in 2000. With the receipt of the Alacran reserve study, the Company is proceeding to update the historical reserves within these other seven areas of the mine and based on the results experienced in the Alacran area Aurcana anticipates similar improvements in tonnages, however, the precise increases will require detailed studies as was done by Wardrop on the Alacran area. Work is already progressing well in one area, Monica, where a total of 863 metres of diamond saw cut channel samples have been taken and are being analyzed. These samples are being combined with the historical database.

Wardrop also completed the following resource estimates for the Alacran deposit using different NSR cut-off levels. These estimates indicate that with additional mine planning it may be possible to selectively mine the deposit, and thus achieve a higher overall NSR value.

Category

Tonnes

Ag 
g/t

Pb %

Zn %

Cu %

NSR

$40 Cut off

 

 

 

 

 

 

Measured

150,272

95

0.30

1.37

1.07

$73.43

Indicated

112,343

93

0.34

1.11

1.01

$67.56

Total M + I

262,615

94

0.31

1.26

1.05

$70.92

 

 

 

 

 

 

 

Inferred

128,184

78

0.34

1.71

0.76

$62.21


Category

Tonnes

Ag 
g/t

Pb %

Zn %

Cu %

NSR

$50 Cut off

 

 

 

 

 

 

Measured

115,374

105

0.32

1.59

1.19

$81.93

Indicated

85,603

102

0.36

1.19

1.12

$74.41

Total M + I

200,977

104

0.34

1.42

1.16

$78.73

 

 

 

 

 

 

 

Inferred

85,377

92

0.39

1.94

0.88

$71.87


Aurcana is very encouraged by the Wardrop study. The engineering department is currently optimizing a mining plan that targets an operating profit margin of US$40 per tonne based on an NSR value less operating costs of $35 per tonne. 

The Company is also continuing to explore in the Alacran area with work underway to develop access to target areas. A diamond drill program is currently testing the Cristo Rey and Breccia Zones in an effort to expand and upgrade the reserves/resources in these areas. Other priority targets include additional drilling on the Trinidad 1 (stope 1980), 2, and 3 manto zones. Drilling will also commence early this Year on the Monica zone where recent underground mapping and diamond saw cut channel samples have returned encouraging results.

Aurcana remains committed to becoming a mid tier base-precious metals producer. The Company is focused on the acquisition, development and operation of silver, zinc and copper mines with good infrastructure and ore reserves/resources requiring minimal time to re-start. With a 1,000 tonnes per day production currently established, aggressive exploration programs underway on two properties, a positive outlook for the price of commodities and a strong balance sheet, the future is very promising for Aurcana and its shareholders.

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 contact:

Ken Booth, President or 
Jack Barnes, Investor Relations 
Aurcana Corporation 
Phone: (604) 331-9333 
Toll Free: (866) 532-9333 
Web site: www.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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