Aurcana Reports $3.8M Net Earnings

Aurcana Corporation ("Aurcana" or the "Company") is pleased to report its audited financial results for December 31, 2009 and its fourth quarter ended December 31, 2009. 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, 2010 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 Canadian dollars unless otherwise noted.

2009 Financial Statements Highlights:

Earnings

The Company had net earnings of $3.8 million and comprehensive earnings of $4.1 million for 2009 compared to a loss and comprehensive loss of $24.1 million in 2008. Excluding foreign exchange and non-recurring gains and losses and other income, the earnings from operations was $3.8 million as compared to a loss of $10.9 million in 2008. Earnings per share were $0.03 per share compared to a loss of $0.24 per share for the previous year.

Revenue

During the year ended December 31, 2009, the Company realized revenues from the sale of 10,335 tonnes of copper content (2008- 9,957 tonnes), 4,315 tonnes of zinc content (2008 -- 3,119 tonnes) and 746,493 ounces of silver (2008 -- 451,955 ounces) for total net revenues of $16.1 million (2008 - $8.8 million). These figures exclude sales resulting from deferred revenue.

The average price for sales of copper, zinc and silver during the period were Cu - $2.34 Ag - $14.67 and Zn $0.75. Metal prices, were a significant factor in the increased profitability of the Company. 

As a result of the rise of the Canadian dollar, the Company had a foreign exchange gain of $7.7 million year-to-date and a gain of $1.2 million on the restructuring of debt, primarily since much of the debt and revenue of the Company are denominated in US dollars. The foreign exchange gain effectively reverses a substantial portion of the foreign exchange loss incurred at the 2008 year end; however the Company remains exposed to foreign currency fluctuations. 

The most significant items during the year were:

• The Company decided to expand mine production to 1,500 metric tonnes per day ("TPD") with our current mine staff and committed to contract mining of the Maravillas orebody, which is logistically separate from the other working places;
• Commenced an expansion of the mill from 1,000 TPD (metric tons per day) which should result in a production increase to 1,250 TPD by end of May, 2010, 1,350 TPD in June and 1,500 TBD in July;
• The plant was shut down from September 15th to the 28th to repair the ball mill motor, resulting in a significant reduction of concentrate production;
• Exploration drilling in the Cobriza Zone defined a new mineralized manto with a drill indicated tonnage of approximately 80,000 tonnes;
• The work towards expansion to 1,500 TPD continued with modifications to the flotation circuit and installation of new flotation tanks, foundations for cyclone pack, second ball mill and conditioning tanks. A second ball mill and motor were reconditioned. Fabrication of conditioning tanks, cyclone pack and launders were underway;
• Silvermex Resources completed the acquisition of the Rosario Project; and
• The Company diluted Reyna Mining & Engineering S.A. de C. V ("Reyna") from a 20% interest in the La Negra mine to approximately 8% (see Change in Corporate Structure below).
• The Company restructured many of its agreements, including those relating to concentrate purchases, convertible debenture interest and deferred revenue silver payments.
• Completed a private placement which raised $2.4 million.

La Negra

• 300,952 tonnes of ore processed during the year;
• Copper concentrate produced -- 9,940 tonnes (10,335 tonnes sold);
• Zinc concentrate produced - 3,794 tonnes (4,315 tonnes sold);
• Silver produced - 749,942 ounces (746,493 ounces sold);
• The difference between production and shipment in all cases reflects the timing of the shipping relative to month end and varying inventory levels.

Shafter

On June 29, the Company announced the results of the pre-feasibility study. The highlights of the report were:

• Payback estimated at under 2 years based on a silver price of $13.55 per ounce;
• An internal rate of return ("IRR") estimated at 23% pre tax;
• A pre tax net present value ("NPV") estimated at $25 million at a 5% discount rate;
• An initial estimated capital expenditure estimated at under $40 million;
• Silver production estimated at 3.8 million ounces in year one and 4 million ounces in year two; and
• An average total cost estimated at $7.50 per ounce of silver produced in the first two years.

Over a mine life estimated at 4.7 years, based on measured and indicated resources

• Average silver production estimated at 3.2 million ounces per year, life of mine; and
• An estimated 1,500 tons per day production rate achieved by driving a decline

Revenue was calculated on the base case, the three year average silver price of $13.55 per ounce as of April 2009, as published by the London Metal Exchange. Only the measured and indicated resources are used in the study for PFS design, economics and life of mine.

Aurcana continues to advance the permitting process and development of Shafter.

Rosario

• During the year, the Company entered into an agreement to sell the Rosario property for cash in the amount of $250,000, one million shares of Silvermex Resources, and the assumption of all future property payments. A further 250,000 shares were received as payment for an extension on the closing date from September 30 to November 30, 2009. Additional consideration of $1.0 million and 1 million shares is to be paid in two $500,000 installments following commencement of production or at 24 and 36 months from the sale closing date of November 30, 2009.

Summary

During 2009 Aurcana continued to build on the advances of its La Negra Mine which started in the second quarter. Metal concentrate prices continued to improve, and the Company continued to adjust its cost structure, both on the operational and administrative side. The Company continues to advance the permitting process at Shafter and with the recent announcement of its Senior Secured Note Financing (See News Release dated April 23, 2010) Aurcana continues to focus on its future growth.

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 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 8.48Ag 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 when expansion to 1,500 t/d, is completed by mid year. 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. Ron Nichols, P.Eng. a Director and Senior Vice President 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

"Lenic Rodriguez", President 

For further information, visit the website at www.aurcana.com or contact:
Jack Barnes, Corporate Relations
Aurcana Corporation
Phone: (604) 331-9333
Toll Free: (866) 532-9333
Fax: (604) 633-9179
Email: jbarnes@aurcana.com
NR#10-04


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.