Aurcana reports record 2010 results

Aurcana Corporation ("Aurcana" or the "Company") is pleased to report its audited financial results for December 31, 2010. 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

• 67% increase in net revenues to $26.9 million for the year ended December 31, 2010 from $16.1 million in 2009 ;
• 154% increase in earnings from mining operations (excluding amortization and depletion) to $10.7 million for the year ended December 31, 2010 from $4.2 million in 2009;
• On December 7, 2010 the Company closed a CDN$ 60 million Equity Financing;
• On December 14,, 2010 the Company bought back the silver stream purchase agreement from Silver Wheaton Cayman in the amount of US$ 25 million and a final silver payment of approximately 206,000 silver ounces; consequently, Aurcana is no longer obligated to sell 50% of its silver production to SW Caymans, and can now receive the full benefits of 100% of its silver production at La Negra on a go forward basis;
• On December 30, 2010 the Company paid out the balance of US$ 3,080,000, covering the notes payable owed to Trafigura; and
• A total of 477,759 tons were mined during the year, 68,219 tons were from NI 43-101 Measured and Indicated (reducing M&I from 604,986 tons to 529,253 during the year), none mined from NI 43-101 Inferred, none mined from Historical and 409,591 tons mined from new discoveries.

La Negra

• 40% increase in ore processed to 422,603 tonnes during 2010 year from 300,952 tonnes in 2009;
• 29% increase in copper concentrate produced to 11,656 tonnes during 2010 year from 9,036 tonnes in 2009;
• 12% increase in ounces of silver produced to 838,007 during 2010 year from 749,942 in 2009;
• 51% increase in zinc concentrate produced to 5,218 tonnes during 2010 year from 3,448 tonnes in 2009;
• In July 2010, the Company successfully concluded an on time and on budget expansion of La Negra mine to produce 1,500 tonnes per day from the prior 1,000 tonnes per day;
• La Negra's production increase was successfully supported by a 2010 diamond drilling in-house program of 11,000 metres; and
• La Negra's underground drilling and development indicates 590,000t of mineralized material were located within extensions of six known mineral zones. This material cannot be designated as ore because it is not compliant with NI 43-101 regulations.

Shafter

• The company started construction of the Shafter Silver mine project, 100% owned by the Company, after completing the equity financing on December 7, 2010. The Shafter feasibility study shows an estimated pay back of 1.9 years based on $15.53 per ounce of Silver and the construction is estimated to be completed by May 2012.

2010 Financial Statements key data:

Earnings

The Company had an increase in earnings from mining operations to $10.7 million compared of $4.2 million in 2009. Net earnings had a loss of $6.1 million compared to a net profit of $3.9 in 2009. The loss on the trading activity of $5.2 million was due to the low overall price recognized for the ounces delivered to Silver Wheaton under the now terminated silver stream purchase agreement as compared to the cost of acquiring the silver certificates at market and the one time loss of $7.7 million on the termination of the agreement. Loss per share was $0.04 compared to earnings of $0.03 per share for the previous year.

The company also experienced only a $1.5 million foreign exchange gain in the current year as compared to a $7.7 million gain in the prior year, which also explains the swing from a net profit of $3.9 million in 2009 to a loss of $6.1 million in 2010.

Revenue

During the year ended December 31, 2010, the Company realized revenues from the sale of 11,821 tonnes of copper concentrate (2009- 9,318 tonnes), 5,273 tonnes of zinc concentrate (2009 -- 3,860 tonnes) and 808,921 ounces of silver (2009 -- 746,493 ounces) for total net revenues of $26.9 million (2009 - $16.1 million). These figures exclude sales resulting from loss of trading activities, which were necessitated by the contract related to the Company's deferred revenue.

The average price for sales of copper, zinc and silver during the period were Cu - $3.4198 (2009: $2.3422) per pound, Ag - $20.238 (2009: $14.674) per ounce and Zn $0.9792 (2009: $0.7525) per pound. Metal prices, were a significant factor in the increased revenue of the Company.

Summary

During 2010 Aurcana continued to build on the advances of its La Negra Mine. Metal concentrate prices continued to improve, and the Company continued to adjust its cost structure, both on the operational and administrative side. The Company continued to advance the permitting process at Shafter and initiated development of the Shafter mine. Aurcana continues to focus on its future growth.

To read complete Financial Statement click on this link: http://www.aurcana.com/i/pdf/2010-Dec31-FS.pdf?v=0.868

To read complete MD&A click on this link: http://www.aurcana.com/i/pdf/2010-Dec31-MDA.PDF

Corporate

On April 19, 2011, Aurcana commenced trading today on the OTC market's prestigious tier, OTCQX International. Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcqx.comand www.otcmarkets.com.

The Company trades in the United States on OTCQX under the symbol "AUNFF".

About Aurcana Corporation:

The Shafter Silver Mine is scheduled to start up production within 12 months producing 3.8 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. 


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:

Aurcana Corporation 
Phone: (604) 331-9333 
Toll Free: (866) 532-9333
Fax: (604) 633-9179 
Gary Lindsey, Corporate Relations
Phone: (720)-273-6224
Email: gary@stratastargroup.com
NR#11-08

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.