Aurcana Reports Q2, 2014 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 29, 2014) - Aurcana Corporation ("Aurcana" or the "Company") (TSX VENTURE:AUN)(OTCQX:AUNFF") is pleased to report its unaudited financial results for the second quarter ended June 30, 2014 ("Q2"). The summary of the selected financial information should be read in conjunction with the Condensed Interim Consolidated Financial Statements (Unaudited) and the related Management Discussion and Analysis for the quarter ended June 30, 2014, 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 US dollars unless otherwise noted.

The most significant highlights for the 2nd quarter ending June 30, 2014 were:

• Silver equivalent ounces produced decreased by 4%, with 786,505 ounces produced in Q2, 2014, compared to 818,060 in Q2, 2013.
• Silver production was down 6% to 329,368 ounces in Q2, 2014, compared to 351,210 ounces in Q2, 2013.
• Revenues decreased $2.1 million to $9.2 million in Q2, 2014 from $11.3 million in Q2, 2013, mainly due to a combination of lower metal prices, lower amount of ounces sold and higher TCRC deductions.
• Mineralization milled was down 1% to 232,763 tonnes in Q2, 2014, compared to 235,388 tonnes in Q2, 2013.
• The average silver grade was 55 grams per tonne (g/t) in Q2, 2014 compared to 59 g/t in Q2, 2013, due to increased throughput of lower grade mineralization
• Cash cost per silver equivalent ounce increased 16% to $10.29 in Q2, 2014, compared to $8.90 in Q2, 2013, due to lower silver ounces produced and increased production costs.

Revenue

During the quarter ended June 30, 2014, the Company generated revenues from the sale of 272,027 ounces of silver (Q2, 2013: 315,070 ounces); 2,869 tonnes of copper concentrate (Q2, 2013: 2,548 tonnes); 4,138 tonnes of zinc concentrate (Q2, 2013: 4,881 tonnes); and 731 tonnes of lead concentrate (Q2, 2013: 843 tonnes); for total net revenues of $9.2 million (Q2, 2013: $11.3 million).

The average price for sales of silver, copper, zinc and lead during the quarter were Ag $20.43 (Q2, 2013: $21.72) per ounce; Cu $3.09 (Q2, 2013: $3.24) per pound; Zn $0.95 (Q2, 2013: $0.84) per pound; and Pb $0.96 (Q2, 2013: $0.95) per pound.

Earnings

The Company had earnings (losses) from mining operations at La Negra for the quarter ended June 30, 2014 in the amount of ($1.4) million (2013: $2.6 million), and $2.0 million for the first six months of 2014 (2013: $7.3 million). The decrease in earnings from mining operations at La Negra for the current period against the same period of the previous year was mainly related to the decrease in metal prices, lower silver grade at the La Negra mine and lower mill through-put as a result of mill downtime due to mechanical problems.