Aurcana Reports 2014 Financial Results - Seite 2

The average price for sales of copper, silver, zinc and lead during the year were copper; $3.06 (2013: $3.29) per pound; silver $18.70 (2013: $22.92) per ounce; zinc $0.99 (2013: $0.86) per pound and lead $0.94 (2013: $0.97).

La Negra Mine Production Highlights

• 17% increase in milled tonnes processed for a total of 961,840 tonnes during the year ended December 31, 2014, (2013: 825,014).
• Reorganization of Senior Management at the La Negra mine in 2014.
  • Production controls have steadily improved including: grade control, dilution control and mining of higher grade areas of the mine.
  • Cost control measures were implemented in 2014 through workforce reduction, capital expenditure controls, inventory and direct purchase controls. Cost reduction will continue through 2015.
• 10,367 metres of underground diamond drilling and mine development were completed in 2014 to delineate extensions to mineralized zones at La Negra.
• Average silver grade per tonne was 58 grams in 2014 compared to 60 grams in 2013. The decrease in silver grade was due to increased throughput of lower grade mineralization during the first half of the year and blending of different mineral types to meet concentration specifications as well as increased mine development to support higher mine production rates in the future.

The loan facility from Orion Mine Finance Fund 1 LP ("Orion"), an affiliate of Orion Mine Finance Group was ammended and reduced on April 29, 2014 (see press release of same date). Additionally, during the year Orion agreed to defer principal and interest payments from Q3, 2014 in return for one additional year of off-take agreements until 2021 (see press release December 1, 2014).

Subsequent to 2014, the company announced that it has entered into an agreement to settle the class action litigation against the company and two former employees. (see press release February 10, 2015)

Mr. Kevin Drover, President & CEO stated, "Cost reduction has been our focus during 2014, yet our team has achieved the best year ever in silver production reaching 3.7 million ounces of silver equivalent for 2014. La Negra is positioned for growth and working toward becoming one of the lowest cost silver producers."