Aurcana Reports Q1 2015 Financials and Results of the 2015 Annual General Meeting - Seite 2

The Company had earnings (losses) from mining operations at La Negra for the quarter ended March 31, 2015 in the amount of ($0.2) million, compared to $3.4 million in Q1 2014. Net loss for the quarter decreased to ($4.1) million or ($0.05) per share, compared with a net loss of ($4.5) million or ($0.08) per share in Q1 2014.

The decrease in earnings from mining operations was primarily due to the significant decrease in the prices of silver and copper as well as lower production during the quarter.

Revenue

During the quarter ended March 31, 2015, the Company generated revenues from the sale of 3,670 tonnes of copper concentrate (Q1 2014: 3,808 tonnes); 3,417 tonnes of zinc concentrate (Q1 2014: 6,091 tonnes); 574 tonnes of lead concentrate (Q1 2014: 895 tonnes); and 263,009 ounces of silver (Q1 2014: 310,554 ounces) for total net revenues of $8.0 million (Q1 2014: $13.0 million).

The average price for sales of silver, copper, zinc and lead during Q1 2015 were as follows: silver $16.40 (Q1 2014: $20.71) per ounce; copper $2.56 (Q1 2014: $3.17) per pound; zinc $0.94 (Q1 2014: $0.92) per pound; and lead $0.83 (Q1 2014: $0.94) per pound.

La Negra Mine Operations Update

With stockpiles of previously mined material exhausted by the end of Q4 2014, mill production in Q1 2015 was lower as the Company prepared new areas for mining based on the new resource model and mine plan. Approximately 56% of the mineralized material milled was mined from within previously defined resources. The additional ore milled (approximately 44%) was mined from areas adjacent to established resources and from other areas identified as a result of our exploration success. Moving forward, production controls will focus on improved mine planning, grade control, improved dilution control, and higher production volumes.

The Company anticipates that previously implemented cost control measures, including workforce reductions, capital expenditure controls and inventory and direct purchase controls, will continue to deliver improved cost reductions in 2015.

To improve the Company's short term liquidity, the Company's principal lender permitted the Company to make interest only payments on the Company's senior debt and defer payments on the principal amounts owed from January to April 2015 under the current debt facility agreement. The Company is currently engaged in negotiations with its principal lender to restructure its current debt.