Aurcana Reports Q3 2015 Financials And Provides Update on Restructuring Transaction

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 1, 2015) - Aurcana Corporation ("Aurcana" or the "Company") (TSX VENTURE:AUN)(OTCQX:AUNFF) is pleased to report its unaudited financial results for the quarter ended September 30, 2015 ("Q3 2015"). The summary of the selected financial information in this press release should be read in conjunction with the unaudited financial statements and the related management's discussion and analysis for the three months ended September 30, 2015, 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.

Significant highlights for Q3 2015 were:

1. Earnings (losses) from mining operations in Q3 2015 were ($1.0) million, compared to $0.6 million in Q3 2014.
2. Operating cash flow before changes in working capital of ($0.9) million, compared to $0.5 million in Q3 2014.
3. Cash cost per tonne milled decreased 23.4% in Q3 2015 to $25.29 from $33.01 in Q3 2014.
4. Cash cost per silver equivalent ounce produced (before treatment, refining and smelting charges - "TCRC") decreased 7% to $7.25 in Q2 2015, compared to $7.79 in Q3 2014.
5. Total silver equivalent production decreased 16% to 842,334 ounces in Q3 2015, compared to 997,530 ounces in Q3 2014, however increased 8% from 779,339 ounces in Q2 2015.
6. The average market price of silver decreased to $14.91 in Q3 2015 from $19.76 in Q3 2014.
7. Average silver grades decreased to 55 g/t in Q3 2015, compared to 65 g/t in Q3 2014, however increased from 52 g/t in Q2 2015.

Earnings

The Company had earnings (losses) from mining operations at La Negra for the quarter ended September 30, 2015 in the amount of ($1.0) million, compared to $0.6 million in Q3 2014, primarily due to weaker metals prices and lower grades of mineralization in mined material, partially offset by lower production costs. Net loss for the quarter increased to ($6.5) million or ($0.08) per share, compared with a net loss of ($3.7) million or ($0.04) per share in Q3 2014.

Revenue

During the quarter ended September 30, 2015, the Company generated total net revenues of $6.8 million (Q3 2014: $11.4 million) from the sale of 266,266 ounces of silver (Q3, 2014: 333,254 ounces); 2,779 tonnes of copper concentrate (Q3, 2014: 3,127 tonnes); 4,003 tonnes of zinc concentrate (Q3, 2014: 4,667 tonnes); and 813 tonnes of lead concentrate (Q3, 2014: 950 tonnes).