Aurcana Initiates PEA on Shafter Silver Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 31, 2016) - Aurcana Corporation ("Aurcana" or the "Company") (TSX VENTURE:AUN) Aurcana Corporation is pleased to announce that it has initiated a Preliminary Economic Assessment (the "PEA") in respect of the Company's 100% owned Shafter Silver Project, in Presidio County, Texas. The PEA will provide a base-case assessment for the further development of the existing mineral resource and the recommencement of mining operations utilizing current mining infrastructure, including the existing shaft and the fully-constructed and permitted mill and tailings facilities. The objective of this study is to determine the potential economic viability of the mineral resources at Shafter along with a level of cost indication sufficient to proceed to the next level of evaluation. Completion of the PEA is expected in Q3 2016.

"The Shafter Silver Project is a unique Texas-based asset with a history of high-grade production, an in-situ high-grade silver resource, mining infrastructure, and constructed and permitted milling and tailings facilities. The completion of a base case development scenario will be a significant milestone as we move toward re-establishing Aurcana as a mineral producer" said Kevin Drover, President and CEO of Aurcana.

Mine Development Associates ("MDA"), based in Reno, Nevada and Samuel Engineering, Inc. ("Samuel") in Denver, Colorado have been contracted to work with the Company's technical team on the PEA. They will report on the PEA level projected capital costs, operating costs, and project economics associated with the potential development of the Shafter mineral resource. The PEA will consider and make recommendations based upon:

• An analysis and evaluation of the economic, technical and geological factors that will determine the potential viability of the mineral resources.
• The requirements to estimate mineable tons and grade based on the shaft-accessible portion of the mineral resource;
• Mine design utilizing the existing shaft and/or surface portal, phased expansion of the related underground access, and mechanized underground mining methods;
• Mill production, which is assumed to be approximately 500 tonnes per day using the existing milling and tailings facility; and a review of throughput efficiencies and opportunities;
• A review of milling performance and metallurgical recovery based on existing mill records;
• A proposed work program to continue advancing the project.

Although the Company had previously completed studies of Shafter and commenced operations during the period from 2012-2013, it is felt that in light of the recently revised resource estimate, volatile metal prices, and changing operating costs, the project should be advanced one-step at a time, starting with this new PEA. The results of the PEA will provide valuable information as to the potential economics and viability of the Shafter Project.