Mr. Lenic Rodriguez reports

AURCANA REPORTS THIRD QUARTER FINANCIAL RESULTS

Aurcana Corp. has released its unaudited financial results for the third quarter ended Sept. 30, 2013.

The third quarter 2013 earnings webcast and conference call have been scheduled for Dec. 2, 2013, at 11 a.m. Pacific Time (2 p.m. Eastern Time). See the bottom of this press release for details.

Highlights of third quarter ended Sept. 30, 2013:

• Total silver equivalent ounces produced in third quarter 2013 increased by 5 per cent to 754,788 ounces, compared with 718,063 ounces in third quarter 2012.
• Total silver equivalent produced for the first nine months of 2013 increased by 14 per cent to 2,165,865 ounces, compared with 1,899,281 ounces during the same period one year ago.
• Total cash cost, net of byproduct credits, was $6.45 per ounce, down 17 per cent from $7.79 in second quarter 2013 and up 9 per cent from $5.90 in third quarter 2012.
• The cash cost per milled tonne for third quarter 2013 was $32.85 versus $32.50 in third quarter 2012.
• Total revenues for third quarter 2013 were $10.4-million, down $4.6-million from $15.0-million in third quarter 2012, due to a combination of lower silver prices, lower-grade material mined in the development of new producing areas and higher unsold inventories at the end of the period.
• Total earnings from mining operations for third quarter 2013 were $2.6-million and $9.9-million for the first nine months of 2013.
• Net loss for third quarter 2013 was $15.5-million. Included in the third quarter net loss of $15.5-million, the company recorded an impairment charge related to the Shafter property, plant, equipment and mineral properties of $6,138,442 and also a total of $6,813,729 for certain expenses incurred at Shafter mine during the first nine months of 2013.

The summary of the selected financial information should be read in conjunction with the unaudited financial statements and the related management's discussion and analysis for the three- and nine-month periods ended Sept. 30, 2013, together referred to as the financial statements filed on SEDAR and available on the Aurcana website. (All figures are in U.S. dollars unless otherwise noted.)

Third quarter production and operational highlights

La Negra mine:

• During third quarter 2013, La Negra's mill averaged 2,632 tonnes per day, a 15-per-cent increase from 2,289 tonnes per day averaged during third quarter 2012.
• The average silver grade during third quarter 2013 was 55 grams per tonne, compared with 80 g/t in 2012. The decrease in silver grade during this period was due to an increase in mine development to support higher mine production rates in the future. Currently, sufficient mine development has been completed at the La Negra mine to support two years of production, and Aurcana will therefore reduce mine development at La Negra in the short term. La Negra's mine plan includes a transition to mining higher-silver-grade mineralized zones from the upper levels of the La Negra mine in 2014 and 2015.
• Aurcana has ordered a raise-boring machine to construct ventilation raises and ore passes to provide ventilation in the new mining areas and allow for the transfer of ore through gravity from the upper levels to the main haulage level below. It is anticipated that this will increase productivity and reduce operating costs. The raise-borer is expected to be commissioned in second quarter 2014.
• The inventory of copper/silver concentrates increased to 1,705 tonnes, with commensurate reductions in metal sales and revenues. The mine and plant expansion, combined with greater production from the copper-rich lower levels of La Negra, resulted in higher copper concentrate production than anticipated exceeding the capacity of the existing filter press and constraining mill throughput. A new larger capacity filter press has been received and is expected to be commissioned in first quarter 2014. This improvement is expected to allow for sustainable production at the targeted 3,000-tonne-per-day level.
• During second quarter 2013, the company initiated a planned 15-hole, 5,000-metre surface drill program to better define gold mineralization announced on Feb. 11, 2013. A total of 1,773 metres were drilled, but gold values lacked continuity, and the program was terminated.
• Underground diamond drilling and mine development at La Negra continue to delineate additional mineralized zones. Drill crews completed 10,128 metres of diamond drilling during 2013 versus 9,399 metres for the same period one year ago. La Negra scheduled 13,500 metres of drilling for completion in 2013 versus 13,311 metres drilled in 2012. Drilling objectives are to better define mineralized zones to support short- and medium-term mine planning.
• In response to lower silver prices, La Negra has undertaken cost-cutting measures to improve margins while also cutting back on capital expenditures. These include:
• • Suspension of surface exploration diamond drilling activities;
  • Refocusing mine development to areas of higher-grade mineralization;
  • Reducing the use of contractors;
  • Optimizing power usage by rescheduling certain activities, particularly crushing, to off-peak hours thereby reducing energy costs;
  • Improving equipment maintenance to increase utilization rates and productivities thereby reducing the need for additional capital investment.

Shafter mine:

• The company continues to make capital improvements to the processing facility at Shafter to improve throughput rates and recoveries.
• The Shafter plant while still in commissioning and development processed a total of 46,516 tonnes during third quarter 2013, an average of 505 tonnes per day. Throughput was limited due to shortages of spare parts and mining resources brought upon by lack of financing prior to the company's debt financing, which closed in September, 2013. Mechanical problems with the ball mill curtailed commissioning in October. The necessary parts for repair are on order, and the mill should be repaired by January, 2014.
• The current April, 2001, block model of the Shafter mineralized resources, used to support the June, 2011, feasibility study, has been an inconsistent predictor of tonnes and grade in the old Presidio mine area, and new remodelling is being undertaken by Mine Development Associates of Reno, Nev. This work, when complete, together with a re-evaluation of project economics with respect to lower silver prices, will determine new higher cut-off grades and optimum throughput rates for both mine and mill.
• Concurrently, plans are being developed to rehabilitate the mine shafts, hoisting systems and mine dewatering system in the eastern extension of the orebody, thereby allowing access to this non-mined area delineated by Gold Fields in the late 1970s and early 1980s. This work will be followed up with a comprehensive mine plan with subsequent development of production stopes to complement production from the old Presidio mine area.
• An equipment malfunction (turbo failure) on Nov. 1, 2013, resulted in smoke generation and a suspicion of fire underground, which later proved to be incorrect. The subsequent precautionary mine evacuation and MSHA investigation have caused all mining operations to be suspended while the mine ventilation system is being upgraded.
• The curtailment of underground operations, probably through mid-December 2013, will delay planned underground diamond drilling and mine development.
• In the first nine months of 2013, capitalized expenses (net of proceeds generated from silver sales) totalled $9.6-million.
• The total capital costs required for the process facility to design capacity were originally estimated to be approximately $18.5-million, of which about $5.5-million has been spent as of the end of second quarter 2013. Capital outlays have been reassessed, and about $5-million of the original amount has now been deferred indefinitely, while preserving the ability to reach a sustainable throughput and acceptable recoveries. However, the funds previously allocated to these deferred costs will now be required to rehabilitate the infrastructure to allow for the exploitation of the eastern non-mined extension of the Shafter mineralized zone.
• In August, 2013, a second new tailings filter press was received and commissioned. This replaced the second of three used low-capacity tailings filter presses that were contributing to operational delays and reduced recovery rates. The upgrade in filter presses is a continuation of several plant improvements designed to reach the planned throughput.
• New precipitate filter presses were received and commissioned in October, 2013. Additional refinery equipment is arriving and will be installed and commissioned in fourth quarter of 2013.
• Foundation work has commenced on the three countercurrent decantation and new primary thickener tanks in October, 2013. Actual tank fabrication is commencing January, 2014, with a goal to have a fully operational circuit during second quarter 2014.
• Proposals are being solicited for targeted automation of process plant components to achieve improved process control and lower reagent consumptions. Planning has commenced to replace liquid cyanide shipments with solid briquettes to reduce transportation costs. Some of the components necessary for this improvement are already in place, and minimum capital expense will be required for the transition.

          CONFERENCE CALL DETAILS

Conference date         Dec. 2, 2013
Conference time         11 a.m. PST/2 p.m. EST
Participant dial-in     Canada: 416-340-2216/United States and Canada: 866-223-7781/
number(s)               international: 800-6578-9898
Participant passcode    Not required

The recorded conference call will be posted to Aurcana's website.

Financial statements and management's discussion and analysis

To read the complete financial statement and MD&A, please visit the Aurcana website or SEDAR.

Andrew Kaczmarek, a qualified person (as defined in National Instrument 43-101) and the company's chief operating officer, has reviewed and approved the scientific and technical information contained in this news release.

We seek Safe Harbor.