Mr. Lenic Rodriguez reports

AURCANA REPORTS Q1 2014 FINANCIAL RESULTS

Aurcana Corp. has released its unaudited financial results for the first quarter ended March 31, 2014. The summary of the selected financial information should be read in conjunction with the condensed interim consolidated financial statements and the related management's discussion and analysis for the quarter ended March 31, 2014, dated May 30, 2014, together referred to as the financial statements, which have been filed on SEDAR and the company's website. (All figures are in U.S. dollars unless otherwise noted.)

The most significant highlights for the first quarter ended March 31, 2014, were:

• Revenues increased 2 per cent to $13.0-million in first quarter 2014 from $12.8-million in first quarter 2013.
• Silver equivalent ounces produced increased 55 per cent, with 919,989 ounces produced (798,788 ounces sold) in first quarter 2014, compared with 593,017 ounces produced in first quarter 2013 (506,939 ounces sold).
• Production at the La Negra mill increased 39 per cent to over 3,000 tonnes per day in first quarter 2014, compared with fewer than 2,200 tpd in first quarter 2013.
• Total cash cost per silver ounce, net of byproducts, decreased 30 per cent to $6.22 in first quarter 2014, compared with $8.82 in first quarter 2013, due to economies of scale of increased production.
• Earnings from mining operations decreased 29 per cent to $3.4-million in first quarter 2014 from $4.8-million in first quarter 2013, primarily due to lower market prices of metals (down 35 per cent).
• Comprehensive loss was ($2.6-million) in first quarter 2014, compared with a loss of ($1,000) in first quarter 2013, with operating cash flow before movements in working capital being $890,000 in first quarter 2014, compared with $3.3-million in first quarter 2013. Other influences included financing expenses and Shafter care and maintenance costs.

Revenue

During the quarter ended March 31, 2014, the company generated revenues from the sale of 310,554 ounces of silver (first quarter 2013: 267,349 ounces), 3,808 tonnes of copper concentrate (first quarter 2013: 2,103 tonnes), 6,091 tonnes of zinc concentrate (first quarter 2013: 3,115 tonnes) and 895 tonnes of lead concentrate (first quarter 2013: 763), for total net revenues of $13.0-million (first quarter 2013: $12.8-million).

The average price for sales of silver, copper, zinc and lead during the quarter were silver: $20.71 (first quarter 2013: $29.52) per ounce, copper: $3.17 (first quarter 2013: $3.62) per pound, zinc: 92 cents (first quarter 2013: 91 cents) per pound and lead: 94 cents (first quarter 2013: $1.02) per pound.

Earnings

The company had earnings from mining operations of $3.4-million for the quarter ended March 31, 2014 (first quarter 2013: $4.8-million), loss before taxes of ($3.5-million) (first quarter 2013: $1.5-million) and comprehensive loss of ($2.6-million) (first quarter 2013: ($1,000).

The decrease in earnings from operations was mainly related to market prices of the metals sold, which averaged a decrease of 35 per cent as compared with the same period last year.

La Negra mine production highlights:

• La Negra completed its mine expansion from 2,200-tonne-per-day to 3,000-tonne-per-day production. Total tonnes of ore milled during the quarter jumped 51 per cent to 257,140 tonnes from 170,081 in first quarter 2013.
• Silver equivalent ounces produced during the quarter increased by 55 per cent, with 919,989 tonnes being produced (first quarter 2013: 593,017).
• Ore mined increased by 4 per cent to 207,544 tonnes in first quarter 2014 from 200,494 tonnes in first quarter 2013.
• La Negra's production increase was supported by a continuous in-house diamond drilling program, with the goal to replace each mined tonne with two additional tonnes of identified mineralization.
• The raise-boring machine is expected to be commissioned at the beginning of third quarter 2014, allowing the La Negra mine to reach the northwest trend, where higher silver grades of mineralization are located, and to improve the mine infrastructure.

Aurcana has announced its refinancing from Orion Mine Finance (Master) Fund I LP, an affiliate of Orion Mine Finance Group. Details are in the company's press release dated April 29, 2014.

Lenic Rodriguez, president and chief executive officer, stated: "La Negra continues to grow and is on target to achieve its 2014 guidance of 3.6 [million] to four million ounces of silver equivalent. Aurcana is well on its way to becoming the next mid-tier silver producer."

Summary

During first quarter 2014, Aurcana continued to upgrade and expand the La Negra mine. Metal concentrate prices continued to drop, and the company continued to adjust its cost structure, both on the operational and administrative side. In December, 2013, the Shafter mine was placed on care and maintenance, due to economic conditions and low silver prices.

The company expects to continue increasing silver equivalent production in 2014 and beyond.

The technical information in this release has been reviewed and approved by J. Blackwell (PGeo), a technical consultant to the company and a qualified person as defined by National Instrument 43-101.

We seek Safe Harbor.