Mr. Kevin Drover reports

AURCANA REPORTS Q1 2015 FINANCIALS AND RESULTS OF THE 2015 ANNUAL GENERAL MEETING

Aurcana Corp. has provided its unaudited financial results for the quarter ended March 31, 2015 (Q1 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 March 31, 2015, 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.

Kevin Drover, Aurcana's president and chief executive officer, said: "Q1 was a quarter of transition for the La Negra operation as we exhausted the stockpiles of previously mined material in fourth quarter 2014 and had to rely solely on new mine production for mill feed going forward. A new mine plan based on the new resource model was completed in early February and we have begun the process of transitioning to operating the La Negra mine in accordance with the new mine plan. In the coming months we will be focused on optimizing the new mine plan, increasing production, while further reducing costs and increasing our mine resources through the 2015 exploration program. The objective of this year's exploration program is to incrementally increase our overall resources by year-end."

The most significant highlights for Q1 2015 were:

1. Earnings (losses) from mining operations in Q1 2015 were ($200,000), compared with $3.4-million in Q1 2014, mainly due to significant decreases in metals prices and lower production in connection with the implementation of the new mine plan.
2. Operating cash flow before changes in working capital was $100,000, compared with $900,000 in Q1 2014.
3. Cash cost per tonne milled decreased 5.4 per cent in Q1 2015 to $30.13 from $31.85 in Q1 2014.
4. Cash cost per silver equivalent ounce produced (before treatment, refining and smelting charges (TCRC)) decreased 14.9 per cent to $7.58 in Q1 2015, compared with $8.90 in Q1 2014.
5. Total silver equivalent production was 824,860 ounces in Q1 2015, compared with 919,989 ounces in Q1 2014.
6. Silver production was 325,811 ounces in Q1 2015, compared with 360,791 ounces in Q1 2014, a decrease of 9.7 per cent.
7. Average silver grades increased to 58 grams per tonne (g/t) in Q1 2015, compared with 55 g/t in Q1 2014.

Earnings

The company had earnings (losses) from mining operations at La Negra for the quarter ended March 31, 2015, in the amount of ($200,000), compared with $3.4-million in Q1 2014. Net loss for the quarter decreased to ($4.1-million) or (five cents) per share, compared with a net loss of ($4.5-million) or (eight cents) 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 94 cents (Q1 2014: 92 cents) per pound; and lead 83 cents (Q1 2014: 94 cents) 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 per cent of the mineralized material milled was mined from within previously defined resources. The additional ore milled (approximately 44 per cent) was mined from areas adjacent to established resources and from other areas identified as a result of the company's 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 work force 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.

In February, 2015, the company entered into an agreement to settle the class action litigation against the company and two former executives. See the company's press releases dated Feb. 26, 2015, and April 22, 2015, for further information.

Summary

In July, 2014, Kevin Drover was named the new president and chief executive officer of Aurcana. After taking the helm, Mr. Drover initiated a cost reduction program which has significantly lowered the costs of production. The cost reduction program will continue through 2015. Production controls for the La Negra mining operations have steadily improved. Safety continues to be a high priority. Metal concentrate prices continued to be depressed during the quarter putting pressure on profit margins. The Shafter property remains on care and maintenance until silver prices rise.

To read the complete financial statements please go to the company's website.

To read the complete MD&A please go to the company's website.

2015 annual general meeting results

The board of directors has provided the results of the 2015 annual general meeting which was held on May 14, 2015, in Vancouver. At the meeting 168 proxies were received and voted representing 32,058,465 shares, being 37.87 per cent of the issued and outstanding capital of the company. All resolutions recommended by management in the company's management information circular dated April 14, 2015, were passed with the percentage of votes cast in favour of each resolution as follows.

Appointment of PricewaterhouseCoopers LLP as auditor for the company:  99.19 per cent

Setting the number of directors at five:  99.69 per cent

Election of directors

Robert Tweedy:  99.60 per cent

Kevin Drover:  99.66 per cent

Adrian Aguirre:  99.48 per cent

Jerry Blackwell:  99.50 per cent

Jose Manuel Borquez:  99.57 per cent

At the board of directors meeting immediately following the annual general meeting, the board appointed officers and committees of the board, as follows:

• Robert Tweedy, chairman of the board;
• Kevin Drover, president and CEO;
• Salvador Huerta, chief financial officer;
• Margo Peters, corporate secretary.

The committees were appointed as follows.

Audit committee:

• Adrian Aguirre, chair;
• Jose Manuel Borquez;
• Robert Tweedy.

Compensation and corporate governance committee:

• Robert Tweedy, chair;
• Adrian Aguirre;
• Kevin Drover.

Technical, environment, health and safety committee:

• Jerry Blackwell, chair;
• Kevin Drover;
• Andres Gonzalez.

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

We seek Safe Harbor.