Aurcana offers a diversified asset base with five different metals contained within two mines. The Company is currently carrying out aggressive exploration programs on both projects to increase historical reserves which will lead directly to expansion of production. Aurcana, while committed to exploration and expansion of current operations, continues to seek and evaluate other high quality, producing or near producing projects. With the acquisition of any or all of these advanced stage projects, present and proposed cash flow will increase significantly.

La Negra -The 1,000 tonne per day silver-lead-zinc-copper mine in Queretaro State, Mexico, acquired in May of 2006, went from "care and maintenance" to current production levels in 13 months. Since restarting, the operation has performed as expected with monthly production and sales levels on target. Current operating cash flow is estimated at $12 -- $15 million annually. Additional equipment recently added offers the flexibility of mining a number of higher grade areas such as Monica, Dificultad and Virginia in addition to continuing production from the Alacran area.

A 15,000 metre underground diamond drill program was announced in the fourth quarter of 2007. Currently 3 drills are working in the Alacran and Monica areas. The drill program is designed to identify new mineral zones and increase historical reserves.

Rosario - The 8,515 hectare silver-lead-zinc-gold project is located in south eastern Sinaloa State, Mexico. It was acquired in August 2007 from Industrias Mineras Mexico S.A. de C.V. (IMMSA) otherwise known as Grupo Mexico. The project includes the Plomosas Mine which operated at 600 tonnes per day and was closed in 2000. It is currently being expanded and prepared for start up at 800 tonnes per day in 2009, incrementally increasing to 1,200 tonnes per day by year three. Historical reserves are 638,000 tonnes averaging 136 grams per tonne silver, 3.21% zinc, 2.23% lead and 1.05 grams per tonne gold. Restoration, refurbishing and development at the site is proceeding well. The San Juan prospect, located to the southwest of the Plomosas Mine, is a vein structure with historical reserves of 256,000 tonnes averaging 329 grams per tonne silver, 3.73% zinc, 1.69% lead and 0.19 grams per tonne gold.

The company has recently announced a $1.7 million, 6,500 metre diamond drill program. The priority objective is to expand historical reserves previously identified at the Plomosas Mine and the San Juan prospect, and to evaluate other anomalous zones and vein systems that have been identified on the project.