October 26, 2005 17:00 ET

Aur Resources Inc. Declares Dividends of CDN$0.15 Per Share and Forecasts 2005 Earnings of US$131 Million and Operating Cash Flow of US$230 Million

TORONTO, ONTARIO--(CCNMatthews - Oct. 26, 2005) - Aur Resources Inc. (TSX:AUR) announces that it has declared a dividend of CDN$0.15 per share to be payable on January 1, 2006 to shareholders of record at the close of business on December 1, 2005. This dividend is comprised of a semi-annual dividend of CDN$0.05 per share and a special dividend of CDN$0.10 per share.

President and CEO, James W. Gill, stated that the special dividend was considered appropriate given Aur's exceptional financial performance in 2005. Aur's financial strength and the cash generating capacity of its reliable operating mines have positioned it to succeed in its plans for rapid growth over the next few years.

2005 Highlights(1)

Nine Months to
September 30 2005 Forecast(2)
-------------- ----------------
Mine Production
Copper (million pounds) 206 264
Zinc (million pounds) 30 30
Revenue 314 425
EBITDA 181 244
Net Earnings 101 131
- Per share (CDN$) 1.30 1.66
Operating Cash Flow 161 230
Working Capital 320 334
Consolidated Cash(3) 326 339
Dividends Declared (CDN$) 0.05 0.20

(1) All amounts in millions of United States dollars unless otherwise indicated

(2) Basis Cu $1.75/lb Q4; US$1.00 equals CDN$1.20

(3) After the payment of $32.4 million of dividends by Compania Minera Quebrada Blanca S.A. to its minority shareholders in December.

Aur's share of the consolidated cash balances, forecast to be $321 million at December 31, 2005, together with substantial cash flow from Aur's mines and its significant borrowing capacity, give Aur the financial capacity to develop the Duck Pond copper-zinc deposit and the Andacollo primary copper-gold deposit as well as to make other new investments totaling $500 million to $1 billion.

Aur has committed $50 million to fund its exploration and acquisitions activities over the period 2005-2009, exclusive of the cost of any significant acquisitions. Exploration is currently in progress on four copper projects and one gold project. Aur's London office is operational and the evaluation of development stage projects and operating mines for acquisition is now active in the Americas, Africa, Eastern Europe and CIS countries.

For information on Aur's financial and operating performance in the third quarter and its forecast for 2005, see Aur's press release of October 26, 2005 entitled "Aur Resources Inc. Reports Net Earnings of $31.0 Million and Cash Flow from Operating Activities of $64.3 Million in the Third Quarter of 2005".

This news release contains forward-looking statements that are based on current expectations and which involve risks and uncertainties, including those referred to in Aur's 2004 Annual Report and/or in Aur's Annual Information Form dated March 31, 2005 and filed with Canadian securities regulatory authorities, that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in the forward-looking statements. Such forward-looking statements include statements regarding financial results and expectations for 2005 and include among other things, statements regarding targets, estimates and/or assumptions in respect of copper production and/or copper prices, cash operating costs, expenditures on property, plant and equipment, increases and decreases in production, reserves and/or resources and anticipated grades and recovery rates and are or may be based on assumptions and/or estimates related to future economic, market and other conditions. Factors that could cause actual results, developments or events to differ materially from those anticipated include, among others, the factors described or referred to elsewhere herein and/or in the AIF and include unanticipated and/or unusual events. Many of such factors are beyond Aur's ability to control or predict. Actual results may differ materially from those anticipated. Readers are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Aur disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise.

Additional information, including the quarterly and annual Consolidated Financial Statements, AIF, Management Information Circular and other disclosure documents, may also be examined and/or obtained through the Internet by accessing Aur's website at or by accessing the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) website at

Contact Information

  • Aur Resources Inc.
    Dr. James W. Gill
    President and Chief Executive Officer
    (416) 362-2614
    (416) 367-0427 (FAX)
    Aur Resources Inc.
    Mr. John Knowles
    Executive Vice-President, Finance and Chief Financial Office
    (416) 362-2614
    (416) 367-0427 (FAX)
    Aur Resources Inc.
    Mr. David W. Brace
    Executive Vice-President, Business Development
    (416) 362-2614
    (416) 367-0427 (FAX)