Aurelian Resources Inc.
TSX VENTURE : ARU

Aurelian Resources Inc.

October 18, 2006 11:47 ET

Aurelian Intersects 161.0 Metres Grading 6.51 g/t of Gold in Drilling, Further Extends the Strike of the FDN Epithermal Gold-Silver Discovery

TORONTO, ONTARIO--(CCNMatthews - Oct. 18, 2006) - Aurelian Resources Inc. (TSX VENTURE:ARU) today announced assay results from three additional drill holes from the buried epithermal gold-silver discovery at Fruta Del Norte (FDN) on its wholly-owned Condor Project in south-eastern Ecuador. These include a 161.00 metre interval grading 6.51 g/t of gold (Au) and 7.3 g/t of silver (Ag) in drill hole CP-06-67, and intervals of 75.58 metres grading 2.96 g/t Au and 6.7 g/t Ag, 50.6 metres grading 3.61 g/t Au and 9.3 g/t Ag, and 127.4 metres grading 1.65 g/t Au and 5.1 g/t Ag in drill hole CP-06-69. Hole CP-06-68, which did not encounter significant mineralization, was drilled on the opposite side of a fault that is interpreted to cut the FDN mineralization at its north end.

Maps, cross sections, photos and full gold and silver assay data from this and previous press releases may be viewed at www.aurelian.ca.

"High grade gold mineralization has now been shown to extend over a strike length of approximately 700 metres of the FDN discovery, with the deposit continuing strongly to the south" says Aurelian President & CEO Patrick F. N. Anderson. "Drilling continues at FDN, as well as three kilometres south at Las Arenas, within the same pull-apart basin structure that hosts FDN. We will deploy additional drill rigs, as they arrive on site, to the FDN deposit and other regional targets."



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Uncut data
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From To Interval
Cross Drill hole (metres) (metres) (metres) Au g/t Ag g/t
section
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CP-06-67 195.90 241.95 46.05 0.99 2.6
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CP-06-67 259.60 420.60 161.00 6.51 7.3
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including 285.30 310.60 25.30 10.09 9.5
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9583700N and 387.60 402.60 15.00 15.49 18.8
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CP-06-67 426.30 431.00 4.70 6.02 9.0
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CP-06-67 450.85 492.70 41.85 0.81 5.0
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CP-06-68 383.00 389.00 6.00 0.61 0.5
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CP-06-69 168.60 296.00 127.40 1.65 5.1
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CP-06-69 301.89 377.47 75.58 2.96 6.7
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9583800N including 331.50 344.12 12.62 5.30 9.2
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and 359.78 368.33 8.55 8.11 15.4
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CP-06-69 386.06 407.80 21.74 2.72 11.3
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471.60
CP-06-69 421.00 (EOH) 50.60 3.61 9.3
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Note: intervals are calculated using a lower cut of 0.5g/t Au and
no top cut, they include a maximum of 5m internal waste.
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Drill hole CP-06-67 was collared on section 9583700N and drilled eastward at an azimuth of 86 degrees with a dip of -60 degrees at the collar. The hole passed through 194.90 metres of basin infill (Suarez Formation conglomerates), then penetrated a narrow fault zone before intersecting a broad zone of silicification, epithermal quartz +/- sulphide stockwork veining and brecciation in andesitic host rock. The longest interval of mineralization (161.00 metres @ 6.51 g/t Au and 7.3 g/t Ag) from 259.6m to 420.6m shows greater continuity and higher grade with depth on this section. The quoted interval contains two higher grade zones of 25.3 metres grading 10.09 g/t Au and 9.5 g/t Ag, and 15.0 metres grading 15.49 g/t Au and 18.8 g/t Ag that are associated with zones of more intense epithermal quartz veining. Sparse epithermal quartz veining occurs in moderately silicified andesite to the end of the hole (510.54m).

CP-06-68 was drilled from the same location as CP-06-67 but with a steeper dip (azimuth 083 degrees, dip of -70 degrees at the collar). The hole passed through 267 metres of basin infill (Suarez Formation) before entering the western down-faulted block. The hole then traversed 63 metres of weak epithermal veining in andesitic host rock (63.23m @ 0.21g/t Au) before entering a zone of faulted, unmineralized andesite to the end of hole. The hole is interpreted to be located on the western side of the north-northeast trending fault that truncates the FDN mineralization at its northern end.

CP-06-69 was drilled to test the FDN mineralization on line 9583800N. The hole was drilled eastward at an azimuth of 89 degrees with a dip of -60 degrees at the collar. The hole passed through 165.2 metres of basin infill conglomerate (Suarez Formation) encountering both the west fault and north-northeast trending fault. At 168.8 metres the hole passed into a broad zone of epithermal veining and brecciation in andesitic host rock, assaying 1.65g/t Au and 5.1g/t Ag over 127.4 metres and 2.96g/t Au and 6.7g/t Ag over 75.58 metres. The second interval includes higher grade zones of 12.62 metres grading 5.30 g/t Au and 9.2 g/t Ag, and 8.55 metres grading 8.11 g/t Au and 15.4 g/t Ag. Variable intensity epithermal mineralization continues to the end of hole (471.60m).

To date, thirty-two diamond drill holes have been completed at the FDN prospect, including several new holes to the south on line 9583000N. The present and previous press releases describe the results from twenty-one of these holes. Visual logging of core from drill holes without assays indicates that the mineralization continues strongly southward beneath the edge of the Hollin Sandstone cover to at least line 9583000N. This gives an estimated strike length of at least 800 metres to the FDN mineralized structure. A post-mineralization, north-northeast trending, steeply east dipping fault has been intersected at the northern end of the system, truncating the mineralization at approximately 9583900N. Epithermal mineralization has not been identified north of this fault as yet. The Papaya target, where sheared and mineralised andesites have previously been mapped, is located approximately 750 metres north-northeast along the projected trend of this fault. Future work will test whether the Papaya mineralization represents the northward continuation of the FDN system.

The FDN target is interpreted to be an intermediate sulphidation epithermal gold-silver system. The deposit is buried by dominantly post-mineralization conglomerates (Suarez Formation) of Jurassic age within a pull-apart basin. The hydrothermal system is characterized by a combination of multiphase quartz-carbonate-sulphide stockwork veining and hydrothermal brecciation within intensely silicified andesitic volcanic rocks that underlie the basin. In the southern part of FDN (south of 9583500N), the system is interpreted to dip moderately to steeply westward with a vertical structure bounding it to the east, and is cut by a steep east-dipping fault to the west. At the north end of the system (including and north of line 9583500N) the vein orientations and correlation of mineralization between drill holes indicates that the system is vertical. This makes the true width of the system between 45% and 60% of the down hole intervals reported in this press release.

The FDN deposit is characterized by anomalous arsenic and antimony values at surface, and is spatially related to nearby lower grade epithermal mineralization at Bonza-Las Penas. Aurelian geologists interpret the Bonza-Las Penas system as a leakage anomaly from the main mineralized zone at FDN. In a similar fashion, the Las Arenas prospect is defined by a soil arsenic-antimony anomaly located within the conglomerate filled basin in the same fault bounded corridor as FDN. The mineralization at Aguas Mesas is in a similar spatial position to Las Arenas as Bonza-Las Penas is to FDN, and may represent a similar leakage anomaly from a more strongly mineralized core at Las Arenas. To date, three holes have been completed at Las Arenas. Drill results for both FDN and Las Arenas will be released as analytical data are received, validated and compiled.

Samples consist of half NQ, NTW and BTW-size diamond core that are split by diamond saw on site, prepared at the ALS Chemex laboratory in Quito, and assayed by 50g fire assay with an ICPAES or gravimetric finish at the ALS Chemex Vancouver Laboratory. The quality assurance-quality control (QA-QC) program of Aurelian includes the insertion of certified standards of known gold content every 20 samples, blanks at least every 20 samples and field or lab duplicates every 20 samples. Samples from significant drill intercepts are sent to two additional laboratories to verify gold and silver analyses. The remaining half core is retained on site for verification and reference purposes.

At this time Aurelian Resources Inc. is well financed with a cash position sufficient carry out its current exploration program.

Stephen Leary (MAusIMM), Aurelian's Exploration Manager, is acting as Qualified Person in compliance with National Instrument 43-101 with respect to this release. He has reviewed the contents for accuracy.

About Aurelian:

Aurelian Resources Inc. is a publicly-listed (TSX VENTURE:ARU) junior resource company engaged in the business of exploring, discovering and developing mineral wealth in Ecuador. The Fruta del Norte discovery lies at the heart of the Condor Project properties, located in south-eastern Ecuador and consisting of 38 mining concessions totaling approximately 95,000 hectares.

Forward Looking Statement:

Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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