Aurelian Resources Inc.
TSX VENTURE : ARU

Aurelian Resources Inc.

August 21, 2006 10:43 ET

Aurelian Intersects 191.60 Metres Grading 7.43 g/t, and 215.90 Metres Grading 10.12 g/t of Gold in Drilling at the FDN Epithermal Gold-Silver Discovery

TORONTO, ONTARIO--(CCNMatthews - Aug. 21, 2006) - Aurelian Resources Inc. (TSX VENTURE:ARU) today announced a 191.60 metre intercept grading 7.43 g/t of gold (Au) and 11.1 g/t of silver (Ag) in diamond drill hole CP-06-62, a 215.90 metre intercept grading 10.12 g/t Au and 18.5 g/t Ag in diamond drill hole CP-06-63 (a scissor hole) and a 73.40 metre intercept grading 1.45 g/t Au and 9.8 g/t Ag in diamond drill hole CP-06-61. All three intercepts are from the buried epithermal gold-silver discovery at Fruta Del Norte (FDN) on the wholly-owned Condor Project in south-eastern Ecuador. Maps, cross sections, photos and full gold and silver assay data from this and previous press releases may be viewed at www.aurelian.ca.

"These assay results confirm continuity of gold grade over a strike length of approximately 400 metres of the FDN discovery." says Aurelian President & CEO Patrick F. N. Anderson. "Meanwhile, our geologists have prioritized several new targets within the sedimentary basin and at El Tigre, approximately five kilometres to the east. The exploration program continues to accelerate with two more geologists recently arriving onsite, the new road is advancing towards camp and additional drill rigs are being prepared for shipment to Ecuador."

Previous releases contained intercepts calculated using a 31.1 g/t top cut, however preliminary geostatistics indicate that a higher cut-off for these and previously reported intersections will be appropriate in resource modelling.



------------------------------------------------------------------------
------------------------------------------------------------------------
Uncut data
------------------------------------------------------------------------
Cross Drill From To Interval Au Ag
section hole (metres) (metres) (metres) g/t g/t Comment
------------------------------------------------------------------------
9583300N CP-06-61 427.40 500.80 73.40 1.45 9.8
---------------------------------------------------------------
including 428.72 469.70 40.98 2.16 7.0
---------------------------------------------------------------
CP-06-61 529.80 533.80 4.00 0.50 3.2
------------------------------------------------------------------------
9583400N CP-06-63 323.00 538.90 215.90 10.12 18.5
---------------------------------------------------------------
Quartz-carbo-
nate-sulphide
vein with
visible gold.
Correlated with
11.52m vein in
including 327.80 358.87 31.07 25.98 21.0 hole CP-06-57.
---------------------------------------------------------------
Stockwork
veining and
and 358.87 372.00 13.13 29.82 29.1 brecciation.
---------------------------------------------------------------
Vein sub-
parallel to
core axis,
and 469.36 472.40 3.04 173.41 114.9 visible gold.
------------------------------------------------------------------------
9583500N CP-06-62 172.45 178.45 6.00 0.96 3.3
---------------------------------------------------------------
CP-06-62 189.40 381.00 191.60 7.43 11.1
---------------------------------------------------------------
including 279.00 339.40 60.40 11.39 18.2
---------------------------------------------------------------
and 352.40 366.90 14.50 25.51 26.7
---------------------------------------------------------------
CP-06-62 405.80 412.80 7.00 1.16 13.6
---------------------------------------------------------------
CP-06-62 419.80 423.50 3.70 0.77 127.2
---------------------------------------------------------------
CP-06-62 432.50 433.50 1.00 0.55 315.0
------------------------------------------------------------------------
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.
------------------------------------------------------------------------
------------------------------------------------------------------------


CP-06-63 is a westward-directed scissor hole (azimuth of 271 degrees) on section 9583400N to confirm the geology and geometry of FDN mineralization reported previously in eastward drilled holes. The hole dips at -63 degrees at the collar but rose significantly below 300m to finish with a dip of -52.5 degrees at 590m (EOH). The grade and length of the mineralized intersection correlates well with intervals obtained previously in CP-06-57, 58 and 59 (PR 06/06/2006, PR 21/06/2006, PR 06/07/2006). Ten instances of visible gold have been noted in core logging, comparable with observed visible gold in other holes on this section. The angular relationship between veins and core axis, especially those below 430m which are dominantly sub-parallel to the core axis and indicates that drilling to the east produces more representative samples of FDN mineralization The mineralized interval in CP-06-63 is truncated by a fault at 538.90m, which is interpreted to mark the western boundary of the fault block currently known to host the FDN mineralization.

The two contiguous high-grade intervals are separated in the tables above on geological differences. The upper 31.07m (down hole length) interval of 25.98 g/t Au (uncut) and 21.0 g/t Ag occurs in a large vein. The vein is correlated with the vein intercepted 60m below in drill hole CP-06-57 that averaged 11.52m @ 188.22g/t Au (data from PR 06/06/2006 and PR 21/06/2006). The vein is interpreted to be sub-vertical with a true width of between 7 and 15m based on the inter-hole correlation, and is a north-south striking structure that possibly marks the eastern edge of FDN mineralization. The succeeding interval (13.13m @ 29.82 g/t Au, uncut) confirms the occurrence of high grade mineralization in stockwork and intense silicification style mineralization.

Drill hole CP-06-62 was collared 40m west of CP-06-60 on section 9583500N and drilled at -67 degrees with an azimuth of 90 degrees. The dip changed to -63 degrees by the end of hole (527.10m). The hole intersected a broad zone of epithermal stockwork veining in silicified andesite after passing through the sedimentary basin cover and a vertical fault zone interpreted to bound the FDN block to the west. Visible gold occurs within eleven sample intervals, significantly more than observed in the overlying hole on the same section. The length and continuity of mineralization in CP-06-62 (191.6m @ 7.43 g/t Au uncut) are greater than intersected in CP-06-60 (81.4m @ 5.54 g/t Au, and 14.37m @ 15.24 g/t Au (both uncut); PR 06/07/2006).

Hole CP-06-61 was collared to test west of the previously released intercepts on section 9583300N. It was drilled at an azimuth of 85 degrees and a dip of -70 degrees at the collar, rising to -67 degrees by the end of hole (567.23m). The hole penetrated late andesite, conglomerate and other sedimentary rocks to 373m, and then 4 metres of siliceous sinter before intersecting underlying unmineralized andesite in the block that is down faulted to the west of the FDN mineralized zone. FDN epithermal stock work and breccia veining commenced immediately after crossing the block bounding fault at 427m with mineralization weakening down hole. CP-06-61 also intersected relic copper porphyry-style alteration with significant stockwork and disseminated chalcopyrite mineralization within and below the epithermal interval. Using a 0.5% Cu cutoff, the 18m interval from 484.80m to 502.80m averages 0.71% Cu, 0.62g/t Au and 16.8g/t Ag . It is interpreted that the FDN epithermal precious metal system overprints the earlier copper porphyry system.

Twenty-five diamond drill holes have been completed at the FDN prospect to date. The present and previous press releases describe results for fifteen of these holes. Two drills are operating on site, and current and future holes continue the program to expand and/or define the extent of the FDN zone. Visual logging of core from holes without assays indicates that mineralization continues northward to line 9583800N giving a known strike length of at least 700m to the FDN prospect. Drill results will be released as analytical data are fully received and compiled.

The FDN target is interpreted as an intermediate sulphidation epithermal gold-silver system. The deposit is buried by dominantly post-mineralization conglomerate and greywacke within a pull-apart basin. The hydrothermal system is characterized by a combination of multiphase quartz-carbonate-sulphide stock work veining and hydrothermal brecciation within intensely silicified andesitic volcanic rocks that underlie the basin.

Samples are comprised of half NQ, NTW and BTW-size diamond core. Core samples are sawn in half on site, prepped at the ALS Chemex prep facility 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 (QAQC) program of Aurelian consists of the insertion of certified standards of known gold content every 20 samples, blanks at least every 20 samples and field or lab duplicates every 25 samples. Standards, blanks and duplicates make up approximately 15% of the samples assayed. 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.

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-V:ARU) junior resource company engaged in the business of exploring, discovering and developing mineral wealth in Ecuador. The Condor Project properties are located in south-eastern Ecuador and consist of 38 mining concessions totalling 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.

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