Aurelian Resources Inc.

Aurelian Resources Inc.

March 28, 2007 08:00 ET

Aurelian Resources Advised of Legal Action Considers Warrant Action to be Without Merit

TORONTO, ONTARIO--(CCNMatthews - March 28, 2007) - Aurelian Resources Inc. ("Aurelian") (TSX:ARU) announces that Van Eck Associates Corporation and Van Eck Funds International Investors Gold Fund (collectively, the "Plaintiffs") have caused a Statement of Claim (the "Claim") to be issued in the Ontario Superior Court of Justice naming Aurelian as defendant.

The Claim relates to certain common share purchase warrants (the "Warrants") issued by Aurelian on June 6, 2003 as part of a private of 6,000,000 units at $0.50 per unit for gross proceeds of $3,000,000. Each unit was comprised of one common share and one Warrant. Each Warrant entitled the holder to purchase one common share at $0.60 per share during the first year from the date of issuance and $0.75 per share during the second year. The terms of the Warrants provided that they would expire in June 2005 unless, prior to that time, Aurelian met a series of conditions which, in the case of the Company continuing to be listed on the TSXV, included the conditions for a Tier 1 listing on such exchange and the Company having received approval from the relevant stock exchange to extend the expiry date of the Warrants for an additional two-year period. In the Claim, the Plaintiffs allege that Aurelian did not fulfill its obligations regarding obtaining the necessary approvals to extend the term of the Warrants to June 6, 2007. Accordingly, the Plaintiffs are claiming that they are entitled to be issued the 650,000 common shares that would have been issued to the Plaintiffs on the exercise of their Warrants had the term been extended to June 6, 2007 upon the payment to Aurelian of $650,000 or in the alternative, $26 million plus costs and interest.

Management believes that the Claim is without merit and intends to vigorously defend this action. A Notice of Intent to Defend has been filed on behalf of Aurelian in this regard.

About Aurelian:

Aurelian Resources Inc. is a publicly-listed (TSX:ARU) 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.

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