Aurogin Resources Ltd.
TSX VENTURE : AUQ

Aurogin Resources Ltd.

May 01, 2007 18:13 ET

Aurogin Reports Fiscal 2006 Financial Results

TORONTO, ONTARIO--(CCNMatthews - May 1, 2007) - Aurogin Resources Ltd. ("Aurogin" or the "Company") (TSX VENTURE:AUQ) is pleased to announce its financial results for the fiscal year ended December 31, 2006. The Company recently announced that it had changed its year end from June 30 to December 31 (see Aurogin press release of February 7, 2007) and changed its reporting currency to the U.S. dollar. The consolidated financial statements along with management's discussion and analysis are available on SEDAR at www.sedar.com and on the Company's website at www.aurogin.com (All currency references are to U.S. dollars, unless otherwise noted.)



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Summary of Financial and Operating Six month
Highlights(a) (b) period ended Year ended
Dec. 31, 2006 June 30, 2006
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Gold ounces - produced 971 -
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Gold ounces - sold 808 -
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Average realized gold price ($/ounce) $619 -
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Total cash costs per ounce sold
($/ounce) (c) $231 -
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Metal sales $ 500,080 $ -
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Cost of sales (excludes depreciation,
depletion and amortization) $ 186,549 $ -
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Depreciation, depletion and amortization $ 90,691 $ -
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Operating loss $ (611,131) $ (319,050)
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Net loss for the year $ (779,669) $ (311,841)
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Loss per share (basic and diluted) $ (0.01) $ (0.01)
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Cash flow used in operating activities $ (243,558) $ (137,560)
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Cash $ 652,214 $1,402,363
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Working capital $ 740,578 $1,155,329
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Total assets $5,757,200 $3,196,296
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(a) As a result of changing the year end of the Company from June 30, 2006
to December 31, 2006, the year ended December 31, 2006 covers a six month
period while the year ended June 30, 2006 covers a twelve month period.
(b) As a result of having to fully consolidate the results from the
Company's 50% owned El Sastre gold mine, the amounts above represent 100%
of the gold ounces produced and sold, metal sales, cost of sales and
depreciation, depletion and amortization.
(c) Cost of sales per ounce is calculated by dividing cost of sales as per
the consolidated financial statements with gold ounces sold.


"The final six months of 2006 were an extremely exciting and rewarding period for Aurogin," said John Paterson, P.Eng, President and CEO of Aurogin. "We received the final operating permit for our El Sastre Main Zone gold mine, completed construction of the mine, began commercial production and recorded the first sale of gold. Going forward, we expect to have the financial resources necessary to increase reserves and resources and expand production. 2007 will mark our first full year of production and through the planned combination with Morgain, we hope to provide shareholders with growth in the Company and in the share price."

On the exploration front, Aurogin completed work which allowed it to estimate a new inferred mineral resource on its Bridge Zone. Work completed on the El Sastre Main Zone and El Arenal Zone has been incorporated into a new Technical Report which will be released shortly.

Metal sales revenue arose from the sale of the first gold production (see Aurogin news release of December 5, 2006) from the El Sastre Main Zone gold mine in Guatemala. The Company realized $619 per ounce from this gold sale compared with an average spot price of gold for the fourth quarter and full-year 2006 of $614 and $604 per ounce, respectively.

Cost of sales was $231 per ounce. Given the fact that the mine was still in start up, the Company considered this to be an extremely favourable indication of the mine's potential profitability at current gold prices.

During the first quarter of 2007 (see Aurogin press release of March 5, 2007) Aurogin announced intended plans to merge with Morgain Minerals Inc. Work on this front is ongoing with a shareholders' vote expected in late June 2007.

Aurogin is a debt free junior gold producer focused on the acquisition and development of profitable gold deposits in the Americas. Its 50% owned El Sastre Main Zone gold mine is only one part of the overall El Sastre Project, an expanding resource that includes at least four mineralized zones.

Issued: 64,694,721 common shares

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