Aurora Energy Resources Inc.

Aurora Energy Resources Inc.

March 31, 2006 13:47 ET

Aurora Announces Exercise of Over-Allotment Option

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 31, 2006) -


Aurora Energy Resource Inc. ("Aurora") (TSX:AXU) announced today that the underwriters of its Initial Public Offering ("IPO") have elected to exercise their full over-allotment option to purchase an additional 1,041,667 common shares of Aurora. These additional shares will be issued at a price of Cdn$3.60 per share, for additional gross proceeds to Aurora of Cdn$3,750,001. The transaction is expected to close on Wednesday, April 5, 2006.

The underwriting syndicate is co-led by Sprott Securities Inc. and GMP Securities L.P., and includes BMO Nesbitt Burns Inc. and Pacific International Securities Inc.

Aurora currently has 59,744,444 shares outstanding and a net cash position of approximately $23,070,000. Following the issuance of the shares pursuant to the over-allotment option, Aurora will have 60,786,111 shares outstanding and net cash of approximately Cdn$26,595,000. Aurora's common shares are listed on the Toronto Stock Exchange under the symbol AXU.

The final prospectus for the IPO is available on the SEDAR website at For further technical information concerning Aurora's uranium properties, please refer to the company's technical reports, which are also available on the SEDAR website.

The securities referenced by this news release have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws, and unless so registered may not be offered or sold in the United States absent registration or applicable exemption from registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities of Aurora in any jurisdiction.


Aurora's uranium portfolio in coastal Labrador is underpinned by the Michelin deposit ("Michelin") with a measured and indicated mineral resource base of 22.2 million pounds and an additional inferred mineral resource of 13.4 million pounds. With further infill drilling, the tonnage of Michelin has the potential to increase significantly at comparable grades. In addition to Michelin, Aurora owns four other deposits called Nash, Inda, Gear and Rainbow, which are also open for expansion.

These five deposits, when combined with two new uranium discoveries at Jacques Lake and Otter Lake, and multiple drill ready targets, attest to the untapped mineral potential of Aurora's 829 square kilometre land package in coastal Labrador.

Ian Cunningham-Dunlop, P.Eng, Vice President, Exploration for Aurora, is the designated Qualified Person for Aurora on the Central Labrador Uranium Project.

The current mineral resources at Michelin include 342,000 tonnes at 0.113% U3O8 for a Measured resource of 851,000 pounds, 8,615,000 tonnes at 0.113% U3O8 for an Indicated resource of 21,374,000 pounds, and 4,116,000 tonnes at a grade of 0.148% U3O8 for an Inferred resource of 13,460,000 pounds. CIM definitions were followed for Mineral Resource estimates. Mineral Resources are estimated at a cut off grade of 0.05% U3O8 and a minimum vein width of 2.0 metres. Density of mineralized rock is 2.83tt/m3. Tonnage and contained lbs. uranium numbers are rounded. Drill core was prepared and analyzed in accordance with industry standards by Activation Laboratories Ltd, Ancaster, Ontario. The Mineral resource estimate was prepared by independent consultants Roscoe Postle & Associates Inc., under the supervision of Mr. Hrayr Agnerian, M.Sc. (Applied), P.Geo. Please see the prospectus of Aurora dated March 8, 2006 (the "Prospectus") for further details.

Except for the statements of historical fact contained herein, certain information presented constitutes "forward-looking statements". Such forward-looking statements, including but not limited to, those with respect to the timing and amount of estimated future resources and resource conversion rates and the potential for further equity dilution involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Aurora to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to the actual results of current exploration activities, conclusions of economic evaluations, uncertainty in the estimation of mineral resources, changes in project parameters as plans continue to be refined, future prices of uranium, economic and political stability in Canada, environmental risks and hazards, increased infrastructure and/or operating costs, labor and employment matters, and government regulation as well as those factors discussed in the section entitled "Risk Factors" in Aurora's Prospectus available on SEDAR at . Although Aurora has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Aurora disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements.

Contact Information

  • Aurora Energy Resources Inc.
    Mark O'Dea
    President & CEO
    (604) 632-4677 or Toll Free: 1-877-632-4677
    Aurora Energy Resources Inc.
    Sean Tetzlaff
    (604) 632-4677 or Toll Free: 1-877-632-4677
    Aurora Energy Resources Inc.
    Dan McIntyre
    Corporate Communications
    (604) 632-4677 or Toll Free: 1-877-632-4677