Aurora Energy Resources Inc.
TSX : AXU

Aurora Energy Resources Inc.

March 22, 2006 09:13 ET

Aurora Closes Initial Public Offering and Begins Trading on Toronto Stock Exchange

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 22, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Aurora Energy Resources Inc. ("Aurora") (TSX:AXU) announced today that it has closed its Initial Public Offering ("IPO") of 6,944,444 shares at a price of Cdn$3.60 per share, for gross proceeds of Cdn$24,999,998. Aurora's common shares are listed on the Toronto Stock Exchange and commenced trading today under the symbol AXU.

Aurora has granted to the underwriters an option to purchase up to an additional 1,041,667 shares at a price of Cdn$3.60 per share to cover over-allotment and for market stabilization purposes. The over-allotment option is exercisable within 30 days after closing of the IPO.

The IPO was co-led by Sprott Securities Inc. and GMP Securities L.P. Other members of the underwriting syndicate were BMO Nesbitt Burns Inc. and Pacific International Securities Inc.

Aurora currently has 59,744,444 shares outstanding and a net cash position of $23,070,000. Assuming the underwriters exercise their over-allotment, Aurora will have 60,786,111 shares outstanding and net cash of Cdn$26,595,000.

The 12 month exploration budget for Aurora is $14.5 million, which is anticipated to involve approximately 40,000 metres of drilling. The 2006 exploration program is scheduled to commence in April.

AURORA'S URANIUM PORTFOLIO

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.

The final prospectus for the IPO is available on SEDAR at www.sedar.com. For further technical information concerning Michelin or Aurora's uranium targets, 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.

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.

Uranium resources referred to for the Nash, Inda, and Rainbow deposits are historical in nature, and were estimated prior to National Instrument 43-101. Aurora has not undertaken an independent investigation of the resource estimates or independently analyzed the results of the previous exploration work in order to verify the classification of the resources, and therefore the historical estimates should not be relied upon. Aurora believes these historical estimates provide a conceptual indication of the potential of the property and are relevant to ongoing exploration.

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 www.sedar.com . 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
    or
    Aurora Energy Resources Inc.
    Sean Tetzlaff
    CFO
    (604) 632-4677 or Toll Free: 1-877-632-4677
    or
    Aurora Energy Resources Inc.
    Dan McIntyre
    Corporate Communications
    (604) 632-4677 or Toll Free: 1-877-632-4677