Aurora Energy Resources Inc.
TSX : AXU

Aurora Energy Resources Inc.

August 20, 2007 10:44 ET

Aurora Moves Its Michelin Project to Pre-Feasibility Stage and Selects Main Contractors

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 20, 2007) - Aurora Energy Resources Inc. ("Aurora") (TSX:AXU) is pleased to announce today that it has advanced its Michelin Project to the pre-feasibility stage.

"We have taken a significant step towards project development in awarding the pre-feasibility engineering and environmental contracts," said Dr. Mark O'Dea, President and CEO of Aurora. "We have one of the largest primary uranium deposits in the world. Aurora is the only company working in Labrador with a development stage uranium project, representing more than 90% of Labrador's known uranium resources."

Aurora anticipates formally registering the Michelin Project with the Canadian Environmental Assessment Agency by the end of the year. Pending completion of the necessary regulatory approvals and a positive feasibility study, Aurora estimates it could begin mine construction as soon as 2010 and commence production in 2013.

Micon International has been contracted to conduct engineering pre-feasibility studies for the mine and process facilities. Aurora will continue its contract with SNC-Lavalin Inc. to carry out the pre-feasibility study on the infrastructure requirements, as well as project management of the environmental baseline studies. The infrastructure conceptual design will include transportation, access, power, dock, site and mine facilities. SNC-Lavalin, working with Minaskuat and Sikumiut, two Labrador-based environmental companies, will complete the required environmental and socio-economic baseline studies for the environmental assessment.

In addition, SENES Consulting Ltd. will assist Aurora in the radiological aspects of the environmental baseline studies for the uranium mine and processing facility.

"We are continuing our leadership role in creating a new uranium district of international significance," confirmed Dr. O'Dea. "We're pleased to have these leading contractors on our team, who bring the required expertise to successfully complete this project phase."

Aurora has been working in Labrador's Central Mineral Belt since 2003 and has defined a U3O8 (uranium) Mineral Resource of 58 million pounds (Measured and Indicated) and 38 million pounds (Inferred). In terms of energy capacity, this resource is equivalent to 2.8 billion barrels of crude oil or 800 million tonnes of coal and could provide power to one million homes for over 150 years.

Aurora's current drill program is planned to include 75,000 metres of drilling with a budget of C$21 million. Aurora has also committed approximately C$9 million in 2007, to continue with environmental and socioeconomic baseline studies and engineering studies. The environmental studies are now in their third year of data collection and analysis.

AURORA'S CURRENT ASSETS

Aurora is not invested in any short term commercial paper or asset-backed securities. The Company has approximately C$39 million in cash that is fully liquid and held with a large commercial bank.

ABOUT OUR CONTRACTORS

Micon International is an industry leader in uranium mine and process design, with particular focus on mineral resource estimations, metallurgical services, mine design and production scheduling, and preparation of pre-feasibility and feasibility studies.

SNC-Lavalin is a large, Canadian-based engineering design and construction management company with extensive experience in northern Canadian mining projects, including the Voisey's Bay Nickel Mine in Labrador.

Minaskuat, a joint venture between Innu and Jacques Whitford, provide environmental monitoring services. Sikumiut Environment Management Ltd, an Inuit owned company, has extensive experience in providing environmental impact assessments, and permitting and environmental protection planning, as well as traditional knowledge compilation and socio economic impact assessments for major projects in Labrador.

SENES Consultants Ltd. is a leader in radiological environmental and regulatory services.

ABOUT AURORA

Aurora (TSX:AXU) is a uranium exploration and development company focused on the Central Mineral Belt in coastal Labrador - one of Canada's most promising emerging uranium districts. At Aurora, we are committed to responsible development with lasting local benefits. Uranium provides clean, safe and reliable energy. The energy to change the world.

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, potential for expansion of resources and potential size of future exploration programs, potential timing of receipt of permits, classification of future mineral resources and expected metres drilled, 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, environmental risks and hazards, increased infrastructure and/or operating costs, labor and employment matters, government regulation and complexities of exploration as well as those factors discussed in the section entitled "Risk Factors" in Aurora's Annual Information Form 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.
    Andrea Marshall
    Media Relations
    (709) 726-2223
    or
    Aurora Energy Resources Inc.
    Camon Mak
    Investor Relations
    (604) 632-0110 or Toll Free: 1-877-632-4677
    Website: www.aurora-energy.ca