Aurora Energy Resources Inc.

Aurora Energy Resources Inc.

March 27, 2007 16:00 ET

Aurora Reports 2006 Annual Results and New Corporate Appointment

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 27, 2007) - Aurora Energy Resources Inc. (the "Company") (TSX:AXU) reports its financial and operating results for the year ending December 31, 2006. Details of the Company's financial results are described in the audited financial statements and Management's Discussion and Analysis for the year ended December 31, 2006. Further details on each of the Company's projects and activities can be found on the Company's website and on SEDAR at All amounts are in Canadian dollars unless otherwise stated.


The Company is a uranium exploration and development company focused on the Central Mineral Belt ("CMB") of coastal Labrador, Canada. The Company was incorporated on June 8, 2005, to hold the uranium exploration assets of Fronteer Development Group Inc. ("Fronteer") (TSX:FRG)(AMEX:FRG) and Altius Resources Inc. The company completed its initial public offering on March 22, 2006, raising gross proceeds of $28.8 million.

Aurora's properties consist of a total of 223,074 acres in 32 licenses or groups of mineral claims. On November 7, 2006, the Company completed its 2006 drill program which had commenced on May 9, 2006. A total of 120 diamond drill holes totaling 46,077.74 metres were completed utilizing 6 helicopter supported drill rigs over the course of the program. This work significantly expanded the size of the Michelin and Jacques Lake deposits, and tested a number of new and historic uranium targets on the property. During the first quarter of 2007, the Company released an updated NI 43-101 compliant resource estimate for the Michelin and Jacques Lake deposits.

For 2007, a $21.2 million drill program, with a minimum 75,000 metres of diamond drilling, has been planned to advance the development of deposits and exploration targets. The main focus of the 2007 work program will be to continue to expand and convert inferred resources to indicated resources at the Michelin deposit, expand the size of the Jacques Lake deposit and to test a number of other targets on the property. The Company has also budgeted $5.0 million towards ongoing environmental baseline and engineering studies, working towards the completion of a bankable feasibility study, anticipated to be completed in late 2008.


Selected Financial Data

This summary of selected financial data should be read in conjunction with the Management Discussion and Analysis ("MD&A") of the financial position and operating results of the company for the twelve months ended December 31, 2006 and 2005 and the audited consolidated financial statements and related notes for the same period.

Year ended Period ended
December 31, December 31,
2006 2005
Loss for year $12,571,640 $ 18,607
Basic and diluted earnings (loss) per share $ 0.23 -
Cash invested in mineral properties $14,534,070 $4,633,852
Cash generated by financing activities $68,515,868 $5,077,325
Cash and cash equivalents $53,137,862 $ 372,652
Working capital $52,386,417 $ 319,146
Total assets $76,419,309 $6,467,699
Shareholders' equity $74,570,752 $6,296,682

(1) the Company was incorporated on June 8, 2005, therefore the period
ending December 31, 2005 reflects only a stub period of 7 months of

The Company's net loss for the year ended December 31, 2006, was $12,571,640 or a loss per share of $0.23 compared to a net loss of $18,607 and loss per share of nil for the period ended December 31, 2005. The increase in the Company's net loss is reflective of operations as a public company for 2006, whereas in 2005, the company was an exploration subsidiary of Fronteer and therefore substantially all of its expenses related to exploration and were deferred to the balance sheet.

The net loss for the year ended December 31, 2006, consists primarily of stock-based compensation expense ($11.5 million), wages and benefits ($0.95 million) and investor relations, promotion and advertising expense ($0.8 million), offset by interest income of $1.0 million.

Exploration Projects

The Company incurred expenditures of $14.5 million for the year ended December 31, 2006, on the development and exploration of its CMB uranium assets (net of stock-based compensation of $1.15 million, amortization of $0.05 million and future income taxes of $0.65 million) as compared to a budget of $14.5 million.


At December 31, 2006, the Company had cash on its balance sheet of $53.1 million and working capital of $52.4 million as compared to cash of $0.4 million and working capital of $0.3 million at December 31, 2005. The change in cash and working capital of $52.7 million and $52.1 million respectively is primarily related to the receipt of the net IPO proceeds and exercise of over-allotment option in March 2006 of $28.75 million, proceeds from the exercise of stock options and warrants throughout 2006 of $3.9 million, and the bought-deal and concurrent private placement in October 2006, of $40 million, offset by deferred development and exploration expenditures of $14.5 million and cash operating costs of $1.4 million.

The Company currently has no operating revenues other than interest income and relies primarily on equity financing as well as the exercise of warrants and stock options to fund its exploration, development and administrative costs.

New Corporate Appointment

Mr. Chris Lee (P.Geo.) has joined the Company as Chief Geoscientist. This new appointment fills a crucial role in Aurora as the Company moves its advanced uranium projects through feasibility and into the development phase.

Previously a Principal Consultant with SRK Consulting (Canada) Inc., Chris specializes in project evaluations, structural analysis, grade control and resource estimation, and has applied these skills across a broad spectrum of deposit types around the world. During his recent seven year tenure with SRK, Chris worked on more than 60 mining projects, from grassroots exploration to full feasibility and producing operations. Chris will assume the position previously held by Dr. Rick Valenta.

"Rick has been with Aurora since the early days and has played an important role in building the company that stands before us today. We wish him all the best in future endeavours," says Dr. Mark O'Dea, Aurora President and CEO. Rick will be returning to Australia at the end of March.


Aurora is a uranium exploration and development company focused on the Central Mineral Belt in coastal Labrador. It owns 100% of one of Canada's largest undeveloped uranium deposits. Aurora is committed to generating superior shareholder value and responsible development, with lasting local benefits. Aurora has offices in Postville and Goose Bay, Labrador, St. John's, Newfoundland, Toronto and Vancouver.

The Company will be hosting its annual general meeting on April 30 at The Rooms in St. John's, Newfoundland.

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 the timing and level of exploration activities, including drilling activities, the timing of completion of a pre-feasibility study and anticipated results of the 2007 work program; 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 Annual Information Form on file with the Canadian Securities Commissions. 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.
    Camon Mak
    Investor Relations
    (604) 632-0110 or Toll Free: 1-877-632-4677
    Aurora Energy Resources Inc.
    Jessica Delaney
    Corporate Communications
    (604) 632-0110 or Toll Free: 1-877-632-4677