Aurora Energy Resources Inc.
TSX : AXU

Aurora Energy Resources Inc.

August 14, 2007 15:12 ET

Aurora Reports 2007 Second Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 14, 2007) - Aurora Energy Resources Inc. (the "Company") (TSX:AXU) reports its financial and operating results for the three and six months ending June 30, 2007. Details of the Company's financial results are described in the unaudited financial statements and Management's Discussion and Analysis ("MDA") for the six months ended June 30, 2007. Further details on each of the Company's projects and activities can be found on the Company's website http://www.aurora-energy.ca and on Sedar at http://www.sedar.com. All amounts are in Canadian dollars unless otherwise stated.

Exploration Projects

For the six months ending June 30, 2007, the Company incurred exploration expenditures of $8,565,561, net of $1,838,816 of stock based compensation expense, on its CMB uranium assets as compared to a budget of $9,762,954 for the same period. Delays in receiving the Michelin drilling permits, weather issues and delays receiving drills, resulted in a slow start to the 2007 field program and consequently resulted in fewer drilling expenditures than budget. Lower drilling costs were somewhat offset by higher camp costs due to the extended winter weather conditions encountered in April and May. As at June 30, 2007, the Company had drilled a total of 9,600 metres out of a budget of 31,000 metres for the period. For fiscal 2007, the Company has planned a comprehensive exploration program, which includes a planned minimum drill program of 75,000 metres at a total budget of $21,250,000. The Company is anticipates making up for the slow start to drilling by extending the drilling program into the winter months. The Company should have two fully winterized camps, one at Michelin and the other at Jacques Lake (currently under construction), available by October.

The 2007 work program is currently being carried out of the Michelin Camp and the town of Postville, Labrador. The Corporation also anticipates submitting additional permits to drill on other regional targets along the Aurora Corridor throughout the third quarter. Work to date has also included a component of geological mapping and geochemical sampling throughout the CMB claim group and a Titan IP survey has been completed over the Michelin deposit.

In addition, the Company has allocated approximately $9,000,000 for development costs consisting of baseline environmental and engineering studies, and community relations costs, as part of an ongoing pre-feasibility study. This is an increase to the original budget of $5,000,000 and reflects additional costs of environmental and permitting contractors and an expanded scope of work. As at June 30, 2007, the Company has incurred $2,127,611 towards development.

Financial Data

This summary of selected unaudited and audited financial data should be read in conjunction with the MDA and the unaudited and audited financial statements of the Company and related notes related thereto, for the periods indicated.



---------------------------------------------------------
For the three months For the six months
ended (Unaudited) ended (Unaudited)
June 30, 2007 June 30, 2006 June 30, 2007 June 30, 2006
---------------------------------------------------------

Loss and
comprehensive
loss $ 2,726,938 $ 1,652,548 $ 5,693,441 $ 4,856,721

Basic and diluted
loss per share $ 0.04 $ 0.03 $ 0.09 $ 0.09

Cash invested
in mineral
properties $ 6,377,472 $ 3,217,244 $ 8,483,842 $ 3,382,148

Cash generated
by financing
activities $ 893,671 $ 3,652,205 $ 2,476,827 $ 26,457,822
--------------------------------------------------------------------------


--------------------------------
As at
June 30, December 31,
2007 2006
(Unaudited)
--------------------------------------------------------------
Cash and cash equivalents $ 45,133,419 $ 53,137,862
Working capital $ 44,439,137 $ 52,386,417
Total assets $ 80,627,474 $ 76,419,309
Shareholders' $ 73,487,182 $ 74,570,752


Operations

The Corporation's net loss for the quarter ended June 30, 2007 was $2,726,938 or $0.04 per share compared to a net loss of $1,652,548 or $0.03 per share for the same period in the prior year. The Corporation's net loss for the six months ended June 30, 2007 was $5,693,441 or $0.09 per share as compared to a net loss of $4,856,721 or $0.09 per share for the six months ended June 30, 2006. The Corporation's net loss for the six months ended June 30, 2007, consists primarily of stock based compensation expense, investor relations, promotion and advertising costs, wages and benefits expense, office and general expenses, Part XII.6 tax and listing and filing fees, offset by interest income. Period over period changes are primarily a result of the increased scale of operations and a full six months of operations. The Corporation went public in March of 2006.

Total assets at June 30, 2007, increased to $80,627,474 from $76,419,309 at December 31, 2006 primarily due to receipt of proceeds from the exercise of warrants and stock options totalling $2,454,501. Total cash flows from financing activities for the three months ended June 30, 2007 totalled $893,671 as compared to $3,652,205 for the same period ending in 2006. Cash flows from financing activities for second quarter in 2006 consisted of the receipt of the net proceeds from the exercise of the over-allotment option on the Corporation's initial public offering.

Liquidity

At June 30, 2007, the Company had cash on its balance sheet of $45,133,419 and working capital of $44,439,137 as compared to cash of $53,137,862 and working capital of $52,386,417 at December 31, 2006. The decrease in cash and working capital of $8,004,443 and $7,947,280 respectively is due to cash used in operations of $1,303,960 for the six months ended June 30, 2007 and deferred development and exploration expenditures of $8,483,842, offset by the receipt of $2,454,501 from the exercise of stock options and warrants during the period.

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. Aurora's uranium district includes multiple historic and newly discovered uranium deposits and targets. 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.
    Mark O'Dea
    President & CEO
    (604) 632-4677 or Toll Free: 1-877-632-4677
    or
    Aurora Energy Resources Inc.
    Sean Tetzlaff
    CFO and Corporate Secretary
    (604) 632-4677 or Toll Free: 1-877-632-4677
    or
    Aurora Energy Resources Inc.
    Camon Mak
    Investor Relations
    (604) 632-4677 or Toll Free: 1-877-632-4677
    Website: www.aurora-energy.ca