Aurora Energy Resources Inc.
TSX : AXU

Aurora Energy Resources Inc.

May 15, 2008 12:56 ET

Aurora Reports 2008 First Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 15, 2008) - Aurora Energy Resources Inc. (the "Company") (TSX:AXU) reports its financial and operating results for the three months ended March 31, 2008. Details of the Company's financial results are described in the unaudited financial statements and Management's Discussion and Analysis (MD&A) for the three months ended March 31, 2008. 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.

Overview

The Corporation was incorporated on June 8, 2005, and operates in the mineral resource industry. Its principle focus is on the exploration and development of uranium projects in the Central Mineral Belt ("CMB") Labrador, Canada, one of the most promising uranium districts in the world, as well as potential evaluation and acquisition of opportunities throughout the world. Aurora is committed to responsible development with lasting local benefits and the highest standards of safety, health, and environmental protection.

Aurora's properties consist of a total of 223,074 acres in 28 licenses or groups of mineral claims Aurora's summer work program includes an 11,250 metre infill drill campaign at the Jacques Lake and Michelin deposits. The program, which is expected to run from May until July, aims to enhance the value of the Michelin and Jacques Lake deposits by converting pounds from the inferred to indicated mineral resource category. Aurora also plans to continue with engineering studies and plans to conduct a 3,750 metre geotechnical, environmental and metallurgical drill program from May until August which is expected to provide Aurora with valuable data for tailings studies and in moving the Michelin Project towards development.

Operations

Selected Financial Data

This summary of selected unaudited and audited financial data should be read in conjunction with the Management Discussion and Analysis ("MD&A") and the unaudited and audited financial statements of the Corporation and related notes thereto, for the periods indicated.



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For the three months ended
March 31, March 31,
2008 2007
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Loss and comprehensive loss for the
period $ 959,342 $ 2,966,503
Basic and diluted loss per share $ 0.01 $ 0.05
Cash invested in mineral properties $ 9,164,635 $ 2,106,370
Cash generated (used) by financing
activities $ 591,888 $ 1,583,156
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As at
March 31, December 31,
2008 2007
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Cash $ 120,824,470 $ 131,094,585
Working capital $ 120,457,935 $ 129,898,119
Exploration properties and deferred
exploration expenditures $ 66,755,258 $ 56,710,497
Total assets $ 193,031,815 $ 192,186,937
Shareholder's equity $ 180,991,782 $ 184,879,251
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The Company's net loss for the three months ended March 31, 2008, was $959,342 or a loss per share of $0.01 compared to a net loss of $2,966,503 and loss per share of $0.05 for the three months ended March 31, 2007. An increase in interest income and reduction in stock-based compensation are the primary factors for the improvement in the Corporation's net loss in 2008 vs. 2007.

The net loss for the three months ended March 31, 2008, consists primarily of stock-based compensation expense of $771,440, wages and benefits of $406,533, office and general expenses of $293,746, consulting fees of $195,513, Part XII.6 tax of $166,541 and investor relations, promotion and advertising expenses of $142,506, offset by interest income of $1,232,644.

Exploration Projects

The Company incurred cash expenditures of $9,164,635 for the three months ended March 31, 2008, on the development and exploration of its CMB uranium assets (net of stock-based compensation of $545,932, amortization of $111,208 and future income taxes of $222,986).

Liquidity

At March 31, 2008, the Company had cash on its balance sheet of $120,824,470 and working capital of $120,457,935, as compared to cash of $131,094,585 and working capital of $129,898,119 at December 31, 2007. The change in cash and working capital of $10,270,115 and $9,440,184, respectively, is primarily related to the use of funds for deferred development and exploration expenditures of $5,610,635 and $3,553,998, and the purchase of equipment of $250,615 offset by interest income of $1,231,996 and receipt of $271,801 upon the exercise of stock options.

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.

ABOUT AURORA

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, Makkovik, Happy Valley - Goose Bay, Labrador, St. John's, Newfoundland, Toronto and Vancouver.

The Company will be hosting its annual general meeting on June 10, 2008 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.
    Mark O'Dea
    President & CEO
    (604) 632-0110 or (709) 726-2223
    or
    Aurora Energy Resources Inc.
    Paul Coombs
    Chief Financial Officer
    (604) 632-0110 or (709) 726-2223
    Website: www.aurora-energy.ca