Aurora Energy Resources Inc.
TSX : AXU

Aurora Energy Resources Inc.

November 14, 2006 13:26 ET

Aurora Reports Third Quarter Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 14, 2006) - Aurora Energy Resources Inc. (the "Company") (TSX:AXU) reports its financial and operating results for the three and nine-month periods ended September 30, 2006. Details of the Company's financial results are described in the unaudited financial statements and Management's Discussion and Analysis. These and 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 Company was incorporated on June 8, 2005, to hold the uranium exploration assets located in the central mineral belt ("CMB") of Newfoundland and Labrador, Canada, 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. The properties consist of a total of 204,850 acres in 30 licenses or groups of mineral claims.

In May 2006, the Company began its planned 40,000 metre drill program in Labrador. The program plan called for drilling on several distinct target areas with the majority of drilling targeting an expansion of the Michelin deposit and the Jacques Lake deposit that was discovered in 2005. As at September 30, 2006, the Company had six diamond core drill rigs operating on the project and had drilled a total of 37,531.7 metres. The Company is nearing completion of its 2006 program and expects to start its proposed $20.0 million 2007 program in early March 2007.

In October 2006, the Company completed a private placement of 956,938 Common Shares in the capital of the Company at a price of $10.45, concurrent with a bought deal financing of an additional 1,722,500 Common Shares in the capital of the Company at a price of $10.45 per Common Share and 956,200 Flow-Through Shares at a price of $12.55 per Flow-Through Share raising total gross proceeds to the Company of approximately $40 million.

Operations

The Company's net loss for the quarter ended September 30, 2006 was $2.2 million or $ 0.04 per share compared to net income of $19,028 or $NIL per share for the same period in the prior year. The Company's net loss for the nine-months ended September 30, 2006 totalled $7.1 million or $0.12 per share as compared to net income of $19,796 or $NIL per share for the same period in the prior year. The net loss for the quarter ended September 30, 2006 and the nine month period ended September 30, 2006, consisted primarily of stock based compensation expense, investor relations, promotion and advertising costs, wages and benefits expense, office and general expenses, and future income taxes, offset by interest income.

There were minimal operating costs expensed prior to March 21, 2006, as prior to this date the Company was a private company and substantially all of its expenses related to exploration and were therefore deferred to the balance sheet.

Exploration projects

The Company incurred expenditures of $7.1 million during the quarter and $10.5 million for the nine months ended September 30, 2006, on the exploration of its CMB uranium assets out of a total budgeted expenditure of $14.5 million for the year.

Liquidity

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 options to fund its exploration and administrative costs.

As at September 30, 2006, the Company had cash and short-term deposits of $17.7 million and working capital of $15.9 million compared to cash and cash equivalents of $0.4 million and working capital of $0.3 million at December 31, 2005. The increase in cash and working capital during the year is primarily related to the receipt of the net IPO proceeds, the exercise of the over-allotment option, proceeds from the exercise of stock options and warrants totalling $27.5 million net of share issue costs, offset by deferred development and exploration expenditures of $10.5 million and cash operating costs of $0.6 million.

About Aurora

Aurora has 100% ownership in one of Canada's most exciting emerging uranium districts in central Labrador. Aurora's resource base is underpinned by the Michelin deposit, one of the largest undeveloped deposits in Canada, along with several newly discovered uranium deposits and targets.

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; 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 Preliminary Prospectus 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) 632-4677 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
    Rick Valenta
    Chief Geoscientist
    (604) 632-4677 or Toll Free 1-877-632-4677
    Website: www.aurora-energy.ca