Aurcana Corporation

Pure Silver Leverage

As I have been hunting high and low for good silver stories, AUN has been on my radar screen for quite some time. The only thing holding me up from rec- ommending them in TMS was the large number of shares outstanding which investors know can truly put a lid on our upside potential.

My opinion and outlook for the company recently changed because the company just received their final permit on their second production situation that will allow them to become the newest mid-tier silver producer. This is a big deal in the current silver environment.AUN is a Canadian junior mining company that owns 92% of the La Negra mine in Mexico and 100% of the Shafter silver mine in Texas.

The completed development of the company’s two current projects has the potential to quadruple cur- rently established silver production to over six million ounces silver equivalent per year.

The recently expanded 1,500 tonnes per day La Negra silver-copper-lead-zinc mine is located in Quere- taro State, Mexico. Annualized production starting in 2010 is forecast at 1,200,000 ounces silver, 5 mil- lion pounds copper and 5 million lbs of zinc. The most recent numbers being posted for the 3rd quarter of 2011 look even better.

The Shafter Silver Mine, located in Presidio County, S.W. Texas, has a NI 43-101 silver resource of 24.6 million ounces Measured and Indicated (2,900,000 tons @ 8.48 opt), 22.8 million ounces Inferred (2,167,000 @ 10.52 opt) and a pre-feasibility completed. Production is expected to commence in 2012 at a start-up rate of 3.9 million ounces silver per year.

The Shafter Silver Mine will vault the Company’s silver production to 5 million ounces annually, advanc- ing AUN toward its goal of becoming a mid tier silver mining company.