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Aurora Energy Resources Inc. ("Aurora"
or "the Company") (AXU:TSX) reports its financial and operating
results for the six months ended June 30, 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 six
months ended June 30, 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, which includes community
consultation, lasting local benefits and the highest standards of safety,
health, and environmental protection.
Aurora's
properties in the CMB consist of a total of 223,074 acres in 28 licenses or
groups of mineral claims. To date, the Company has identified six uranium
deposits in the region, collectively containing a measured and indicated
resource of 83.9 million pounds of U3O8 and an
inferred resource of 49.8 million pounds of U3O8.*
The Company
initiated its summer work program in May 2008 with an infill drill campaign
at the Jacques Lake and Michelin deposits. This campaign was completed at
the end of July 2008 and included 13,233 metres of drilling in 22 holes.
The winter drill program finished on March 14, 2008 with 12,132.4 metres of
drilling in 28 completed holes and 4 partial holes. Results from both the
winter and summer programs have confirmed the continuity of grade and the
overall potential of both Michelin and Jacques Lake and will assist Aurora
with pre-feasibility work by contributing to the conversion of inferred to
indicated NI 43-101 resource categories.
As part of the 2008 summer work
program, Aurora is also continuing with engineering studies and is
conducting 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. The Company has reaffirmed its commitment to building
local stakeholder support with the recent formation of the Michelin Project
Community Panel, a forum for the exchange of information on Michelin
Project matters between community members and company representatives. As
well, the Company has initiated the Michelin Project Training Plan to prepare
community members for employment in ongoing exploration and development
activities and, subject to regulatory approval, the longer term
construction and operations phases.
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 six months ended
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June
30,
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June
30,
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2008
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2007
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Loss and comprehensive loss for the period
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$
2,000,804
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$
5,693,441
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Basic and diluted loss per share
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$
0.03
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$
0.09
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Cash invested in mineral properties
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$
15,542,012
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$
8,483,842
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Cash generated (used) by financing activities
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$
727,393
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$
2,476,827
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As at
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June
30,
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December
31,
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2008
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2007
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Cash
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$
113,478,844
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$
131,094,585
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Working capital
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$
113,245,791
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$
129,898,119
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Exploration properties and deferred exploration
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expenditures
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$
73,463,753
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$
56,710,497
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Total assets
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$
192,100,949
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$
192,186,937
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Shareholder's equity
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$
180,593,451
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$
184,879,251
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?The December 2007
financial data are the only audited financial data
The Company's net loss for the six
months ended June 30, 2008, was $2,000,804 or a loss per share of $0.03
compared to a net loss of $5,693,441 and loss per share of $0.09 for the
six months ended June 30, 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 six months ended
June 30, 2008, consists primarily of wages and benefits of $1,474,505,
stock-based compensation expense of $932,592, office and general expenses
of $689,098, investor relations, promotion and advertising expenses of
$412,538, consulting fees of $285,107 and Part XII.6 tax of $247,709 and,
offset by interest income of $2,162,211.
Exploration Projects
The Company incurred cash expenditures
of $15,537,892 for the six months ended June 30, 2008, on the development
and exploration of its CMB uranium assets (net of stock-based compensation
of $694,911, amortization of $232,489 and future income taxes of
$283,844).
Liquidity
At June 30, 2008, the Company had cash
on its balance sheet of $113,478,844 and working capital of $113,245,791,
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 $17,615,741
and $16,652,328, respectively, is primarily related to the use of funds for
deferred development and exploration expenditures of $9,826,717 and
$5,711,175, and the purchase of equipment of $302,313 offset by interest
income of $12,162,211 and receipt of $550,800 upon the exercise of stock
options.
The Company currently has no operating
revenues other than interest income and relies primarily on existing cash
balance 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 hosted its annual general
meeting on June 10, 2008 at The Rooms in St. John's, Newfoundland.
For further information on Aurora
please contact:
Mark O'Dea, President & CEO
Paul Coombs, Chief Financial Officer
(PH) (604) 632-0110 or (709) 726-2223
www.aurora-energy.ca
* The Michelin deposit contains a
measured resource of 1.289 million tonnes of resource grading 0.12% U3O8
(underground) and 5.795 million tonnes of resource grading 0.08% U3O8
(open pit), an indicated resource of 16.170 million tonnes of
resource grading 0.13% (underground) and 7.146 million tonnes of resource
grading 0.06% U3O8 (open pit), and an inferred resource
of 12.577 million tonnes of resource grading 0.12% U3O8
(underground) and 1.564 million tonnes of resource grading 0.05% U3O8
(open pit). The Jacques Lake deposit contains a measured resource of
0.415 million tonnes of resource grading 0.09% U3O8
(underground) and 0.401 million tonnes of resource grading 0.09% U3O8
(open pit), an indicated resource of 3.357 million tonnes of resource
grading 0.08% (underground) and 1.909 million tonnes of resource grading
0.07% U3O8 (open pit), and an inferred resource of
2.778 million tonnes of resource grading 0.08% U3O8
(underground) and 2.210 million tonnes of resource grading 0.05% U3O8
(open pit). The Rainbow deposit contains an indicated resource of 1.088
million tonnes of resource grading 0.09% U3O8 and an
inferred resource of 0.931 million tonnes of resource grading 0.08% U3O8
(both open pit). The Nash deposit contains an indicated resource of
0.757 million tonnes of resource grading 0.08% U3O8
and an inferred resource of 0.613 million tonnes of resource grading 0.07%
U3O8 (both open pit). The Inda deposit contains an
indicated resource of 1.460 million tonnes of resource grading 0.06% U3O8
and an inferred resource of 3.042 million tonnes of resource grading 0.07%
U3O8 (both open pit). The Gear deposit contains an
indicated resource of 0.520 million tonnes of resource grading 0.06% U3O8
and an inferred resource of 0.210 million tonnes of resource grading 0.06%
U3O8 (both open pit). Aurora's CMB Mineral Resources
are reported at cut-off grades that contemplate underground (0.05% U3O8)
and open pit (0.03% U3O8) mining scenarios, based on
preliminary economic assumptions, and may be refined with more in-depth
economic analyses. For further details of the property interests of Aurora,
please refer to the National Instrument 43-101 compliant technical report
dated April 7, 2008 entitled "An Update on the Exploration Activities
of Aurora Energy Resources Inc. on the CMB Uranium Property, Labrador,
Canada, during the period January 1, 2007 to December 31, 2007, Part II -
CMB Mineral Resources" prepared by Ian Cunningham-Dunlop, P. Eng. and
Christopher Lee, P. Geo., and available on SEDAR at www.sedar.com.
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 2008 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.
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