The Next Primary Silver Producer

1
Turning Silver into Growth
The Next PrimarySilver Producer
October 2009
TSX.V - AUN aurcana.com
2
General Disclaimer Aurcana Corporation
"Aurcana", has taken all reasonable care in
producing and publishing information contained in
this presentation. The material may contain
technical or other inaccuracies, omissions, or
typographical errors, for which Aurcana assumes
no responsibility. Aurcana does not warrant or
make any representations regarding the use,
validity, accuracy, completeness or reliability
of any claims, statements or information in this
presentation. The information is not a substitute
for independent professional advice before making
any investment decisions and Aurcana recommends
seeking independent professional advice before
making any investment decisions concerning
Aurcana. Furthermore, you may not modify or
reproduce in any form, electronic or otherwise,
any information in this presentation, except for
personal use unless you have obtained our express
permission. . Forward-Looking Statements No
stock exchange, securities commission or other
regulatory authority has approved or disapproved
the information contained in this presentation.
This Presentation includes certain
forward-looking statements. All statements
other than statements of historical fact,
included in this release, including without
limitation statements regarding potential
mineralization and resources, reserves,
exploration results, and future plans and
objectives of Aurcana, are forward looking
statements that involve various risks and
uncertainties. The mineral resources estimates
contained here are only estimates and no
assurance can be given that any particular level
of recovery of minerals will be realized or that
an identified resource will ever qualify as a
commercially mineable or viable) deposit which
can be legally and economically exploited. In
addition, the grade of mineralization ultimately
mined may differ from the one indicated by the
drilling results and the difference may be
material. The estimated resources described
herein should not be interpreted as assurances of
mine life or of the profitability of future
operations. There can be no assurance that
forward looking statements will prove to be
accurate and actual results and future events
could differ materially from those anticipated in
such statements. Important factors that could
cause actual results to differ materially from
Aurcanas expectations include, among others,
risks related to international operations, the
actual results of current exploration activities,
conclusions of economic evaluations and changes
in project parameters as plans continue to be
refined as well as future commodity prices.
Although Aurcana 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. Accordingly, readers should not
place undue reliance on forward-looking
statements. Cautionary Note to United States
Investors Concerning Estimates of Measured,
Indicated and Inferred Resources These tables
use the terms Measured, Indicated and
Inferred Resources. United States investors
are advised that while such terms are recognized
and required by Canadian regulations, the United
States Securities and Exchange Commission does
not recognize them. Inferred Mineral Resources
have a great amount of uncertainty as to their
existence, and as to their economic and legal
feasibility. It cannot be assumed that all or any
part of an Inferred Mineral Resource will ever be
upgraded to a higher category. Under Canadian
rules, estimates of Inferred Mineral Resources
may not form the basis of feasibility or other
economic studies. United States investors are
cautioned not to assume that all or any part of
Measured or Indicated Mineral Resources will ever
be converted into Mineral Reserves. United States
investors are also cautioned not to assume that
all or any part of a Mineral Resource is
economically or legally mineable.
3
Reasons to own Aurcana

• Pure Silver Leverage
• -The next primary silver producer
• 12th largest primary silver mine.
• -If Shafter was in production today
• Robust Economics
• -39.9 Capex
• -44 IRR at 14.55 silver
• -18 month payback
• Growing silver production
• -2010 1,250,000 oz
• -2012 5,000,000 oz
• 5) Compelling valuation

4
Projects

• Shafter (100 - Texas)
• Pure Silver Mine

• La Negra (92 - Mexico)
• Silver-Copper-Lead-Zinc Mine

5
La Negra
Mill
Mine
5
6
La Negra - Highlights

• Silver-Copper-Lead-Zinc Mine.
• Increasing throughput by 50 to 1,500 tpd to
  substantially improve mine profitability
• Offers excellent leverage to increasing silver,
  copper, lead and zinc prices.
• 23 ore bodies outlined historically by Penoles.
  Accessible through over 50 km of underground
  development on five main levels
• Over 10 year projected mine life, based on mining
  history of 30 years
• Many ore bodies open to depth from 2200 level
  with deepest ore body at 1900 level

6
7
La Negra Mine
Skarn deposits with pipe manto mineralization
- 23 historically identified ore bodies
7

8
La Negra - Highlights
Peñoles Production from 1970 to 2000 6.6 million
tonnes
36 m oz Silver _at_ 15 540 million 161 m lb Lead
_at_ 0.90 145 million 323 m lb Zinc _at_ 0.80
260 million 70 m lbs Copper _at_ 2.50 175
million Totals over 1.1 Billion
Production focused on lead-zinc-silver since
Peñoles could not treat copper concentrate in its
smelter.
8
9
La Negra

• Proven and Probable historic reserves stated by
  Penoles at time of acquisition showed 1.2 million
  tonnes.
• After 2 years of mining Proven and Probable
  historic and 43-101 compliant reserves have
  increased to 2.1 million tonnes

9
10
La Negra Reserves and Resources

• Recently updated Reserves and Resources (43-101
  compliant)

(1) 43-101 reserve calculated by Wardrop
Engineering (January 2008) (2) 43-101 Measured
and Indicated resource calculated by GeoSim
Services Inc. (March 2008)
10
11
La Negra - Mine
Multiple mining faces -provides flexible
mining plan -allows mine to target higher
grade ore and higher priced metals.

• Low Cost Operation
• -Long hole open stope mining
• -Room and Pillar mining

11
12
La Negra - Mill
Total Production (24 months) 600,000 tonnes
ore Average Mill Head Grades Silver
74.0 g/t Copper 0.8 Zinc
1.1 Lead 0.3 Operating costs U.S.
32 / tonne

• 150 tonne / hr crushing capacity (allows avoiding
  peak power rates)

12
13
La Negra Exploration
Ongoing underground drilling showing positive
results

• Most of the historic drilling has been
  incorporated into Surpac model
• 100,000 m of drilling by Penoles identified
  targets

13

14
Shafter
12th largest pure silver mine in world Will Add
10 to US Production

• Favourable location
• Low Capex
• Short time to production
• No federal permitting obstacles.

If in production today, According to the Silver
Institute, 2008
14
15
Property Map
Resource open along strike
16
Cross Section

• Shafter deposit is the eastward down dip
  extension of the past producing Presidio Mine .
• Past production 35 million oz contained silver
• (2.3 million tons _at_ 15 opt).
• Proposed ramp allows production of 1500 tpd with
  mechanized mining methods.

17
Shafter Silver Mine

• Pre-Feasibility Highlights
• Capital expenditure US39.9 million
• 3.9 M ozs silver production in each of the first
  two years (3.4M ozs LOM).
• Total cash cost of US7.50/oz in first two years
  (US8.51 LOM).
• Payback of under 2 years based on 13.55 silver

• Favorable mining jurisdiction.
• Most of the key infrastructure is in place.
• Silver doré produced on site.

18
Pre Feasibility Highlights (cont )
19
Industry Low CAPEX
20
Worlds Leading Primary Silver Mines (millions
of ounces - 2008)
20
21
Shafter - Upside

• Potential to double mine life through upgrading
  the inferred resources and open along strike.
• Goldfields bulk sample indicated improvement in
  grade compared to drill hole results.
• At 14.55 silver IRR is 44 and payback drops to
  18 months (pre-tax).
• Potential reduction in capital cost and lead time
  through advancing the project during an economic
  down-turn.
• Leverage to the price of silver. Production
  could coincide with the next rally in the price
  of silver.

22
Shafter - Key Aspects

• All surface rights secured for mine, mill and
  tailings.
• Existing power line and electrical substation.
• Paved highway through property.
• Most major mill components on site.
• Historical workings shafts will be part of
  mining plan
• Early production from the new decline.
• Dore bar not concentrate - made in Texas silver
• Favourable location for lower cost work force

23
Aurcana Corporate Strategy

• Fast track Shafter to production.
• Increase production at La Negra to 1,500 tpd
• Now underway.
• Maintain the La Negra operation as an option on
  the price of silver copper and zinc (targeting
  1.25 m ozs Silver, 5 m pounds Copper Zinc for
  2010).
• Continuing to seek future acquisitions
• Look for strategic silver MA opportunities to
  optimize shareholder value.

24
Share Capitalization

• Issued and Outstanding
  108,583,933
• Warrants
  Nil
• Stock Options
  11,070,000
  
• 1,800,000 _at_ 0.59 - Aug. /11
• 1,670,000 _at_ 1.50 - Mar. /12
• 150,000 _at_ 1.65 - Mar. /12
• 100,000 _at_ 0.64 - Dec. /12
• 150,000 _at_ 0.58 - May /13
• 2,475,000 _at_ 0.31 - Sept. /13
• 150,000 _at_ 0.16 - Oct. / 13
• 350,000 _at_ 0.13 - Jan. / 14
• 350,000 _at_ 0.11 - Mar. /14
• 3,875,000 _at_ 0.10 - Aug. /14
• 10 m Deb _at_ 1.51 - Jn. / 11
  6,622,517
  
  
• Fully Diluted
  126,276,450

24
25
Aurcana Value Proposition

• Note
• Assumes Shafter project financing can be
  achieved with no equity dilution
• Total cash costs are net of base metal credits
  at current prices plus SLW off-take

26
Why Aurcana?

• Established Producer
• Proven Production Team
• Pure leverage to silver
• Compelling valuation

27
Officers Directors
Adrian Aguirre Director Ron Netolitzky Director
Salvador Huerta Controller Terese J.
Gieselman Corporate Sec. / Treasurer Jack
Barnes Corporate Relations
Lenic Rodriguez President, CEO and Director Ron
Nichols Senior V. P. Director Andy Nichols
V.P. Operations Nils von Fersen V.P.
Exploration Chuck Jenkins Chief Financial
Officer