Aurora Reports 2007 Third Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 9, 2007) - Aurora Energy Resources Inc. (the "Corporation" or "Aurora") (TSX:AXU) reports its financial and operating results for the three and nine months ended September 30, 2007. Details of the Corporation's financial results are described in the unaudited financial statements and Management's Discussion and Analysis ("MDA") for the three and nine months ended September 30, 2007. Further details on each of the Corporation's projects and activities can be found on the Corporation's website: and on SEDAR at All amounts presented are in Canadian dollars unless otherwise stated.

Financial Data

This summary of selected unaudited and audited financial data should be read in conjunction with the MDA and the unaudited and audited financial statements of the Corporation and related notes thereto, for the periods indicated.



For the For the

three months ended nine months ended

September 30, September 30,

2007 2006 2007 2006


Loss and comprehensive

loss for the period $ 1,440,320 $ 2,228,791 $ 7,133,761 $ 7,085,512

Basic and diluted loss

per share $ 0.02 $ 0.04 $ 0.11 $ 0.12

Cash invested in

mineral properties $ 9,885,167 $ 7,111,070 $18,369,009 $10,493,218

Cash generated (used) by

financing activities $ (32,042) $ 1,040,934 $ 2,444,773 $27,498,756



As at

September 30, 2007 December 31, 2006


Cash $ 36,154,280 $ 53,137,862

Working capital $ 33,281,451 $ 52,386,417

Exploration properties and deferred

exploration expenditures $ 44,486,215 $ 22,341,413

Total assets $ 84,756,722 $ 76,419,309

Shareholders' equity $ 74,265,268 $ 74,570,752



Exploration and Development

For the nine months ended September 30, 2007, the Corporation incurred property expenditures of $15,289,549, excluding stock based compensation expense and related future income taxes of $3,592,007 and development costs of $3,263,246, as compared to a budget of $18,621,227 for the same period. For the year, Aurora has planned a $21,250,000 work program to continue the evaluation of the Central Mineral Belt ("CMB") Uranium Property and advance the project towards development. The main focus of the 2007 exploration program is to 1) expand the size of the known deposits; 2) convert inferred resources to measured and indicated resources; and 3) focus on discovering new deposits in the district.

The 2007 work program also includes additional metallurgical testing of coarse core rejects from the 2006 drilling campaign, as well as ongoing work on a pre-feasibility study, currently being conducted by a consortium of engineering and environmental consultants, managed by Micon International Ltd. and including SNC Lavalin, Golder Associates, Senes Consultants and Sikumiut Environmental Management Ltd. and Minaskuat Limited Partnership, Inuit and Innu affiliated companies.

The Corporation is transitioning from seasonal exploration to year-round project development and advancement. Staff are based out of two fully winterized camps located at Michelin and Jacques Lake. As of September 30, 2007, Aurora has drilled a total of approximately 37,218 metres as compared to a target of 75,000 metres for the year. Total metres drilled for the year is expected to be between 50,000 and 55,000 metres at a total cost of $21,000,000. The discrepancy from budget stems largely from the poor weather, permitting delays and lower than planned average drill rates achieved earlier in the Spring. In addition, the Corporation has hired drilling contractors capable of directional drilling, which although more expensive on a per metre basis, has resulted in fewer metres drilled. Ongoing work includes targeting, regional prospecting, compilation work, database maintenance and logistical preparations for the 2008 field season. Particular focus will be placed on generating new working models for mineralization on the CMB targets.

The Michelin and Jacques Lake and regional drill programs are slated to shut down temporarily in November. An application has been submitted to Provincial and Nunatsiavut governments to allow drilling within the legislated 50-metre buffer zone surrounding water bodies for the purpose of doing a program of confirmation drilling on the upper part of the Michelin mineralization during the winter. Aurora has also applied for the necessary permits to conduct drilling at Jacques Lake, anticipated to start in January.

In addition to drilling, the Corporation has allocated approximately $18,200,000 for baseline environmental and environmental assessment costs, detailed engineering studies, and community relations expenditures ("development") as part of its larger pre-feasibility study. During the nine months ended September 30, 2007, the Corporation incurred development expenditures of $3,263,246. Development work to date includes baseline environmental surveys for water quality; vegetation; mammal and marine life and lake bathymetry; a fly-over survey of potential Michelin road routes; meetings with the Canadian Environmental Assessment Authority ("CEAA") and the Canadian Nuclear Safety Commission; drafting of a project registration document; commencement of engineering studies including detailed mine; tailings and infrastructure design alternatives and metallurgical test work including ore sorting and leaching.

The Corporation continues to work towards formally registering its project with the CEAA which is planned to occur by year end. This registration will officially commence the federal environmental assessment process. The Michelin Project should be the next uranium project to enter the permitting pipeline in Canada.

With the support of both the Nunatsiavut Government and the Government of Newfoundland and Labrador, Aurora has voluntarily removed historic waste material from the Melody Lake, White Bear, and Inda properties that was left by a previous operator in the 1980s. Local communities have long wanted the debris removed. The initiative was a result of ongoing consultation with these communities and governments. The historic waste included stored garbage, wood, oil drums, and various metals including old tins and tools. The clean-up project took several weeks to complete. The waste material was disposed of in a safe and environmentally responsible manner by a specialized contractor.

Aurora continues to work with the Nunatsiavut Government as it takes the next steps towards formulating its policy on uranium mining on Labrador Inuit Lands.


The Corporation's net loss for the quarter ended September 30, 2007 was $1,440,320 or $0.02 per share compared to a net loss of $2,228,791 or $0.04 per share for the same period in the prior year. The Corporation's net loss for the nine months ended September 30, 2007 was $7,133,761 or $0.11 per share as compared to a net loss of $7,085,512 or $0.12 per share for the same period in the prior year. The Corporation's net loss for 2007 primarily consists of stock-based compensation expense (a non-cash item), investor relation, promotion and advertising costs, wages and benefits and office expenses. Operating expenses are partially offset by interest income earned by the Corporation on its cash reserves. Period over period changes are primarily a result of the increased scale of operations and a full nine months of operations. The Corporation went public in March 2006.

Total assets at September 30, 2007, increased to $84,756,722 from $76,419,309 at December 30, 2006 primarily due to receipt of proceeds from the exercise of warrants and stock options totaling $2,499,090. Total cash flows from financing activities for the nine months ended September 30, 2007, totaled $2,444,773 as compared to $27,498,756 for the same period in 2006. Cash flows from financing activities for 2006 consisted of the receipt of the net proceeds from the Corporation's initial public offering and the exercise of the related over-allotment option.


At September 30, 2007, the Corporation had cash on its balance sheet of $36,154,280 and working capital of $33,281,451 as compared to cash of $53,137,862 and working capital of $52,386,417 at December 31, 2006. The decrease in cash and working capital of $16,983,582 and $19,104,966 respectively is due to cash used in operations of $1,801,971 for the nine months ended September 30, 2007 and deferred exploration and development expenditures of $18,369,009, offset by the receipt of $2,499,090 from the exercise of stock options and warrants during 2007.

On October 25, 2007, the Corporation announced that it had entered into a bought-deal financing whereby it agreed to sell a total of 5,312,500 Common Shares of the Corporation at a price of $16.00 per Common Share and a total of 750,000 Flow-Through shares at a price of $20.50 per Flow-Through share for total gross proceeds of $100,375,000 to the Corporation. The Company has also granted the underwriters an option for 30-days, to purchase up to such number of additional Common Shares at a price of $16.00 per Common Share, as is equal to 15% of the number of Common Shares sold, to cover over allotments and for market stabilization purposes. The financing is expected to close on November 20, 2007.


Aurora (TSX:AXU) is a uranium exploration and development company focused on the Central Mineral Belt in coastal Labrador - one of the world's most promising emerging uranium districts. Aurora's uranium district includes multiple historic and newly discovered uranium deposits and targets. At Aurora, we are committed to responsible development with lasting local benefits. Uranium provides clean, safe and reliable energy. The energy to change the world.

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, those with respect to the timing and amount of estimated future resources and resource conversion rates, potential for expansion of resources and potential size of future exploration programs, potential timing of receipt of permits, classification of future mineral resources and expected metres drilled, 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, environmental risks and hazards, increased infrastructure and/or operating costs, labor and employment matters, government regulation and complexities of exploration as well as those factors discussed in the section entitled "Risk Factors" in Aurora's Annual Information Form available on SEDAR at 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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