AURCANA SILVER CORPORATION (TSX-V: AUN) is pleased to announce it has closed the second and final tranche of the non-brokered private placement offering announced on February 1, 2022, subject to the approval of the TSX Venture Exchange. The second tranche consists of 1,926,857 Units at a price of C$0.35 per Unit, for a total of $674,399.95. The first and second tranches combined consist of a total of 17,064,928 units for a total of $5,972,724.80 raised.

Each Unit consists of one common share of the Company and one full common share purchase warrant, with each Warrant entitling the holder thereof to purchase one common share at a price of C$0.525 for a period of 36 months following the closing of the Private Placement, subject to adjustment upon certain customary events.

The net proceeds of the Private Placement will provide contingency funding for the restart of the Company’s wholly owned Revenue Virginius (RV) Mine as well as funding for growth of the resource base at the RV Mine which may enable the Company to grow future production volumes. Net proceeds will also be used for working capital and general and administrative expenses including potential opportunities to advance its wholly owned Shafter Project in light of the current silver price.

The Units have been issued on a private placement basis pursuant to applicable exemptions from prospectus requirements under applicable securities laws. The common shares and Warrants (and any common shares issued pursuant to the Warrants, as applicable) are subject to a statutory hold period of four months and one day from the date of issuance of the Units. The hold period for the first tranche expires on June 2, 2022 and the hold period for the second tranche expires on June 29, 2022.

The Company paid an aggregate of C$243,558 in finder’s fees and issued an aggregate of 695,880 agent’s warrants, with each Agent’s Warrant entitling the holder thereof to purchase one Common Share at a price of C$0.525 for a period of 36 months from the date of issuance.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws and may not be offered or sold in the United States unless registered under the 1933 Act and any applicable securities laws of any state of the United States or an applicable exemption from the registration requirements is available.

ABOUT AURCANA CORPORATION

Aurcana Corporation owns the Revenue-Virginius Mine, in Colorado, and the Shafter-Presidio Silver Project in Texas, US. The primary resource at Shafter and Revenue-Virginius is silver. Both are fully permitted for production.