NOT FOR DISTRIBUTION TO US WIRE SERVICES OR FOR DISTRIBUTION IN THE UNITED STATES

Vancouver, BC – December 22, 2021 – Aurcana SILVER Corporation (“Aurcana” or the “Company”) (TSXV: AUN) is pleased to announce that it has shipped its first production of concentrate from its wholly owned Ouray Silver Mines Inc., located in Ouray, Colorado, USA.

The Company continues to mine high grade ore during this period of reduced underground capacity. The capability of the processing system has been demonstrated by operating the plant at rated capacity and the ability to produce deliverable concentrate. However, the lack of a consistent supply of ore to the mine has been a bottleneck in optimizing processing performance.

Going forward, the short-term operating plan is to continue to operate the two yards available at the 1800 level and to create a reserve that will help ensure a longer period of sustained processing. It is expected that enough ore will be stored to allow the processing plant to restart again in the first week of January.

Although delays in some underground development projects have caused the mine to take longer to reach full production than initially expected, a number of very important milestones have been taken for the restart of the Revenue-Virginius mine. First, the grade at the 1800 level based on analytical results from samples taken during development progress shows that the grade is as expected or better compared to the geological model. The Company expects to incorporate these assay results into future resource work. Second, the mine has proven that the tailings extraction method works well for this ore body in terms of dilution and geotechnical control characteristics. And third, the processing facility has been shown to be able to operate when it receives a proper ore feed to operate at design rates and produce salable concentrates.

The Company continues to evaluate its development plan and timetable and will inform its shareholders in the new year. # 1 Raise Hoist remains the main bottleneck in achieving target mining productivities and its completion is key to the success of the overall operation. Work on the No. 1 freight elevator continues and is the number one priority in the mine. Completion is now scheduled for May 2022.

Aurcana also announces the resignation of Brian Briggs as Chief Operating Officer of Aurcana Silver Corp and as Chief Executive Officer of Ouray Silver Mining Inc (“OSMI”). The responsibilities and duties of these positions will be shared between the current managers and officers of the Company and OSMI.

ABOUT AURCANA SILVER CORPORATION

Aurcana Corporation owns the Revenue-Virginius Mine in Colorado and the Shafter-Presidio Silver Project in Texas, United States. The main resource at Shafter and Revenue-Virginius is money. Both are fully licensed for production.

ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA SILVER CORPORATION

Kevin drover
President and CEO

For more information, visit the website at www.aurcana.com or contact:

Aurcana Silver Corporation
850 – 789 Pender Street West
Vancouver, BC V6C 1H2
Telephone: (604) 331-9333

Gary Lindsey, Corporate Communications
Telephone: (720) -273-6224
Email: [email protected]

CAUTION

This press release contains forward-looking statements within the meaning of applicable securities laws. The use of any of the words “anticipate”, “plan”, “continue”, “expect”, “estimate”, “objective”, “can”, “will”, “project”, “should” “,” Anticipate “,” potential “and similar expressions are intended to identify forward-looking statements. In particular, this press release contains forward-looking statements concerning, without limitation, statements relating to the operational adjustments resulting from reported rock movement and the impact of those adjustments on the Company’s production and operations at the Revenue Virginius mine (including with regard to the timing of all such matters closed). While the Company believes that the expectations and assumptions upon which forward-looking statements are based are reasonable, forward-looking statements should not be relied upon because the Company cannot guarantee that they will prove to be correct. Because forward-looking statements deal with future events and conditions, they involve inherent assumptions, risks and uncertainties. Actual results could differ materially from those currently expected due to a number of assumptions, factors and risks. These assumptions and risks include, but are not limited to, the assumptions and risks associated with obtaining regulatory or shareholder approvals, and risks relating to the state of the financial markets or future metal prices.

Management has provided the above summary of the risks and assumptions relating to forward-looking statements in this press release in order to provide readers with a more complete perspective on the future operations of the Company. The actual results, performance or achievements of the Company could differ materially from those expressed or implied by these forward-looking statements and, therefore, no assurance can be given that any of the events anticipated by the forward-looking statements will occur or occur. will produce, or if one of them does, what benefits the Company will derive from it. These forward-looking statements are made as of the date of this press release and, except as required by applicable securities laws, the Company disclaims any intention or obligation to publicly update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


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