Aur Resources Inc. Forecasts Earnings of Approximately $85.9 Million & Cash Flow from Operating Activities of $155.6 Million for the Full Year 2004.

TORONTO -- (All dollar amounts are expressed in United States currency.)

FOURTH QUARTER FORECAST

Aur Resources Inc.'s (TSX:AUR) share of metal production from the Louvicourt, Andacollo and Quebrada Blanca Mines in the fourth quarter of 2004 is forecast to be approximately 61 million pounds of copper, 3.1 million pounds of zinc, 39,000 ounces of silver and 1,650 ounces of gold at a cost per pound of copper sold, net of by-product credits, of $0.57.

Revenue, based upon an average LME copper price of $1.30 per pound in Q4, is forecast at approximately $84.6 million. Mine operating costs are forecast at $37.5 million and, after business development, administration and Senior Note interest expenses, operating profit is forecast at $42.7 million. After depreciation charges of $8.9 million and provisions for mine closure and reclamation costs, taxes and non-controlling interests, net earnings are forecast at approximately $22.5 million, equal to $0.24 per share, for the three months ending December 31, 2004.

Cash flow from operating activities is projected at $49.4 million. Cash expenditures associated with financing activities of $8.4 million are comprised mainly of $2.1 million capital lease principal payments and $6.3 million of debt repayments to non-controlling shareholders of Compania Minera Quebrada Blanca ("QB") and Compania Minera Carmen de Andacollo ("CDA"). Cash expenditures on investing activities are forecast at $1.0 million, principally for capital asset acquisitions. Cash is forecast to increase from $160.5 million on September 30, 2004 to $200.4 million at year-end.

FULL YEAR 2004 FORECAST

For the full year 2004, Aur's share of metal production from the Louvicourt, Andacollo and Quebrada Blanca Mines is forecast to be approximately 234 million pounds of copper, 13.5 million pounds of zinc, 181,000 ounces of silver and 6,600 ounces of gold at a cost per pound of copper sold, net of by-product credits, of $0.57.

Revenue, based upon an average realized copper price of $1.34 per pound for the full year ($1.30/lb in Q4), is forecast at $323.6 million. Operating costs are forecast at $143.1 million and, after business development, administration and interest expenses, operating profit is forecast at $161.9 million. After depreciation charges of $36.7 million and provisions for mine closure and reclamation, taxes and non-controlling interests and other totalling $39.3 million, net earnings are forecast to be a record $85.9 million, equal to $0.91 per share for fiscal 2004.

Cash flow from operating activities is projected at $155.6 million. Cash expenditures associated with financing activities in 2004 are forecast at approximately $23.0 million and include $16.6 million of debt repayments to non-controlling shareholders of QB and CDA, and $5.8 million of capital lease principal repayments. Cash expenditures on investing activities are forecast at $7.5 million, the principal components of which are $4.4 million of capital asset acquisitions and $2.5 million of property purchase payments. Cash is forecast to increase in 2004 by $125.1 million from $75.3 million on January 1, 2004 to $200.4 million at December 31, 2004.

PRELIMINARY 2005 OUTLOOK

In 2005, Aur expects to have solid production from the Quebrada Blanca and Andacollo Mines and from the Louvicourt Mine prior to its scheduled closure on June 30, 2005. Copper production is expected to be approximately 250 million pounds (Aur's share will be 232 million pounds), together with by-product zinc, silver and gold. Cash operating costs per pound of copper sold net of by-product credits are expected to average approximately $0.59. Aur has used a copper price of $1.20 per pound in developing this 2005 outlook.

Revenue in 2005 is expected to be approximately $294 million, including by-product credits. Mine operating costs are budgeted at $140 million. Operating profit, after administration, Senior Notes interest and business development expenses of $6, $8 and $10 million, respectively, is expected to be approximately $130 million. Net earnings, after other expenses including depreciation and amortization, mine closure and site restoration, taxes and non-controlling shareholders' interests totalling $43 million, are budgeted at approximately $52 million, equal to $0.55 (CDN$0.74) per share.

Aur's preliminary forecast is for cash flow from operating activities to be approximately $125 million. Cash expenditures associated with financing activities are expected to total $18 million and are comprised of dividends paid to Aur shareholders of $10.5 million, $4 million for capital leases and $4 million of debt repayments to non-controlling shareholders of QB and CDA. Cash expenditures on investing activities, including $38 million to be spent at Duck Pond, $5 million at the mines and the $10 million 2004 copper price participation payable to Teck Cominco related to the Quebrada Blanca acquisition in November 2000, are expected to total $52 million in 2005. Cash is forecast to increase by $55 million during the year to $256 million at December 31, 2005. A $0.10 change in the copper price from $1.20 per pound will increase or decrease operating cash flow by approximately $20 million and net earnings by approximately $13 million, respectively.

Aur will significantly expand its business development activities in 2005 and has committed $10 million for exploration and the search for acquisitions. Four copper projects and one precious metal project will be drilled in 2005, and new exploration project activities will be carried out in Chile, Peru, Mexico, Argentina and North America. The exploration budget for this work is approximately $5.0 million. Aur's acquisition programs will continue in the Americas and a new initiative will be established in Russia, CIS countries, Eastern Europe and Africa from a new business development office to be established in London, England. The global acquisitions budget will be approximately $5.0 million in 2005. The $10 million Business Development budget in 2005 is the first year of a pro-active, five year, $50 million commitment to increasing Aur's profitable metal production for the future. Aur's substantial cash balances and cash flow will enable it to finance the cost of acquisition and/or development of projects identified by the business development team.

Aur owns two important base metal projects which are expected to increase Aur's copper and zinc production in the years ahead. A decision to develop the Duck Pond deposit for production has been made and development work has been initiated. The deposit is expected to begin production by the end of 2006 at the rate of approximately 41 million pounds of copper and 76 million pounds of zinc annually, in concentrates, at a cash operating cost per pound of copper sold of approximately $0.40, net of zinc, silver and gold by-product credits. The capital development costs for this project are forecast to be CDN$92 million. Aur will finance this capital investment from its existing cash balances and the indicated financial support for surface infrastructure from the Government of Newfoundland and Labrador with CDN$57 million expected to be spent in 2005.

Aur's second important development stage project is the Andacollo primary copper deposit in Chile. This deposit, which lies directly beneath the current, heap leach, open-pit copper mining operations, contains resources, based on drilling information prior to 1999, of 311 million tonnes at an average grade of 0.46% copper and 0.15 g/t gold. A pre-feasibility study carried out by Aur in 1999 indicated that a mining operation could be constructed at a cost of $280-300 million which would produce approximately 175 million pounds of copper and 55,000 ounces of gold in concentrates for a period of 16 years. The low strip ratio of 0.23:1, the proximity to infrastructure including a deep-water port, and the skilled workforce in place at Aur's Andacollo Mine, reinforce the attractiveness of this project. Aur is in the final stages of updating the pre-feasibility study, including updating the reserve and resource estimates to NI 43-101 standards, and expects to conduct a bankable feasibility study in 2005. Production could be achieved by late 2008 with Aur's share of the required capital available from its cash balances. Copper production from Aur's mining operations would rise from 232 million pounds forecast for 2005 to approximately 385 million pounds in 2009.

This news release contains forward-looking statements that are based on current expectations and which involve risks and uncertainties, including those referred to in Aur's 2003 Annual Report and/or in Aur's Annual Information Form dated March 18, 2004 and filed with Canadian securities regulatory authorities. Such forward-looking statements include statements regarding quarterly and annual financial results for 2004 and expectations for 2005 and include estimates and/or assumptions in respect of copper production, metal prices, foreign exchange rates and operating costs including energy, fuel, reagent and transportation costs. There can be no assurance that such statements or assumptions will prove to be accurate as actual results and future events can differ materially.

Aur Resources Inc. (TSX:AUR)