Aurelian Reports Progress on its Condor Project.

TORONTO -- Aurelian Resources Inc. (ARU:TSXV) is pleased to announce preliminary results from the first phase of regional reconnaissance stream sediment sampling in the Rio Zarza and Rio Blanco drainages. These lie centrally within the concession package of more than 95,000 hectares in southeastern Ecuador.

Between the 20th of August and 30th of September, 252 stream sediment samples and 60 rock and soil samples were collected in the regional program. Three new gold anomalies were detected in the areas south and southeast of the Puente and Princesa zones, which are currently undergoing trenching and diamond drilling.

Significant numbers of gold grains were recovered from samples in the upper regions of the Rio Zarza. The area has not been previously explored, though several abandoned pits where local miners had been washing alluvial gold were discovered. One pan concentrate contained as many as 42 gold grains. This suggests that there are as yet undiscovered gold bedrock sources in the headwaters of this river, within the Aurelian tenements.

Concurrently, at the Puente and Princesa gold zones, in the Princesa concession, mechanized excavator trenching and diamond drilling is underway. Four diamond drill holes of a minimum 1500 metre program have been completed, for an aggregate length of 619 metres. The mineralized zone in drill core is comprised of quartz veins, quartz stockworks, and quartz-rich hydrothermal breccias with disseminated pyrite. Aurelian carried out a comprehensive channel sampling program of the exposed artizanal workings at Puente, using a diamond saw in May, 2004. The best result returned was 10 metres @ 4.89 g/t gold (including 1 metre @ 14.05 g/t) and a second sample of 1.2 metres @ 16.35 g/t gold (PR - 23/06/04). Aurelian's current drilling has so far targeted the area beneath these surface samples.

The mineralized zone occurs in a brittle fault structure consisting of anastomosing gouge zones. The stuctural footwall is a quartz feldspar porphyry intrusive. Downhole intersections of up to 45 metres of visibly mineralized rock have so far been drilled. All drill core assays are pending. Eight trenches have also been completed, exposing widths of up to 43 metres of visibly mineralized and altered rock. All trench sample assays are pending. The fault zone is a major structural feature, between a granitic batholith to the west and andesitic volcanics to the east. Aurelian has traced this zone over 600 m through a combination of trenching and drilling.

The Puente and Princesa zones are located 8 kilometres from the Bonza-Las Penas zone, where 28 drill holes over a strike length of 700 metres have now been completed. Once the final assays from these holes are returned all drilling information will be handed over to Micon International Ltd. for generation of a resource estimate. This zone is still open to the north and south and is believed to continue for a mimimum further 1300 metres. The southern extent will be verified by mechanized trenching prior to further drilling. Two more excavators have been mobilized to the property.

A second drill rig is being mobilised to Aguas Mesas Norte for a minimum 1500 metre drill program. Both Aguas Mesas Norte and Aguas Mesas Sur were drilled tested by Aurelian in October-December, 2003 with encouraging results.

Dr. Hendrik Schloemann is managing the regional stream sediment sampling program and D.R. Melling, P.Geo. is directing the drilling and trenching programs. They are both acting as Qualified Persons in compliance with National Instrument 43-101 with respect to this release. They have reviewed the contents for accuracy.

Work is at a preliminary stage and to date there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in discovery of a mineral resource on the property.

Aurelian Resources Inc. (TSX VENTURE:ARU)