AUN Aurcana Silver Corporation

AURCANA SILVER CORPORATION ("Aurcana" or the "Company") (TSXV: AUN) is pleased to announce that it has closed the previously announced US$28 million dollar project financing facility to fund the restart of Aurcana’s wholly owned Revenue-Virginius mine (the “Revenue Mine”) located in Ouray, Colorado. The lender under the facility is an indirect, wholly owned subsidiary of Mercuria Energy Group Limited (“Mercuria”). The financing is in the form of a secured term loan (“Term Loan”). Mercuria also provided the Revenue Mine with a hedging program against approximately 29% of its anticipated silver production profile over the ensuing five years.

Material terms of the Term Loan include:

• Senior security on the Revenue Mine with a corporate guarantee from Aurcana
• USD$28 million financing disbursed as a lump sum at Closing
• 60 month term, with a 12 month grace period with equal quarterly amortization thereafter; repayable in full at any time with a minimum 12 month interest make whole.
• Interest rate of USD 3M LIBOR + 10.5% after three (3) consecutive months of production in excess of 400 wet tons per month of lead concentrate (the target run rate under the 2018 feasibility study); USD 3M LIBOR + 14% until that time. Interest is payable quarterly in arrears.
• Customary representations, warranties, affirmative and negative covenants, events of default, and closing conditions

ROC Global acted as the exclusive financial advisor to Aurcana on this debt financing.

Aurcana also is pleased to announce that its wholly owned indirect subsidiary Ouray Silver Mines, Inc., the direct owner of the Revenue Mine, has executed a 5 year benchmark based offtake agreement with Trafigura Trading LLC (“Trafigura”) for 100% of the lead and zinc concentrate production from the Revenue Mine (“Offtake Agreement”). The term of the Offtake Agreement matches that of the Term Loan, and it is structured to allow for annual renewal thereafter by mutual consent.

Kevin Drover, CEO of Aurcana commented “This financing is a transformational step for Aurcana, allowing us to proceed with the long anticipated restart of full operations at the Revenue Mine. The Board has formally approved the restart decision. We appreciate the efforts of everyone including Mercuria to get this financing closed and look forward to our ongoing partnership with them. We are also excited to have selected the prominent trading firm Trafigura as our offtake partner. These events are the realization of our vision when we completed the reverse-takeover of OSMI in 2018, and this is an exciting day for Aurcana and our team at the Revenue Mine.”

The Company has continued to progress the pre-development activities at the Revenue Mine in anticipation of the Closing and believes it is well positioned to be in production in the 3rd quarter of calendar 2021, consistent with the Company’s forecast pursuant to the 2018 feasibility study (the “2018 FS”) prepared in accordance with National Instrument NI 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). A copy of the 2018 FS is posted on the Company’s website www.aurcana.com and is also available on the Company’s profile on SEDAR at www.sedar.com.

Qualified Person StatementThe scientific and technical content of this news release was reviewed and approved by Michael Gross, P. Geo, a “qualified person” within the meaning of NI 43-101.

ABOUT AURCANA SILVER CORPORATION

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

ABOUT MERCURIA ENERGY GROUP LIMITED

Founded in 2004, Mercuria is one of the largest independent energy and commodity groups in the world, bringing efficiency to the commodity value chain with cutting-edge technology and unmatched expertise and solutions. Mercuria’s business includes trading flows, strategic assets and structuring activities that generate more than USD 120 billion in turnover. It operates from offices around the world, with a strong presence in the Americas, Asia and Europe. Information on Mercuria can be found on its website at www.mercuria.com.

ON BEHALF OF THE BOARD OF DIRECTORS OF AURCANA SILVER CORPORATION

“Kevin Drover”President & CEO

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

Aurcana Corporation850 – 789 West Pender StreetVancouver, BC V6C 1H2Phone: (604) 331-9333

Gary Lindsey, Corporate CommunicationsPhone: (720)-273-6224 Email: gary@strata-star.com

CAUTIONARY NOTES

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”, “may”, “will”, “project”, “should”, “predict”, “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 Private Placement (including with respect to the timing of closing of the Private Placement). Although the Company believes that the expectations and assumptions on which the forward looking statements are based are reasonable, undue reliance should not be placed on the forward looking statements because the Company cannot give any assurance that they will prove correct. Since forward looking statements address future events and conditions, they involve inherent assumptions, risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of assumptions, factors and risks. These assumptions and risks include, but are not limited to, assumptions and risks associated with the receipt of regulatory or shareholder approvals, and risks related to the state of financial markets or future metals prices.

Management has provided the above summary of risks and assumptions related to forward looking statements in this press release in order to provide readers with a more comprehensive perspective on the Company’s future operations. The Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive from them. These forward looking statements are made as of the date of this press release, and, other than as required by applicable securities laws, the Company disclaims any intent or obligation to update publicly any forward looking statements, 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.