Aurania Resources Ltd V.ARU

RE: Sillitoe Report

[advice4U2]

AURELIAN RESOURCES INC. NEWS RELEASE Trading Symbol ARU:TSX-V August 23, 2006 For immediate release International Epithermal Expert, Dr. Richard Sillitoe, Issues Geological Report on Aurelian’s Fruta Del Norte Project TORONTO, ON Aurelian Resources Inc. (ARU:TSX-V) today announced that Dr. Richard Sillitoe, an independent international consultant and one of the world’s leading experts on epithermal gold systems, recently visited the company’s wholly-owned Fruta Del Norte (FDN) Project in south-eastern Ecuador. The results of his visit are summarised in a geological report entitled “Comments on Geology and Potential of the Fruta Del Norte Epithermal Gold Prospect, Ecuador”. The report is not a ‘Technical Report’ as defined by NI 43-101, but the complete report may be viewed at www.aurelian.ca. ‘Dr. Sillitoe’s report highlights not only the potential to find more mineralization at the FDN deposit” says Aurelian President & CEO Patrick F. N. Anderson, “it also demonstrates that additional blind epithermal gold targets may be found elsewhere on the Aurelian concessions.” I n his report, Dr. Sillitoe notes that “On the basis of the preliminary drilling completed to date, it is already apparent that Fruta del Norte is a major, high-grade epithermal gold system.” The report assigns the FDN system to “…the recently defined, intermediatesulphidation epithermal category” and notes that FDN “…comprises three discrete gold mineralization types: a lower stockwork and vein zone characterised by crustiformbanded quartz, carbonates, adularia and base-metal sulphides; an overlying zone of massive silicification rich in iron sulphides, including abundant marcasite; and an apparently superimposed massive quartz vein up to 60 metres wide. Gold was introduced with all three mineralization types, although present evidence suggests that the first two contain much of it. Coarse, visible gold is seen to be an intrinsic part of the system and needs to be taken proper account of during resource estimation”. The early stockwork and silicification mineralization types are interpreted to dip moderately west, and to be overprinted by the later massive quartz veining phase which, based on presently available evidence, is inferred to be subvertical and to occur at the northern end of the system. The system strikes north-south and is confined to a 200-mwide, fault-bounded corridor. “The Fruta del Norte mineralized corridor is clearly still open northwards beyond section 700N, where the indications are that the massive quartz vein as well as the intense silicification and quartz-carbonate-adularia-base metal stockwork should persist.” Having observed the core from several of the eastward-directed drill holes as well as the westward directed scissor hole (CP-06-63), Dr. Sillitoe concludes that “The drill configuration employed so far is considered to be just about optimal. The high-angle of most vein and veinlet intercepts to the core axis shows that the results are a fair approximation of reality.” Along the western edge of the mineralized corridor, drilling to date suggests that the mineralization has been truncated and offset by a post-mineralization fault. However, the report goes on to postulate that “The proportion of the mineralized zone that has been truncated [to the west] is unknown…” and recommends that “…an effort be made to locate the faulted-off portion of the Fruta del Norte mineralized corridor because of the possibility that it could appreciably expand the tonnage of high-grade gold mineralization.” I n describing the exploration potential elsewhere in the sedimentary basin that hosts FDN, the report states that “The geophysical and geochemical evidence cited above strongly suggests that the mineralized corridor defined at Fruta del Norte could continue for several kilometres to the south, everywhere concealed beneath the sedimentary basin fill. If the coherent arsenic and antimony anomalies in conglomerate that help to define the corridor south of Fruta del Norte are interpreted as upward leakage from blind gold mineralization, as they have been shown to be at Fruta del Norte, then additional epithermal gold mineralization may already have been located.” Dr. Sillitoe spent 3½ days at the project on behalf of Aurelian Resources, with the specific aim of aiding ongoing geological interpretation and exploration of the newly discovered Fruta del Norte epithermal gold prospect. The fieldwork focused on the construction of five cross sections through the Fruta del Norte mineralized zone based on 1:2,000-scale reconnaissance logging of core from 14 diamond drill holes. Maps, cross sections, photos and full gold and silver assay data from the FDN deposit may be viewed at www.aurelian.ca. Stephen Leary, MAusIMM, Aurelian’s Exploration Manager, is acting as Qualified Person in compliance with National Instrument 43-101 with respect to this release. He and Dr. Sillitoe have reviewed the contents for accuracy. About Aurelian: Aurelian Resources Inc. is a publicly-listed (TSX-V:ARU) junior resource company engaged in the business of exploring, discovering and developing mineral wealth in Ecuador. The Condor Project properties are located in south-eastern Ecuador and consist of 38 mining concessions totalling approximately 95,000 hectares. Forward Looking Statement: Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company’s actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. Aurelian Resources Inc. Patrick F. N. Anderson President & CEO Phone: [phone] Fax: [phone] [e-mail] www.aurelian.ca THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.