Aurogin Reports First Quarter 2007 Financial Results

May 31, 2007

Aurogin Resources Ltd. has provided its unaudited financial results for the first quarter ended March 31, 2007. The consolidated interim financial statements along with management's discussion and analysis are available on SEDAR and on the company's website. (All currency references are to U.S. dollars, unless otherwise noted.)

SUMMARY OF FINANCIAL AND OPERATING HIGHLIGHTS         

                                                             Three months ended March 31               

2007                 2006

Gold ounces -- produced                                 3,008                 -

Gold ounces -- sold                                          1,241                 -

Average realized gold price ($/ounce)             $665                   -

Total cash costs per ounce sold ($/ounce)        $290                  -

Metal sales                                                       $824,575         $-

Cost of sales                                                     $360,300         $-

Accretion, depreciation, depletion & amtiz.     $137,523         $-

Mine operating earnings                                   $326,752         $-

Net (loss) for the period                                     $(105,769)       $(92,553)

(Loss) per share (basic and diluted)                         nil              nil

Cash flow used in operating activities               $(192,309)       $(76,573)

"Over all, we were pleased with the progress made during the quarter at our El Sastre operation," said John Paterson, president and chief executive officer of Aurogin. "During the quarter, we mined ore at a much higher grade than forecast in our mine plan. Gold recoveries continue to meet our expectations and we expect to post bottom line earnings in the second quarter."

Mr. Paterson noted: "While commercial production commenced in December, 2006, work still remained in the first quarter of 2007 to advance the mine to full-scale production. Prior to final completion of the leach pad, we took the opportunity in the first quarter to focus our mining efforts on stripping and waste removal, placing only 36,700 tonnes of new ore on the leach pad. Going forward, we expect our stripping ratio to be lower which should result in lower cash costs on a per ounce basis. We also completed construction of the 300,000-tonne leach pad in the quarter. In February and March we placed ore on the leach pad at approximately 70 per cent of our ultimate target mining rate of 25,000 tonnes of ore per month. We are confident that we can achieve our target rate and are working towards that goal. By the end of the quarter, our team had also made significant progress in reducing certain operating costs which will lower cash costs on a per ounce basis going forward."

Quarter over quarter, revenue from gold sales of $824,575 rose 65 per cent due to a 54-per-cent increase in the number of ounces sold and a 7-per-cent increase in its averaged realized price per ounce sold of $665. This was $15 per ounce better than the average market price of gold per ounce in the quarter.

Cost of sales was $290 per ounce in the quarter. Over all, the average cash cost per ounce sold for all the gold recovered from ore placed on the leach pad prior to Dec. 31, 2006, was $267 per ounce. Going forward, costs on a per ounce basis are expected to decline as the mine achieves target mining rates and forecast stripping ratio and realizes the effects of cost reduction measures.

Exploration efforts during the quarter focused primarily on working toward the completion of the technical report on the Bridge property in Guatemala (see Aurogin news in Stockwatch on April 24, 2007) and the update report on the El Sastre exploitation licence (see Aurogin news in Stockwatch on May 9, 2007). These reports estimated new inferred mineral resources on the Bridge and El Arenal zones and estimated the first mineral reserves on the El Sastre Main zone. Subsequent to end of the quarter drilling recommenced on the El Sastre property. In addition, the company began drilling on its 100-per-cent-owned Lone Mountain property in Eureka, Nev. (see Aurogin news in Stockwatch on May 16, 2007).

During the first quarter of 2007 (see Aurogin news in Stockwatch on March 5, 2007) Aurogin announced intended plans to merge with Morgain Minerals Inc. Work on this front is continuing. A shareholder vote seeking approval for the proposed merger is expected to be held in late July, 2007.