VVC Exploration Corporation

VVC Exploration Corporation

June 04, 2009 08:30 ET

VVC Exploration Options Santa Cristina, a Gold Project in Durango State, Mexico

TORONTO, ONTARIO--(Marketwire - June 4, 2009) - VVC EXPLORATION CORPORATION (TSX VENTURE:VVC)(FRANKFURT:V7S)(BERLIN:V7S) ("VVC" or the "Company") is pleased to announce that it has optioned the 498.5 hectare Santa Cristina property (the "Property"), located in the foothills of the Sierra Madre gold trend, approximately 60 km to the south of Hidalgo del Parral, Chihuahua State, in northern Durango State, Mexico. Pursuant to the Option Agreement, the Company can acquire a 100% interest in the Property from Invesmin San Miguel S de RL de CV ("Invesmin") and has the exclusive rights to explore and develop the Property over the next 5 years in consideration for: (i) 400,000 shares of the Company to be issued upon regulatory approval and an additional 750,000 shares within 6 months, and (ii) total option payments of 10,000,000 Mexican Pesos (currently equivalent to CA$815,000) payable to the optionor as follows:

a) 1,250,000 pesos on signing;
b) 1,250,000 pesos (currently equivalent to CA$102,000) on August 1, 2009;
c) 1,250,000 pesos (currently equivalent to CA$102,000) on February 1, 2010;
d) 1,250,000 pesos (currently equivalent to CA$102,000) on February 1, 2011;
e) 1,250,000 pesos (currently equivalent to CA$102,000) on February 1, 2012;
f) 1,875,000 pesos (currently equivalent to CA$152,500) on February 1, 2013;
g) 1,875,000 pesos (currently equivalent to CA$152,500) on February 1, 2014.

The property is subject to a 2% net smelter royalty.

Gold mineralization occurs on a 1 km long trend, associated with Tertiary age volcanic rock and extensive silification and argillitization with gold mineralization. Due diligence sampling by Invesmin has given gold values in grab samples ranging from 60 ppb (0.006 g/t) to 5.77 g/t, with an average of 2.21 g/t, from the hematite breccias. Visible gold has been observed by the Qualified Person in a sample from the Maria Louisa locality and the sample has been sent for assaying, with results pending.

The Property was worked by Gambusinos (artisanal miners) in the past, however the Property has never been evaluated by modern exploration techniques such as diamond drilling. The initial program comprises geological mapping and prospecting, followed by a diamond drill program, as recommended by the Company's on-site geological team.

The work is being carried out by Invesmin under contract to VVC, with due diligence property visits by the Qualified Person.

"Months of research, prospecting and negotiation in Mexico have been rewarded by the optioning of this exciting gold project in Durango State," said Daniel Grenier, president of VVC. "We are very pleased with the good work of our geological team in bringing this Property to our attention."

The technical aspects of this news release were reviewed by Peter Dimmell, P.Geo., a director of VVC, who is a Qualified Person (QP) as defined in National Instrument 43-101.

About VVC:

VVC Exploration Corporation is a Canadian exploration company with projects in Mexico and Canada. This includes a Silver, Lead and Zinc prospect in Chihuahua, Mexico, an indirect participation in the Beaver Brook Antimony Mine in Newfoundland, Canada, and a grass-roots gold prospect in the Timmins area of Northern Ontario. VVC is also aggressively searching for other projects at various stages of development in North America, with an emphasis on gold / silver in Mexico.

On Behalf of the board of Directors

Michel J. Lafrance, Secretary-Treasurer

Neither the TSXV or its Regulation Service Provider accepts responsibility for the adequacy or accuracy of this news release.

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