North American Vanadium Inc.

April 17, 2007 13:20 ET

North American Vanadium Inc.: Significant License Contract Granted by Perupetro for Oil and Gas Exploration

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 17, 2007) - North American Vanadium Inc. (the "Company") (CNQ:NAVI) is pleased to announce that its wholly owned Peruvian subsidiary, North American Vanadium Peru S.A.C., has been granted a license contract (the "Contract") for the exploration and exploitation of hydrocarbons in Block 126 of the Ucayaly Basin of Peru by the Board of Directors of Perupetro. The block consists of approximately 1 million Ha. (2.5 million acres). The block has had limited exploration drilling by a previous operator and did encounter hydrocarbons on two tests. Along with the rights to the acreage the Company will have full access to existing records and seismic data. The Company plans to carry out a two phase program that includes defined development drilling and untested exploration structures.

The Company secured the contract in conjunction with True Energy Trust ("True") of Calgary, Alberta which has the right to participate in the project through participating in future equity offerings by the Company if True so chooses.

Block 126 in the Ucayaly basin is highly prospective for both light oil and significant deposits of natural gas. Over the seven year term of the Contract the Company has agreed to spend up to $25 million US on both drilling and further seismic operations. The Company intends to undertake equity and debt financings in the near future to fund the drilling program on the block. The Company will initially reevaluate the previous discoveries and drill some large undrilled seismic anomalies that have not been evaluated to date.

The License Contract will now be submitted to the ministries of Energy and Mines and of Finance for the approval of the Peruvian government by means of a Supreme Decree. It is expected that this process will take between 6 to 10 weeks.

The Company's President, Scott LeSage, stated, "This is a very exciting step for North American Vanadium to be granted such a significant land package by Petroperu and to be partnered with a company like True Energy that brings such extensive oil and gas technical expertise."

The Company's common shares are listed for trading on the Canadian Trading and Quotation System Inc. (CNQ) under the symbol NAVI.

Forward-looking Statement

This press release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements.

Contact Information

  • North American Vanadium Inc.
    Scott LeSage
    (604) 662-8186
    (604) 662-8170 (FAX)