Redcorp Ventures Ltd.

Redcorp Ventures Ltd.

August 16, 2007 07:00 ET

Redcorp Ventures Ltd.: Short-Term Investment Repayment Delayed

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 16, 2007) - REDCORP VENTURES LTD. (TSX:RDV) (the "Company" or "Redcorp") -

As a result of recent disruptions in global credit markets the Company wishes to advise on the status of a portion of its cash investments which total approximately $239.8 million. Redcorp's cash management criteria is to invest in products that are ranked by the Dominion Bond Rating Service ("DBRS") as R1-High. In July, 2007, Redcorp invested on the recommendation of its bank, HSBC Bank Canada, a total of $102.2 million in the following A Notes with five separate trusts managed under the Coventree Capital Group Inc. ("Coventree"):

Maturity Date Issuer Value Date Nominal Value
Aug 13/07 Aurora Trust Jul 12/07 $35.0 million
Aug 13/07 Structured Investment Trust Jul 12/07 $16.3 million
Aug 14/07 Rocket Trust Jul 12/07 $16.5 million
Aug 14/07 Rocket Trust Jul 13/07 $16.2 million
Aug 14/07 Gemini Trust Jul 13/07 $10.8 million
Aug 14/07 Comet Trust Jul 13/07 $7.4 million

Coventree announced on August 13 and 14, 2007 that it was experiencing market disruption and as a result was unable to meet its repayment obligations until its liquidity providers fund such repayments. The DBRS has continued to rate the above trusts and their underlying assets as R1-High.

The A Notes held by Redcorp came due and payable on the maturity dates shown above but were not paid and remain outstanding. Redcorp is currently investigating the implications of these events, which appears to be a result of the current lack of liquidity for asset backed securities of the type held by Coventree rather than the creditworthiness of its underlying assets. The Company has been in discussions with Coventree and our trustees, and will continue to monitor the circumstances. We will keep our shareholders, warrantholders and noteholders informed.

The balance of Redcorp's investments of approximately $137.5 million, including $36.5 million in escrow, are invested in a Royal Bank of Canada bearer discount note and various term deposits with the HSBC Bank Canada, Royal Bank of Canada, Canadian Imperial Bank of Commerce and Toronto-Dominion Bank. These investments provide the Company with sufficient funds to ensure there will be no disruption to its activities while this matter is settled.

A conference call will be held at 8:30 a.m. EST to discuss the events as we know them. To join in the call, interested parties may call 1-888-458-1598, toll free in Canada and U.S.A., and enter the participant pass code 44002, followed by the "#" key. The call will be moderated and will allow for a question and answer session. An audio file of the conference call will be made available on the Company's website.

Redcorp Ventures Ltd. is a Vancouver-based mineral exploration and development company with active projects in British Columbia and Portugal. Further information on Redcorp and the Tulsequah Project can be obtained on the Company's website at and at Redfern's website at or by calling Terry Chandler at 1-888-669-4775.


Terence Chandler, President

Certain of the statements made and information contained herein is "forward- looking information" within the meaning of the Securities Act (Ontario) and the Securities Act (Alberta). Forward-looking information includes disclosure regarding possible or anticipated events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action and includes future oriented financial information with respect to prospective results of operations or financial position that is presented either as a forecast or a projection. Forward looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend"; statements that an event or result is "due" on or "may", "will", "should", "could", or might" occur or be achieved; and, other similar expressions.

More specifically, forward looking information contained herein includes, without limitation, statements concerning the Company's plans at its Tulsequah Project (inclusive of the Big Bull Project), the net present value of the Tulsequah Project, the timing and amount of estimated future production and mine life, expected future prices of gold, silver, copper, lead and zinc, metallurgical response and net smelter return valuations, mineral reserve and mineral resource estimates, estimated capital and operating costs of the project, estimated capital pay back period, timing of development and permitting time lines; all of which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Forward-looking information contained herein is based on material factors and assumptions and is subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from a conclusion, forecast or projection in the forward-looking information. These include, without limitation, material factors and assumptions relating to, and risks and uncertainties associated with, the availability of financing for activities when required and on acceptable terms, the accuracy of the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the consistency of future exploration, development or mining results with the Company's expectations, metal price fluctuations, the achievement and maintenance of planned production rates, the accuracy of component costs of capital and operating cost estimates, current and future environmental and regulatory requirements, favourable governmental relations, the availability of permits and the timeliness of the permitting process, the availability of shipping services, the availability of specialized vehicles and similar equipment, costs of remediation and mitigation, maintenance of title to the Company's mineral properties, industrial accidents, equipment breakdowns, contractor's costs, remote site
transportation costs, materials costs for remediation, labour disputes, the potential for delays in exploration or development activities, timely completion of future NI 43-101 compliant reports, timely completion of future feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, continuing global demand for base metals, expectations and beliefs of management and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's Annual Information Form, dated March 28, 2006, and in each subsequent Management's Discussion and Analysis. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

News Release 07-30

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