Valencia Ventures Inc.
TSX VENTURE : VVI

Valencia Ventures Inc.

June 14, 2007 17:30 ET

Valencia Announces Financing and Review of Strategic Alternatives for New Australian Gold Mining Company

TORONTO, ONTARIO--(Marketwire - June 14, 2007) -

NOT FOR RELEASE IN THE UNITED STATES OR TO U.S. NEWSIRE SERVICES

Valencia Ventures Inc. (TSX VENTURE:VVI) is pleased to announce that it has arranged a financing for its Mt Bundy Gold Project in the Northern Territory, Australia. The financing will be conducted by a Canadian subsidiary of Valencia ("Newco"), which will acquire all of the shares of Valencia's Australian subsidiary that owns the Mt Bundy Gold Project. Newco will issue up to 6 million units at a price of $0.50 per unit, each unit to be comprised of one common share and one share purchase warrant. Each whole warrant will entitle the holder thereof to acquire one common share of Newco at a price of $0.60 for a period of 30 months following closing. Following the financing, Newco will have approximately 30 million common shares outstanding.

This financing is to be completed in connection with a strategic review that Valencia is conducting in respect of the Mt Bundy Gold Project. Management of Valencia believes that it may be able to unlock value in the Project for the shareholders of Valencia by spinning the project out to a public company focused on gold exploration and development in Northern Australia.

Doug Bache, President and CEO of Valencia, said "We feel that we can realize greater value for our shareholders from the Mt Bundy project by funding Mt Bundy directly. We are excited about the prospect of combining Mt Bundy with exploration properties in the area to create a regional gold company."

The net proceeds of the financing will be used to advance engineering and technical work on Mt Bundy, for possible acquisitions of exploration and development properties in the area and for working capital purposes.

Valencia has engaged PowerOne Capital Markets Ltd. to act as lead agent in respect of the Offering.

The Mt Bundy Project is located in the Northern Territory, Australia. In 2006, GBM Minerals Engineering Consultants Ltd (GBM) completed a feasibility study on the Mt Bundy Project which incorporates work completed by SRK Consulting on the mineral resource estimate including a NI 43-101 compliant report. The feasibility study evaluated the economic viability of the Project and identified various development options available to Valencia in order for the company to make a decision on construction of the project. This evaluation, which proceeded in two stages, is the second and follows Valencia's decision to reactivate a project at Rustlers Roost based on the past producing open pit mine and heap leach operation. The first phase formed the basis for conducting the feasibility study and involved: a) further exploration that led to the re-estimation of the mineral resources; b) re-evaluation of the ore processing options; and c) updated capital and operating costs in view of changes in the process flow sheet design.

Mr. Alex Mitchell, C.Eng, Member Institute Materials and Mining, Principal Metallurgist, GBM Minerals Engineering Consultants Ltd was the principal author of the "Mt Bundy Gold Project Feasibility Study", a National Instrument 43-101 compliant technical report, which is available under the profile of the Company on SEDAR. Mr. Mitchell is the "Qualified Person", as defined by NI 43-101 and he has provided his consent for reference to the Feasibility Study in regard to information disclosed in this press release.

About Valencia Ventures

Valencia's development strategy is focused on the exploration and development of silver and gold properties, particularly the Cachinal Silver-Gold Project in Chile and the Rancheria Silver Project in the Yukon Territory and British Columbia, Canada. The Company recently completed a NI 43-101 compliant mineral resource estimate on its Cachinal Silver-Gold Project and plans to aggressively expand the resource in 2007. With a focus on silver and gold exploration in the Americas, the Company has a number of property acquisitions under consideration.

Shareholders are encouraged to visit Valencia's website (www.valenciaventures.com) to view a recent corporate presentation which provides images and more technical information on these projects.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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