Valencia Ventures Inc.

Valencia Ventures Inc.

July 17, 2007 17:30 ET

Valencia Begins Resource Definition Drilling at the Cachinal Silver Project

TORONTO, ONTARIO--(Marketwire - July 17, 2007) - Valencia Ventures Inc. (TSX VENTURE:VVI) is pleased to report that a significant 15,000m resource delineation drill program has begun at its Cachinal silver project in Chile to in-fill recent high grade silver intersections in the Northern Extension target. The Company plans to spend approximately $4.0 million on the second phase of the 2007 drill program and expects to produce a preliminary feasibility study by year-end. The second phase drill program is fully funded and drill results are expected by late summer.

The second phase of the 2007 drill program includes approximately 10,000 - 12,000m Reverse Circulation Drilling (RC) and 3,000 - 4,000m Diamond Drilling (DD) and will focus on resource definition within the Northern Extension area and exploration for possible extensions to the mineralized Sara, Carmen and Arturo-Prat vein systems to the south of the current resource (see Figure 2). The main objective of this program is to significantly expand and upgrade current silver resource of approximately 27 million ounces.

Drilling earlier in 2007 intersected significant high grade silver mineralization within broad zones of silver-gold-zinc mineralization in the Northern Extension target area (Press Release May 1, 2007). Drill results confirmed silver mineralization remains open along strike, both to the north and south, and there are other targets on Valencia's property which remain to be tested.

Significant high grade mineralization zones reported included:

- CLRC-58 9m @ 161.33g/t Ag, 0.26g/t Au, 0.87% Zn

- CLRC-67 9m @ 290.56g/t Ag, 0.30g/t Au, 0.23% Zn
Including 4m @ 602.50g/t Ag, 0.61g/t Au, 0.40% Zn

- CLRC-68 6m @ 127.33g/t Ag, 0.25g/t Au, 0.08% Zn
10m @ 209.60g/t Ag, 1.33g/t Au, 0.08% Zn

Valencia's Executive Vice President, Exploration and Development, Doug Currie commented, "The results of the first phase drill program were very encouraging, demonstrating a potential extension of the existing resource over 800m along strike. The system is open along strike to the north and south and down dip." Adding' "I believe there is excellent potential to increase the existing mineral resource at Cachinal and we fully expect to make good progress over the next few months."

The current program will evaluate the mineralized system to a vertical depth of approximately 150m, with 150-200m inclined RC drill holes on sections spaced at 50m intervals; a third phase of in-fill drilling will be planned to reduce the drill spacing to 25m intervals where necessary to confirm continuity. The objective of the resource definition program is to produce a mineral resource estimation which allows the majority of the mineralization to be classified as "measured" and "indicated" resources. Preparations for completion of a Preliminary Assessment, including initial baseline environmental, hydrological and engineering studies will also be completed. Quotations are currently being sought for completion of a NI43-101 compliant mineral resource report and a Preliminary Assessment.

Valencia released the results of its 2006 exploration program and the first mineral resource estimate for the Cachinal silver project in February (Press Release February 19, 2007). The estimated mineral resources, at a 20g/t silver block cut-off grade, are as follows:

Indicated Mineral Resource: 4.11Mt @ 103.92g/t Silver, 0.11g/t Gold, 0.17% Zinc

Inferred Mineral Resource: 5.09Mt @ 78.22g/t Silver, 0.11g/t Gold, 0.16% Zinc

Potential gross metal content, excluding consideration of mining and metallurgical dilution and recoveries, is estimated at:

Gross metal content (Indicated): 13.73Moz Silver, 13,980oz Gold, 15.30M lbs Zinc

Gross metal content (Inferred): 12.80Moz Silver, 18,050oz Gold, 17.98M lbs Zinc

The initial resource estimate was based on a 650 metre portion of the total mineralized structure, which is traceable on surface for up to 3,000 metres, and is open both along strike and at depth. Significant intersections within the Northern Extension area, highlighted above, relate to single drillholes on sections spaced at 50-100m intervals over a strike length of 750m. Holes were also drilled at 50m and 100m step-outs from existing drilling on the Sara, Carmen and Arturo-Prat Veins to the south of the existing resource (Figure 2).

Cachinal Silver Project

The Cachinal de la Sierra area is located within the Paleocene Gold Belt of northern Chile, which hosts several significant gold and silver deposits including Meridian Gold's El Penon Silver-Gold Mine. The El Penon mine is a low sulphidation-style epithermal silver-gold deposit and one of the worlds lowest cost gold producers. The past-producing Guanaco Gold Mine located 12km to the southwest is a high sulphidation-style epithermal deposit that was mined as a heap leach operation during the early 1990's by Amax Gold Inc. and then by Kinross Gold Corporation. Historical silver production in the Cachinal area is estimated at approximately 32 million ounces as documented in geological reports in the library and files of Chilean Government agency SERNAGEOMIN. The production figures (tonnage and grade) referred to above is historical in nature and has not been verified by the issuer's Qualified Person, and should not be relied upon.

Valencia's Cachinal silver project incorporates a large land position totalling approximately 14,300 hectares, comprised of three farm-in agreements and 100% direct interest in additional areas adjoining the JV areas to the north (Islote concessions) and south (Vino concessions) (Figure 1). Valencia has also completed additional work elsewhere on these properties and plans to continue to assess the remainder of the Cachinal project area to evaluate several other defined anomalous targets areas. Additional geological mapping, geochemical sampling, deep Rotary Air Blast (RAB) or auger geochemical drilling and ground geophysics, if required, will be completed.

Valencia recently entered into an agreement with Silver Standard Resources Inc. to acquire Silver Standard's remaining 20% interest in the Cachinal property, the principal joint venture area (see Figure 1 forming the Cachinal Silver Project (press release dated July 12, 2007).

Valencia is a Canadian resource company traded under the symbol VVI on the TSX Venture Exchange. Valencia's development strategy is focused on the exploration and development of silver and gold properties, including the Cachinal Silver-Gold Project in Chile and the Rancheria Silver Project in the Yukon Territory and British Columbia, Canada. With a focus on silver and gold exploration in the Americas, Valencia is considering various precious metal property acquisitions.

Cautionary Note:

Mr. Douglas A. Currie, MAusIMM, Valencia's Executive Vice President-Exploration & Development, is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and is responsible for reviewing the technical disclosure in this press release. Field work in Chile has been performed under Mr Currie's supervision by SBX Consultores Ltda, Santiago, Chile.

This press release contains "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information includes, but is not limited to, statements regarding exploration prospects, the identification of mineral resources, costs of and capital for exploration projects, exploration expenditures and timing of future exploration. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters, future prices of mineral prices; and risks of the mining industry. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

To view a copy of the "Figure 1" map, please visit the link below:

To view a copy of the "Figure 2" map, please visit the link below:


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