Valencia Ventures Inc.
TSX VENTURE : VVI

Valencia Ventures Inc.

October 20, 2008 07:26 ET

Valencia Ventures Settles Liabilities Relating to Jacobina Mine

TORONTO, ONTARIO--(Marketwire - Oct. 20, 2008) - Valencia Ventures Inc. (TSX VENTURE:VVI) ("Valencia" or the "Company") is pleased to announce that it has entered into an agreement with Yamana Gold Inc. ("Yamana") regarding the release of the respective liabilities and obligations of Valencia and Yamana to each other in relation to the Jacobina mine. Valencia previously held an interest in the Jacobina mine that it sold to Desert Sun Mining Corp. Yamana purchased Desert Sun Mining Corp. in 2006 and continues to indirectly hold the Jacobina mine.

In consideration for Yamana agreeing to terminate the obligations of Valencia, Valencia has agreed to issue to Yamana (i) 10,000,000 common shares; and (ii) 5,000,000 share purchase warrants ("Warrants"). Each Warrant shall be exercisable for one common share at a price of $0.20 at any time prior to the date that is two years from the date of issue.

The settlement is subject to receipt of all necessary approvals, including approval of the TSX Venture Exchange.

About Valencia Ventures

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 and Juncal silver projects in Chile.

For additional information on this press release or Valencia's projects, please visit www.valenciaventures.com.

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 the terms of settlement, the valuation of outstanding liabilities, the impact of the settlement on the Company and satisfaction of all closing conditions, including receipt of regulatory approvals. 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; conclusions of economic evaluations; changes in project parameters, future prices of mineral prices; and risks of the mining industry. Estimates regarding the valuation of outstanding liabilities have been based on advice from legal counsel, filings made in connection with such matters and knowledge and experience of the management of the Company. There can be no assurance that such forward-looking 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.

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

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