Valley High Ventures Ltd.
TSX VENTURE : VHV

Valley High Ventures Ltd.

October 08, 2010 10:15 ET

Valley High Ventures Announces Closing of $10,560,000 Bought Deal Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 8, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Valley High Ventures Ltd. ("Valley High", or the "Company") (TSX VENTURE:VHV) is pleased to announce that it has today closed the bought deal private placement financing announced September 23, 2010 (the "Offering"). The Company has issued 14,080,000 units at a price of CDN$0.75 per unit for gross proceeds of CDN$10,560,000. 

Each unit consists of one common share of the Company and one-half of one common share purchase warrant (the "Unit"). Each whole warrant (the "Warrant") entitles the holder to subscribe for one additional share of the Company for a period of 18 months from the closing of the Offering at an exercise price of CDN$1.00. In the event that after four months and one day after the closing of the Offering, the volume weighted average trading price of the Company's common shares on the TSX Venture Exchange, for a period of 20 consecutive trading days exceeds CDN$2.00, the Company may, within five days after such an event, provide notice to the Warrant holders of early expiry and thereafter, the Warrants will expire on the date which is 30 days after the date of the notice to the Warrant holders.

The Offering was led by Canaccord Genuity Corp. and included NCP Northland Capital Partners Inc., Haywood Securities Inc., Cormark Securities Inc. and National Bank Financial Inc. (the "Underwriters"). The Underwriters received a cash commission of 6% of the gross proceeds raised through the Offering and Warrants ("Broker Warrants") equal to 8% of the Units issued through the Offering. Each Broker Warrant shall be exercisable to acquire one common share of the Company at an exercise price of CDN$0.85 for a period of 18 months from closing. Securities issued under the Offering are subject to a hold period which will expire four months and one day from the date of closing, being February 9, 2011.

The Company intends to use the net proceeds of the Offering to conduct exploration on its projects in Mexico and Canada, and for general working capital purposes.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Valley High Ventures Ltd.:

Valley High is a Canadian based precious and base metal exploration company with projects located in Mexico, British Columbia and Yukon. The Cordero project in Mexico (49% interest) is being evaluated for large bulk mineable silver, gold, zinc and lead deposits. The Mount Polley project is located in British Columbia adjacent to Imperial Metals Corporation's ("Imperial") Mt. Polley copper-gold mine and includes a production royalty on the Boundary Property, with Imperial. In the Yukon, Valley High has an option to acquire a 100% interest in the Flume gold property which is located within the newly recognized White Gold District. Valdez Gold Inc. has been granted a right to earn up to 75% interest in Valley High's interest in the Flume property. 

VALLEY HIGH VENTURES LTD.

Geoff Chater, President

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Such forward-looking statements or information, including but not limited to those with respect to the prices of copper, estimated future production, estimated costs of future production, permitting time lines, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of Valley High to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such factors include, among others, the actual prices of copper, the factual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in documents filed from time to time with the securities regulators in the applicable Provinces of British Columbia and Alberta.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

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