Vena Resources Inc.

Vena Resources Inc.

August 18, 2009 12:15 ET

Vena Enters Into Joint Venture to Develop Pucara Au/Cu Project

TORONTO, ONTARIO--(Marketwire - Aug. 18, 2009) - Vena Resources Inc. ("Vena" or the "Company") (TSX:VEM)(LIMA:VEM)(FRANKFURT:V1R) is pleased to announce that it has signed a Letter of Intent with IIMPUL Peru, a Peruvian gold/copper production and trading company, to put the Pucara gold/copper project into production as soon as permits are received.

The Letter of Intent, which will be set out in a definitive Joint Venture Agreement, involves four key revenue streams which will be funded by IIMPUL and from future cash flow generated by the Joint Venture:

- "JV Mine": To develop and mine the underground gold/copper veins at Pucara. It is expected that by the end of 2010, Vena will be able to recover its US$2 million (approximate) invested so far in developing Pucara. The remaining after-tax profit will be divided 50/50 between the two partners.

- "JV Expansion": The identification and purchase of high-grade copper (greater than 3% Cu) properties in the vicinity of the Pucara project with investments and gains/losses to be split 50/50 by Vena and IIMPUL. It is intended that the JV-Mine operation will fund these acquisitions. Vena is presently reviewing technical data from two nearby operations.

- "JV Mill": To install a scalable mill capable of processing high-grade copper ore (greater than 3% Cu). The mill is expected to have an initial capacity of 200 tons-per-day (tpd) with the expectation that the mill processing rate will reach 5,000 tons-per-month of at least 3% Cu by the end of the first year of operations and continue to expand. 50% of the feed will come from the existing Pucara project. Any gains or losses resulting from this operation will be split 50/50 between Vena and IIMPUL.

- "JV Toll Milling": This is IIMPUL's core expertise in Peru and given Pucara's strategic location (60 kilometres from Juliaca) and outstanding infrastructure, the JV intends to provide custom milling services to several local copper miners. IIMPUL has already identified and is negotiating with several miners with high-grade copper veins ready to be serviced by the joint venture. Any gains resulting from this operation will be split 70/30 in favor of IIMPUL.

"Over the last 12 months we have advanced the Pucara project to the point that we can foresee gold/copper production growing in a scalable fashion (drifting/milling) as a better approach than spending critical funds to delineate an increasing NI 43-101 compliant resource. We can provide milling services to nearby small miners and look to expand our resource potential by leveraging IIMPUL's expertise as an ore aggregator across Peru. Financially, we will recover our original investment over time, but most importantly we can foresee using Pucara's revenue stream to fund the exploration activities in larger projects we have in the Department of Puno, including for instance Esquilache." said Juan Vegarra, Chairman and CEO of Vena.

IIMPUL's main activity is the purchase and commercialization of gold, silver and copper. IIMPUL is also involved in the exploitation, processing, treatment and exportation of mineral concentrates sourced from dozens of small scale miners and gold-bearing tailings deposits. IIMPUL's main markets are in the United States and the United Kingdom. To date IIMPUL has subscribed a supply contract with Johnson Mattey.

In order to assure continuous delivery of precious metals to its refinery, IIMPUL has established collection agencies in the most important supplying cities: Juliaca, Cuzco, Arequipa, Nazca and Trujillo. Supply contracts exist with gold mining producers that guarantee a commercialization level of approximately 400 kilograms of gold and 3,000 kilograms of silver per month. IIMPUL is a private Peruvian company with 2008 revenue of US$100 million.

Vena has provided several press releases related to Pucara over the last three years since acquiring the project. The Pucara property contains multiple parallel structures within volcanic and sedimentary rocks that host veins and breccia zones containing copper, lead and silver mineralization as well as associated free gold.

Vena completed a 4,500 meter diamond drilling campaign after studying an earlier drill campaign conducted by CVRD. The Company then commissioned a series of metallurgical tests that were performed by RDI from Denver, CO. A validation study was performed by another well known Peruvian mining company earlier this year.

Electric power is available at the project site from the "National Electricity System" and telephone and wireless communication are available as well as a plentiful source of water. Due to Pucara's proximity to a major highway, there is easy access to the cities of Juliaca, Puno and the seaport at Matarani by paved road and railroad.

This press release has been reviewed and approved by David Bent, P.Geo., Vena's Vice President of Exploration and Qualified Person as defined by NI43-101. Vena's exploration and development programs are being supervised by Mr. Bent.

Statements in this press release regarding the Company's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

Shares Outstanding: 80,575,408

Fully-Diluted: 89,106,659

The TSX does not accept the responsibility for the adequacy or accuracy of this release.

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