Ventura Gold Corp.
TSX VENTURE : VGO

Ventura Gold Corp.

August 30, 2007 08:30 ET

Ventura Reports First Quarter Results and Advancement of Business Strategy

SCOTTSDALE, ARIZONA--(Marketwire - Aug. 30, 2007) - Ventura Gold Corp. (the "Company") (TSX VENTURE:VGO) completed the first quarter of fiscal year 2008 (FY2008) at June 30, 2007 with $4.4 million in cash and positive working capital of $4.2 million. The Company also reported in its interim unaudited financial statements and management discussion and analysis now filed on SEDAR that it earned net income of approximately $273,600 for its first quarter ended June 30, 2007, primarily attributable to a non-cash foreign exchange gain and non-cash unrealized gains on long-term investments (All amounts are reported in US dollars except as otherwise indicated).

Highlights of these financial statements are discussed below:

- Long-term investments under Assets on the Balance Sheet totaled $1.35 million at June 30, 2007, an increase of approximately $740,900 from fiscal year-end March 31, 2007, as the Company made strategic investments in two exploration companies, as discussed below.

- Commencement of surface mapping and sampling at the Inmaculada silver-gold project in southern Peru, including a compilation of historical exploration work, in order to design a drill program to commence in the third quarter of calendar year 2007.

- In August 2007, Ventura started drilling on the prospective Gold Gulch copper-gold project in Arizona, adjacent to the Phelps Dodge Morenci copper mine.

- The Company made significant private placement investments in two privately owned strategic exploration companies; Cdn$250,200 in Santa Barbara Resources Ltd. with early-stage exploration properties in Ecuador and Cdn$225,000 in African Aura Resources Limited with a portfolio of early-to-mid stage precious metal exploration projects in Cameroon, Africa. Santa Barbara has directors in common with the Company.

- Subsequent to the end of the quarter, the Board of Directors reorganized the management of Ventura, naming Eric H. Edwards as the new President and Chief Executive Officer, effective July 10, 2007. Stephen Kay, the previous President, was appointed Executive Chairman. The Board also named Wendy Yang as Vice President of Investor Relations and Scott Weger as Corporate Controller.

Financial and Exploration Activities Overview

During the first quarter of FY2008, the Company recorded non-cash foreign exchange gains of approximately $324,000 as the Company has a significant amount of cash in a Canadian dollar account and the Canadian dollar increased in value relative to the US dollar. The majority of the unrealized gain in long-term investments held in the first quarter resulted from an increase in the share price of Aurea Mining, a publicly traded exploration company with properties in Mexico and with whom the Company has a strategic project relationship.

Capitalized mineral exploration costs during the first quarter were approximately $197,300, compared with $137,900 in the year ago quarter. Exploration costs of $80,400 were incurred for surface mapping and sampling at the Inmaculada project, $76,100 for the compilation of historical exploration work and a geologic database at the Gold Gulch project, $40,800 at the Cottonwood Peak project in Nevada.

Working capital at the end of the first quarter decreased to $4.2 million from $4.8 million at year end March 31, 2007 primarily as Ventura made its strategic investments in Santa Barbara and African Aura totaling approximately $614,500. Cash used in investing activities totaled $815,400 including the strategic investments and $197,300 in mineral property and deferred exploration costs at the Inmaculada, Gold Gulch and Cottonwood Peak projects.

At the Cottonwood Peak project in Nevada, the Company continues to evaluate the recent drill results, geochemical and geophysical data. In the course of independent verification and quality assurance testing of these results, the verification testing returned assay results showing no gold mineralization for two drill holes compared to previous results received from the original primary laboratory. Upon being informed of the differences, the primary laboratory re-analyzed and corrected its assay findings, and identified an errant laboratory procedure. As a result, three intervals in two holes highlighted in Ventura's March 20, 2007 news release, specifically 20 feet of 0.3 g/t gold in hole CPC-2 and five feet of 6.6 g/t gold and five feet of 1.6 g/t gold in hole CPC-3, actually showed no gold mineralization. The laboratory has reviewed its quality control program and implemented protective measures within the laboratory to prevent this incident from recurring.

Outlook

The Company expects to invest approximately $1.5 million in exploration expenditures for this fiscal year ending March 31, 2008, mainly focusing on the Inmaculada and Gold Gulch projects. This exploration expenditure may change based on results from various ongoing exploration programs. It is anticipated that the Company's existing cash reserves will be sufficient to finance current planned exploration and investment activities for this fiscal year.

The Company's key objectives for the immediate future are to:

- Complete the Phase I drilling program on the Gold Gulch gold-copper project;

- Finalize a pre-drilling exploration program and commence drilling on the Inmaculada silver-gold project;

- Complete the evaluation of the drill results from the Cottonwood Peak gold project to determine if further work should be undertaken;

- Pursue new exploration project opportunities to expand the exploration pipeline; and,

- Continue to develop strategic relationships with those companies and management that have unique capabilities that are complementary to those of the Company.

The Company is a United States-based precious metals exploration and development company implementing a business plan to a) acquire, evaluate and develop high-grade, low-cost gold-silver and base-metal deposits with a view to establishing strategic alliances and/or joint ventures with larger companies, and b) acquire strategic investments and/or alliances with pre-IPO exploration companies and listed junior companies where Ventura believes those companies and management have the resources and expertise to optimize the potential value of their asset bases. In addition to exploration projects in Peru, Arizona and Nevada, the Company has over $1 million in strategic investments in emerging exploration companies with exposure to projects in Mexico, Ecuador, China and Africa.

The TSX Venture Exchange neither approves nor disapproves the information contained in this News Release.

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