VVC Exploration Corporation

VVC Exploration Corporation

March 25, 2011 18:30 ET

VVC Exploration Announces A Brokered Private Placement

TORONTO, ONTARIO--(Marketwire - March 25, 2011) - VVC EXPLORATION CORPORATION (TSX VENTURE:VVC)(FRANKFURT:V7S) ("VVC" or the "Company") is pleased to announce that it intends to raise up to $770,000 in a brokered "best efforts" private placement of units of the Company ("Units") at a price of $0.07 per Unit. Each Unit consists of one common share and one common share purchase warrant (a "Warrant") of the Company. Each Warrant entitles the holder to purchase one additional common share of the Company at $0.12 per share for a period of one year following the closing of the offering. The proceeds from the offering will be used for exploration on the Corporation's mineral properties in Mexico and Canada, in particular the Cumeral Property in Mexico, property option payments, current accounts payable, current general administrative expenses, the cost of issue and for working capital.

VVC has engaged Palos Merchant Bank L.P. ("Palos") acting through its sole general partner, Palos Management Inc., in Montreal, Quebec as the lead investment banker for this offering. A commission or finders' fee (the "Fees") equal to 10% of the proceeds is payable to Palos or any other party instrumental in raising funding. In order to conserve cash, the Fees will be paid partially in cash and partially by issuing shares at $0.07 per shares.

The offering is subject to all necessary regulatory requirements including the approval of the TSX Venture Exchange. All securities issued pursuant to the offering will be subject to the applicable statutory, exchange and regulatory hold period of four months. The offering is expected to be completed in early April.

About VVC:

VVC Exploration Corporation is a Canadian exploration company with projects in Mexico and Canada. This includes gold prospects in Sonora and Sinaloa, a gold-silver prospect in northern Durango, and a silver/lead/zinc prospect in Chihuahua State, all in Mexico, and grass-roots gold properties in the Timmins area of northern Ontario and in the Beauce-Bellechasse area of southern Quebec. VVC is also aggressively searching for other projects – mainly precious minerals and base metals at various stages of development in North America, with an emphasis on gold and silver in Mexico.

On Behalf of the board of Directors

Michel J. Lafrance, Secretary-Treasurer 

This press release includes "forward-looking statements" including forecasts, estimates, expectations and objectives that subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding financings are subject to all of the risks and uncertainties normally incident to fund raising by public companies. These risks include, but are not limited to, market conditions and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.

Neither the TSXV nor its Regulation Service Provider accepts responsibility for the adequacy or accuracy of this news release.

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