Mr. Akash Patel reports

DISCOVERY VENTURES ANNOUNCES TERM SHEET FOR $7 MILLION

Discovery Ventures Inc. has entered into a term sheet with Dan Omeniuk, whereby, subject to satisfactory due diligence by the investor, the entry into a definitive binding agreement and approval of the TSX Venture Exchange, the investor has agreed to provide two secured credit facilities to Discovery: a $2-million convertible credit facility and a $5-million credit facility.

Any funds drawn down on the convertible credit facility will be convertible at the option of Discovery or the investor into units of Discovery at a price of 10 cents per unit. Each unit will consist of one common share of Discovery and one warrant, with each warrant entitling the investor to purchase an additional share at a price of 15 cents per share for a period of three years. Any conversion that would result in the investor owning more than 20 per cent of the issued and outstanding shares of Discovery would be subject to Discovery obtaining shareholder approval of the credit facilities.

The convertible credit facility will mature and will be payable in cash on the date which is the earliest of: two years from each draw down date; or an event of default. The credit facility shall mature and shall be payable in cash on the date which is the earliest of: three years from each draw down date; or an event of default. The investor and Discovery agreed that the interest rate will be a commercially reasonable standard bank rate. The credit facilities may be repaid by Discovery at any time.

The proceeds from the credit facilities will be used to finance the advancement of its mining properties and general working capital.

The parties agreed that, concurrent with the execution of a definitive agreement for the credit facilities, the investor will be appointed as a director, and president and chief executive officer of Discovery.

We seek Safe Harbor.