Mr. Patrick Morris reports

VICTORY MOUNTAIN VENTURES CLARIFIES DISCLOSURE MATERIAL ON ELLS RIVER PROJECT AND CONFIRMS IT WILL NOT CONTINUE WITH THE ELLS RIVER PROJECT

As a result of a review by the B.C. Securities Commission, Victory Mountain Ventures Ltd. is issuing the following news release to clarify the company's previous disclosure.

Some information, pertaining to the Ells River project in Alberta, in previous company news releases, presentations and its website, included disclosure of technical information that was not compliant with the standards of disclosure for mineral projects as set out by National Instrument 43-101 and, as a result, could be misleading.

The company specifically retracts the statement in its May 6, 2014, news release that refers to a "volume of roughly 4.4 billion cubic metres of potential pelican sand." This disclosure is restricted by NI 43-101 because the potential quantity and grade are not expressed. Further, the news release failed to disclose that the quantity was conceptual in nature and that there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

The company specifically retracts the statement in its May 6, 2014, news release that states the preliminary volume, but then states that it is not a mineral resource and should not be relied upon. This contradicts NI 43-101, Section 6.4 (limitation on disclaimers), whereby an issuer disclaims responsibility for, or limits reliance by another party on, any information or limits the use or publication of the information in a manner that interferes with the company's obligation to produce an NI 43-101 technical report and file it on SEDAR.

The company specifically retracts the disclosure of a preliminary economic assessment in its May 6, 2014, news release, as well as a July, 2014, corporate presentation that was available on its company website at the time. In reference to the corporate presentation, specifically, the following statements are retracted:

• Information relating to an initial revenue potential from plant No. 1: Ells River, which included a $15-million potential revenue;
• Information pertaining to sample designs for a 250,000- to 500,000-tonne-per-year plant and a 3,600-tonne storage facility;
• Information relating to economic advantages that include low capex and opex.

The company acknowledges that the numbers, at the time disclosed and based on the exploration to date, were not supportable by an economic analysis of the potential viability of the project in the form of a PEA under NI 43-101.

As a result of current market conditions, the company reports that it is currently in default of the option agreement for the Ells River project and will not be continuing with the project.

We seek Safe Harbor.