Mr. Michel Lafrance reports

VVC SIGNS $4 MILLION LOAN AGREEMENT AND ANNOUNCES PROPOSED TIMELINE FOR SAMALAYUCA COPPER PROJECT PILOT MINING PRODUCTION

VVC Exploration Corp.'s wholly owned subsidiary, Camex Mining Development Group Inc., has signed a loan agreement with Aeris Trading Corp. for a loan of up to $4-million (U.S.), which was previously announced by press release dated Aug. 11, 2014. The loan agreement has been conditional accepted for filing by the TSX Venture Exchange. The loan will provide funds for the completion of the permit and mine planning process on the Samalayuca copper project in northern Chihuahua, Mexico, which is 33.75 per cent owned by VVC. Once the planned pilot mine is operating, the loan will be repaid from the proceeds of VVC's share of the Samalayuca mining revenue.

The loan is for $2-million (U.S.) initially but can be extended to $4-million (U.S.), once mining permits for the Samalayuca copper project are received. The first $250,000 will be provided to Camex at the earlier of one month following the final sign-off of all documents after receipt of the TSX-V acceptance, or Sept. 30, 2014. Subsequent drawdowns will be limited to $500,000 per month thereafter up to $2-million (U.S.). Interest on the loan is set at 12 per cent per annum, with the first year's interest prepaid. The loan is for a maximum of five years and requires that one-half of the revenue to be received from the Samalayuca copper pilot mining project be used for loan repayment until the loan is paid in full. In addition, for each $500,000 drawn down, VVC has agreed to provide to the lender with one million shares of common shares of VVC and two million share purchase warrants expiring in five years, totalling eight million shares and 16 million warrants if the full $4-million is received. The exercise price of the warrants is eight cents per share for the first two years and 12 cents per share for years 3 through 5.

To induce the lender, Camex has pledged to the lender, on a proportional basis, 22,500 shares of Samalayuca Cobre S.A. de C.V., representing its 33.75-per-cent interest. Samalayuca Cobre's principal asset is a 4,055-acre mineral claim in northern Chihuahua, Mexico, known as the Samalayuca project. The first $2-million loan commitment will be secured with 11,250 Samalayuca Cobre shares to be placed in escrow upon the first closing. The final 11,250 Samalayuca Cobre shares shall be placed in escrow following the commencement of a drawdown on the second $2-million. In both cases, the Samalayuca Cobre shares shall be placed in escrow by lender to law firm of DFK International, in Chihuahua, Mexico, which will act as escrow agent. The Samalayuca Cobre shares will be released from escrow, on the basis of half after the first two million are repaid, and the other half when the balance of the loan is repaid. Should there be a default by the borrower, which is not cured in the allotted time, a number of Samalayuca Cobre shares will be delivered to the lender by the escrow agent calculated on a prorated basis of the principal amount of the loan in default.

Jim Culver, VVC's president, commented: "We are very pleased that with TSX-V's acceptance, VVC has been able to complete this loan facility. This loan, in conjunction with the ongoing private placement, will provide the company with funding to advance the Samalayuca copper project to pilot production. VVC expects this pilot mining operation to allow the company to be cash flow positive from copper production revenue from the company's Samalayuca copper project in the next 12 to 15 months."

Highlights from VVC's timeline projections for the Samalayuca project over the next 12 to 15 months are:

• Stage 1: August, 2014, to November, 2014:
  • Land use change approval first by the advisory committee (advisory committee approved on July 17 and recently by the regional director of CONAP (Division of Mexico's environmental agency that governs land use designation). The national director of CONAP in Mexico City has said publicly that if the advisory committee approved he would also. All of the necessary documentation has been submitted and is pending review by the director of CONAP in Mexico City;
  • Request for permits to be filed in September (agency is required to answer in 60 days);
  • Drilling for pit definition to begin in September;
• Stage 2: December, 2014, to April, 2015:
  • All land use changes and permits are expected to be approved and project preparation for pilot production is to begin;
  • Final drilling for the first open pit mine will be completed;
  • Construction of roads, heap leach pad, lab, recovery facility and office should be completed;
• Stage 3: May, 2015, to August, 2015:
  • Previously mined ore stockpiled on surface to be placed on heap leach pad;
  • Production of 50,000 tons of ore per month begins (500,000 pounds of copper);
  • First project cash flow in June/July, 2015.

We seek Safe Harbor.