VVC Signs $4 Million Loan Agreement and Announces Proposed Timeline for Samalayuca Copper Project Pilot Mining Production

TORONTO, ONTARIO--(Marketwired - Sept. 2, 2014) - VVC Exploration Corporation ("VVC" or the "Company") (TSX VENTURE:VVC) is pleased to announce that its wholly owned subsidiary, Camex Mining Development Group Inc. ("Camex") has signed a loan agreement with Aeris Trading Corp. (the "Lender") for a loan of up to US$4 million which was previously announced by press release dated August 11, 2014. The loan agreement has been conditional accepted for filing by the TSX Venture Exchange ("TSXV"). 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% 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 US$2 million initially but can be extended to US$4 million, 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 signoff of all documents after receipt of the TSXV acceptance, or September 30, 2014. Subsequent draw-downs will be limited to $500,000 per month thereafter up to US$2 million. Interest on the loan is set at 12% per annum, with the first year's interest prepaid. The loan is for a maximum of 5 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 1,000,000 shares of common shares of VVC and 2,000,000 share purchase warrants expiring in 5 years, aggregating 8,000,000 shares and 16,000,000 warrants if the full $4 million is received. The exercise price of the warrants is $0.08 per share for the first 2 years and $0.12 per share for years 3 through 5.

To induce Lender, Camex has pledged to the Lender, on a proportional basis, 22,500 shares of Samalayuca Cobre S.A. de C.V. ("SC") representing its 33.75% interest. SC principal asset is a 4055 acre mineral claim in Northern Chihuahua Mexico known as the "Samalayuca Project". The first $2 million loan commitment will be secured with 11,250 SC Shares to be placed in escrow upon the first closing. The final 11,250 SC Shares shall be placed in escrow following the commencement of a drawn-down on the second $2 million. In both cases, the SC Shares shall be placed in escrow by Lender to law firm of DFK International, in Chihuahua Mexico who will act as Escrow Agent. The SC Shares will be released from escrow, on the basis of half after the first two million is 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 SC Shares will be delivered to the lender by the Escrow Agent calculated on a prorate basis of the principal amount of the loan in default.