VanadiumCorp Announces Financing and Reverse Stock Split

VANCOUVERVanadiumCorp Resource Inc. (TSX VENTURE: ‘VRB’) (OTCBB: ‘APAFF’) (FRANKFURT: ‘NWN’) (the ‘Company’) plans to set up a bond financing to raise up to a maximum of $2 million (the “Debt Financing”).

Under the terms of the debt financing, the debentures will mature two (2) years from the date of closing (the “Maturity Date”) and will bear interest at the rate of 10% per annum and will be repayable by the Company on the due date.

As compensation to the lenders for the risk of repayment, the Company will issue non-transferable common share purchase warrants (the “Bonus Warrants”) exercisable to purchase common shares of the Company equal to 100% of the principal amount of the debentures divided by $0.05 per share, or up to 40,000,000 common shares, or 4,000,000 after the consolidation described below, if the debt financing is fully subscribed (the “Warrant Shares”). The bonus warrants will be exercisable at an exercise price of $0.05 per Warrant Share, or $0.50 after the consolidation described below, for a period of two years following closing.

Proceeds from the debt financing will be used to fund the first stage of new metallurgical testing and production methods for vanadium electrolyte and for general working capital. The terms of the debt financing are subject to the acceptance of the TSX Venture Exchange (the exchange’).

The Company announces that its Board of Directors has approved a consolidation of the issued share capital of the Company on the basis of ten (10) ordinary shares for one (1) new share of the Company (the “Consolidation”). The Company currently has 319,251,120 common shares outstanding and will have 31,925,112 common shares outstanding following the completion of the consolidation, subject to rounding and the elimination of any fractional shares resulting from the consolidation. The number of outstanding stock options and warrants of the Company will also be adjusted by the consolidation ratio and the exercise prices adjusted accordingly.

The consolidation is subject to stock exchange approval. The Company will continue to carry on business after the Consolidation as ‘VanadiumCorp Resource Inc.‘. If the Combination is approved by the Exchange, the Company will issue a further press release indicating the effective date of the Combination.

Upon completion of the Consolidation, a letter of transmittal will be mailed to registered shareholders advising them that the Consolidation has become effective. The Letter of Transmittal will contain instructions on how registered shareholders may exchange their share certificates or DRS statements evidencing their pre-consolidated common shares for new share certificates or DRS statements representing the number of post-consolidation ordinary shares to which they are entitled. No action is required on the part of non-registered shareholders (shareholders who hold their shares through an intermediary) to complete the consolidation. The Common Shares are expected to begin trading on the Exchange following the Consolidation, after the Exchange has issued its last bulletin advising of the effective date of the Consolidation.

About VanadiumCorp

VanadiumCorp Resource a mining exploration company located in Vancouver, Canadawith 100% ownership in Lac Dore Vanadium, Iron and Titanium Projectlocated 27 km east-south-east of the city of Chibougamau in Quebecas well as the Iron T deposit, VTM at Matagami. VanadiumCorp also owns 100% of a new hydrometallurgical process, VEPT (VanadiumCorp, Electrochem, Process Technology) invented by Dr. Francois Cardarelli, which consists of digesting vanadiferous charges into concentrated sulfuric acid. The technology relates to the recovery of vanadium pentoxide, vanadyl sulphate, ferrous sulphate, titanium hydrolyzate and silica from raw materials such as vanadiferous titano-magnetite, iron ores and concentrates such as magnetite and hematite, industrial vanadium waste such as BOF slag and other industrial by-products that also contain vanadium.


Paul McGuigan. P. Geo.


Caution note

The information in this press release includes certain “forward-looking statements.” All statements, other than statements of historical facts, included herein, including, without limitation, plans and intentions regarding the Company’s properties, statements regarding intentions regarding obligations due for various projects, strategic alternatives, amount of resources or reserves, timing of authorization, construction and production and other milestones, are forward-looking statements. Statements regarding mineral reserves and mineral resources are also forward-looking statements in that they reflect an assessment, based on certain assumptions, of the mineralization that would be encountered and the mining results if the project were developed and mined in the manner described. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from VRB’s expectations include uncertainties regarding the need for additional financing to explore and develop properties and the availability of financing in the debt and capital markets; uncertainties related to the interpretation of drilling and geological test results and the estimation of reserves and resources; the need for cooperation from government agencies and local groups in the exploration and development of the properties and the need to obtain permits and government approval. VRB’s forward-looking statements reflect the beliefs, opinions and projections of management as of the date the statements are made. VRB undertakes no obligation to update forward-looking statements if management’s beliefs, opinions, projections or other factors should change.

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