VANCOUVER, BC – VICTORY RESOURCES CORP (the "Company") is pleased to announce that it has executed an agreement (the “Reforma Agreement”) whereby it has been granted an option to acquire a 70% undivided interest in the Reforma Mine property, Sinaloa, Mexico.

The Reforma property formally owned and operated by “Industrias Peñoles S.A.B. de C.V. (Peñoles), of Mexico is a 6,987 hectare land package, located within a regional northwest trending graben structure which extends through eastern portion of Sinaloa State, Mexico in the Choix Mining District.

The Reforma property area borders two significant mineral deposits. The Bahuerachi property, (which was formally owned by Tyler Resources) was purchased in 2008 by Jinchuan Group China, for an approximately value of $216 million dollars.  The Bahuerachi Main Zone reportedly contains a mineral resource of some 525 million measured and indicated tonnes grading 0.40% Cu with values of molybdenum, gold, silver, and zinc.

The second significant mineral deposit bordering the Reforma land package is the Santo Tomas porphyry mineral deposit, south of the Reforma property on the western regional graben structure and reportedly contains a mineral resource of some 600 million tonnes grading 0.363 % Cu (plus gold and silver credits) in the North Zone and some 350 million tonnes grading 0.309 % Cu (plus gold and silver credits) in the South zone.

At the Reforma property, Peñoles, reported that in the 1968 to 1980 production period at the Reforma Mine a total of 1,800,000 tonnes at an average grade of 91.62 g/t Ag, 1.90% Pb, 7.44% Zn, and 0.63% Cu were processed. In 1980 Peñoles reported a remaining mineral reserve of 52,565 tonnes grading 104.91g/t Ag, 1.87% Pb, 5.73% Zn, and 0.58% Cu. No other production is recorded after that date as the mine was shut down due to labor problems and deteriorating metal prices.

Historical records show that in addition to the production from the Reforma Mine, Peñoles explored the southern extension of Reforma mineral zone with 13 surficial diamond drill holes, a ramp to explore the diamond drill hole mineral intersections, and six ramp drill holes. Documented surficial drill hole mineral intersections on the Reforma South area yielded up to 8.78 metres of 15.21g/t Ag, 3.04% Pb, 5.20% Zn, and 0.20% Cu and 2.68 metres of 298.0g/t Ag, 2.95% Pb, 9.00% Zn, and 1.85% Cu with ramp drill hole intersections of up to 4.10 metres of 98.0 g/t Ag, 5.15% Pb, 12.7% Zn, and 1.50% Cu.

Penoles also completed an exploration program in the Reform area which resulted in the delineation of the El Chapote mineral zone one mile northwest of the Reforma Portal and within the property package optioned by Victory. The mineral zone, hosted by sediments and fine-grained sandstones located above a granodiorite contact, was initially explored by a 60 metre drift and an internal shaft with shorter sublevel crosscuts.

 A subsequent 12 diamond drill program resulted in the delineation of three mineral zones which included reported intersections of up to 12.00 metres of 2.00% Cu. At the termination of the El Chapote exploration in 1980, Peñoles documented a mineral reserve of 243,640 tonnes of 1.517% Cu in the three mineral zones.

 “Please note that although the Peñoles documented reports are believed to accurate but they are of a historic nature and cannot be relied upon until confirmed through a current work program by the company”.

 

Management strategy is to continue the development of mineral resources in preparation for production on the Reforma property and to continue to develop/explore other targets on the property. The geological setting found at the Reforma area is analogous in Porphyry, Skarn, Breccia and Manto-type mineralization similar to those found at the Cananea district located in Sonora Mexico, the location of one of largest open pit copper mines in the world. Victory Resources Corporation will proceed to implement a work program as recommended by Victory Resources geological team.

The owners (collectively the “Owners”) of the property are “Aztec Zinc de Mexico S.A. de C.V.” and “Minera Copper Canyon S.A. de C.V.”

In order to earn its 70% interest, the Company is required to pay to the Owners $300,000 ($50,000 immediately after TSX approval and $50,000 in intervals of six months until paid), issue a total of 14,000,000 common shares (2,000,000 immediately and 6,000,000 on or before each of 12th and 24th month thereafter), and conduct work programs aggregating $2,500,000 ($500,000 in the first year, an additional $1,000,000 in the second year, and an additional $1,000,000 in the third year).  The shares issued to the Owners will be pooled voluntarily with 1,500,000 shares released immediately and 1,500,000 released every six months thereafter.

Upon the completion of earning by the Company, the parties have agreed to form a joint venture (the JV”) for the purpose of the further development and exploitation of the property with the Owner to retain a carried interest for the first $15,000,000 of JV expenditures.  Thereafter, the parties will fund their further participation in the JV in accordance with their 30/70 respective interest and will be subject to standard penalties.

 
Laurence Sookochoff, P. Eng., a Qualified Person (QP) as defined by National Instrument Policy 43-101, is responsible for the technical information contained in this News Release.

 

On behalf of the Board of Directors of Victory Resources Corporation.
Laurence Sookochoff, P. ENG.  Director

 

This news release contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the control of Victory Resources Corp. which may cause actual results, performance or achievements of Victory Resources Corporation to be materially different from the results, performance or expectation implied by these forward looking statements.  Such uncertainties include the completion of the acquisition of the Reforma property and the ability of Victory to finance its participation and earn a resulting interest in the Reforma property.Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.
 

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