Azulcocha Project Moves To Development Phase

TORONTO, ON - Vena Resources Inc. reported that planning is in progress with a partner to begin a pilot test program and final economic assessment of the Azulcocha tailings deposit in Peru. A NI 43-101 compliant probable reserve estimate for the tailings of 908,400 tons grading 3.27% zinc, 10.04% manganese and 1.13 gpt gold was announced in July 2005 and metallurgical testing showed that a marketable zinc concentrate grading over 55% zinc can be produced at a total recovery of 66% and a manganese dioxide product can be produced at a total recovery of 71.1%. Gold credits were not used as part of the 2005 pre-feasibility study economic assessment.

The pre-feasibility study was based on a plant production rate of 500 tonnes per day generating two saleable products - manganese dioxide and a zinc concentrate. The base case results of the analysis indicated that the project is economic, returning a net present value of US$37,200,000 and an internal rate of return of 157%. The study used a zinc metal price of US$0.50 per pound and manganese dioxide price of US$0.70 per pound, which are well below current and forecasted prices for the next few years.

Key components of the capital assets required to achieve these financial results have already been purchased by the Company, including a zinc floatation mill capable of processing up to 1,400 tpd as well as the installation of a 3 MvA electrical substation and additional supporting infrastructure. The Azulcocha tailings Probable Ore Reserve of 908,400 tonnes contains approximately 30,000 tonnes of zinc metal and 91,000 tonnes of manganese metal. Vena expects that pilot testing using current metallurgical methods should improve the published total recoveries achieved previously.

If pilot testing confirms the economics of the project, the Company plans to move forward with permits to begin the reprocessing operation of the tailings deposit. Cash flow from this operation will fund final construction of a much larger tailings deposit capable of containing 3 to 4 million tons of new tailings expected from the eventual underground operation as well as any additional resources found on the mine property and the adjoining Azulcocha West joint venture project with Glencore. The comapny also reported that a 3,000 meter drill program will commence on the Esquilache polymetallic property in Puno, Peru.

A contract has been signed with Canchi Perforaciones Peru S.A.C. to immediately mobilize a track-mounted drill to the property and complete 3,000 meters of diamond core drilling in 12 holes.

The historical Esquilache silver mine has been a centre for mining activities since pre-Inca times. Mineralization occurs in stockworks and rosary-type veins exposed on two hills named Cerro Creston and Cerro Mamacocha within a large Miocene caldera. Vena has concentrated on Cerro Mamacocha where mining activities have been relatively restricted compared to Cerro Creston where mine workings extend to a depth in excess of 450 meters.

Individual drill holes have been planned to test multiple structures and are based on a compilation of extensive surface mapping and sampling, rehabilitation and sampling of underground workings and geophysical studies that have been conducted on the property over the past year.

Although Esquilache is known principally as a high-grade silver producer, mineralization is polymetallic with important values in lead, zinc, copper and gold. Recent studies have shown a rough zonation of the mineralization with copper and gold increasing in the area of the western flank of Cerro Mamacocha.

The current drill program will concentrate on targets in this area including a gold stockwork zone in the structurally complex hanging wall of the Elvira structure.

Gold occurs in a complementary set of extensional veins and veinlets with the highest values at intersections of the larger veins as typified by the Aydee - Ivett intersection and within sigmoidal structures along the vein systems.

The stockwork zone as outlined on the accompanying plan has a width in excess of 100 meters and an exposed length of approximately 160 meters in a northeast - southwest direction with potential extensions covered by overburden. Values on surface peak at 15.3 g/t Au and the maximum value in the associated underground workings is 38.48 g/t Au across 0.60 m in the Ivett structure as detailed in a press release issued by the Company on June 16, 2009.

Another priority target will be the high grade silver and copper mineralization in the Santa Cruz and Juan veins that are exposed in cross-cuts off of the Mamacocha adit. The veins are separated by approximately 50 meters and can be tested by a single hole.

The company s address is 130 Adelaide Street West, Toronto, ON M5H 3P5, 416-364-7739.