Encouraging values at La Victoria

Drilling on the Victoria zone of the Venezuelan property known as Lo Increible is returning values for El Callao Mining (VSE).

Highlights include a 51.5-ft. interval grading 0.13 oz. gold per ton in one hole and a 43-ft. interval grading 0.27 oz. in another.

The Victoria zone now measures 1,000 ft. in length, up to 160 ft. in width and 600 ft. in depth; it remains open to the north and south, as well as to depth.

Ongoing drilling is aimed at defining the structure, and recent results indicate gold grades increase to the south.

El Callao is earning up to a 70% interest in the Increible No. 4 and No. 2 concessions.

Results from the first five drill holes in the current second phase are as follows:

Hole Interval Width Grade

(ft.) (ft.) (oz./ton)

LV-73 66.3-207.3 141.0 0.065

incl. 116.5-168.0 51.5 0.13

LV-74 107.3-191.4 84.1 0.14

incl. 107.0-116.1 9.2 0.93

LV-75 302.3-364.1 61.8 0.03

432.5-501.4 68.9 0.038

LV-76 162.5-283.0 120.5 0.20

incl. 162.5-187.2 24.7 0.45

240.0-283.0 43.0 0.27

LV-77* 232.9-246.9 14.0 0.14

295.6-331.9 36.3 0.24

incl. 298.9-315.4 16.5 0.41

*Drilling on LV-77 stopped in mineralization as a result of a drill breakdown and will be continued at a later date.