VVC Exploration to dissolve Tong Guan CJV in China



    TORONTO, April 27 /CNW Telbec/ - VVC EXPLORATION CORPORATION (VVC: TSX-V)
(V7S: FSE / BBSE) ("VVC" or the "Company") announces that it is proceeding
with the dissolution of its Tong Guan Joint Venture in China ("CJV") in
concert with its chinese Joint Venture Partner. Our legal counsel in Beijing
has advised us that a Plan of Dissolution has been approved by the local
government and will take 2 to 3 months to be finalized.
    As previously announced, due to the divergence of opinion with its Joint
Venture partner relating to the ongoing operations and future development of
the CJV, the Company was uncertain about the future of the CJV. While the
Company aggressively pursued a quick resolution to its differences with its
Joint Venture partner, it had advised its shareholders of the negative impact
that these differences could have on the Company. Since the beginning,
revenues have been lower than anticipated and declined following the sale of
the NQ512 vein. The Company decided to proceed with the dissolution, after it
had completely evaluated its obligations to the CJV and concluded that it was
no longer feasible for financial and business reasons to continue its
relationship with the CJV. Declining production and revenues, increasing cost,
lack of cooperation with our joint venture partners, fierce local competition
for new production and exploration properties, unjustifiable high audit fees,
accounting and supervision cost in light of gross revenues generated, all made
its continuance unreasonable.
    Realizing that its investment in Tong Guan in China was not generating
the anticipated net revenues, the Company recognized an impairment loss and
wrote-down its investment in Tong Guan as at the of year-end of January 31,
2006 and also in the 3-month periods ended July 31 and October 31, 2006. As
the Company is unsure if any amount can be recovered, it was decided in
consultation with its legal and financial advisors to completely write-off its
Tong Guan Project.
    The Company has been and will aggressively continue to pursue
acquisitions of other mineral properties, especially Gold, Uranium and
Antimony in Canada and elsewhere.

    About VVC:
    ----------

    VVC Exploration Corporation is a Canadian exploration company with
projects in Canada and China. VVC also has an indirect participation in the
Beaver Brook Antimony Mine in Newfoundland, Canada and is aggressively
searching for other projects in Canada and elsewhere. Visit our website at
www.vvcexploration.com.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this news release.

    
                                   On Behalf of the board of Directors
                                   (Signed)
                                   Michel J. Lafrance, Secretary-Treasurer
    




For further information:

For further information: Charles Descary, Manager, Investor Relations,
(514) 631-2727, 1-877-558-2727 ext 222, charles@vvcexploration.com

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VVC EXPLORATION CORPORATION

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