TORONTO, ONTARIO--(Marketwire - June 20, 2011) - Valencia Ventures Inc. (News - Market indicators) ("Valencia" or the "Company") wishes to provide an update to its news releases dated June 23, 2010 and March 3, 2011, whereby it disclosed that it had loaned $700,000 to a private Ontario company ("OntarioCo") to carry out a comprehensive exploration program on certain properties Valencia was considering acquiring to satisfy the 2010 work commitments in respect of the properties. OntarioCo has repaid $127,000 of the principal amount of the Loan and $573,000 remained outstanding (the "Loan").

The shareholders of OntarioCo have entered into a third-party agreement with a private company for the sale of OntarioCo, and, accordingly, approached the Company regarding the discharge of OntarioCo's obligations pursuant to the Loan for consideration of common shares of the private company. The Company has agreed with OntarioCo that it will receive 500,000 common shares of the private company on the sale of OntarioCo to the private company in consideration for the remaining amounts outstanding from OntarioCo under the Loan. To the best of the Company's knowledge, the negotiation of value of the consideration occurred at arm's length between the private company and its agents. The adult son of a director of the Company, being Stan Bharti, is a shareholder of OntarioCo, and accordingly, Mr. Bharti declared his conflict and abstained from voting on the resolution of the board of directors of Valencia to approve this transaction. The private company is exploring for rare earth metals in South America. Its initial project is grassroots exploration of its Jasimampa property in Santiago del Estero Province, Argentina.

About Valencia

Valencia is a Canadian resource company traded under the symbol VVI on the TSX Venture Exchange. For additional information on this press release or Valencia's projects, please visit www.valenciaventures.com.

Forward - Looking Information

Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to expectations regarding the repayment of the loan. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the mineral resources are based on the assumptions and parameters set out above and on advice from independent, qualified consultants. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks described in the public record of the Company posted under the profile of the Company on SEDAR at www.sedar.com. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.