Mr. Ian Mallory reports

VANADIUMCORP ANNOUNCES A NON-BROKERED PRIVATE PLACEMENT FINANCING

Vanadiumcorp Resource Inc. has arranged a non-brokered private placement financing of up to $1.3-million.

The financing will consist of:

• Up to 23,333,333 non-flow-through units priced at three cents per unit for gross proceeds of up to $700,000; each unit will consist of one common share of the company and one purchase warrant to acquire an additional common share at five cents for a period of three years;
• Up to 15 million flow-through shares (without warrant) priced at four cents per share for gross proceeds of up to $600,000.

Directors and officers of the company may acquire securities under the financing, which participation would be considered to be a related-party transaction as defined under Multilateral Instrument 61-101. Such participation is expected to be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.

The company may pay finders' fees in cash and warrants bearing same terms as the unit warrants. All shares issued pursuant to the financing and any shares issued through the exercise of warrants will be subject to a four-month hold from the closing date. The financing is subject to TSX Venture Exchange approval.

Proceeds of the financing will be used in respect of the units for: working capital, production and sale of vanadium electrolyte, and general corporate purposes of the company, and in respect of the flow-through shares for: qualifying expenditures to maintain and advance the company's resource properties.

Vanadiumcorp's chairman and chief executive officer Ian Mallory stated: "This financing will enable the company to resume full production at our first plant and make sales of our vanadium electrolyte to leading manufacturers of vanadium flow batteries in North America and Europe. Vanadiumcorp will be back on track."

About Vanadiumcorp Resource Inc.

Vanadiumcorp is engaged in the production of high-quality vanadium electrolytes for the expanding international market for long-duration vanadium flow batteries. The company's pilot plant facility is based in Val-des-Sources, Que. The company is also advancing technologies for the production of strategic vanadium-titanium and potentially high-grade iron located at its vanadiferous titanomagnetite projects, including at its flagship Lac Dore deposit near Chibougamau, Que. The successful deployment of these technologies would enable stable, long-term access to the company's deposits of critical metals, including vanadium feedstock for the production of electrolytes by the company.

We seek Safe Harbor.