VVC Exploration – Share Purchase Agreement with Plateau Helium Corporation

- November 9th, 2020

VVC Exploration Corporation announces that it has signed a Share Purchase Agreement with Plateau Helium Corporation and the shareholders of PHC. PHC is a Wyoming Corporation focused on helium exploration and development, primarily in the western US. The terms of the SPA allow VVC to acquire a 10% minority interest in PHC for US$100,000. The SPA gives VVC the right to buy the remaining 90% interest in PHC from the …

VVC Exploration Corporation (” VVC ” or the ” Company “) (TSX-V:VVC) announces that it has signed a Share Purchase Agreement (“ SPA ”) with Plateau Helium Corporation (“ PHC ”) and the shareholders of PHC. PHC is a Wyoming Corporation focused on helium exploration and development, primarily in the western US. The terms of the SPA allow VVC to acquire a 10% minority interest in PHC (the “ Minority Interest ”) for US$100,000. The SPA gives VVC the right to buy the remaining 90% interest in PHC (the “ Majority Interest ”) from the shareholders of PHC for twenty-one million shares of VVC (the “ VVC Shares ”), subject to a voluntary escrow and a number of conditions. The acquisition of the Minority Interest is subject to TSX Venture Exchange (“ TSXV ”) approval and will close as soon as approval has been obtained. The acquisition of the Majority Interest is subject to completion of due diligence of PHC by VVC and further TSXV approval.

PHC’s initial target project is located in Kansas and currently comprises 69 leases covering 13,760 acres known as the Syracuse Helium Project (the ” Project ”). The property on which the Project is located (the “ Property ”) hosts more than 150 potential well sites. Historically, the acreage was explored by 5 wells, all of which either produced or tested natural gas containing helium. Initial work plan in the Project Involves reworking/re-entering and returning the 5 existing wells to production. Produced helium and natural gas will be processed and marketed via an existing pipeline system and processing plant that services the area. PHC owns a 100% working interest in the Property, subject to numerous royalties referred to below. PHC will be entitled to approximately 52.6% of the net proceeds from the first 10 wells on the Property and approximately 66.69% of the net proceeds from all remaining wells from the Project. With the existing funding available to PHC through the limited partnership financing (see below) and forward sales of helium, it is anticipated that further development will be funded without additional capital in the near term.

The Project is subject to a 17% royalty held by three parties (the “ 17% Overriding Royalty ”). PHC completed a limited partnership financing to acquire the Project and commence the rework/re-entry of the 5 existing wells. These limited partners are entitled to a royalty of 21% of the net revenue from the first 10 wells after payment of the 17% Overriding Royalty and deduction of the costs of production (the “ LP Interest ”). The Project and all helium projects acquired by PHC are also subject to a 15% royalty held by a company controlled by the shareholders of PHC (the “ 15% Royalty ”) as well as a 1% royalty held by a third-party (the “ 1% Royalty ”). The 15% Royalty and the 1% Royalty are payable on the net proceeds received by PHC after deduction of all costs of production and payment of all pre-existing royalties.

One VVC insider holds 9.5% of the LP Interest as a result of investing US$100,000. Another insider of VVC holds a 16.67% interest in the 15% Royalty. The transaction was unanimously approved by the disinterested directors of VVC. The transaction is not a related party transaction as defined in Multilateral Instrument 61 – 101 – Protection of Minority Security Holders in Special Transactions.

Following the closing of the purchase of the Minority Interest, VVC will have 45 business days to complete its due diligence and elect to acquire the Majority Interest. Should VVC proceed with the acquisition of the Majority Interest, on closing, the VVC Shares, the Majority Interest and a transfer of the Syracuse Helium Project will be held in escrow. The VVC Shares will be released from escrow in three tranches of 7 million shares each upon completion of three predetermined benchmarks.

About VVC Exploration Corporation

VVC is a Canadian exploration and mining company focused on the exploration and development of copper and gold deposits in Northern Mexico, specifically the Gloria Copper Project located in Chihuahua State. VVC has other projects in Mexico and Canada, including gold and silver prospects, Cumeral and La Tuna, in Sonora and Sinaloa States, Mexico and a grassroots gold/VMS prospect in the Timmins area of Northern Ontario. Visit our website at: http://vvcexpl.com .

On behalf of the Board of Directors

Michel J. Lafrance, Secretary-Treasurer

For further information, please contact:
Patrick Fernet – (514) 631-2727 or Trevor Burbank – (214) 641-1041
pfernet@vvcexploration.com trevor@vvcexpl.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

2 369 Kingston Road, PO Box 28059 Terry Town, Scarborough, ON M1N 4E 7 Tel: 416- 61 9-5304

FORWARD LOOKING STATEMENTS:

This news release contains “forward-looking information” (within the meaning of applicable Canadian securities laws) and “forward -looking statements” (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995).  Such statements or information are identified with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “potential”, “estimate”, “propose”, “project”, “outlook”, “foresee” or similar words suggesting future outcomes or statements regarding an outlook.  Such statements include, among others: acquiring 10% minority interest in PHC subject to TSXV approval; acquiring Majority Interest subject to due diligence; produced helium and natural gas to be processed and marketed via existing pipeline system and processing plant; further development to be funded without additional capital; VVC Shares to be released from escrow … upon completion of three predetermined benchmarks; etc.

Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management’s expectations regarding acquisitions, production of helium, future development and growth, plans for and completion of projects by Company’s third-party relationships, availability of capital, and the necessity to incur capital and other expenditures. Actual results could differ materially due to a number of factors, without limitation, operational risks in the completion of Company’s anticipated projects, delays or changes in plans with respect to the development of Company’s anticipated projects by Company’s third-party relationships, risks related to Covid-19, risks affecting the ability to develop projects, risks in legislative changes in the applicable jurisdictions, risks in decrease of price of helium. No assurances can be given that the efforts by Company will be successful.

Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company’s securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements, except as required by law.

Investors are cautioned that notwithstanding the expectations described herein, there can be no assurance that the plans described herein will be completed as proposed. Trading in the securities of VVC should be considered highly speculative.  All forward-looking statements contained in this press release are expressly qualified in their entirety by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com ).

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