VVC Exploration renegotiates debt on Beaver Brook Project

TORONTO, Aug. 4 /CNW Telbec/ - VVC EXPLORATION CORPORATION ("VVC" or the
"Company") is pleased to announce that, after months of intense negotiation,
the Company and its wholly owned subsidiary Beaver Brook Antimony Mines Inc.
("BBAM") have reached an agreement with Beaverbrook Resources Ltd. ("BRL"),
the former owner of the Beaver Brook mine (the "Mine"), whereby BRL will
cancel a CAD$ 16 million debt owed by VVC in consideration for shares of BBAM.
In addition BBAM will receive 3.65 million shares of VVC from treasury and an
advance of CAD$250,000. The new participation of VVC and BRL will represent
respectively 27.5% and 72.5% of the issued and outstanding shares of BBAM.
This agreement will supersede all previous agreements between the parties and
will result in the retirement of CAD$ 16 million of indebtedness in VVC`s
balance sheet and the cancellation of the General Security Agreement. (see
press release September 5, 2003).
With the increase in the price of antimony by 50% over the past 2 years
to USD$3,600 per tonne, it is the intention of BBAM to raise the funds
required to put the Mine into production as soon as possible BBAM will explore
various means to this end and VVC will have the right to maintain its current
interest in BBAM or increase it by participating in any future equity
financing as may be needed. BBAM will also complete the feasibility study
being carried out by Watts, Griffis and McOuat.
This agreement will improve the VVC balance sheet by removing the
CAD$ 16 million debt and leaving VVC with no long term debt and a 27.5%
interest in the antimony project. Furthermore, this will allow the Company to
concentrate its efforts on its Gold Mining Joint Venture Project in the
Shaanxi Province of the People's Republic of China.
"It is indeed a great news for VVC`s shareholders", stated Mr. Jean-Paul
Boily, Chairman and CEO of VVC. "Instead of paying CAD$ 16 million plus the
costs associated with the reopening of the mine for a stake of 100%, VVC will
only have to issue 3.65 million shares for a 27.5% interest in the project. In
addition, we are very pleased to be associated with a group which has a good
understanding of the antimony market. This agreement greatly improves our
balance sheet and will accelerate the negotiations underway with financial
institutions for the financing of new acquisitions in the promising Tong Guan
gold area where the Company already has a prominent position. VVC can
concentrate its efforts and financial resources on its Chinese gold joint
venture, will be able to increase its gold production and by doing so, fulfill
its goal on becoming a mid-size Sino-Canadian gold producer."

About VVC:
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VVC Exploration Corporation is a Canadian exploration company with
properties in Canada and China. Its main assets are the participation of VVC
in Joint Ventures in producing gold mines in China, and its participation in
the Beaver Brook Antimony Mine in Newfoundland, Canada. The Company's
objective is to generate significant cash flow from operations in order to
aggressively pursue other projects in China. Please 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

                                Michel J. Lafrance, Secretary-Treasurer