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Vencan Closes Second Tranche of $1,164,400 in Financing; Signs Option Agreement with Patricia Mining 7/25/2006 TORONTO, ONTARIO, Jul 25, 2006 (MARKET WIRE via COMTEX News Network) -- Vencan Gold Corporation (TSX: VCG) (the "Corporation") - OPTION AGREEMENT WITH PATRICIA MINING CORP. Kirk McKinnon, the President & Chief Executive Officer of the Corporation is pleased to announce that further to the Company's press release dated April 5, 2006, the Corporation has signed an Option Agreement dated June 14, 2006 with Patricia Mining Corp. (Patricia), which was approved by the TSX Venture Exchange on June 21, 2006. The agreement gives Patricia the right to acquire a 75% interest in the Corporations Edwards gold property adjoining Patricia's Island Gold Project and 100% of the Corporations 3% NSR it holds on the past producing Edwards Mine currently owned by Strike Minerals Inc. The Edwards property consists of 39 staked and 4-patented mining claims in Jacobson Township covering an area of approximately 1,720 acres. The claims are to the east and contiguous with Patricia's Island Gold Project. Patricia has earned a 75% interest in the property from Vencan by making a cash payment of $30,000 and issuing 500,000 common shares in accordance with the agreement. Patricia has the option to acquire Vencan's remaining 25% interest for the first 30 months after the agreement date by issuing 1,000,000 common shares and at any time after 30 months by issuing 1,500,000 common shares to Vencan. Vencan has retained a 2% NSR on the property which may be purchased for $1,500,000. Vencan's 25% interest will be carried for the first one million ($1,000,000) in exploration expenditures or 2 years whichever occurs first. FINANCING The company is now well funded to pursue the many exploration opportunities on its highly mineralized Cayenne Property. The two tranches of financing resulted in gross proceeds of $1,964,400. Richard Schler, the Vice-President & Chief Financial Officer of the Corporation, is pleased to announce that Vencan Gold Corporation (the "Corporation") has closed the second tranche of financing which provided aggregate gross proceeds of $1,164,400 including $40,000 with insiders by way of non-brokered private placements. The private placement consisted of 4,650,000 "flow-through common shares" of the Corporation (the "F/T Common Shares") at a price of $0.10 per F/T Common Share and 6,994,000 units (which are non-flow-through) of the Corporation (the "Units") at a price of $0.10 per Unit. Each Unit consisted of one common share of the Corporation and one-half of one common share purchase warrant (the "Unit Warrants"). Each whole Unit Warrant will entitle the holder thereof to acquire one common share of the Corporation at a price of $0.12 for a period of 24 months from the date of issuance. In connection with the financing the Corporation paid Agents cash fees equal to $25,798 and issued 523,600 common shares of the Corporation to Agents as fee shares. Agents also received fee purchase warrants exercisable at $0.10 to acquire 1,748,500 common shares of the Corporation for 24 months from date of issuance. The Corporation intends to use the gross proceeds from the sale of the F/T Common Shares primarily for exploration programs on its projects located in the Timmins/Gogama Region of Ontario and the proceeds from the sale of the Units for working capital and general corporate purposes. Completion of the financings remains subject to regulatory approval. The securities issued under the financings will be subject to a four-month resale restriction in Canada. ADMINISTRATION The Board granted the issuance of 1,555,000 stock options to Directors, Officers and Consultants of the Corporation under the terms of an Incentive Stock Option Plan approved by shareholders at the last AGM held on January 18, 2006. The options are exercisable at $0.12 "per share" for a period of 4 years. The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein. Contacts: Vencan Gold Corporation J. A. Kirk McKinnon President and Chief Executive Officer [phone] [phone] (FAX) Vencan Gold Corporation Richard Schler Vice President & CFO [phone] [phone] (FAX) [e-mail] www.vencan.com SOURCE: Vencan Gold Corporation mailto:[e-mail] https://www.vencan.com Copyright 2006 Market Wire, All rights reserved.