Palos Merchant Bank discloses its position in VVC Exploration Corporation

MONTREAL, May 16, 2012 /CNW Telbec/ - Palos Merchant Bank L.P. ("PMB"), announces that it has control or direction, with its joint actor, over 8,978,571 common shares and 7,871,429 common share purchase warrants, exercisable at $0.18 and expiring on April 11, 2013 (the "Warrants") of VVC Exploration Corporation (the "Issuer").

PMB currently has, with its joint actor, a securityholding percentage, calculated in accordance with National Instrument 62-103 The Early Warning System and Related Take-Over Bid and Insider Reporting Issues ("NI 62-103") of approximately 14.20%.  Assuming the exercise of the Warrants, PMB currently has, with its joint actor, a securityholding percentage of approximately 23.69%.

PMB holds 2,919,977 common shares and 1,871,429 Warrants.  Camex Mining Development Group Inc. ("Camex"), PMB's joint actor, holds 6,058,594 common shares and 6,000,000 Warrants.

On April 11, 2011, under a prospectus exempt private placement of units of the Issuer (units composed of 1 common share and 1 common share purchase warrant, priced at $0.07 per unit (each, a "Warrant")). PMB acquired 3,300,000 common shares and 3,300,000 Warrants of the Issuer for an aggregate consideration of $231,000; PMB was also issued 550,000 common shares for certain services it has rendered to the Issuer in connection with the private placement. Camex acquired 6,000,000 common shares and 6,000,000 Warrants of the Issuer for an aggregate consideration of $420,000.  PMB and Camex were not joint actors at this point in time.  Their respective holding of the then outstanding common shares of the Issuer was (i) PMB 6.23% and, taking into consideration the Warrants, 10.97%; (ii) Camex 9.71%, and taking into consideration the Warrants, 17.69%.

On April 28, 2011, PMB and Camex became joint actors: PMB was issued shares by Camex in consideration for the purchase by Camex of shares held by PMB in a TSX-V listed issuer and as a result, PMB became a majority shareholder of Camex.

Camex acquired 609,000 common shares of the Issuer on April 28, 2011 by private share exchange agreement for an aggregate consideration of $91,350.

On November 8, 2011, under a private share purchase agreement, PMB acquired from Camex 550,406 common shares of the Issuer, for cash consideration of $82,560.  On the same day, PMB exercised 1,428,571 Warrants at $0.12 (the original exercise price for the Warrants).

Subsequently, common shares of the Issuer were sold by PMB on the TSX-V between December 13, 2011 and February 17, 2012, at prices ranging from $0.08 to $0.165 per common share.

As announced by the Issuer on April 9 2012, the exercise price of the Warrants was changed from $0.12 to $0.18 and their exercise period was extended from April 11, 2012 to April 11, 2013.

The securities of the Issuer were acquired by PMB and its joint actor for investment purposes.  PMB and its joint actor expect to review from time to time their investment in the Issuer and may, depending on the market and other conditions: (i) acquire securities or related financial instruments of the Issuer in the open market, in privately negotiated transactions or otherwise, and/or (ii) dispose of all or a portion of the securities or related financial instruments of the Issuer over which it now or hereafter exercises, or may be deemed to exercise, control or direction, or owns.

The transactions described above have not been reported; Early Warning Reports were required as follows:

April 11, 2011

PMB and Camex were not joint actors at this point in time.

• PMB held 3,850,000 common shares representing a securityholding percentage of approximately 6.23%; and taking into consideration its 3,330,000 Warrants, 10.97%;
• Camex held 6,000,000 common shares representing a securityholding percentage of approximately 9.71%;and taking into consideration its 6,000,000 Warrants, 17.69%.

April 28, 2011

• The aggregate holdings of PMB and its joint actor being 10,459,000 common shares, this represented a securityholding percentage of approximately 16.92%; and taking into consideration the 9,300,000 Warrants, 27.78%;
• PMB held 3,850,000 common shares and 3,330,000 Warrants;
• Camex held 6,609,000 common shares and  6,000,000 Warrants.

November 9, 2011

• The aggregate holdings of PMB and its joint actor being 11,887,571 common shares, this represented a securityholding percentage of approximately 19.23%; and taking into consideration the 7,871,429 Warrants, 28.35%;
• PMB held 5,828,977 common shares and 1,871,429 Warrants;
• Camex held 6,058,594 common shares and 6,000,000 Warrants.

April 9, 2012

The exercise price of the Warrants was changed to $0.18 and their exercise period was extended from April 11, 2012 to April 11, 2013.  No further acquisition of securities of the Issuer had been made by either PMB and Camex, but PMB has disposed of common shares of the Issuer on the open market.

• The aggregate holdings of PMB and its joint actor being 8,978,571 common shares, this represented a securityholding percentage of approximately 14.20%; and taking into consideration the 7,871,429 Warrants, 23.69%;
• PMB held 2,919,977 common shares and 1,871,429 Warrants;
• Camex held 6,058,594 common shares and 6,000,000 Warrants.

The issuance of this news release is not an admission that any entity named herein owns or controls any described securities or is a joint actor with another named entity.

Additional information is provided in the early warning report filed on www.sedar.com by PMB.

or a copy of the early warning report please contact:

Noah Billick
Palos Merchant Bank L.P.
1, Place Ville-Marie
Suite 1812
Montreal (Québec)
H3B 4A9
Tel: [phone]