CALGARY, ALBERTA–(Marketwired – May 10, 2016) –

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Valparaiso Energy Inc. (“Valparaiso” or the “Corporation“) (NEX:VPO.H) is pleased to announce that it has entered into a non-binding Letter of Intent (“LOI”) dated April 27, 2016 with Oro Sur S.A.S. (“ORO Sur”) which outlines the general terms and conditions pursuant to which ORO Sur will assign its rights to purchase the Yurani Mine and related assets in Colombia (the “Yurani Mining Rights”).

The LOI is to be superseded by a definitive agreement. The transaction is subject to further evaluation and due diligence by Valparaiso and requisite regulatory approval including the approval of the TSX Venture Exchange and standard closing conditions.

Under the terms of the LOI, ORO Sur will assign to Valparaiso, all of its interests in an agreement dated April 30, 2016 (the “Agreement”) between ORO Sur and a Colombian group (the “Group”). Valparaiso will pay ORO Sur five million (5,000,000) common shares of Valparaiso and will pay the Group a total of US$4,950,000 over a period of two (2) years and nine (9) months from closing, including: US$2,000,000 upon closing; US$2,000,000 eighteen (18) months after closing; and five (5) incremental payments of US$190,000 in three (3) month increments thereafter. Valparaiso will also complete a management contract with ORO Sur.

Valparaiso will acquire a 90% interest in the Yurani Mining Rights contained in the Concession Contract No. P7299011 located in Municipio de Remedios Departamento de Antioquia, Colombia, including the Molino mineral flotation and cyanidation gold processing plant.

This news release may contain certain forward-looking statements that reflect the current views and/or expectations of Valparaiso Energy Inc., with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Specifically, certain of the transactions referenced herein are subject to regulatory approval, and there can be no guarantee that such approvals will be received, in a timely manner or at all. Actual results and events may vary.

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

Valparaiso Energy Inc.
Marc Branson
604.816.2555
[email protected]