Victory Resources Corporation (VRCFF)

Summary

The Reforma property as part of an option agreement after the expenditure of a USD$2,500,000 work program to be completed before Q1 2013.

The Reforma property has a history of commercial production from underground mining that lasted 13 years after which at closure produced 2,000,000 tonnes of complex ore with historical average grades of91.62gpt Ag, 1.90% Pb, 7.44% Zn and 0.63% Cu.

The drill program is underway to determine the extension deposits to the previously operating Reforma mine. The first set of results from the drill program was announced in July 2011.

The Reforma property is located just west of the Bahuerachi copper deposit which was sold in 2007 for $214M.

Positioned

The Reforma property area borders two significant mineral deposits. The Bahuerachi property, (which was formally owned by Tyler Resources) was purchased in 2008 by Jinchuan Group China, for an approximately value of $216 million dollars. The Bahuerachi Main Zone reportedly contains a mineral resource of some 525 million measured and indicated tonnes grading 0.40% Cu with values of molybdenum, gold, silver, and zinc.

The second significant mineral deposit bordering the Reforma land package is the Santo Tomas porphyry mineral deposit, south of the Reforma property on the western regional graben structure and reportedly contains a mineral resource of some 600 million tonnes grading 0.363 % Cu (plus gold and silver credits) in the North Zone and some 350 million tonnes grading 0.309 % Cu (plus gold and silver credits) in the South zone.

Ownership

VicRes Mining Mexico SA De CV, a subsidiary of Victory Resources Corporation of British Columbia Canada, has a purchase agreement to earn 70% interest of the Reforma property comprising of 6,987 hectare of mineral concessions, covering the regional mineralized trend, bordering the Tyler/Bahuerachi Copper deposit and Santo Tomas Copper deposit. The Reforma property contains several important exploration targets.

Strategy

Management strategy is to continue the development of mineral resources in preparation for production on the Reforma property and to continue to develop/explore other targets on the property. The geological setting found at the Reforma area is analogous in Porphyry, Skarn, Breccia and Manto-type mineralization similar to those found at the Cananea district located in Sonora Mexico, the location of one of largest open pit copper mines in the world. Victory Resources Corporation will proceed to implement a work program as recommended by Victory Resources geological team.

Summary

The AU/Wen Property comprised of two claim groups are located 30 kilometres southeast of Merritt, British Columbia in the Nicola Mining Division. The Au/Wen claim group comprises 92 units in 14 contiguous claims while the Toe claim group 4km east of the AU/Wen comprises 12 units in 4 contiguous claims. Both claim groups cover a total area of 2,600 hectares. The claims are close to infrastructure and are accessible through a network of logging roads starting north of Highway 3 at the Loon Lake exit. The climate in the area is characterized by mild winters which would allow for an expanded work program year round.

The claims are situated within the Quesnel Trough, a prominent geological sub- province wherein are located the major copper deposits of the old Craigmont and Ingerbelle mines. Numerous copper and gold showings within the Quesnel Trough are currently under investigation. The immediate area of the claims is underlain by andesitic volcanics and associated intercalated pyroclastics and sediments of the Upper Triassic Nicola group. Subvolcanic dioritic intrusives occur within this succession and are more likely related to the Pennask Batholith. Within the Au/Wen group of claims, three mineral prospects, i.e., the Au, Mal and Wen prospects have been the focus of previous work. In the Au prospect free gold occurs in the Hodge and Nesbitt quartz veins with values of up to 20 gpt from the veins and up to 6.6 gpt in the wall rock. The prospect is characterized by heavy clay and limonite alteration. In the Mal prospect, copper with minor amounts of gold is associated with skarn (garnet, epidote and magnetite) in Nicola volcanics. In the Wen prospect, copper and gold occur in shear zones and also in stockwork zones in Nicola volcanics.

Previous exploration in the area carried out from the early 1960's to 1980's included ground geophysical surveys, soil geochemical surveys, trenching and diamond drilling. In 1996, George Resource Company Ltd., the predecessor of Commerce, drilled a strongly mineralized vein where assays across a 6.55 metres intercept averaged 16.578 gm/t Au, 12.901 gm/t Ag and 0.75% Cu, with a higher grade section averaging 28.426 gm/t Au, 18.185 gm/t Ag and 0.98% Cu over 3.81 metres. More recent work by Commerce in 2000 was limited to geologic mapping, surface sampling and reconnaissance IP survey. In 2002, Lateegra optioned the claims and carried out prospecting, magnetometer surveys, soil geochemistry and diamond drilling. Drilling in the Sol claim (Mal Prospect) confirmed the presence of copper mineralisation associated with skarn. Other potential skarn areas have been defined by magnetometer surveys. On the northwest part of the Wen claim soil geochemistry disclosed high gold anomalies suggesting geological extensions of known gold occurrences.

Location

The AU/WEN and TOE claim groups comprising the AU/WEN Property are located 8 kilometres east of Aspen Grove, British Columbia in the Nicola Mining Division. Both claim groups are approximately centered at latitude 49° 57'N and longitude 120° 30'W and are within NTS map-sheets 92H/15E and 92H/16W.

The AU/WEN claim group comprises 92 units in 14 contiguous claims while the TOE claim group 12 units in 4 contiguous claims. Both groups cover an aggregate area of 2,600 hectares. The TOE claims are approximately 4km east southeast of the southeastern limits of the AU/WEN claims. Commerce Resources Corporation currently holds the mineral rights to the claims.

The Au/Wen Property is host to quartz vein gold deposits at the Au claim, skarn copper and gold occurrences at the Sol claim and vein and stockwork copper and gold occurrences at the Wen claim. No mineral occurrences have been found on the Toe claims although previous workers defined a large copper anomaly in a soil survey.

Geological Setting

Regional and Local Setting
The AU/WEN Property is situated within the so-called Quesnel Trough, a regional geologic feature extending northwestward from the US border to just south of the Yukon. Locally, the property lies in the Nicola Belt, a geologic feature extending from Princeton to Kamploops and described by Campbell (1966) and Schau (1968) as being zoned with "the central part predominantly of volcanic rocks flanked on the east and west by broader zones with frequent occurrences of sedimentary rocks". This zonal relationship was studied by Preto (1979) and described in detail in Bulletin 69. Essentially the AU-WEN property is situated on the east flank of the zone, predominantly underlain by "mafic volcanic and volcaniclastic rocks, their intrusive equivalents and associated clastic and chemical sedimentary rocks" (Preto, 1977). Locally, the property is bounded on the west by the northerly Kentucky - Alleyne fault zone. The Pennask batholith occurring on the northern part of the claims is part of Jurassic granite that intrudes the Nicola. North to northeasterly faults traverses the property and its immediate vicinity.

Property Geology

The AU/WEN Property is chiefly underlain by a folded and faulted succession of steeply- dipping, northerly trending Upper Triassic Nicola Group. The dominant lithologies are volcanics, volcaniclastics and interbedded siltstone and flow breccias. On the AU claims, the lithologies mapped by Preto (1979) as confirmed by Freeze (1986) consists of greenish grey augite porphyry flows and related breccia intruded by microdiorite dykes as off shoots of the Pennask batholith. Similar lithologies occur on the MAL claim with the addition of siltstone and tuffaceous volcanics and on the WEN claim with the addition of flow breccia. The TOE claims are underlain by Upper Triassic Nicola volcanics, which at the northern part of the claim is in contact with quartz diorite of the Pennask Batholith. Dioritic intrusions inside the TOE claims may be related to the Pennask batholith.