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Valencia Provides Update on EarthRenew Acquisition

TORONTO, Feb 08, 2018 (GLOBE NEWSWIRE via COMTEX) --

Valencia Ventures Inc. ("Valencia" or the "Company") (TSXV:VVI.H) continues to work with the principals of EarthRenew ("EarthRenew") to reactivate the EarthRenew business and progress the reverse takeover transaction as previously announced on December 1, 2017.

EarthRenew has initiated engineering work to restart sustainable electricity production at its Strathmore, Alberta plant (the "Strathmore Plant"). As currently configured, the Strathmore Plant is capable of producing up to four megawatts per hour (4MWh) of low cost electricity powered by a natural gas fired industrial size Rolls Royce turbine. EarthRenew intends to have electricity production back online on or about the end of April 2018 following the completion of minor upgrades and permit renewal. EarthRenew's cost to produce electricity is estimated to be ~C$0.05-0.06/kWh.

EarthRenew is also evaluating electricity distribution options that will maximize revenue for its business including establishing a cryptocurrency mining operation at the Strathmore Plant and selling any surplus electricity to the electrical grid.

Background on Cryptocurrency Mining

Cryptocurrency mining is the process of confirming transactions to be added on a blockchain by solving complex, computation puzzles using high performance computers referred to as Rigs. Mining is critical to the continuing functioning and security of the cryptocurrency network and, to incentivize this activity, a miner that verifies and solves a new block is awarded newly generated quantity of coins. A cryptocurrency miner may exchange a portion of coins earned through its mining operations for fiat currencies, such as Canadian dollars or United States dollars.

Optimal cryptocurrency mining relies on three key factors:

-- miners need to have access to low-cost electricity to run their operations profitably;

-- miners need to have a sufficiently fast internet connection to quickly receive and broadcast data with other nodes on the network; and,

-- mining equipment must be kept from overheating to function optimally, which is why locations that have low temperature zones offer substantial advantages as cooling costs can be kept low.

The Strathmore Plant offers all three benefits: it generates its own electricity at relatively low prices; it has a sufficiently fast internet connection; and, it is located outside of Calgary, Alberta which ranks among the coldest Canadian cities, on average, during both summer and winter months.

EarthRenew management is currently evaluating hardware options to mine cryptocurrencies to determine the optimal mix of mining rigs and currencies that could be mined at the Strathmore Plant with the electricity that is available.

Energy Revenue Maximization

The remaining electricity generated at the Strathmore Plant can stored in reserve batteries and used for other applications on site or sold to the electrical grid to meet price spikes occasioned by supply shortages and/or sudden surges in the demand for electricity. EarthRenew is refining its business model with the goal of maximizing the revenue it can generate from the excess electricity it generates.

Future Energy Applications

In the future, EarthRenew intends to use about 1.5MWh of the 4.0 MWh generated by the Strathmore Plant to power the Strathmore Plant dryer to produce pelleted organic fertilizers made from cattle manure waste. The Strathmore Plant is located on a 25,000 head cattle feedlot. EarthRenew has executed an off-take agreement with Sun Country Organics (www.suncountryorganics.com) pursuant to which substantially all the organic fertilizer produced by EarthRenew at the Strathmore Plant will be purchased by Sun Country Organics for wholesale and retail distribution.

The unique EarthRenew waste conversion process capitalizes on the high temperature exhaust from the on-site natural gas-fired turbine for the thermal drying of fresh manure, a process which removes pathogens, pharmaceutical residue and weeds that when left untreated can contaminate soil and leach into waterways. The resulting organic granular product is an ideal fertilizer for use in home gardens, organic farming, marijuana cultivation, turf and in municipal areas subject to chemical fertilizer bans or restrictions.

Chief Executive Officer of EarthRenew Keith Driver commented, "We are off to a great start in 2018 and expect to rapidly reactivate the electricity generation side of the business. With a low-cost source of electricity at our disposal powered by cheap natural gas, lots of space, excellent infrastructure and a nice cool climate we believe that we could be in the position to launch a cryptocurrency mining operation by the middle of this year. Looking further ahead, EarthRenew will be recommissioning the fertilizer production process and become an integrated operation with multiple revenue streams."

Additional information about the proposed transaction between Valencia and EarthRenew will be provided in future press releases.

About EarthRenew

EarthRenew is a low cost sustainable power-generation company with a patented production process that converts livestock waste to nutrient-rich, slow-release pelleted organic fertilizer. EarthRenew competitive converts natural gas to electricity from an industrial-sized gas turbine which it intends to capitalize on through various revenue drivers. These include establishing its own cryptocurrency mining operations on site, selling surplus electricity to the electrical grid and to dry manure feedstock to produce high value organic fertilizer. The Company has a commercial scale operation in Strathmore, Alberta.

For additional information, please contact:

Keith Driver

CEO of EarthRenew

Phone: (403) 860-8623

E-mail: kdriver@earthrenew.ca

About Valencia

Valencia is a Canadian resource company with common shares that trade on the NEX Board of the TSX Venture Exchange under the symbol VVI.H.

For additional information, please contact:

Damian Lopez

President and CEO of Valencia

Phone: (416) 861-2269

E-mail: dlopez@fmresources.ca

Cautionary Note regarding Forward-Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to EarthRenew's ability to restart electricity production at the Strathmore Plan, EarthRenew's ability to establish a cryptocurrency mining operation, EarthRenew's ability to sell electricity to the electrical grid, EarthRenew's ability to execute its business plan, EarthRenew's proposed business activity, the timing and implementation of the reverse take-over transaction, the satisfaction of all conditions precedent, receipt of any required third party and regulatory approvals, the impact of the reverse- take-over transaction on the Company and its stakeholders and other transaction statements. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of exploration activities; regulatory risks; risks inherent in foreign operations; and other risks of the renewable energy, mining and cryptocurrency industries. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Completion of the proposed Valencia - EarthRenew transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and if applicable, disinterested shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Valencia should be considered highly speculative.

The Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.

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