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10/24/08

Vena Resources (VEM.to) hunkers down

Vena Resources (VEM.to) is a very likeable company, and I'm not just saying that because it's a site sponsor (there's the banner above these words); regulars here will know that I don't put carts before horses and I was positive on Vena as a company long before that banner went up. This is a good company with smart management, quality projects on board and an impeccable attitude towards Peru and Peruvians (the country in which it operates).

Today's PR from the company is a demonstration of the company's praiseworthy attitude. The company is saying "Yes, things are tight for juniors right now. They're tight for us, too. We're going to keep things pared down to the minimum but we're not going to stomp off into a corner and cry about it, either. There's asset value to be added here, and we have plenty of capital to play with as long as we don't start splashing it around in any old fashion."

You don't have to take my word for it, though. Here's the body of today's PR for your reading pleasure. VEM.to has been pummelled down to just 12c a share and is one of the stocks that doesn't deserve treatment like this. But that's the market in which we are, folks. The silver lining (and there always is one) is that VEM.to is one of the companies that will get through this bad phase. That's one to keep in mind. Here's the company website.

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Vena Resources Updates Exploration and Development Strategy

TORONTO, ONTARIO--(Marketwire - Oct. 24, 2008) - Vena Resources Inc. ("Vena" or the "Company") (TSX:VEM - News; LIMA:VEM - News; FRANKFURT:V1R - News) is pleased to provide shareholders with an overview of its exploration and development strategy during these times of world-wide economic concern.

Vena's current cash position, including committed investments from our partners Cameco and Glencore is close to $9 million dollars. As it is currently unknown when the global economy will rebound, Vena has taken steps to preserve and allocate capital strategically by focusing the bulk of its financial and intellectual resources to the expansion of four projects that will not require significant investment, are self-sustaining and will provide the Company with near term results - the Pucara gold/copper project, Uranium exploration with Cameco, building the coal business through its investment in Sudamericana de Carbon (SDC) and obtaining final permits for the Azulcocha poly-metallic mine and expand its NI 43-101 compliant resources.

The exploration and development plans for Pucara and SDC are expected to advance these divisions such that the expenditures made will be offset by organic growth resulting in advancement and expansion of operations with a neutral effect on Vena's cash resources. SDC has reviewed several anthracite projects and is expected to make key announcements shortly related to the potential acquisitions and the expansion of the briquetting facilities that are currently installed at a key customer's property. Vena may undertake drilling of some of these projects to confirm non-43-101 compliant historical resources but given the nature of coal seams, low exploration costs are expected.

Vena will respond tomorrow to final observations from the Peru government mining ministry on the Environmental Impact Assessment (EIA) permit for the Azulcocha mine. The Company will proceed with its application for a building permit. Once the EIA is approved, the Company will commence an underground drilling program to expand the known NI 43-101 compliant resources. On the Azulcocha West joint exploration project with Glencore, Vena and Glencore are continuing to drill previously identified targets and drill locations are adjusted based on findings. The current drill program is 50% completed and results will be announced on completion.

Vena and Cameco continue to advance the Uranium exploration program in the Puno region of southern Peru. The initial results of the drill program at Macusani exceeded expectations and these results are currently being analyzed to define the next drill program at Macusani with the goal of delineating a resource in the short term. While the Macusani results are being studied, Vena is focused on the Lagunillas region, where three large targets will be drilled over the coming months.

Vena will continue to deliver significant exploration and development milestones in the coming months. Our management and technical team is focused to drive shareholder value and preserve cash. As is the case with many other companies, there is a strong disconnect between current market valuations and corporate assets - Vena remains focused on continuing to build its business for the long term.