Valencia Commences Scoping Study Buffalo Gulch Deposit-Idaho Gold Project.

TORONTO -- VALENCIA VENTURES INC. ("Valencia") (TSXV:VVI) wishes to advise shareholders that it has commenced a Scoping Study on the Buffalo Gulch Deposit within the Idaho Gold Project. The Buffalo Gulch Deposit has an Indicated Mineral Resource of 4.5 million tonnes at a grade of 0.8 g/t gold (4.81 million tons at 0.023 oz/ton), contained within a deeply oxidized, potentially heap leachable near surface gold deposit. Golder Associates Ltd., Toronto, Canada, have been engaged to complete a Scoping Study to evaluate the potential for development of a heap leach gold project.

Valencia entered into an option agreement with Beartooth Platinum Corporation (TSXV:BTP) in August, 2004, to earn a 51% interest in the Idaho Gold Project (See Press Release dated 24 August, 2004). The Buffalo Gulch prospect is one of five areas of historical exploration within the large land position centred on the prospective Orogrande Shear Zone within the Elk City Mineral Belt, northern Idaho, where previous explorers have identified significant zones of gold anomalism and have defined measurable gold mineralization at the Friday/Pepsite, Buffalo Gulch and Deadwood prospects.

Prior to establishment of the option agreement with Valencia, Beartooth completed drilling at the Friday/Pepsite and Buffalo Gulch prospects. Beartooth reported the results of their drilling at the Friday/Pepsite prospect, where a NI 43-101 compliant Inferred Mineral Resource of 15.2 million tonnes grading 1.1 g/t gold ( 540,000 ounces) has been calculated (See Beartooth Platinum Corp Press Release dated July 22, 2004) to include:

- BFD-30   9.33 g/t Au over 2.9m true width
                                    (8.75g/t Au high cutto 30g/t Au)
- BFD-31    8.29 g/t Au over 13m true width
                                   (8.13g/t Au high cut to 30g/t Au)
- BFD-32    3.54 g/t Au over 25m true width,
                                 including higher grade intervals of:
                          9.29 g/t Au over a true width of 1.9m, and
                               9.75 g/t Au over a true width of 1.3m

At Buffalo Gulch, Beartooth completed a total of 412 metres (1,351 feet) of HQ size core in four angle holes to confirm the grade and continuity of the gold mineralization intersected in vertical reverse circulation holes drilled by previous operators.

Highlights of the four holes drilled at Buffalo Gulch include (See Press Release September 15, 2004):

- BBD-11           0.72 g/t Au over 32.0m true width
                        including 1.06 g/t Au over 7.5 m true width;
- BBD-12      0.90 g/t Au over a true width of 12.0m
               including 1.15 g/t Au over a true width of 6.0 m; and
- BBD-13     1.21 g/t Au over a true width of 11.0 m
                    including 1.85 g/t Au over a true width of 2.1 m.

These drill results are considered encouraging, generally confirming gold grades reported by the operators of the earlier reverse circulation and diamond drill programs. Mineralized intervals in the 2004 series of diamond drill holes seem generally more sharply defined and slightly higher grade than in nearby historical reverse circulation drill holes.

Historical exploration of the Buffalo Gulch Deposit includes a total of 150 vertical reverse circulation (RC) holes drilled by previous operators, including Idaho Consolidated Metals Corp. (predecessor company to Beartooth) and Bema Gold Corporation from 1985-1988 within an area measuring approximately 425 metres by 365 metres. This work delineated oxide mineralization and established the existence of the underlying sulphide mineralization. A diamond drill program of 9 HQ size holes totaling 2,762 feet (842 metres) was completed in 1996 by Idaho Consolidated Metals Corp.

Primary gold distribution at Buffalo Gulch, together with pyrite and other sulphide minerals, appears to be along steep structures subsidiary to the main shear zone and along the foliation of the gneisses. However the distribution of gold values within the oxide zone also suggests that substantial modification of the original gold distribution as well as secondary depletion and enrichment of gold occurred during the period of intense Tertiary deep weathering that produced the strong clay alteration and oxidation. In some drill holes the oxide-sulphide interface also appears to be a zone of local gold enrichment.

In a NI 43-101 Technical Report dated 10 September, 2004, Mr. Ken Grace, P.Eng. of Micon International Limited critically reviewed historical resource determinations on the Buffalo Gulch property for Beartooth Platinum Corp and stated, "In terms of the requirements of NI 43-101, Micon is of the opinion that the Buffalo Gulch property has Indicated Mineral Resources of about 5 million tons averaging 0.023 oz/ton Au (4.5 million tonnes at 0.8 g/t Au)" (See Beartooth Platinum Corp. filing, September 15, 2004; www.Sedar.com).

Mineral Resources Development Inc (MRDI) completed an initial development study in 1991 for Bema Gold and completed a revised study in 1996 for Idaho Consolidated (ICMC) (predecessor to Beartooth). MRDI concluded that the project (as a heap leach gold project) would be economically viable at a gold price of US$400 per ounce. Extensive metallurgical test work completed by previous operators has indicated favourable gold recovery by conventional cyanide heap leach technology; trial heap leach test have been completed.

Since assuming management of the Idaho Gold Project in September, Valencia has assembled a project team to compile and evaluate Beartooth's results in conjunction with the extensive historical database; preliminary observations indicate there are strong structural controls to the mineralization and potential exists to expand the current resource with additional exploration.

Given the prevailing gold price, potential to commence early production due to existing partial permitting and observations on the potential to increase the resource size, a scoping study to review economic parameters is warranted prior to performing additional drilling to expand the resource.

Valencia's President and CEO, Doug Currie, commented, "The Buffalo Gulch Deposit represents an early opportunity for Valencia to become a gold producer. The Scoping Study will be completed at the earliest opportunity and follow-up drilling to expand the resource and a Feasibility Study will be initiated upon receipt of positive results. Valencia continues to assess other opportunities within the Idaho Gold Project."

Valencia Ventures Inc. (www.valenciaventures.com) is a Canadian exploration company listed on the Toronto Venture Exchange with exploration properties in Australia, Chile and Idaho, USA. The Company is currently completing a Feasibility Study on it's Rustlers  Roost Gold Deposit in the Northern Territory of Australia where an Indicated Resource of 14.49Mt @ 1.1g/t Au containing 512,500 ounces gold and an Inferred Resource of 9.38Mt @ 1.0 g/t Au containing 301,600 ounces has been estimated (See Press Releases dated September 7, 13 and 28, 2004). SRK Consulting in Toronto, Canada are managing the Feasibility Study; metallurgical and mine engineering studies have commenced. In Chile, Valencia has negotiated farm-in agreements on the Cachinal Silver-Gold Project and will commence a drill program shortly. Valencia continues to review available exploration and development opportunities in Australia, Chile and elsewhere in North and South America.

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".

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The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Valencia Ventures Inc. (TSX VENTURE:VVI)