TORONTO, ONTARIO--(CCNMatthews - Aug. 1, 2006) - Vencan Gold Corporation (TSX VENTURE:VCG) (the "Corporation") - Kirk McKinnon President & CEO of Vencan Gold Corporation is pleased to announce that the Company's diamond drilling program has outlined a number of significant zinc - lead intersections in its recently completed program.

The program consisted of seventeen holes totaling 2,425 meters. The holes were drilled as a follow up to the Company's 2005 fall drill/exploration program, which defined a number of high priority targets on the Cayenne East Property, located 100 kilometers south west of Timmins. All mineralized samples were split and have been sent for assay. Results are expected in the next 2-3 weeks.

The Jefferson Deposit occurs within a strongly sulphidized chert-magnetite iron formation in contact with felsic fragmentals. The work completed by Vencan in 2005 consisted of a compilation of historic data, a review of historic drill holes and sampling of existing trenches. This work resulted in a re-interpretation of the area geology and structure which suggested there should be very good potential for expanding the Jefferson Pb-Zn deposit along strike.

The target selection was enhanced and augmented by the recently completed AeroQuest Aero TEM airborne geophysical survey (See July 27th Press Release).

Highlights of 2006 Exploration:

- Completion of AeroQuest's Aero TEM helicopter borne geophysical survey over 1,345 line kilometers. The survey was conducted at 80 meter intervals and was successful in highlighting both shear hosted lode-gold exploration targets and VMS exploration targets.

- Completion of a 2,425 meter diamond drill program in 17 holes.

- Completion of 54 line kilometers of newly established grid over the 'Genoa Grid'. This grid was then geologically mapped and surveyed with ground magnetometer in its entirety. IP/resistivity surveying was also completed over selected lines. Gravity surveying over the entire grid is ongoing.

- Rock grab sampling (101 samples) and channel sampling (49 samples) over prospective areas of the newly established 'Genoa Grid'.

- Soil sampling (over 500 samples) over prospective areas on the newly established 'Genoa Grid'.

- Completion of helicopter supported prospecting over 14 anomalous areas identified by the AeroTEM survey completed over Vencan's land position earlier in the year. This included collecting grab samples (31 samples) over prospective mineralized zones.

Vencan's exploration program was managed by Taiga Consultants and Craig Scherba is the qualified person responsible for the technical information presented in this release.

ADMINISTRATION

The Corporation has entered into a Fiscal Agency Agreement with K2 Performance Corp. who will provide financial consulting services. The agreement covers a six (6) month period from August 1, 2006 to January 31, 2007 with an option to extend the contract for an additional six (6) months. The agreement can be terminated by either party with 30 days written notice and includes performance criteria.

As compensation for their services, K2 Performance will be issued up to 450,000 share purchase warrants for the six month period, which are exercisable at $0.13 per share for a period of 24 months from date of issuance. Each share purchase warrant entitles the holder to purchase one common share of the Corporation.

The transaction is subject to TSX Venture Exchange approval and all securities issued with respect to this matter are subject to a four-month resale restriction in Canada.

The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein.