Scandinavian Minerals Limited (TSX: SGL) today announced
positive results of Pilot Plant testing for its 100%-owned Kevitsa
nickel-copper-PGE property in Finland. The Pilot Plant program has
confirmed that good quality, smelter-grade nickel and copper concentrates
can be produced from Kevitsa ore by conventional flotation methods.

Peter Walker, President and CEO of Scandinavian Minerals commented 'The
Pilot Plant results clearly show that good quality, smelter-grade
concentrates can be produced from the Kevitsa ore at commercially
acceptable levels of recovery. The attaining of very low levels of magnesia
in the nickel concentrate and the elimination of TETA from the flotation
process represent two additional important achievements.'

The Pilot Plant tests were undertaken at the Mineral Processing Laboratory
of the Geological Survey of Finland (GTK MinProc). A bulk sample totalling
575 tonnes of ore was processed in three phases from September 2006 to
February 2007, the first two phases consisting of process optimisation, the
third phase incorporating improvements made in the previous phases.

The bulk sample consisted of the nickel-copper-PGE ore type that forms the
main orebody at Kevitsa and was mined in summer 2006. The average grade of
the ore processed in phase 3 was 0.448 % copper, 0.360% nickel, 1.85 %
sulphur, 0.329 g/t platinum, 0.336 g/t palladium and 0.186 g/t gold, with
0.06 % nickel being contained in silicate minerals.

Nickel flotation
Nickel flotation yielded a range of smelter-grade concentrates averaging
12.2% nickel, within a range varying from 9.4% to 17.3% nickel. Sulphide
nickel recovery ranged from 77.4% to 80.5% and averaged 78.8%. Recoveries
with respect to total nickel (sulphide nickel plus silicate nickel) ranged
from 64% to 67% and averaged 65.3%. The nickel concentrate also contained
an average 10 grams/ton platinum at 55% recovery, 7.7 grams/ton palladium
at 38% recovery and 1.6 grams/ton gold at 10% recovery.

GTK MinProc estimates that total nickel recovery for the average ore at
Kevitsa will be between 70% and 72%. The level of non-recoverable
(silicate-bound) nickel in the bulk sample was higher than the calculated
orebody average: the phase 3 bulk sample contained 605 ppm (parts per
million) silicate nickel, equivalent to 17% of total nickel. This compares
with an average, supported by extensive drill core analyses, of 275 ppm
silicate nickel for the main orebody as a whole, or 9% of total nickel

recovery: sulphide nickel recovery: total nickel
pilot plant, average 78.8% 65.3%
projected, average 78.8% 70% – 72%

A further objective of the test work was to maintain a high iron to
magnesia (Fe:MgO) ratio in order to maximise the attraction of the
concentrate to smelters. In this regard, the test work produced
outstanding results, with an average Fe:MgO ratio of 17.9, well above the
targeted minimum of 4.5. This very high ratio will help to ensure that the
Kevitsa nickel concentrate is especially attractive to nickel smelters.

Another notable achievement of the program was the elimination from the
flotation process of several reagents, especially TETA (triethylene
tetramine). In previous work TETA was used to suppress the flotation of
pyrrhotite (iron sulphide) in the nickel circuit. The Pilot Plant work
demonstrated that by adjusting flotation conditions, the use of TETA can be
avoided. The elimination of TETA enhances the stability of the flotation
process and represents an important cost saving.

Copper flotation
Copper flotation yielded high-grade concentrates averaging 28.55% copper,
at an average recovery of 78%. This represents a significant improvement on
earlier mini-pilot results. A further 11% of the copper reported to nickel
concentrate, bringing total copper recovery to 89%. The tests further
demonstrated that nickel in the copper concentrate, could be maintained at
a commercially acceptable level averaging 0.67%, below the typical penalty
threshold of 0.8%. Nickel is considered a deleterious element in copper
concentrate. The copper concentrate also contained around 4 grams/ton gold
at 24% recovery.

copper recovery to copper recovery to total copper
copper concentrate nickel concentrate recovery
pilot plant,
average 78% 11% 89%

Ongoing Work
The Pilot Plant results will be incorporated into the ongoing Feasibility
Study for Kevitsa. This Study was commenced in April 2007 and is being
coordinated by St Barbara LLP (formerly St Barbara Consultancy Services) of
London, UK. The metallurgical process has been developed by GTK MinProc.
Plant engineering and design is being performed by Outotec Oyj. The
Feasibility Study is expected to take approximately 12 months to complete.

Mr. John Pedersen, M.Sc., P.Geo., a director of the Company, acts as the
Company’s Qualified Person under Canadian National Instrument 43-101 and
has approved the issue of this press release.

About Scandinavian Minerals
Scandinavian Minerals Limited is a Canadian public company listed on the
Toronto Stock Exchange under the symbol 'SGL' and on the Frankfurt
Freiverkehr market under the symbol W3M. The Company’s current focus is
the development of its 100%-owned Kevitsa nickel-copper-PGE project in
northern Finland.

Forward-Looking Statements
Some of the statements contained herein may be forward-looking statements
which involve known and unknown risks and uncertainties. Without
limitation, statements regarding potential mineralization and resources,
exploration results, and future plans and objectives of the Company are
forward looking statements that involve various degrees of risk. The
following are important factors that could cause the Company's actual
results to differ materially from those expressed or implied by such
forward looking statements: changes in the world wide price of mineral
commodities, general market conditions, risks inherent in mineral
exploration, risks associated with development, construction and mining
operations, the uncertainty of future profitability and the uncertainty of
access to additional capital.

Rio Tinto's new chief executive, Tom Albanese, is a dealmaker by reputation and has wasted little time showing why since he took over on May 1.

Rio , the world's second biggest miner, unveiled an agreed $38 billion takeover of Canada's Alcan Inc on Thursday to create the world's biggest aluminium producer.

London-based Albanese, 50 in September, is a U.S. citizen who grew up in New Jersey and graduated in mineral economics and mining engineering from the University of Alaska.

Perhaps it was during his studies that he first came across Britain's network of canals, used to shift raw materials and finished goods around the nation during the Industrial Revolution.

Perhaps not. Either way, in his leisure time Albanese tours in his own canal narrow boat -- a precursor to the behemoths that today shift coal and iron ore across the oceans.

Working his way up through the mining industry, Albanese was chief operating officer of Nerco minerals when it was acquired by Rio in 1993. Rio quickly put him in charge of a gold, silver, zinc and lead mine in Alaska.

More recently, Albanese has been involved in developing Rio's joint venture exploration agreement with Norilsk Nickel in Russia, and its investments in La Granja in Peru and Ivanhoe Mining's Oyu Tolgoi copper project in Mongolia.

When announcing Albanese's appointment as Rio's CEO last December, Chairman Paul Skinner said: "Tom has been a key player in a number of major Rio Tinto developments over recent years and also in shaping the group's strategic direction".

Albanese's $3.4 million pay package in 2006 would seem to back up Skinner's comment.

Albanese joined Rio's board in March 2006 and became Director, Group Resources in July.

He succeeded Leigh Clifford as Rio's CEO on May 1 with an 825,000 pounds salary plus perks, share options and pension.

He will be paid a so-called retention bonus, awarded in April 2004, of a maximum $1.134 million on Oct. 1.

Albanese first moved to London in 1995 as group exploration executive. Three years later he became vice president of Kennecott Utah Copper at the Bingham Canyon copper mine, Salt Lake City. When Rio bought a majority holding in North Ltd in Australia in 2000 Albanese transferred to Melbourne as its managing director.

He was appointed CEO of Rio's Industrial Minerals group based in London, with responsibility for the group's borates, talc and titanium dioxide operations, before becoming CEO, Copper and Exploration, in 2004.

Albanese told reporters he saw a bright future for aluminium, used in products from drinks cans to airplanes.

With world demand forecast to grow over 6 percent annually until 2011, the enlarged Rio will be able to make around 4.4 million tonnes of aluminium a year, making it the world's biggest producer ahead of current leader, Russia's UC RUSAL.

Valencia Ventures Inc. is pleased to announce that it has entered into an agreement to acquire Standard Resources Inc.'s remaining 20% interest in the Cachinal silver project. The CDN$5.5 million purchase price is payable in two instalments with the issue of Valencia common shares. The first instalment of CDN$4.0 million is payable upon closing of the transaction and the balance 12 months hence. As a result, Valencia now owns 100% of Cachinal. Valencia will also pay Silver Standard US$0.50 per ounce of additional silver ounces in excess of the current resource estimate of 27 million ounces of silver up to a limit of 10 million ounces of silver, payable at Valencia's discretion, in cash or common shares. The closing of the transaction is subject to regulatory approval and all shares issued will be subject to a 6-month hold period.

Successful exploration by Valencia in 2006 resulted in the delineation of a significant silver deposit at Cachinal; the initial mineral resource based on a strike length of 650 metres is estimated at 14 million ounces of silver in indicated resources (based on approximately 4.11 Mt at 103.92 g/t Silver, 0.11 g/t Gold and 0.17% Nickel) and a further 13 million ounces of silver in inferred resources (based on approximately 5.09 Mt at 78.22 g/t Silver, 0.11 g/t Gold and 0.16% Nickel). The Cachinal deposit also contains considerable gold and zinc mineral resources (See press release dated February 19, 2007).

Additionally, the first phase of Valencia's 2007 drill program intersected significant high grade silver mineralization within broad zones of silver-gold-zinc mineralization over an 800 metre strike length in the Northern Extension target to the north of the current mineral resource. The drill results also indicated the mineralized zone is also open along strike to the south and the Company believes the potential to expand the existing resource is excellent.

Valencia's President and CEO, Doug Bache, commented, "Our 100% ownership of Cachinal represents a major milestone for Valencia and our strategy to build a portfolio of significant silver and gold resources in the Americas." He added, "We believe there is good potential to substantially increase the silver resource at Cachinal and our exploration team in Chile will be focused on this task during the remainder of 2007."

Valencia will immediately commence an aggressive follow-up and resource definition drill program with the objective of updating the mineral resource and producing a preliminary assessment study on Cachinal by the end of 2007. This drill campaign and evaluation program is fully funded and Valencia expects to announce initial drill results in late summer.

Cachinal Silver Project

The Cachinal de la Sierra area is located within the Paleocene Gold Belt of northern Chile, which hosts several significant gold and silver deposits including Meridian Gold's El Penon Silver-Gold Mine. The El Penon mine is a low sulphidation-style epithermal silver-gold deposit and one of the worlds lowest cost gold producers. The past-producing Guanaco Gold Mine located 12km to the southwest is a high sulphidation-style epithermal deposit that was mined as a heap leach operation during the early 1990's by Amax Gold Inc. and then by Kinross Gold Corporation. Historical silver production in the Cachinal area is estimated at approximately 32 million ounces as documented in geological reports in the library and files of Chilean Government agency SERNAGEOMIN. The production figures (tonnage and grade) referred to above is historical in nature and has not been verified by the issuer's Qualified Person, and should not be relied upon.

Valencia is a Canadian resource company traded under the symbol VVI on the TSX Venture Exchange. Valencia's development strategy is focused on the exploration and development of silver and gold properties, including the Cachinal Silver-Gold Project in Chile and the Rancheria Silver Project in the Yukon Territory and British Columbia, Canada. With a focus on silver and gold exploration in the Americas, Valencia is considering various precious metal property acquisitions.

Cautionary Note:

Mr. Douglas A. Currie, MAusIMM, Valencia's Executive Vice President-Exploration & Development, is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and is responsible for reviewing the technical disclosure in this press release. Field work in Chile has been performed under Mr Currie's supervision by SBX Consultores Ltda, Santiago, Chile.

This press release contains "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information includes, but is not limited to, statements regarding exploration prospects, the identification of mineral resources, costs of and capital for exploration projects, exploration expenditures and timing of future exploration. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters, future prices of mineral prices; and risks of the mining industry. 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.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.


Contact:

Doug Bache
Valencia Ventures Inc.
President and CEO
(416) 861-5884
Email: info@valenciaventures.com

Doug Currie
Valencia Ventures Inc.
Executive Vice-President, Exploration and Development
Email: dcurrie@valenciaventures.com

Source: Valencia Ventures Inc.

China Petroleum & Chemical Corp. aims to produce 42 million tonnes of domestic crude oil next year and hopes to reach a crude processing capacity of 196 million tonnes, representing a 34% growth from last year, the company announced yesterday.

The figures may suggest that Sinopec will import around 150 million tonnes to fill its refineries, or 76.5% of its crude processing capacity, a further boost from last year's 70%, while obtaining a small fraction of crude from other domestic sources. About 101.47 million tonnes of the total 144.83 million tonnes of crude oil the company processed last year was imported, according to its annual report.

The company's crude import dependency is likely to stand at 73.5% this year, with crude oil output targeted at 41 million tonnes and crude throughput at 156 million tonnes.

The ambitious plan to upgrade refinery capacity came after a gesture from the central government indicating that a more market-oriented oil product pricing scheme will be adopted in the near future, which may turn the refining sector into a more profitable business. The company plans to expand the capacity of five of its key refineries in the Yangtze River region.

Under the current pricing system, in which fuel prices are kept artificially low by the government, the country's refineries sometimes choose to shut down some of their facilities for maintenance despite the strong demand for fuel in the domestic market, since record-level crude oil costs sometimes make refining a money-losing business.

Next year's crude output goal is for a 4.6% hike from last year, while natural gas output is forecasted to increase by a significant 37.6% from last year to hit 10 billion cubic metres in 2008.

The oil giant, Asia's largest refiner, will see oil product sales reach 120 million tonnes next year, with 75 million tonnes through retail. It will have a crude port capable of handling 150 million tonnes, 6,300 kilometres of major crude oil pipelines and 7,200 km of oil product pipelines.

Around 92% of Sinopec's crude production and 40% of oil product output are transported through pipelines.

The company, the world's forth largest ethylene producer at the end of last year, will also expand its ethylene production capacity to 7.1 million tonnes in 2008, up 14.5% from last year, due to the company's plan to put RMB 19.46 billion ($2.54 billion) into the chemicals segment this year. Ethylene projects in Fujian, Tianjin and Zhenhai will be upgraded as a result.

The company will also boost the capacity of a refinery in the city of Wuhan in central China by 60% in order to supply feedstock to its planned ethylene facility nearby, which has an annual capacity of 800,000 tonnes.

CNPC Looks for More Syrian Involvement

The China National Petroleum Corp.'s plans to become more involved in Syria's energy sector, which may include building a refinery and further exploration in Syria's waters, is an indication of the Chinese oil giant's efforts to become a bigger player in the global market, industry experts told Interfax today.

According to state-run Xinhua news agency, CNPC is in talks with the Syrian government to jointly build a $1 billion oil refinery with a daily capacity of 70,000 barrels of crude oil, Syrian Deputy Prime Minister for Economic Affairs, Abdullah al-Dardari, said at a press conference yesterday.

Syria will also cooperate with CNPC to upgrade five old oilfields to improve oil productivity, as well as sign a contract with the China Petroleum Technology Development Corp., a subsidiary of CNPC, to import oil exploration and mining machinery with preferential loans from China, according to Syrian Minister of Oil and Mineral Resources, Sufian Allaw.

CNPC will also be invited to explore 5,000 square metres of Syrian waters, Allaw added.

Officials with CNPC were not available for comment when contacted by Interfax.

Syria is not particularly rich in oil resources, and China does not have as close ties with the country in the energy sector as it does with other Middle Eastern countries, such as Saudi Arabia and Iran. However, apart from strengthening bilateral ties, such activities may lead to unexpected discoveries, as in the case of Sudan, where oil discoveries not only boosted the local economy but also brought huge profits to the company itself, Li Weijian, an expert on the Middle East with the Shanghai Institute for International Studies, said.

Cao Xiaoxi, a senior expert with the Sinopec Economy and Technology Research Institute, believes that CNPC's plan to expand exploration activities and refinery buildup in Syria is driven by profits. "With the price of crude oil and oil products staying at high levels on the international market, CNPC has enough incentives to step up its overseas operations," Cao said.

He further noted that crude oil and oil products produced by Chinese oil companies from their overseas operations are mostly sold on the international market rather than being shipped back home, due to differences in price between the domestic market and the international market, as well as limited domestic refinery capabilities.

So far, CNPC has officially announced it has only one refinery up and running in Sudan.

CNPC made its first foray into Syria in 2005 after winning an EPC (engineering, procurement and construction) contract for the first phase of the ground facility expansion project at the Gbeibe Oilfield. It later made a joint bid with India's state-owned Oil & Natural Gas Corp. for the Al Fruit Oilfield in Syria, footing $575 million for an 18.75% stake in the field, which was previously held by Petro-Canada [NYSE:PCZ].

© InterFax-China 2007

Shares in Nautilus Minerals Inc. (TSXV:NUS) gained nearly 10 per cent Wednesday after the company reported drilling results from its Solwara project in the territorial waters of Papua New Guinea.

Shares in the undersea mining company were up 37 cents at $4.27 in early-afternoon trading on the TSX Venture Exchange. "The results of the drilling at our Solwara 1 project in the territorial waters of Papua New Guinea, demonstrate that we have a strong mineral system persisting at depth," Nautilus CEO David Heydon said in a release.

"This is in addition to the system of high-grade massive sulphide spires that are often 10 metres high above the system currently being drilled."

The bounce in the company's shares follows a sharp drop in their value last week when Nautilus Minerals said it failed to sign a detailed works contract with the company that was to build the ship it was going to use for mining, forcing the company to seek alternatives.

As a result of the collapse of the deal with Jan De Nul, the Vancouver-based company has taken over the offshore development aspects of its Solwara 1 project.

Nautilus had announced last year it had reached a heads of agreement with Jan De Nul with a view to formalizing a detailed contract by July 1. However, no deal was signed.

The company said its project development team will now deal directly with the suppliers of the specialized equipment required for mining and raising the ore.

In releasing its drilling results for Solwara 1 on Wednesday, the company said it has completed 29 drill holds for a total of 305.8 metres since drilling started on June 14. Between 70 to 90 holes are planned.

The results of the program are to be used for a mineral resource statement and for metallurgical and mine planning purposes.

The company also reported high-grade assay results at Solwara 8, where 12 surface samples averaged 16.9 grams per tonne of gold, 6.1 per cent copper, 32.5 per cent zinc and 328 grams per tonne silver.

Nautilus currently has a licence for exploration only and is undertaking an environmental assessment it hopes will land it a mining licence from the government of Papua New Guinea.

The company has raised US$300 million in the last year to undertake the world's first commercial undersea exploration for gold and copper off Papua New Guinea.

Alcan Inc., the Montreal-based aluminum producer, is in talks that could lead to a merger agreement with mining giant Rio Tinto PLC, according to news reports Wednesday.

Rio Tinto has hired investment banker CIBC World Markets to assist in preparing a bid for Alcan, an apparent move to fend off a hostile bid by U.S. rival Alcoa Inc., The Globe and Mail reported, quoting sources.

Meanwhile, The Times of London reported that Rio Tinto is set to launch a $34-billion US bid for Alcan. The UK newspaper quoted Wall Street investment bankers as saying Rio Tinto would make a formal offer two weeks.

The newspaper said Rio Tinto had no comment on a possible bid.

An Alcan spokesperson in Montreal told Reuters that the company was “in negotiations with third parties,” but declined to identify them.

On Tuesday, Alcoa told the U.S. Securities and Exchange Commission that it had signed a $30-billion US credit facility with a syndicate of bank lenders that would be used to finance its hostile takeover of Alcan.

Alcoa’s filing with the SEC came a day after the company extended its $33-billion cash-and-stock offer for Alcan until Aug. 10.
The original offer, which has been rejected by Alcan’s board as too low and too complicated, expired Monday.

Central African Mining & Exploration Co. has increased its offer for Katanga Mining Ltd. (TSX:KAT) to 17 shares of new company for every Katanga share shares, up from a prior 15 to one ratio.

The deal would value Katanga at about $1.98 billion, or 943 million British pounds. Shares in Katanga were ahead $1.32 at $26.22 in midday trading on the Toronto Stock Exchange, a gain of 5.3 per cent and a new 52-week high.

CAMEC already owns 22 per cent of the outstanding common shares of Katanga.

Shareholders are expected to vote on the bid in August.

Katanga Mining operates a major copper-cobalt mine complex in the Democratic Republic of Congo. First copper is due to be shipped in December and the site is expected to reach full production in 2011: 150,000 tonnes of refined copper and 8,000 tonnes of refined cobalt annually.