Discovery Ventures Inc. Issued Significant Upside Market Valuation In Research Report as Highly Synergistic Assets Move Forward Toward Gold Production

NEW YORK, NY / ACCESSWIRE / December 16, 2015 / Discovery Ventures Inc. (TSX
VENTURE:DVN) (OTCQX:DTVMF) (Frankfurt:0DV) is identified in a newly issued
research report by Market Equities Research Group with several potential
catalysts that exist in 2016 with potential to result in $65 million market cap
for DVN.V. Discovery Ventures is currently advancing its Max Mill and Willa Gold
Mine near Revelstoke British Columbia toward becoming Canada’s newest gold
mining operation. The Company will have 94.9 million shares outstanding (after
closing of the most recent private placement), is trading near 16 cents, and is
fully-financed thru to 10,000 t bulk permit. This comprehensive report places a
12 month price target on shares of DVN.V at C$0.65 based on key valuation
drivers.

The full research report may be found at

http://sectornewswire.com/Report-DVN-Dec-2015.pdf online.

Since acquiring its interest in the high grade, near-production ready Willa
Au/Cu/AG deposit in late 2012 and the Max Mine processing facility in late 2013,
Discovery Ventures has been intent on moving these highly synergistic assets
forward toward production. The Willa deposit is an intensively-explored, high
grade, near-production-ready Au / Cu Ag deposit. Management is now marrying this
resource with the Max Mine, located within easy trucking distance and includes
crushing, milling & concentrating facilities, tailing storage facilities, as
well as the underground molybdenum mine, which ceased production in 2011 due to
low prices. Acquisition terms were recently revised, resulting in much lower
dollar payments, placing the WillaMAX project on a very solid footing going
forward.

Willa Deposit Highlights:

– High grade deposit to generate high NSR / profitability (M&I 758,199t @ 6.67
g/t Au,0.85% Cu, 12.54 g/t Ag)
– Well defined by closed-spaced, underground drilling (~600 drillholes)
– Good access with >2km of underground workings & good ground conditions
expected for low cost underground mining methods
– Positive metallurgical work completed to date for expected high recoveries
– Planned mining rate of 500 tpd a perfect match for MAX.

MAX Processing Facility Highlights:

– The facility includes a full complement of crushing, milling / concentrating
facilities, & tailing storage facilities
– Equipment is late model and in very good condition (kept in good shape in
anticipation of another start-up)
– Can be retrofitted with ease for Willa material at low cost
– Fully permitted facility
– 135 km distance to Willa on paved roads offers reasonable transportation costs
– Substantial molybdenum deposit remains for long term blue sky potential.
Currently heavily discounted, given time should Mo rise to $20/lb the gross
value of the resource would exceed $300 million. Very low capex to refit mill to
accommodate moly production.

The Analyst sees a well-delineated, high grade Willa deposit with excellent
underground access – combined with a processing facility that is in excellent
shape and easily retrofitted. They are in good proximity to each other and
ideally suited in terms of scale (i.e. 500 tpd). In addition, we see a highly
motivated management team with a CEO that has put up $7 million in financing to
move this project along.

Summary of key value drivers:

1) Achieve Production: Upon realizing a successful 10,000 tonne bulk sample
through Q2, 2016 and reaching the planned 500 tpd production in Q3, 2016 (i.e.
under a 75,000 tonne / yr small mine permit mentioned in July, 2015 news
release), the company will have reached a very significant milestone. The
company could continue mining into 2017 (renewal), providing time to gain mining
permits.

2) Use of MAX Mill to Process Additional Resources: The Willa & MAX properties
are located in highly mineralized areas of BC with over a century of production.
Acquiring additional deposits in the area would also represent a highly
significant milestone for the company and facilitate a long term, highly
profitable future for MAX.

3) Blue Sky Mineral Potential: There is significant, known exploration potential
remaining at Willa that has only seen limited exploration largely due to
topography and the historical emphasis on the West zone. In addition, records
indicate a very promising Tungsten resource at MAX as well as additional moly
resources (see discussion in report).

4) Remaining Molybdenum Resource at MAX: The significant remaining, virtually
untouched moly resource at the MAX property (see discussion) provides very
significant option value for Discovery, particular when viewed in the context of
the mitigating effects of having a MAX mill in operation, along with the
development work completed when the original MAX moly mine was placed into
production.

5) Management: Given the events over the past months and level of current
activity, there is little question regarding management’s intent to make the
WillaMAX operation a reality, providing some comfort to investors.

Several Potential Value Catalysts exist in 2016, with Potential for $65+M mkt
cap, $0.65+/ share: Including, commencement of mining / processing, and
demonstrating successful mating of Willa resource with MAX processing facility.
The above target share price was based on current gold prices (near
US$1,075/oz), the company is leveraged to underlying commodity prices.

Synopsis of reasons the Analyst likes Discovery:

– High grade Willa deposit,
– MAX processing facility in excellent condition,
– Indications for modest capx (subject to confirmation in upcoming PEA),

– Recent revisions to acquisition
terms which facilitate much easier financing terms,
– Highly aggressive and motivated management,
– Near term to production (fully-financed thru to 10,000 t bulk permit),
– Ability to utilize MAX mill for additional deposits beyond Willa – combined
with location in prolific mining district in British Columbia with remaining
resources believed to be within trucking distance of MAX,
– Ability to expand capacity at MAX in future,
– Apparent lack of permitting issues at Willa, existing processing permits at
MAX,
– Virtually unexploited known / defined moly resource at MAX along potential for
additional deposits (i.e. Tungsten).

For these reasons, in view of
Discovery’s current market cap of ~$15 million, the company appears undervalued
and offers significant upside with favorable risk-reward characteristics. Upon
the realization of a successful bulk sample, commencement of commercial
production pursuant to a small mines permit, and indications for a successful
permitting process, we could see an upward revision in the market cap for
Discovery to the C $65+ million level by 2017. A price target of $0.65+/share
may well be warranted. The aforementioned target share price was based on
current gold prices (near US$1,075/oz), the company is leveraged to underlying
commodity prices. Depending on capx estimates for the project, and any
indication that additional resources may be available for acquisition, the
potential for significant upward revisions to these estimates may be possible,
depending on resource size. Further, the long term option value for the MAX moly
deposit is very substantial, given the size of the deposit; a heavily discounted
value of $10+ million for the moly now is not unreasonable, however should moly
rise to US$20/lb shares of DVN.V would increase in multiples as the gross value
of the Mo resource would exceed $300 million (note: back in 2008 Roca Mines, the
former owner & operator, was trading at a ~$half-billion market cap at ~$4/share
while producing molybdenum). Should gold and moly prices cooperate, even
modestly, it is not unreasonable to expect to see DVN.V trade well beyond
$1/share.

The full research report may be found at

http://sectornewswire.com/Report-DVN-Dec-2015.pdf online.

This release may contain forward-looking statements regarding future
events that involve risk and uncertainties. Readers are cautioned
that these forward-looking statements are only predictions and may
differ materially from actual events or results. Articles, excerpts,
commentary and reviews herein are for information purposes and are
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Readers are referred to the terms of use, disclaimer and disclosure
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Contact information:

Fredrick William, BA Ec., Managing Director
Market Equities Research Group

f.william@marketequitiesresearch.com

SOURCE: Discovery Ventures Inc.

ReleaseID: 434783