Victoria Gold Corp. Fast-Tracks Eagle Gold Project, Yukon

Tuesday, Jun 30, 2009

Victoria Gold Corp. is pleased to announce the commissioning of a Pre-feasibility Study and a comprehensive Project Proposal that satisfies the requirements of the Yukon Environmental and Socio-Economic Assessment Act, and all associated permits necessary for the development of the Eagle Gold Project.

The Eagle Gold Project is located in the Yukon - a historically significant gold producing region and favorable mining jurisdiction. Victoria recently acquired this sizeable, advanced, lower-risk project through the StrataGold Corporation business combination which closed on June 4, 2009.

Victoria now aims to complete a National Instrument (NI) 43-101 pre-feasibility study on the Eagle Gold Project by year-end 2009 and submit the Project Proposal to the Yukon Environmental and Socio-economic Assessment Board in Q2 2010.

"Victoria aims to advance our two core projects - the Eagle Gold Project and the high-grade gold Cove Project in Nevada - to production in a timely manner", said Chad Williams, CEO, President, and Director of Victoria Gold. "We have already made notable progress in the very short time that we have controlled the Eagle Gold Project."

Eagle Gold Project Background
The Eagle Gold Project hosts an NI 43-101 Indicated Resource of 2.7 million ounces of gold in 98,584,000 tonnes grading 0.849 grams per tonne (g/t) gold. This advanced project has many favorable attributes such as: a high-category Indicated gold resource, road accessibility, a low waste-to-ore ratio, attractive metallurgical characteristics that may make the deposit amenable to lower cost heap leach processing, and nearby hydro-electric power.

Transforming a Substantial Resource into a Mine
Victoria has engaged Scott Wilson Roscoe Postle Associates of Toronto to prepare an NI 43-101 Pre-Feasibility study on the Eagle Gold Project targeted for completion by December 2009. Camp has been opened and selective geotechnical drilling will commence this summer to collect information for the pre-feasibility study and for the permitting process. Stantec has been engaged to complete baseline and socio-economic studies and to prepare a project proposal for submission to YESAB for the Eagle Gold Project.

Mr. Mike Padula has been hired by Victoria as Project Manager for the Eagle Gold Project. Mr. Padula is a Project Management Professional with 21 years experience. Mr. Padula most recently worked with Western Keltic as the Engineering Manager for the Kutcho Creek advanced mining project, British Columbia. He has worked for De Beers Canada on the Snap Lake Project establishing the business development office and worked as part of the owner's construction management team. Prior to working at De Beers, Mr. Padula worked at AMEC Americas on mining and industrial projects with roles that ranged from construction management and commissioning to detail design and study work. Mr. Padula has extensive experience working on northern Canadian mining projects and working with First Nations.

Financial Position
To accelerate the advancement of the Eagle Gold Project while maintaining an appropriate cash balance to ensure steady exploration at our promising Nevada exploration projects in the second half of 2009, Victoria has entered into an agreement with Sandfire Securities Inc. as Lead Agent to raise gross proceeds of $2 million at a price of $0.50 per share via a proposed private placement flow-through offering ("Offered Securities"). The Lead Agent has an option to increase the size of the offering to $3 million, will be paid a commission of 7.0% of the aggregate proceeds of the issue of Offered Securities, and will be granted an option to purchase that number of Offered Securities equal to 7% of the Offered Securities issued at a price equal to the price of the Offered Securities. The offer is subject to regulatory approval and the Flow-Through shares will be subject to a four-month hold period.

Victoria currently has approximately $10.4 million in working capital (of which about $10.0 million is in unrestricted cash). A further approximately $2.7 million may be realized from the proceeds of the warrant exercise more fully described in Victoria's press release dated June 22, 2009.

About Victoria
Victoria is a high growth gold company with a focus on adding value per share through efficient exploration, project development, accretive acquisitions and effective marketing. Maintaining a low risk profile through project diversification, sound financial management, and operating in secure jurisdictions are key priorities for Victoria's management team.

Source: Marketwire