Santoy Resources Ltd.

Santoy Resources Ltd.

July 23, 2009 12:12 ET

Santoy Becomes Virginia Energy Resources Inc., Revises Board & Management

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 23, 2009) - Santoy Resources Ltd. (TSX VENTURE:SAN) is pleased to announce that Pursuant to a Plan of Arrangement (originally announced in a Company news release dated December 22, 2008, and approved by both company's shareholder votes announced May 22, 2009), Santoy Resources Limited ("the Company") has now completed its business combination with privately held Virginia Uranium Ltd. Post-closing, the Company has changed its name to Virginia Energy Resources Inc. ("Virginia Energy"), has consolidated its issued share capital to approximately 54,377,279 common shares outstanding, and will have its trading symbol changed from SAN to VAE on the TSX Venture Exchange.

Virginia Energy currently holds a 20.8 per cent equity interest (in the process of increasing to 22.2 percent) in the Coles Hill uranium deposit, located in southern Virginia. Coles Hill, considered to be one of the largest undeveloped uranium deposits in the United States, had been advanced through to the feasibility stage in 1982. It has an estimated measured and indicated resource of 119 million pounds of U3O8 (at a cut-off grade of 0.025 per cent U3O8) based on a National Instrument 43-101 technical report on the Coles Hill property prepared for Santoy Resources by Behre Dolbear and Co. Ltd., Marshall Miller and Associates Inc., and PAC Geological Consultant Inc. (Dr. Peter Christopher, PEng) dated Feb. 2, 2009, and revised on April 29, 2009. This report is available on SEDAR and on Santoy Resources' website,

Measured(1) Indicated(1) Total(1)
--------------------- --------------------- ---------------------
% % %
Cutoff Tons U3O8 Pounds Tons U3O8 Pounds Tons U3O8 Pounds
%U3O8 (2) (3) U3O8 (2) (3) U3O8 (2) (3) U3O8
Project Total (South and North Coles Hill Deposits)
0.100 0.755 0.228 3.45 6.27 0.215 26.9 7.03 0.216 30.4
0.075 1.35 0.164 4.44 24.0 0.116 55.9 25.4 0.119 60.4
0.050 2.28 0.124 5.65 35.4 0.101 71.7 37.7 0.103 77.4
0.025 6.62 0.064 8.42 92.1 0.060 111 98.7 0.060 119
1 Total tonnage above cutoff grade and average weight % U3O8 of that
2 Short tons based on a rock density of 2.56 g/cc
3 Weight %
1. The "Qualified Persons" (as defined in NI 43-101) who prepared the
resource estimate were Betty L. Gibbs for Behre Dolbear and K. Scott Keim
for Marshall Miller and Associates, Inc.
2. Mineral resources which are not mineral reserves do not have demonstrated
economic viability. The estimate of mineral resources may be materially
affected by environmental, permitting, legal, marketing, or other relevant

At the same time, shareholders will gain diversification and will benefit from Santoy's exploration properties. The business combination complements Santoy's portfolio of uranium exploration properties in the Athabasca Basin of Saskatchewan, the Otish Mountains in Quebec and the Central Mineral Belt of Labrador. The Company is also the largest shareholder of Boss Power Corp. which owns the Blizzard uranium deposit in British Columbia.

Messrs Bill James and Pat Barry have resigned from the Company's Board of Directors. Their very significant contributions during the past several years have been much appreciated. Their positions have been filed by the appointment of Walter Coles, Sr., Norm Reynolds and Harvey Roberts, all resident in Virginia. The new Board will now consist of Walter Coles, Sr., Norm Reynolds, Harvey Roberts, Ron Netolitzky, Ron Hochstein, Robert Matthews, and Robert Ingram. Walter Coles, Sr. has been appointed Chairman of the Board. The Management Team will now consist of Norm Reynolds - President & CEO, Walter Coles, Jr. - Executive Vice-President, Karen Allan - Chief Financial Officer, and Mike Cathro - Vice President, Exploration. Ron Netolitzky will remain very active in the company's direction as we continue to explore our exploration properties and advance the Coles Hill uranium deposit.

On Behalf of the Board of Directors


R. K. Netolitzky, President & CEO

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future results, events and objectives could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include exploration and other risks detailed from time to time in the filings made by the Company with securities regulators.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Santoy Resources Ltd.
    Ron Netolitzky
    (604) 669-4799
    Santoy Resources Ltd.
    Tony Perri
    Investor Relations, Manager
    (604) 669-4799
    (604) 669-2543 (FAX)