Victoria Gold Corp.

Victoria Gold Corp.

August 06, 2009 18:05 ET

Victoria Commences Drilling at Santa Fe, Nevada and Closes Flow-Through Financing

TORONTO, ONTARIO--(Marketwire - Aug. 6, 2009) - Victoria Gold Corp. (TSX VENTURE:VIT) ("Victoria" or the "Company") is pleased to announce that core drilling has begun at the Santa Fe gold Project, Nevada.

The Santa Fe Project

Victoria has the right to earn from Homestake Mining of California, a wholly-owned subsidiary of Barrick Gold Corporation, up to a 70% interest in the Santa Fe gold property, which contains 24 patented claims and 226 unpatented claims, by incurring exploration expenses in an aggregate amount of at least US$6.5 million over a six year period. Cumulative expenditures to date are approximately US$700,000. Victoria recently staked an additional 42 unpatented claims adjacent to the Santa Fe project.

The Santa Fe property contains former gold and silver open pit mines that were active from 1988 through 1995 and which produced approximately 346,000 ounces of gold plus about 500,000 ounces of silver.

Exploration Targets

Exploration at Santa Fe by previous operators focused on shallow drilling close to, or within, the open pits. As a result, Victoria believes that the Santa Fe property has been under-explored. The gold systems on the property cover large areas of alteration and mineralization that extend far beyond the existing shallow open pits.

"We are eager to drill targets at Santa Fe that were defined by our proven systematic exploration techniques -- especially given the success we've had using those techniques at our Cove property," said Chad Williams, President, CEO, and director. "We believe that Santa Fe has all the right ingredients for success."

Recent geologic work by Victoria has identified promising structural intersection zones in three distinct areas with potential for developing higher-grade gold targets.

Work completed so far in 2009 confirms Victoria's basis for acquiring the property through the Gateway Gold Corp. ("Gateway") corporate transaction. Santa Fe possesses:

- Proven gold zones defined by multiple intersecting structural systems,

- Large structural widths that meet our mapping criteria for definition of sizeable intersection zones with potential for carrying high grades of gold,

- Exploration potential proximal to the open pits thereby facilitating eventual underground access if required, and

- Drill results reported by previous operators that defined high-grade gold systems at depth.

Gateway's 2008 drilling program at Santa Fe (see news release of Gateway dated September 25, 2008) identified intercepts of greater than 2 grams per tonne (g/t) gold over large widths, highlighted by Hole SF08-06, which intersected 105 metres (m) grading 2.39 g/t gold and 59.9 g/t silver. Prior drilling by Homestake has identified deeper intercepts of up to 20.5 g/t gold which were not placed in a resource nor mined. The expenditures for the Phase I exploration program at Santa Fe will be at least US approximately $500,000. The total number of metres and holes that the Company drills will be result driven.

The Santa Fe property is currently undergoing closure reclamation activities by Barrick Gold Corporation and is free of any reclamation issues to Victoria.

Flow-Through Financing

The Company is pleased to announce that it has closed its previously announced private placement flow-through offering (the "Offering"). Sandfire Securities Inc. acted as agent in connection with the Offering which raised gross proceeds of approximately $2 million, which represents 4,231,055 common shares of the Company at $0.45 per share. Net proceeds from the Offering will be used to accelerate the advancement of Victoria's Eagle Gold Project in the Yukon Territory.

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 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.

On Behalf of Victoria Gold Corp.

Chad Williams, P. Eng, CEO, President & Director

Cautionary Language and Forward-Looking Statements

This press release includes certain statements that may be deemed "forward-looking statements". All statements in this discussion, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include metal prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Accordingly, readers should not place undue reliance on forward-looking statements.

This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.

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