Viceroy Exploration Ltd.
OTC Bulletin Board : VCRYF
TSX : VYE

Viceroy Exploration Ltd.

January 18, 2006 08:29 ET

Viceroy Continues to Intersect High Grade at Gualcamayo including a New Exploration Zone West of Magdalena

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2006) - Viceroy Exploration Ltd. (the "Company") (TSX:VYE)(OTCBB:VCRYF) is pleased to announce the results of twenty-eight (28) additional diamond and reverse circulation drill holes on its 100% owned Gualcamayo gold project in San Juan Province, Argentina. The drilling includes infill drilling at the main Quebrada del Diablo ("QDD") resource area and Magdalena and an exploration hole towards Target 3D.

Certain infill holes were follow-up to the recent successful holes at Ptz. Blanco. The new results confirm the high grade zone and furthermore indicate that the zone may expand a further 50 metres to the east.

Highlights include:

Ptz. Blanco

- Hole QD-208, which intersected 4.83 g/t Au over 17.50 m, from 53.30 to 70.80 m, followed by 1.18 g/t Au over 18.87 m from 91.23 to 110.10 m and a further 1.53 g/t Au over 69.38 m from 190.50 to 259.88 m;

- Hole QDR-213, which intersected 1.69 g/t Au over 20.00 m from 16.00 to 36.00 m, followed by 1.33 g/t Au over 60.00 m from 168.00 to 228.00 m, including 1.71 g/t Au over 40.0 m from 178.00 to 218.00 m;

- Hole QD-214, which intersected 1.18 g/t Au over 101.20 m from 3.95 to 105.15 m, including 2.26 g/t Au over 33.26 m from 3.95 to 37.21 m;

- Hole QD-222, which intersected 2.34 g/t Au over 9.25 m from surface;

- Hole QD-224, which intersected 1.46 g/t Au over 32.34 m, from 67.96 to 100.30 m;

- Hole QD-227, which intersected 3.00 g/t Au over 14.63 m from surface.

Magdalena

- Hole QD-211, which intersected 2.44 g/t Au over 43.10 m from 65.80 to 108.90 m, including 4.16 g/t Au over 21.30 m from 80.60 to 101.90 m.

Target 3D

- Hole QD-217, which intersected 3.17 g/t Au over 17.05 metres from 7.80 to 24.85 m, and 1.56 g/t Au over 10.25 m from 75.80 to 86.05 m.

The holes at Ptz. Blanco confirm the higher grade mineralization in this zone. Of particular significance are holes QD-208 and QD-214. Hole QD-208 was drilled as a follow-up hole to QDR-196 which intercepted 9.18 g/t Au over 26 metres near surface (see News Release #2004.18, dated November 8, 2005). The higher grade intercept in QD-208 of 4.83 g/t Au over 17.30 metres extends the high grade zone intersected in QDR-196 a further 40 metres to the east. Hole QD-214 which was drilled to the east of the Ptz. Blanco zone intersected a significantly thicker zone of mineralized breccia than anticipated with a high grade intercept near surface. The Company now plans to drill additional holes in this area to test the full extent of this mineralization.

Also of significant interest is hole QD-217 which intersected 3.17 g/t Au over 17.05 metres from 7.80 to 24.85 metres. This hole was drilled to test a surface rock chip anomaly 250 metres west of Magdalena. The Company had no previous drilling in this area and is planning follow-up holes to test this new zone. Furthermore, hole QD-217 will be lengthened an additional 100 metres to adequately test Target 3D.

The Magdalena infill hole QD-211 confirmed the grade and thickness of this zone and will be used in the upcoming resource calculation.

Patrick Downey, President and CEO of Viceroy stated that, "We are extremely pleased with these latest results. We have now confirmed that there is a significant zone of high grade, near surface, material at Ptz. Blanco. This zone is planned to be mined as the starter pit which will enhance project economics. We are also pleased that the zone may extend 50 metres further to the east than originally thought. We are also excited about the new zone intercepted on the Target 3D hole, as this area was never previously drilled. Follow-up drilling is now planned."

QDR-216, QDR-219 and QDR-220, from the following table, were drilled as condemnation holes to test the significance of weakly anomalous rock samples east of the QDD resource area. This area partly covers a planned waste dump and mine access road, and these holes were drilled to confirm that the planned waste dump would not cover any mineralized zones.

This recent drilling completed the 2005 drill program. The Company has commenced an independent resource update which is expected to be released in early February, 2006. This will be followed up by an updated Preliminary Economic Assessment to be completed by Wardrop Engineering of Vancouver, BC.



------------------------------------------------------------------------
Azi-
muth Dip Total Inter- Au
Type/ (degr- (degr- Length From To val (g/t)
Hole # Area ees) ees) (metres) (metres) (metres) (metres)
------------------------------------------------------------------------
QDR-
198 QDD West 60 -69 78.0 NSV
------------------------------------------------------------------------
QDR-
199 QDD West 60 -59 84.0 32.00 36.00 4.00 1.14
------------------------------------------------------------------------
QD-
202 Magdalena 189 +20 219.2 95.20 96.35 1.15 2.49
------------------------------------------------------------------------
QDR-
203 QDD West 44 -81 172.0 0.00 108.00 108.00 0.72
------------------------------------------------------------------------
Incl. 2.00 36.00 34.00 1.31
------------------------------------------------------------------------
QD-
205 Ptz. Blanco 180 -43 232.7 10.20 15.90 5.70 0.40
------------------------------------------------------------------------
31.80 33.90 2.10 0.90
------------------------------------------------------------------------
41.22 99.70 58.48 0.67
------------------------------------------------------------------------
Incl. 65.20 83.35 18.15 1.13
------------------------------------------------------------------------
QD-
206 Magdalena 160 -30 161.2 39.22 51.90 12.68 0.88
------------------------------------------------------------------------
57.25 58.90 1.65 2.08
------------------------------------------------------------------------
QD-
207 Magdalena 165 0 177.1 47.20 65.98 18.78 0.57
------------------------------------------------------------------------
Incl. 52.25 54.60 2.35 2.02
------------------------------------------------------------------------
135.86 151.60 15.74 1.19
------------------------------------------------------------------------
Incl. 141.41 142.95 1.54 7.65
------------------------------------------------------------------------
QD-
208 Ptz. Blanco 290 -37.5 391.9 32.46 34.46 2.00 4.44
------------------------------------------------------------------------
53.30 70.80 17.50 4.83
------------------------------------------------------------------------
Incl. 55.10 66.50 11.40 6.75
------------------------------------------------------------------------
91.23 110.10 18.87 1.18
------------------------------------------------------------------------
Incl. 103.80 108.00 4.20 3.89
------------------------------------------------------------------------
125.75 132.02 6.27 2.11
------------------------------------------------------------------------
190.50 259.88 69.38 1.53
------------------------------------------------------------------------
Incl. 201.72 225.90 24.18 1.98
------------------------------------------------------------------------
Incl. 227.90 247.90 20.00 2.32
------------------------------------------------------------------------
QD-
209 Magdalena 165 +20 89.6 38.22 55.82 17.60 0.91
------------------------------------------------------------------------
QD-
210 Ptz. Blanco 165 -65 136.9 32.25 62.35 30.10 1.01
------------------------------------------------------------------------
Incl. 34.25 40.20 5.95 1.93
------------------------------------------------------------------------
QD-
211 Magdalena 95.5 +25 123.0 65.80 108.90 43.10 2.44
------------------------------------------------------------------------
Incl. 80.60 101.90 21.30 4.16
------------------------------------------------------------------------
QDR-
213 Ptz. Blanco 314 -53 300.0 16.00 36.00 20.00 1.69
------------------------------------------------------------------------
Incl. 16.00 28.00 12.00 2.65
------------------------------------------------------------------------
Incl. 22.00 24.00 2.00 11.71
------------------------------------------------------------------------
52.00 54.00 2.00 6.44
------------------------------------------------------------------------
168.00 228.00 60.00 1.33
------------------------------------------------------------------------
Incl. 178.00 218.00 40.00 1.71
------------------------------------------------------------------------
QD-
214 Ptz. Blanco 19 -49 140.0 3.95 105.15 101.20 1.18
------------------------------------------------------------------------
Incl. 3.95 37.21 33.26 2.26
------------------------------------------------------------------------
QDR-
216 Q. Lagarto 0 -72 200.0 NSV
------------------------------------------------------------------------
QD-
217 Target 3D 240 0 173.6 7.80 24.85 17.05 3.17
------------------------------------------------------------------------
Incl. 16.80 22.80 6.00 8.27
------------------------------------------------------------------------
Incl. 20.80 22.80 2.00 15.85
------------------------------------------------------------------------
37.59 43.35 5.76 0.70
------------------------------------------------------------------------
75.80 86.05 10.25 1.56
------------------------------------------------------------------------
QD-
218 Ptz. Blanco 0 -49.5 99.75 0.00 58.20 58.20 0.73
------------------------------------------------------------------------
Incl. 30.85 48.51 17.66 1.12
------------------------------------------------------------------------
QDR-
219 Q. Lagarto 323 -65 210.0 NSV
------------------------------------------------------------------------
QDR-
220 Q. Lagarto 250 -65 250.0 NSV
------------------------------------------------------------------------
QDR-
221 Magdalena 270 -72 200.0 34.00 36.00 2.00 0.49
------------------------------------------------------------------------
46.00 50.00 4.00 0.54
------------------------------------------------------------------------
58.00 60.00 2.00 0.50
------------------------------------------------------------------------
84.00 88.00 4.00 0.64
------------------------------------------------------------------------
QD-
222 Ptz. Blanco 280 -67.5 100.1 0.00 9.25 9.25 2.34
------------------------------------------------------------------------
QDR-
223 Magdalena 241 -65 200.0 8.00 10.00 2.00 0.88
------------------------------------------------------------------------
56.00 64.00 8.00 0.76
------------------------------------------------------------------------
80.00 82.00 2.00 1.02
------------------------------------------------------------------------
90.00 102.00 12.00 4.57
------------------------------------------------------------------------
Incl. 94.00 98.00 4.00 7.72
------------------------------------------------------------------------
138.00 144.00 6.00 0.72
------------------------------------------------------------------------
QD-
224 Ptz. Blanco 265 -17 192.65 0.00 7.73 7.73 0.91
------------------------------------------------------------------------
23.32 27.73 4.41 1.46
------------------------------------------------------------------------
67.96 100.30 32.34 1.46
------------------------------------------------------------------------
Incl. 67.96 74.32 6.36 2.65
------------------------------------------------------------------------
108.30 120.80 12.50 0.48
------------------------------------------------------------------------
QDR-
225 QDD West N/A -90 176.0 NSV
------------------------------------------------------------------------
QDR-
226 QDD West 43 -62 202.0 92.00 94.00 2.00 0.97
------------------------------------------------------------------------
116.00 120.00 4.00 1.32
------------------------------------------------------------------------
164.00 166.00 2.00 1.95
------------------------------------------------------------------------
194.00 198.00 4.00 1.31
------------------------------------------------------------------------
QD-
227 Ptz. Blanco 307 -56 106.7 0.00 14.63 14.63 3.00
------------------------------------------------------------------------
Incl. 10.40 14.63 4.23 6.06
------------------------------------------------------------------------
QDR-
228 QDD N/A -90 210.0 0.00 36.00 36.00 0.57
------------------------------------------------------------------------
74.00 132.00 58.00 0.87
------------------------------------------------------------------------
Incl. 76.00 88.00 12.00 1.04
------------------------------------------------------------------------
Incl. 100.00 110.00 10.00 1.08
------------------------------------------------------------------------
Incl. 118.00 132.00 14.00 1.36
------------------------------------------------------------------------
QDR-
229 QDD 125 -75 150.0 0.00 48.00 48.00 0.73
------------------------------------------------------------------------
Incl. 26.00 36.00 10.00 1.67
------------------------------------------------------------------------
QDR-
230 QDD 305 -80 216.0 0.00 22.00 22.00 0.56
------------------------------------------------------------------------
36.00 44.00 8.00 1.59
------------------------------------------------------------------------
132.00 142.00 10.00 1.19
------------------------------------------------------------------------


Quality Control

Exploration on the Gualcamayo project is being conducted under the supervision of Mr. Rick Diment, P.Geo., the Company's Qualified Person as defined under NI 43-101. All samples were collected in accordance with industry standards. Samples were submitted to Alex Stewart Assayers, Argentina, S.A., in Mendoza, Argentina, for fire assay and ICP analysis. Check assays were submitted to ALS Chemex, an ISO-9001:2000 certified lab, in its Santiago, Chile facility. Accuracy of results is tested through the systematic inclusion of standards, blanks and check assays.

About Viceroy Exploration Ltd.

Viceroy Exploration Ltd. is a well-financed company focused on the exploration and advancement of its 100%-owned Gualcamayo project, in San Juan Province, Argentina. As stated in News Release #2004.21, dated November 11, 2004, the main resource lies within the QDD zone and the most recent resource estimate includes a Measured and Indicated resource of 37.1 million tonnes of 1.04 g/t Au (1.2 million ounces) using a cut-off grade of 0.5 g/t Au. An additional 11.3 million tonnes of 1.20 g/t Au (435,000 ounces) are classified as Inferred. The nearby Amelia Ines deposit is estimated to contain a Measured and Indicated resource of 2.1 million tonnes of 2.82 g/t Au (192,000 ounces), also using a 0.5 g/t Au cut-off. The combined Inferred resources for Amelia Ines and the adjacent Magdalena deposit amount to 2.9 million tonnes of 1.88 g/t Au (176,000 ounces).

Forward Looking Statements

Some of the statements in this news release contain forward-looking information, which involves inherent risk and uncertainty affecting the business of Viceroy Exploration Ltd. Actual results may differ materially from those currently anticipated in such statements.

News Release #2006.01

To view the maps accompanying this press release please click on the following link: http://www.ccnmatthews.com/docs/vye0118.pdf

TSX does not accept responsibility for the adequacy or accuracy of this release.

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