Viceroy Exploration Ltd.

Viceroy Exploration Ltd.

March 07, 2005 17:29 ET

Viceroy Exploration Continues to Encounter High-Grade Gold Intersections at Quebrada Del Diablo


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: VICEROY EXPLORATION LTD.

TSX VENTURE SYMBOL: VYE
OTC Bulletin Board SYMBOL: VCRYF

MARCH 7, 2005 - 17:29 ET

Viceroy Exploration Continues to Encounter High-Grade
Gold Intersections at Quebrada Del Diablo

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 7, 2005) - Viceroy
Exploration Ltd. (the "Company") (TSX VENTURE:VYE)(OTCBB:VCRYF) is
pleased to report results from seven additional diamond drill holes of
the current program on its 100%-owned Gualcamayo gold project in San
Juan Province, Argentina. These seven holes are drilled from two
platforms in the Quebrada Del Diablo ("QDD") zone using a rig capable of
drilling both positive and negative holes; current drilling is aimed at
providing infill drilling and expansion of the QDD zone.

Holes QD-110, QD-111 and QD-112 in the table below are follow up to
holes QD-108 and QD-109, which intercepted the previous best grades and
widths of gold mineralization yet at QDD, in a structure outside of the
current QDD resource (News Release #2005-01 dated January 5, 2005).

Holes QD-110, QD-111 and QD-112 again intercepted this zone, with hole
QD-112 returning one of the best intersections to date at QDD. This hole
intercepted 1.74 g/t Au over 110.65 metres from surface, including 3.31
g/t Au over 44.10 metres and 6.82 g/t Au over 8.01 metres.

Hole QD-110 intercepted 40.8 metres of 1.55 g/t Au, the first 20.4
meters of which was in soft colluvium. The hole was lost at 40.8 metres
due to ground conditions. The final assay in this hole was 1.96 g/t Au
over 1.1 meters.

Hole QD-111 drilled below hole QD-110 and returned 2.08 g/t Au over
71.75 metres from surface including 5.28 g/t Au over 10.12 metres. The
hole was lost at 71.75 meters due to ground conditions.

Patrick Downey, President and CEO of Viceroy stated, "We are very
excited about these latest drill results. The drilling indicates that we
have a significant mineralized structure outside of, but adjacent to the
main QDD resource. We believe that this zone continues at depth and we
will continue to explore this new zone with a view to determining
widths, strike length and depth potential. The Company's geologists are
of the opinion that this structure could add significant additional
ounces to the resource base."

The remaining three holes were drilled from a lower platform to infill
areas of lower grade mineralization within the current QDD resource. All
holes intercepted ore grade mineralization above current cut-off and
confirm the resource model. Of interest is that holes QD-113 and QD-115
intercepted significant widths of mineralization grading greater than 1
g/t Au. Hole QD-113 intercepted 32.20 metres from surface of 1.26 g/t
Au, with the entire hole averaging 91.70 metres of 0.82 g/t Au.

Hole QD-115 intercepted 80.60 metres of 1.1 g/t Au from surface, with
the total hole returning 225.25 metres of 0.7 g/t Au. The final assay of
this 225.25 metres hole returned an assay of 1.00 g/t Au over 1.79 m.

These holes confirm the current resource model, and are part of the
program of converting existing QDD inferred resources to measured and
indicated.

A summary of the significant intersections from the current diamond
drill program are as follows:



--------------------------------------------------------------------
Azi-
muth Dip Total Inter-
(deg- (deg- Depth From To val Au
Hole # rees) rees) (meters) (meters) (meters) (meters) (g/t)
--------------------------------------------------------------------
QD - 110 154.5 -65 40.80(i) 0.00 40.80 40.80 1.55
Incl. 20.40 40.80 20.40 2.36
--------------------------------------------------------------------
QD - 111 154.5 -82 71.75(i) 0.00 71.75 71.75 2.08
Incl. 29.10 31.78 2.68 7.94
& 34.62 44.74 10.12 5.28
& 59.43 63.43 4.00 4.07
--------------------------------------------------------------------
QD - 112 193.5 -54 154.40 0.00 110.65 110.65 1.74
Incl. 31.40 75.50 44.10 3.31
Incl. 43.33 51.34 8.01 6.82
--------------------------------------------------------------------
QD - 113 16.5 -4.5 146.75 0.00 91.70 91.70 0.82
Incl. 0.00 32.20 32.20 1.26
--------------------------------------------------------------------
QD - 114 23 +19 104.50 0.00 104.50 104.50 0.57
Incl. 0.00 19.40 19.40 1.08
--------------------------------------------------------------------
QD - 115 60 +20 225.25(ii) 0.00 225.25 225.25 0.70
Incl. 0.00 80.60 80.60 1.10
--------------------------------------------------------------------

(i) hole lost due to ground conditions
(ii) end of hole


Pre-Feasibility Study

The Company is also pleased to announce that AMEC Americas Ltd. ("AMEC")
have been awarded the Pre-Feasibility Study, which will follow-up on the
recent Preliminary Economic Assessment (the "Scoping Study") completed
by AMEC in January of 2005. The Scoping Study, which can be reviewed on
the Company's website, showed robust economics and only incorporated the
main QDD resource. The Pre-Feasibility Study will take approximately 6-7
months and will include the QDD, Magdalena and Amelia Ines Zones. As
part of the study several column leach tests are planned to assist in
determining heap leach kinetics for the project. Geotechnical work will
also be included.

Quality Control

The exploration program 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. Drill core was 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
their Santiago, Chile facility. Accuracy of results is tested through
the systematic inclusion of standards, duplicates 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 Gold Project,
in San Juan Province, Argentina. The main resource lies within the QDD
deposit and the most recent resource estimate includes 37.1 million
tonnes of 1.04 g/t Au (1.2 million ounces) using a cutoff 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 averaging 2.82 g/t Au (192,000 ounces) using a 0.5 g/t Au cutoff
grade. The combined inferred resources for Amelia Ines and the adjacent
Magdalena deposit amount to 2.9 million tonnes grading 1.88 g/t Au
(176,000 ounces).

For further information about the Company and its plans for Gualcamayo
please visit our website at www.viceroyexploration.com.

Patrick G. Downey, P. Eng., President and CEO

Forward Looking Statement

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 #2005.04

To view the map accompanying this press release please click on the
following link:
http://www2.ccnmatthews.com/database/fax/2000/VYE0307.gif.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Viceroy Exploration Ltd.
    Patrick G. Downey, P. Eng.
    President and CEO
    (604) 669-4777 or 1-888-662-4777
    (604) 696-0212 (FAX)
    www.viceroyexploration.com
    TSX Venture Exchange does not accept responsibility for the adequacy or
    accuracy of this release.