Victoria Gold Corp.

Victoria Gold Corp.

June 22, 2009 11:57 ET

Victoria Gold Corp. Announces Additional High-Grade Gold Assays From the Helen Zone, Cove Project, Nevada

TORONTO, ONTARIO--(Marketwire - June 22, 2009) - Victoria Gold Corp. (TSX VENTURE:VIT) ("Victoria" or the "Company") is pleased to report the results from diamond drill hole NW-15 from the Helen Zone at the Cove Project located in north-central Nevada. The purpose of drill hole NW-15 was to further test the Helen Zone below where previous drilling defined a plunge length of over 150 metres (m).

NW-15 intersected an impressive, wide gold-mineralized interval of 274.3 m that returned 2.50 grams per tonne (g/t) gold containing two separate zones at both the top and base of this interval that had some of the highest grades of gold mineralization intersected by Victoria in the Helen Zone thus far. This occurred even though NW-15 drifted over 30 metres (m) west of the central target of the Helen Zone. The hole reached a total depth of 835 m.

Selected assay results from drill hole NW-15 at the Helen Zone, Cove
Project, Nevada

From To Total Gold
(m) (m) (m) (g/t)
431.9 706.2 274.3 2.50
Incl. 431.9 437.4 5.5 32.18
Incl. 433.1 437.4 4.3 39.67
Incl. 445.3 446.8 1.5 4.97
Incl. 461.5 463.9 2.4 4.87
Incl. 598.6 602.0 3.3 9.82
Incl. 600.5 602.0 1.5 14.26
Incl. 617.8 619.8 2.0 12.75
Incl. 627.3 629.1 1.8 25.03
629.1 630.3 1.2 No Recovery
Incl. 630.3 643.0 12.7 9.18
Incl. 636.7 643.0 6.2 14.22
Incl. 636.7 639.8 3.0 21.63
Incl. 660.5 662.3 1.8 16.11
Incl. 677.3 680.3 3.0 4.51

"NW-15 returned very high gold grades over meaningful widths within a much larger, anomalous gold zone", said Chad Williams, President, CEO, and Director of Victoria Gold. "This is especially encouraging since NW-15 intersected gold mineralization a substantial distance away from what is believed to be the core of the Helen Zone system - we have once again succeeded in demonstrating that the Helen Zone can return high grades of gold over a wide area."

The fifteen holes drilled by Victoria so far indicate that the Helen Zone is U-shaped in plan with a fairly steep dip or plunge to the south-east. A diagram showing the location of NW-15 can be found on Victoria's website at The widest intercepts of gold mineralization encountered so far by Victoria in holes NW-1 to NW-14 have been centered on an area where two major structural zones intersect (one oriented northwest-southeast and the other oriented north-south). NW-15 appears to have intersected the bottom edge of this intersection system, yet returned robust gold intercepts. The host rocks in this immediate area may have been more impervious to generalized gold deposition than in the central part of the Helen Zone where the density of structures is higher. This likely explains why the gold intercepts are higher-grade but more distinct than other assays released by Victoria from the Helen Zone in the past.

The Helen Zone is located just 600 m northwest of the Cove open pit. This should be beneficial to Victoria in terms of underground accessibility, permitting, and capital requirements. The Cove open pit mine historically produced 2.3 million ounces of gold and 100 million ounces of silver. Victoria believes the Helen Zone is not an extension of the gold zones that were mined in the historical pit but an entirely new gold discovery.

Drilling of NW-15 was carried out using HQ and NQ-sized core with assays taken mostly at 1.5 m intervals. The true thickness of the mineralized zones in NW-15 is not known at this time. Assays were undertaken by Inspectorate America Corporation in Reno, Nevada using fire assay followed by atomic absorption finish or fire assay followed by gravimetric finish.

Future Plans at Cove

The proposed Phase II exploration and drilling program at the Helen Zone is anticipated to include underground drilling which has the potential to be faster, less expensive and more precise than drilling from surface. The Company is progressing on the design of the contemplated adit (tunnel) from surface into the Helen Zone.

Cove Project Background

On June 15, 2006, the Company entered into a "Minerals Lease and Agreement" to lease a 100% interest in a portion of the McCoy-Cove Mine from Newmont Mining Corporation ("Newmont"). Under terms of the lease, the Company was subject to aggregate work commitments of US$8.5 million which have been completed. Victoria has so far incurred expenditures of over $10 million at Cove. Newmont maintains a back-in right that it may exercise any time prior to, or for 90 days after, the delivery by Victoria of a positive feasibility study for a minimum of 500,000 ounces of gold resources. Upon delivery of such a study, Newmont must make a decision with respect to the back-in within 90 days or the back-in right terminates. Should the back-in right be exercised, the property will revert to a 51% Newmont/ 49% Victoria joint venture with Newmont as operator. In order to acquire a 51% interest, Newmont is required to solely fund all joint venture expenditures in an amount equal to 250% of the expenditures incurred on the Cove property from June 15, 2006 to the effective date of the joint venture agreement. Should Newmont elect not to back-in, Victoria will pay a US$1.5 million cash payment to acquire Newmont's remaining rights to the leased property and will grant Newmont a sliding scale net smelter return royalty ("NSR") which will be a maximum of 5%, less any other royalties that apply to the property or portions of the property, but not less than 2%, for a gold price over US$500 per ounce.

Acceleration of the Expiry Date of Warrants Issued on December 18, 2008

Pursuant to the terms of the warrants issued on December 18, 2008, if the closing price of common shares of the Company on the TSX Venture Exchange is equal to or greater than $0.35 per common share for a period of 20 consecutive trading days at any time after four months and one day from the date of the issue of the warrants, the Company is entitled to accelerate the expiry date of the warrants. In which case, upon delivery of notice from the Company to the warrant holder, the warrants will expire on the date which is 30 days after the provision of such notice. Since the common shares of the Corporation closed at a price in excess of $0.35 per common share for each of the 20 trading days running from May 21, 2009 through June 17, 2009, the Company delivered notice to the warrant holders that it is exercising the foregoing right of acceleration such that the term of the warrants will now expire on July 18, 2009. Should all of the foregoing warrants be exercised, the Company would receive proceeds of approximately $2.7 million.

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.

The technical contents of this press release were reviewed by Nancy J. Wolverson, Independent Consulting Geologist. She reviewed the analytical results and the QA/QC procedures in place at the facilities of the Company and the analytical laboratory. Ms. Wolverson is a Certified Professional Geologist (C.P. Geo.) through the American Institute of Professional Geologists (AIPG) and is a Qualified Person as defined in National Instrument 43-101. Dr. Raul Madrid, Vice President, Exploration of the Company, directs the drilling and logging procedures at the Cove project and is responsible for the geologic interpretation.

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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