VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 3, 2010) - Virginia Energy Resources Inc. (TSX VENTURE:VAE) ("Virginia" or "the Company") is pleased to announce that pursuant to an exclusivity agreement with privately held VA Uranium Holdings, Inc., ("VA Uranium") the Company has elected to increase its equity ownership of VA Uranium from 22.2% to 28.5% by the purchase of 12.8 million shares at an average price of $0.33/share by a series of 7 tranches over a period of a year, commencing January 28, 2010.
VA Uranium has 100% equity interest in the Coles Hill uranium deposit in southern Virginia. Coles Hill is considered to be one of the largest undeveloped uranium deposits in the United States. It has a measured and indicated resource of 119 million pounds of U3O8 (98.7 Mt at 0.060 percent U3O8 at a cut-off grade of 0.025 percent U3O8), including a higher grade zone of 77.4 million pounds of U3O8 (37.7 Mt at 0.103 percent U3O8 at a cut-off grade of 0.050 percent U3O8) based on an April 29, 2009 National Instrument 43-101 Technical Report prepared for the Company by Behre Dolbear and Company Ltd., Marshall Miller and Associates Inc., and PAC Geological Consultants Inc. (Dr. Peter Christopher, P.Eng.). This report is available on SEDAR and on Virginia Energy Resources' website.
The Commonwealth of Virginia is currently evaluating the scientific, technical, environmental, human health and safety, and regulatory aspects of uranium mining, milling, and processing. The Virginia Coal & Energy Commission through the Virginia Center for Coal and Energy Research at Virginia Tech will engage the National Research Council, an arm of the National Academy of Science to undertake this evaluation. This independent scientific study is expected to take approximately 18 months.
The Company was particularly pleased by President Obama's January 27, 2010 State of the Union address wherein he stated that, "To create more of these clean energy jobs, we need more production, more efficiency, more incentives. And that means building a new generation of safe, clean nuclear power plants in this country."
On January 28th, it was reported in Business Week that the President "will propose tripling loan guarantees for new reactors to more than $54 billion…". The U.S. Nuclear Regulatory Commission has received applications to build 26 new reactors, and several more are pending. Six plants have already been ordered. As these plants come on line, a nuclear revival seems imminent.
Earlier this month, Virginia Governor Bob McDonnell in an address to a joint session of the Virginia General Assembly, affirmatively announced that, "I am committed to utilizing all our vast, God-given natural resources to make Virginia the 'Energy Capital of the East Coast'." Moreover, he also committed to create "an energy corridor in Southern and Southwest Virginia".
The technical information in this news release has been reviewed by Michael S. Cathro, P.Geo., Virginia's Vice President of Exploration and a Qualified Person as defined in National Instrument 43-101.
On Behalf of the Board of Directors
VIRGINIA ENERGY RESOURCES INC.
Norman Reynolds, President & CEO
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.