Virginia Gold Mines Inc.

Virginia Gold Mines Inc.

March 10, 2005 13:24 ET

Virginia Gold Mines Announces $16.1 Million Underwritten Private Placement Offering


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: VIRGINIA GOLD MINES INC.

TSX SYMBOL: VIA

MARCH 10, 2005 - 13:24 ET

Virginia Gold Mines Announces $16.1 Million
Underwritten Private Placement Offering

QUEBEC CITY, QUEBEC--(CCNMatthews - March 10, 2005) - Virginia Gold
Mines Inc. (TSX:VIA) ("Virginia") is pleased to announce that it has
closed its previously announced underwritten private placement of
2,930,000 Units at a price of $4.10 per Unit. An underwriters' option
for the purchase of a further 1,000,000 Units was fully exercised
resulting in aggregate gross proceeds of $16.1 million. Each Unit
consists of one common share and one-quarter common share purchase
warrant. Each whole warrant, in turn, entitles the holder to purchase
an additional common share at a price of $5.40 for a period of 18 months
from the Closing.

The proceeds from the private placement will be used for the advancement
of the Company's Eleonore property, and for general corporate purposes.

Orion Securities Inc. and BMO Nesbitt Burns Inc. co-led a syndicate that
included First Associates Investments Inc. and Canaccord Capital
Corporation.

The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or exemption from the registration
requirements. This press release shall not constitute an offer to sell
or the solicitation of an offer to buy nor shall there be any sale of
the securities in any State in which such offer, solicitation or sale
would be unlawful.

Virginia Gold Mines Inc. is among the most active mining exploration
companies in Quebec with a working capital of over $31 million, debt
free, and with approximately 43 million shares issued and outstanding.
Virginia's shares trade on the Toronto Stock Exchange (TSX) under the
symbol VIA. Virginia concentrates its activities on its numerous
properties that are spread over the vast unexplored regions of northern
Quebec.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Virginia Gold Mines Inc.
    Andre Gaumond
    President
    (800) 476-1853 or (418) 694-9832
    (418) 694-9120 (FAX)
    or
    Virginia Gold Mines Inc.
    Paul Archer
    V.P. Exploration (QP)
    (800) 476-1853 or (418) 694-9832
    (418) 694-9120 (FAX)
    or
    Virginia Gold Mines Inc.
    Amelie Laliberte
    Investor Relations
    (800) 476-1853 or (418) 694-9832
    (418) 694-9120 (FAX)
    mines@virginia.qc.ca
    www.virginia.qc.ca