Victoria Gold Achieves Important Milestone

TORONTO, ON - Victoria Gold Corp. has spent over US $8.5 million in exploration at its Cove project to early satisfy its seven-year work commitment under the Minerals Lease and Agreement dated June 15, 2006 between Newmont McCoy Cove Limited and Victoria Resources (US) Inc.
"This is an important milestone because it secures Victoria's interest in a property with excellent gold potential as evidenced by the significant drill results from the Helen Zone at Cove released in a consistent manner by the Company," said Chad Williams, President and CEO of Victoria Gold Corp.
Victoria now holds a 100% leasehold interest in the Cove project, such interest being subject to (i) a back-in right in favour of Newmont for a 51% interest, or (ii) a US$1.5 million cash payment to Newmont and a maximum royalty of up to 5% (3.5% to 5% including previous royalties), such back in right may be exercised any time prior to the delivery of a positive feasibility study in respect of the Cove project supporting at least 500,000 ounces of gold or gold equivalent 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. As per the Minerals Lease and Agreement, satisfaction of the work commitment is subject to audit and confirmation by Newmont, which is expected once Victoria has submitted its regular bi-annual exploration report to Newmont no later than February 2009.
Drilling is ongoing at the Helen Zone. Hole NW-13a recently started and is progressing well, currently at a depth of over 330 metres. Hole NW-13 was stopped due to drill casing deviation at a depth of about 200 metres and is being replaced by hole NW-13a.
Hole NW-12 is at a depth of 593 metres (467 metres vertical) where a dyke caused slower than normal drilling advancement. The Company believes that this dyke could have acted as a barrier to gold-bearing hydrothermal fluids from depth that may have pooled below the dyke. For example, some of the higher gold grades from drill hole NW-9 were near this same dyke. Most of the higher-grade intercepts from Victoria's previous holes into the Helen Zone were located at depths of over 600 metres down-hole, below the depth reached by NW-12 so far, so deepening NW-12 is important. Victoria is using some new drilling techniques in NW-13a to maximize the ability to penetrate challenging drilling areas, such as this dyke.
As part of the regulatory requirements associated with the acquisition by Victoria of Gateway Gold Corp., announced on August 19, 2008 (the "Gateway Transaction"), Victoria was required to complete and file comprehensive technical reports on the Cove and Mill Canyon projects using the NI 43-101 reporting standards. These reports have been filed. This is the first NI 43-101 technical report on Cove. The reports on both properties were prepared by Mine Development Associates ("MDA") of Reno, Nevada.
The reports concluded that the Cove and Mill Canyon properties are "properties of merit" and are "deserving of further work." The Cove report recommends that a "preliminary assessment should be completed for the Helen Zone to determine if the deposit warrants an underground decline and additional underground drilling." MDA noted that, "the quality control procedures employed by Victoria are good."
With the completion of the Gateway Transaction, Victoria will have interests in 17 gold exploration projects in Nevada covering approximately 50,000 hectares. This large land position includes a 1.2 million ounce NI 43-101 compliant inferred gold resource at the Big Springs project.
The company's address is 80 Richmond Street West, Suite 303, Toronto, ON M5H 2A4, 416-866-8800, fax: 416-866-8801.