Victoria Gold To Acquire Gateway Gold Corp.

TORONTO, ON - Victoria Gold Corp. and Gateway Gold Corp. reported that their respective boards of directors have approved a letter of agreement in respect of a proposed friendly transaction in which Victoria will acquire all of the outstanding common shares of Gateway in exchange for Victoria common shares.
Victoria is a gold exploration company with interests in eight advanced properties in north-central Nevada. Victoria's innovative exploration techniques have been instrumental in identifying new gold-bearing zones on several of these properties including, most recently, at Cove-McCoy, the site of the Helen Zone discovery.
Gateway is a mineral exploration company focused on identifying, exploring and developing gold deposits in Nevada. Gateway has nine gold projects within some of the most prolific gold belts in Nevada. The company's most advanced project, the Big Springs project, has a NI 43-101 compliant inferred resource of 1.2 million ounces at an average grade of 2.67 g/t, such resource being more particularly set out in the technical report dated March 14, 2006.
The successful completion of the transaction will consolidate the two companies' gold exploration assets in Nevada, a region recognized for its high gold production and relatively low risk.
This transaction will allow for the application of Victoria's innovative exploration techniques on Gateway's advanced exploration gold properties.
This transaction diversifies Victoria's portfolio of projects across the development pipeline, moving Victoria even closer to gold production. The most advanced project in the combined portfolio will be the Big Springs project. The next step in the development of this project will be to commission a feasibility study.