EVENTS Following the removal of our research restriction on VIT, we are revising our modeled gold price upwards. This is consistent with the revisions applied to our entire coverage universe, as outlined in our report Going for Gold (August 20, 2010).

REVISIONS We are now modeling a long-term US$1,000/oz gold price, which is in line with the gold price applied to gold developers in our coverage universe. The new gold price impacts the NPV components (Eagle and Cove projects) of our NAV. In addition, we have considered the recently closed bought deal financing totaling $28.8M. The net impact is an increase in our NAV to $495.5M, or $1.52/share, and an increase in our price target from $1.60/share to $1.90/share.

IMPLICATIONS With a target return of 134.6%, VIT shares present a compelling investment opportunity. The target return is the highest amongst our Mining and Minerals companies under coverage. VIT is fully financed for its current programs. Risks associated with the target valuation are related to the timing and final results of the proposed underground sampling and drilling program for the Cove Project, Nevada and the feasibility study that is currently underway for the Eagle Project, Yukon.

VALUATION 1.25x P/NAV multiple applied to our NAV estimate of $1.52/share. Our NAV is based on our NPV estimate for the Eagle and Cove Projects, plus value for additional resources not in the Eagle Project mine plan and resources in Nevada. Our NAV is also adjusted for working capital and an additional 50.1M shares to finance 30% of the initial capex at the Eagle Project.

THESIS Victoria Gold’s current P/NAV of 0.53x reflects the current stage of evaluation for its two key projects and ignores the potential for resource expansion, in our view. We believe the shares should approach our target P/NAV of 1.25x as the projects are advanced, with additional upside from internal, and perhaps external, growth prospects.