Here is a copy of my notes from a personal phone interview that I had with John McConnell, President and CEO @ Victoria Gold.

Text that in RED and edited comments from John McConnell

July 20, 2011

Hi John,

I appreciate you giving some of your valuable time for our phone interview. I would appreciate you editing a recap of our conversation. In particular, I would like you to fill in your response to the last question in this interview regarding our need to obtain additional financing.

I would like to forward a copy of this interview to other interested parties in a timely manner.

Thank you for your help.

Thomas Smith CFP

Today I would like to ask you a few questions, some of which have to do with your industry in general, and some of which are specifically related to Victoria Gold.

I would like to start out with some questions that are industryspecific:

Tom: I understand that one of the biggest challenges to exploration companies today is the fact that there is a shortage of skilled labor. Would you mind giving your viewpoint on this problem, and what impact this labor shortage may have on our present and planned exploration and other corporate activities?

John: You are correct that there exists in our industry a shortage of engineers, geologists, consultants, environmentalists, etc.; however, we do not have a staffing problem for our Dublin Gulch property as we hired the right people ahead of time in anticipation there would be a shortage of skilled labor.

Tom: Can you give me a heads up on rig availability and cost constraints for our current and planned drilling activity? A few years ago we had a problem in obtaining rigs and hiring qualified drillers, and the fees went sky high.

John: There is a current shortage of rigs and rig crews in many of the mining jurisdictions; however, we do not have that problem at Dublin Gulch. We negotiated a contract for the entire drilling season with the same drilling company and crew that we have had for the past two years. We also expect to have the same team for next year. In Nevada, it’s a different story. Approximately 80% of the available rigs are allocated to the major gold producers like Gold Corp., Newmont Mining, and Barrick Gold.; however, we have negotiated a contract with a rig company and a drilling crew for planned drilling activity at the end of September at our Cove property or possibly our Mill Canyon property.

Tom: What is the typical period of time to obtain drilling assay results in today’s market? Have you seen a trend recently that the delays in obtaining drilling results are taking longer? Are the delays worse than they were last year? How are these delays impacting your drilling activity?

John: From the time the CORE has been removed, it takes approximately three months to obtain the assay results. These delays are similar to what we experienced last year.

Tom: Cost of energy has gone up significantly in the past year; and as a result, the cost of exploration and production has also gone up too. How much has your expenses gone up in the past year due to these higher energy prices? Barron’s magazine recently suggested that next year we may see oil going up to $150 per barrel. Please give me you opinion as to how these rising cost are currently impacting Victoria Gold’s exploration activities and what their impact will be if oil prices continue to rise.

John: In general, our costs have gone up like everyone else; however, our Eagle mine’s energy cost will be at very favorable rates because its mine development and production phase will be hooked up to a new hydro electric plant grid. We are at an advantage compared to most others in the Yukon given the location of the Dublin Gulch property. Being close to and having access to local grid power and securing our required capacity and a set commercial rate with the Yukon Energy Corporation means our operating costs will not be impacted with rising oil prices as a company relying on diesel power would experience.

Now I would like to ask you some additional questions that are specific in nature to Victoria Gold:

Tom: When do you expect our company to give us an update on drilling activity at Dublin Gulch? Can you fill me in on what has been drilled to date? Have you identified a cut off date to include in this year's drilling results at our Eagle project? How much drilling is there yet to do at Eagle and Dublin Gulch?

John: We will be issuing a press release within the next 7 to 10 days. The report will include assay results from approximately 40 holes drilled at Dublin Gulch/Potato Hills area. We have already passed the cut off date for including new drilling results at our Eagle project for inclusion in the feasibility study that should be completed in the 4th quarter this year; however, the Eagle drilling results that were reported on March 21st will be included in the Eagle feasibility report.

Tom: How many rigs do we presently have operating at Dublin Gulch? Please give me an update as to how effective your reverse circulating drilling technique has been?

John: We presently have three rigs operating at Dublin Gulch. Reverse Circulation drilling results have not lived up to our expectations so we have reverted back to 100% core drilling. One should note that core drilling, despite providing superior results, is more expensive and a slower process and this will likely results in VIT drilling closer to 80 holes as compared to the planned 100 in the Dublin Gulch area this year.

Tom: Have you negotiated a contract with a company for drilling planned activity next year at Dublin Gulch or any other drilling prospects we have?

John: We will have the same drilling team that we have been using for the past two years, which is very unusual for the mining industry. It is common in the industry that most exploration companies hire new drilling rig companies and crews each year. What is unique with our company is that we offer a year around job as opposed to a short seasonal period of time where drilling can actually be done. At Dublin Gulch we have housing for 100 people and road access which allows us to drill from February through to November. Many of our competitors in the Yukon are limited to a very short drilling season of approximately 3 months due to the weather conditions.

Tom: Please give me an update as to our drilling activity at the Helen Zone.

John: The 12 hole drilling program at the Helen Zone has been suspended until the end of the third quarter. We will have to reallocate some of our resources from Dublin Gulch to complete this drilling phase or other drilling activity in Nevada. Depending on the GIS Model results we are creating for Mill Canyon, we may drill a few holes there before the Helen Zone. One of the reasons why we may choose to drill a few holes at Mill Canyon before the Helen Zone is due to weather conditions. Mill Canyon is located at a higher altitude than the Helen Zone and cannot be drilled year around.

Tom: What is the status regarding our firm obtaining the final permits for building the underground decline at Cove’s Helen Zone? Based on our company's worst case, which was stated on our web site, we should have all the permits for building the adit at Cove by the end of this quarter - do you feel that this time line for final approvals is still valid? Is building the adit contingent upon the drilling results from our current drilling project at the Helen Zone? Do we have to wait until the next round of drilling results from the Helen Zone before we can begin construction of the underground decline?

John: We are on track in obtaining all the permits to build the underground decline by the end of the 3rd quarter this year. Building the underground decline is not contingent upon drilling results from a pending drilling program at the Helen Zone that could commence at the end of this quarter: however, those results may affect the actual location of the underground decline. We do not have to wait until the drilling results are received from the next round of drilling at the Helen Zone before we start construction of the underground decline. There are a number of baby steps (preparatory work) that we can do pending the receipt of the assay results from the next round of drilling activity at the Helen Zone.

Tom: What is our company’s current cash position? What is our burn rate? When do you anticipate we will have to arrange financing for next years planned drilling/construction activity and corporate overhead? Once we have completed this years planned drilling activities and the Eagle feasibility study, I assume our cash position will be nearing $5 million – a point in time where we will require another stock offering to finance our drilling program and other operating costs for 2012 and possibly beyond.

John: As per our recently released annual financial statements we had approximately $26 million is cash as of February 28th. We have a $3 million monthly burn rate. You are correct in your assumption that our company is going to have to consider additional financing alternatives when our cash position nears the $5 million mark.

Tom: According to one of the media releases this year, next year our firm will have to budget $40 million over next the 12 to 18 months just to cover the cost of building the underground decline at our Cove property and completing the initial underground drilling phase. Then comes a $280 million price tag to build our mine at our Eagle property that will be phased in over the next two years. And lastly, we will need sufficient money to cover corporate overhead and continue our drilling activity in the Yukon and Nevada. We are talking about a great deal of money for a junior gold exploration company to raise. I am sure that these issues are on investor’s minds, and no doubt this concern has been a factor in the low valuation of our company’s stock relative to its peer group. How do you expect to finance all of these expenses? – Stock offerings – bonds, etc.?

John: You are correct in your interpretation of our financing needs and the fact this is weighing on the company’s valuation in the market. We will look to do a portion of the financing in equity and look at all other avenues such as gold streaming, debt, hedging, attaining a joint venture partner, etc. although we cannot at this time guide you towards any specific breakdown. We understand dilution, especially at the current share price, is a great concern to shareholders and us and we hope to see an appreciation in our share price over the remainder of the year based on the progress we have made and work we have done. We will soon announce the appointment of a financial advisor who we have retained to ensure that we strategically evaluate all alternatives to ensure shareholder value is maximized during the process.

I added the following after our interview:

Most of you are aware of the fact that Newmont Mining has back-in rights for our Cove property. The first point I want to make is the fact that Newmont Mining can exercise their back-in rights at any time - they don't have to wait for us to provide a feasibility report that indicates that we have identified 500,000 ounces of gold. Keep in mind, the longer Newmont Mining takes in making a desision to exercise their back-in rights the more costly it will for them to exercise those rights. For every dollar that we spend on the Cove property, Newmont Mining will have to reimburse our company 2 1/2 times the money we have spent. I do not know exactly how much our company has spend on this property development, but to best of my recollection, I believe Newmont Minnning would have to pay us over $40 million to exercise their rights - and its costs are sure to rise over the next year since we will continue to do some drilling at the Helen Zone and spend an additional $4 million to build the underground decline . If you have more up-to-date information on the exact amount, please post it on the message boards for our company.