Victoria Gold Valuation Metrics

According to Victoria Gold’s Presentation slide show at their web site (page 10), our company’s Net Present Value (NPV) is $483 million (Based on a $1300 Gold Price per ounce @ a 5% discount – pre tax). Based on our company’s capitalization (295 million fully diluted shares), our NPV per share is $1.62. Our stock, as of July 22nd closed @ US $.74 per share. Therefore, our stock is presently selling at a 54% discount below its NPV. Keep in mind that these calculations do not take into account any increase in our gold reserves following the March increase in resources. Early next year we can expect that our company will do another resource update to including drilling results that will not be reflected in our Bankable Feasibility Report that will be publicized by year-end.

On slide #23, you see a list of twelve month price targets for our stock – targets that have been publicized by seven analysts that follow our company. Their price targets range between $1.35 and $5.69. If you throw out the highest and lowest price targets, and take an average of the price targets from the remaining five other stock analysts, you end up with a $1.61 average price target.

Regardless of what metric we use to determine our stock’s valuation, both methods listed above indicate that our stock is presently selling at a 54% discount. In my opinion, we will see a substantial narrowing is this discounted price between now and year-end – please refer to a prior blog that I recently published entitled “Catalysts That Have the Potential to Move Our Stock Higher” – here is the link to this blog:http://tsgold4124.blogspot.com/

Shown below is a link to Victoria Gold’s Presentation:

http://www.vitgoldcorp.com/site/vitgoldcorp/assets/pdf/VIT_corp_slides_July2011.pdf