UPDATE ON ÉLÉONORE GOLD DEPOSIT ROYALTY

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UPDATE ON ÉLÉONORE GOLD DEPOSIT ROYALTY

posted on Feb 24, 2009 07:04AM

UPDATE ON ÉLÉONORE GOLD DEPOSIT ROYALTY

Virginia Mines Inc. (“Virginia”) would like to update shareholders on the resource calculation of the Eléonore project held by Goldcorp Inc.

On February 19, 2009, Goldcorp published a new grade and resource calculation on the Éléonore gold deposit, of which Virginia owns a 2% production royalty. Advance payments of US$100,000 per month are to begin in April 2009.

As of December 31, 2008, the deposit contained 2.3 million ounces of measured and indicated gold resources at an average grade of 10.05 grams per tonne and 3.0 million ounces of inferred gold resources at an average grade of 12.75 grams per tonne.

The royalty is highly enhanced with the current gold price and the new resource calculation suggests that Virginia’s royalty could reach a value of over 3% NSR.

Goldcorp mineral resource calculation on Eléonore gold deposit:

GOLDCORP MINERAL RESOURCES *As of December 31, 2008*	MEASURED & INDICATED	INFERRED
Tonnage	Grade	Contained	Tonnage	Grade	Contained
GOLD	mt	g/t Au	m oz	mt	g/t Au	m oz
Eléonore	7.05	10.05	2.28	7.39	12.75	3.03

*Source: Goldcorp Inc.

Virginia’s Royalty on Eléonore deposit

Royalty Percentage	Price of Gold
-10%	if price of gold less or equal to US$350 / oz
-5%	if price of gold greater than US$350 / oz but less or equal to US$400 / oz
-	if price of gold greater than US$400 / oz but less or equal to US$450 / oz
+5%	if price of gold greater than US$450 / oz but less or equal to US$500 / oz
+10%	if price of gold greater than US$500 / oz

Royalty Percentage	Ounces Produced from the Property
2%	on the first 3 million oz
+ 0.25%	on the cumulative ounces produced between 3 million oz and 4 million oz
+ 0.25%	for every additional million ounces of gold produced

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