Victoria Gold Reports Small Release of Process Solution

On July 11th, during a period of heavy rain, employees reported pooling water on the load-out area of the pad outside of the lined containment of the heap leach facility. Immediate corrective action was and the seep was fully contained by 09:00.

Victoria Gold Corp. is voluntarily disclosing details of a small release of process solution outside of the contained heap leach facility at the Company's Eagle Gold Mine.

On July 11th, during a period of heavy rain, employees reported pooling water on the load-out area of the pad. Upon inspection, it was discovered that rainwater mixed with process solution was seeping from the base of the load-out area of the pad to the adjacent road surface which is outside of the lined containment of the heap leach facility.

Initial analyses indicate a failed solution distribution pipeline combined with heavy rainfall together led to process solution and rainwater seeping laterally off the pad to the adjacent road rather than to the in-heap pond.

Immediate corrective action was and the seep was fully contained by 09:00.

The volume of solution release outside of containment is estimated to be 4.5m3 with the total quantity of cyanide involved less than 1kg. Process solution did not directly enter a water course and no demonstrable impact to the environment is expected.

A series of onsite analyses was undertaken on the morning of July 11, and all water samples collected downstream of the area have shown no impact as a result of the release. Monitoring of the area is ongoing and water samples have been sent for analysis at an external independent laboratory.

Victoria Gold President and Chief Executive Officer John McConnell said he did not want to speculate but suggested a number of factors probably came into play on Saturday morning, including heavy rains in the Mayo area and a small technical problem problem with a pipe.

Pursuant to the Company's management plans and protocols, all regulatory agencies and partners have been notified and the situation documented. As a result of the Company's Emergency Management Plan and immediate action of Eagle employees, the situation was quickly identified and dealt with accordingly and effectively.

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