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Virginia Mines Inc > FLOW-THROUGH-SHARE PRIVATE PLACEMENT

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Post by 20/20/12 on Mar 07, 2014 1:52pm

FLOW-THROUGH-SHARE PRIVATE PLACEMENT

CLOSING OF A $8,480,000 FLOW-THROUGH-SHARE PRIVATE PLACEMENT

QUEBEC, MARCH 7, 2014 (TSX:VGQ) ---

Virginia Mines Inc. (“Virginia”) confirms the closing of the private placement first announced on January 28, 2014 (the “Offering”).

On February 10, 2014, the terms and conditions of the Offering were amended due to various changes announced by Finances et Économie Québec affecting the refundable tax credit for resources and the Québec flow-through share regime.

Ultimately, on February 28, 2014, Finances et Économie Québec publicly announced the deferral of such changes.

As a result, Virginia and Laurentian Bank Securities Inc. (“LBS”), which acted as agent for the Offering, mutually agreed on new terms and conditions for the Offering.

Virginia issued 353,334 flow-through common shares in the capital of Virginia (the “Flow-Through Shares”) at a price of $24.00 per share for gross proceeds of CA$8,480,016.

At closing, Virginia paid a cash fee equal to 6% of the gross proceeds of the Offering to LBS.

The Flow-Through Shares will be subject to a four-month-hold period and a day in Canada.

Proceeds from the Offering will be used to fund exploration work on Virginia’s numerous projects in Québec for the next 18 months.

About Virginia

(VGQ:TSX) Virginia conducts its exploration activities over the vast, unexplored territories of Northern Quebec in order to create value for its shareholders while protecting the quality of life for both present and future generations. With a working capital position of $40.4 million as at November 30, 2013, and a large area of mining claims in Northern Quebec, Virginia is among the most active mining exploration companies in Québec. Strengthened by the discovery of the Éléonore project and more than 20 years expertise on the territory, Virginia’s exploration team is recognized as one of the best in Canada. Virginia also holds a 2% to 3.5% royalty in the Éléonore property.

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