Viacom Inc. VIAB

VIA: $3.2M Flow Though PP

[monmick]

Virginia Gold Mines Inc.: $3,237,500 Flow Through Private Placement 17:00 EDT Tuesday, August 02, 2005 MONTREAL (Business Wire) -- Virginia Gold Mines Inc. ("Virginia") (TSX:VIA) announces that it has negotiated a private placement financing with four major Flow through Funds. The financing consists of 350,000 flow-through common shares at a price of $9.25 per share, which represents a 22.5% premium to today's closing price (August 2, 2005) for proceeds of $3,237,500. A finders fee will be paid on this transaction to Wellington West Capital Markets. The proceeds from the offering will be used to fund exploration on its Eleonore project on which Virginia Gold Mines has announced a significant gold discovery and on other active exploration projects. This financing is subject to approval by regulatory authorities. Virginia Gold Mines Inc. is among the most active mining exploration companies in Quebec with working capital of over $30 million, debt free, and with approximately 45 million shares issued and outstanding. Virginia's shares trade on the Toronto Stock Exchange (TSX) under the symbol VIA. Virginia concentrates its activities on its numerous properties that are spread over the vast unexplored regions of northern Quebec. VIRGINIA GOLD MINES INC. (TSX:VIA) Virginia Gold Mines Inc. Andre Gaumond President [phone] / (418) 694-983 Fax: [phone] OR Virginia Gold Mines Inc. Paul Archer V.P. Exploration (QP) [phone] / (418) 694-983 Fax: [phone] OR Virginia Gold Mines Inc. Amelie Laliberte Investor Relations [phone] / (418) 694-983 Fax: [phone] [e-mail] www.virginia.qc.ca