VG Gold shareholder Lexam exercises warrants
Ticker Symbol: C:VG C:LEX

VG Gold shareholder Lexam exercises warrants

VG Gold Corp (C:VG)
Shares Issued 139,708,514
Last Close 10/20/2009 $0.485
Wednesday October 21 2009 - News Release

Also Lexam Explorations Inc (C:LEX) News Release

Mr. Tom Meredith of VG Gold reports

EARLY EXERCISE OF WARRANTS BY LEXAM CASHES UP VG GOLD

On Oct. 20, 2009, Lexam Explorations Inc. made an early exercise of all its warrants and purchased 37.5 million common shares of VG Gold Corp. for gross proceeds of $5,625,000. The exercise price of the warrants was $0.15 per share.

The warrants were acquired pursuant to a private placement in two tranches, through which Lexam acquired 37,500,000 units, each unit consisting of one common share and one warrant of VG Gold. The acquisition of the units was pursuant to an agreement disclosed in Lexam's Early Warning Reports dated July 23, 2009 and September 2, 2009.

Immediately prior to giving effect to exercise of the warrants, Lexam held 37,500,000 common shares or approximately 27% of the issued and outstanding common shares in VG Gold on a non-diluted basis. After giving effect to the exercise of the warrants, Lexam will hold 75,000,000 common shares or approximately 42% of the issued and outstanding common shares in VG Gold on a non-diluted basis.

After exercising the warrants, VG Gold will have approximately $8.0 million in cash with no debt. VG Gold plans to use the proceeds to explore its gold projects in Timmins, Ontario. The Company is now fully funded and anticipates having two drills working continuously over the next twelve months.

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