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Lexam VG Gold Hits New Gold Mineralization at Fuller Property

Lexam VG Gold Inc. has announced positive exploration results at the Fuller property including 4.23 grams per tonne gold over 30.6 metres. Recent drilling has indicated a near surface, gold mineralized porphyry target located adjacent to the established Fuller Deposit gold resource.

Much of the Fuller Porphyry remains untested, both along strike and at depth, so potential exists to expand the mineralization of the Fuller property with further exploration drilling on the porphyry hosted gold mineralization. The Fuller property currently hosts a 43-101 compliant resource estimate dated May 3, 2006 with the existing resource contained in gold mineralized mafic rocks situated adjacent to and north of the current drilling.

The Fuller resource was calculated to a depth of approximately 500 metres below surface and includes a number of mineralized zones. This mineralization surrounds the Fuller Porphyry body to the north and west.

The Fuller resource zones lie adjacent to a porphyry body that measures approximately 650 metres (east-west) by 150 metres (north-south) and wraps around the western and northern nose of the porphyry body.

The Fuller drill program was designed to test the potential of the porphyry body to host a near surface, open pittable style resource and was successful in intersecting significant widths of gold mineralization including 2.73 gpt Au over 50.2 metres, 5.48 gpt Au over 10.6 metres and 2.71 gpt Au over 13 metres.

Gold mineralization at the Fuller porphyry zone is hosted within strongly altered and well mineralized quartz feldspar porphyry. Alteration consists of pervasive ankerite and sericite with quartz veining. Pyrite mineralization is disseminated throughout, with local concentrations to 10%.

The majority of the gold deposits in the Timmins camp are proximal to or associated with porphyry bodies.

Porphyry bodies are the host of a portion of the gold ore at the major deposits of the Timmins camp including Hollinger, McIntyre and Dome mines.

The Fuller Porphyry has a similar alteration assemblage as described above and is associated with major structures including the Destor Porcupine Fault Zone.

Exploration Drill Program

Three diamond drills are operating on the Lexam VG Gold Timmins Projects:

1. One drill about to commence drilling on the Fuller property porphyry zone, following up on the hole VGF-11-121, which intersected 4.23 gpt over 30.6 m within 50.2 m grading 2.73 gpt;

2. One drill on the Buffalo Ankerite property testing the Buffalo Ankerite North Zone central area, following up on hole VGP-11-106, which intersected 23.85 gpt over 2.4 m (press release of June 9, 2011);

3. One drill on the Paymaster property testing primarily the Buffalo Ankerite North Zone, north area, following up on holes VGP-11-109 and VGP-11-111, which intersected 5.18 gpt over 12.4 m and 17.63 gpt over 3.0 m respectively (press release of July 28, 2011).

Fuller Property

The 100% Lexam VG owned Fuller property lies immediately north of the 100% owned Buffalo Ankerite property and west of the Paymaster property, which is under option from Goldcorp.

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