Mr. Tom Meredith of VG Gold reports

LEXAM AND VG GOLD SHAREHOLDERS OVERWHELMINGLY APPROVE BUSINESS COMBINATION

Voting at Lexam Explorations Inc. and VG Gold Corp.'s separate Dec. 13, 2010, special meetings of shareholders resulted in over 99-per-cent approval by votes cast in favour of the proposed business combination between Lexam and VG Gold to form Lexam VG Gold Inc.

Shareholders of both companies also voted in favour of the private placement by Rob McEwen, current chairman and chief executive officer of Lexam, for gross proceeds of $5-million. The business combination and private placement are expected to be completed by year-end.

Tom Meredith, who will become president and CEO of the new Lexam VG Gold, said: "We are very pleased by the overwhelming support from our shareholders. This merger will enable the combined company to prepare for an aggressive exploration program in 2011 with the goal of making a significant high-grade discovery and further expanding our current resources."

Completion of the arrangement requires the approval of the Superior Court of Justice (Ontario) and satisfaction of certain other conditions precedent. A hearing by the Superior Court of Justice (Commercial List) is scheduled to be held on Dec. 20, 2010.

Upon court approval and all other conditions being satisfied, it is expected that the arrangement will become effective on Jan. 1, 2011. The combined company, Lexam VG Gold Inc., will trade on the Toronto Stock Exchange under the symbol LEX.

The new Lexam VG Gold will benefit from:

• Strategic land position: Well positioned around Goldcorp's Dome mine that has produced 17 million ounces of gold;
• Aggressive exploration: $10.0-million exploration program over the next 12 months;
• Strong treasury: Approximately $15.0-million in cash and no debt;
• Attractive valuation versus Timmins peer group.

We seek Safe Harbor.