Mr. Tom Meredith reports

LEXAM VG GOLD INC.: NEW GOLD MINERALIZATION ENCOUNTERED AT FULLER PROPERTY

Lexam VG Gold Inc. has released 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.

                         DRILL ASSAY HIGHLIGHTS             

                                            Assay from      Width         Au 
Hole No.                                            (m)        (m)      (gpt)

VGF-11-121                                       169.3       50.2       2.73
incl                                                         30.6       4.23
VBA-11-118                                       124.4       10.6       5.48
incl                                                          3.0      11.67
VBA-11-117                                        96.9        6.1       7.93
incl                                                          3.7      12.27
                                                 188.6       13.0       2.71

Intervals reported are core lengths. True widths are not known at this 
time. All depth reported as downhole (m equals metres; gpt equals grams
per tonne; Au equals gold).

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 an NI 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.

                  FULLER PROPERTY 43-101 MINERAL RESOURCE         

                                                  Tonnes       Gpt     Oz Au

Indicated                                      1,338,325      5.49   236,245
Inferred                                       1,644,631      5.66   249,960

Mineral resource estimate of the Fuller gold property: Wardrop, 2006       
(oz equals ounces).

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 grams per tonne gold 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 per cent.

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

"The spatial association between gold mineralization and felsic porphyry bodies has long been recognized in the Timmins gold camp" (Burrows 1924, 1925).

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.

"Gold mineralization is typically associated with:

• "Clusters of porphyry intrusions (e.g. Dome and Hollinger-McIntyre mines);
• "Porphyries that have strong associations with major structures;
• "Porphyries that have undergone sericite (plus/minus carbonate) alteration (significant sodium losses and potassium metasomatism)" (Ontario Geological Survey, open file report 6160, MacDonald, Piercey and Hamilton, 2005).

The Fuller porphyry has a similar alteration assemblage as described herein and is associated with major structures, including the Destor Porcupine fault zone.

Exploration drill program

Three diamond drills are operating on the Lexam VG 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-per-cent Lexam VG-owned Fuller property lies immediately north of the 100-per-cent-owned Buffalo Ankerite property and west of the Paymaster property, which is under option from Goldcorp.

Technical information

The information presented in this press release has been reviewed and approved by Kenneth Guy, PGeo, a consultant to Lexam VG and the qualified person responsible for the exploration program at the Fuller property, as defined by National Instrument 43-101 (standards of disclosure for mineral projects).

All drilling was completed using NQ size core. Gold analysis of the samples collected by Lexam VG Gold was assayed by ALS Chemex. Analysis consisted of a fire assay of a 30-gram sample with an atomic absorption finish. Samples assaying over 10.0 grams per tonne gold are reassayed with gravimetric finish. Samples noted to contain visible gold are analyzed through total metallic assay method. A rigorous quality control and assurance program is in place, using control samples such as blanks and duplicate checks. In addition, duplicate analyses of 10 per cent of the samples are corroborated by check assays performed at a third party laboratory.

We seek Safe Harbor.