Mr. John McConnell reports

VICTORIA CONTINUES TO RECEIVE HIGH GRADE RESULTS AT OLIVE; $3 MILLION PHASE 2 DEVELOPMENT PROGRAM APPROVED

Victoria Gold Corp. has commenced the 2014 phase 2 Olive exploration program following receipt of additional high-grade gold intercepts from the 2014 phase 1 program at the Olive zone, adjacent to Victoria's Eagle Gold deposit, Yukon Canada.

John McConnell, president and chief executive officer of Victoria, commented: "Our confidence continues to increase that the Olive zone will have a meaningful economic impact on the proposed Eagle gold mine. We intend to demonstrate this through a maiden Olive resource estimate followed by an update to the Eagle feasibility study and economic model with the incorporation of Olive."

Phase 1 program

Drilling

Victoria's 2014 phase 1 Olive exploration program included 20 diamond drill holes, three of which were used solely for metallurgical testing. The first five diamond drill holes from the phase 1 program yielded highly encouraging results including 69.7 metres of 2.29 grams per tonne gold and 96.1 metres of 1.22 grams per tonne gold (see news release dated June 24, 2014).

Victoria has received assay results for an additional six phase 1 holes, including 31.5 metres of 2.19 grams per tonne gold and 35.3 metres of 1.67 grams per tonne gold. A summary of mineralized intervals from assay results from the latest six holes is presented in the table.

    SUMMARY OF THE OLIVE ZONE PHASE 1 DIAMOND
DRILLING RESULTS FOR DG14-587C THROUGH DG14-594C 

Hole ID   From (m)   To (m) Length (m)   Au (g/t) 
DG14-587C      metallurgical test hole             
DG14-588C    46.2    146.0       99.9       1.02     
including    46.2     77.7       31.5       2.19     
DG14-589C      metallurgical test hole             
DG14-590C    36.6    131.1       94.5       0.99     
including    74.4    109.7       35.3       1.67     
DG14-591C      metallurgical test hole             
DG14-592C    15.2     47.8       32.6       0.97     
DG14-593C   165.1    175.9       10.8       0.91     
DG14-594C   145.1    150.2        5.1       1.38     
DG14-595C    40.9     52.5       11.6       0.71     

Note: Reported intersections are drilled 
intersections, as true widths have not yet been 
determined.

Assays are pending for six additional phase 1 exploration diamond drill holes targeting the northeast extent of the mineralized Olive shear zone. An updated plan map and drill sections relating to the assay results will be available on the company's website.

Metallurgy

As part of the phase 1 program, Victoria engaged Kappes Cassidy & Associates of Reno, Nev., to conduct additional metallurgical testing on Olive samples. Initial tests to support moving forward on a phase 2 program included 96-hour bottle roll tests on three composite oxide and three composite sulphide samples. Importantly, all samples were tested using a crush size to match the proposed crushing facility at Eagle (P80 6.3 millimetres). Gold recovery exceeded management expectations and averaged 61 per cent on the oxide samples at a P80 6.3-millimetre crush size or 93 per cent at a grind size of 75 microns. While the average oxide recovery is less than Eagle, the higher grade targeted at Olive is anticipated to result in materially higher recovered grade than the average recovered grade at Eagle.

With results from 11 of 17 diamond drill holes and metallurgy now in hand, Victoria has confidence the phase 1 exploration objectives were achieved, namely:

1. The identification of near surface mineralization with gold grades in excess of one gram per tonne over significant intervals;
2. Definition of significant tonnage (in excess of 10 million tonnes) to materially influence the mine plan at Eagle;
3. Confirmed near-surface oxide material is amenable to heap leaching and would add to the total recovered gold at Eagle.

Phase 2 program

Victoria's board of directors has approved the 2014 phase 2 Olive exploration program. The phase 2 program is under way and entails continued delineation of the high-grade Olive zone as well as exploration drilling along strike to the northeast and southwest of the phase 1 drilling.

Objectives

The objectives of the phase 2 exploration program include:

1. Completion of sufficient step-out and infill drilling to prepare a National Instrument 43-101 resource estimate, including an indicated resource;
2. Completion of sufficient metallurgical testing, including bulk column testing, to enable a qualified person to sign off on feasibility-study-level engineering for gold recovery;
3. Completion of sufficient geotechnical drilling to enable a QP to develop a feasibility study level mine plan;
4. Update of the 2012 Eagle feasibility study to include:
   1. A mine plan with additional ore from Olive;
   2. An update to the capital estimate and operating expense estimate;
   3. Incorporation of potential capital cost savings while preserving the currently permitted project scope pursuant to the positive YESAA decision document issued for Eagle (see news release dated Feb. 19, 2013).

Analytical method

All drill core from the Olive 2014 drilling program was analyzed at ALS Laboratories of Vancouver utilizing the ME-ICP61 33-element analytical package with AuAA-24 fire assay finish for gold on all samples. All core samples were split on-site at Victoria's Eagle camp and shipped to ALS Laboratories preparation facility in Whitehorse, where samples were sorted and crushed to appropriate particle size (pulp) and representatively split to a smaller size for shipment to ALS's Vancouver analysis facility. A comprehensive system of standards, blanks and field duplicates was implemented in the 2014 exploration program and is monitored as chemical assay data become available.

Qualified person

The technical content of this news release has been reviewed and approved by Paul D. Gray, PGeo, as the qualified person.

About Olive

The Olive zone target is defined by a broad gold/arsenic in-soils geochemical anomaly and lies on the intrusive-sediment contact of the Potato Hills trend (as does the Eagle deposit) and is punctuated by several historically exploited high-grade sulphide veins. The Olive area was mined on a small scale from shallow shafts and adits in the early 1900s and via placer mining in creeks draining the area. The Olive vein system is located near the top of Olive Gulch and consists of gold-bearing quartz-scorodite-arsenopyrite vein material centralized in a shear zone structure.

About the Dublin Gulch project

Victoria Gold's 100-per-cent-owned Dublin Gulch gold property is situated in central Yukon, approximately 375 kilometres north of the capital city of Whitehorse, and approximately 85 kilometres from the town of Mayo. The property is accessible by road year-round, and is located within Yukon Energy's electrical grid. The company has constructed and maintains a 100-person all-season camp at the project site.

The property covers an area of approximately 555 square kilometres, and is the site of the company's Eagle gold deposit. The Eagle gold deposit is expected to be Yukon's next operating gold mine and includes probable reserves of 2.3 million ounces of gold from 92 million tonnes of ore with a grade of 0.78 gram of gold per tonne, as outlined in a National Instrument 43-101 feasibility study. The National Instrument 43-101 mineral resource has been estimated to host 222 million tonnes averaging 0.68 gram of gold per tonne, containing 4.9 million ounces of gold in the indicated category, inclusive of probable reserves, and a further 78 million tonnes averaging 0.60 gram of gold per tonne, containing 1.5 million ounces of gold in the inferred category.

We seek Safe Harbor.