Mr. John McConnell reports

VICTORIA GOLD EXECUTES COMMITMENT LETTER FOR US$220 MILLION PROJECT FINANCE FACILITY FOR THE CONSTRUCTION OF THE EAGLE GOLD MINE

Victoria Gold Corp. and BNP Paribas have executed a commitment letter for the debt financing transaction previously outlined in the company's press release dated Jan. 24, 2017.

Pursuant to the commitment letter, BNPP has agreed, and has obtained credit approval, to underwrite 100 per cent of the planned $220-million (U.S.), senior secured project finance facility. As a result of BNPP's underwriting commitment, syndication of the loan facility is neither a condition to closing nor a condition to financing.

"We look forward to continuing to work with BNPP through the construction and operation of the Eagle gold mine. This fully underwritten commitment is the result of a rigorous due diligence program undertaken by BNPP and their independent engineer, Roscoe Postle Associates Inc., and represents additional third party validation underscoring the exceptional quality of the Eagle gold project," commented John McConnell, president and chief executive officer. "The loan facility with BNPP provides the majority of the required project funding and leaves the company with flexibility to source the remaining capital. The company will consider various alternatives to raise the balance of required project capital with the aim of minimizing dilution to our existing shareholders."

The terms of the loan facility include:

• Tenor of 6.5 years;
• Annual interest rate of LIBOR (London interbank offered rate) plus 4.50 per cent precompletion, falling to LIBOR plus 4.00 per cent postcompletion.

The loan facility will also include customary and standard provisions for a facility of this type such as completion test criteria, establishment of a gold hedging program and a cost overrun financing requirement. Prior to closing of the loan facility, the company will be required to fully finance the construction of the Eagle gold mine and other related cash outflows including sustaining capital in the first year of production, working capital and interest and financing fees. Closing of the loan facility remains subject to the completion and execution of definitive loan documentation.

In connection with the loan facility, the company is working with Auramet International as financial adviser and Cassels Brock as legal counsel.

About the Dublin Gulch property

Victoria Gold's 100-per-cent-owned Dublin Gulch gold property is situated in the central Yukon Territory, Canada, 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 mine is expected to be Yukon's next operating gold mine and, between the Eagle and Olive deposits, includes proven and probable reserves of 2.7 million ounces of gold from 123 million tonnes of ore with a grade of 0.67 gram per tonne gold, as outlined in a National Instrument 43-101 feasibility study. The NI 43-101 mineral resource for the Eagle and Olive deposits has been estimated to host 191 million tonnes averaging 0.65 gram per tonne gold, containing 4.0 million ounces of gold in the measured and indicated category, inclusive of proven and probable reserves, and a further 24 million tonnes averaging 0.61 gram per tonne gold, containing 500,000 ounces of gold in the inferred category.

Qualified person

The technical content of this news release has been reviewed and approved by Paul D. Gray, PGeo, as the qualified person. For additional information relating to the property, refer to the technical report entitled "NI 43-101 feasibility study technical report for the Eagle gold project, Yukon Territory, Canada," with an effective date of Sept. 12, 2016, which is available on the company's profile at SEDAR.

We seek Safe Harbor.