Otish Basin Projects, Quebec

Virginia Energy Resources Inc. has an exploration program in the emerging Proterozoic Otish Basin located in central Quebec. The Virginia properties have numerous high-grade uranium prospects similar to the nearby Matoush deposit of Strateco Resources Inc. with 7.78 million pounds U₃O₈ in the indicated category, and 19.22 million pounds U₃O₈ in the inferred category (Reference: Strateco website), the Seru L zone (or Lavoie) deposit of Abitex/Soquem/Areva with 3.9 million pounds eU₃O₈ in the indicated category and 9.26 million pounds eU₃O₈ in the inferred category (Reference: Abitex website), and Cameco's South Otish (Camie River) property.

Virginia holds 100% interest in 9 properties including Beaver Lake, Otish West, Strategis, Lorenz, Marc-Andre, Trident, Cigare, Peribonca and Otish East.

Our work since 2007 has brought several targets to the drilling stage, including:

Lac du Castor: located on the Peribonka property, 5 km northeast of and on the same structure as the Seru L zone. Hole 2011-04 drilled by Virginia in 2011, intersected 9.0 m grading 0.10% U₃O₈ beginning at a depth of 75.8 metres, including higher grade intervals of 6.5 m grading 0.13% U₃O₈ or 3.0 m grading 0.188% U₃O₈. The mineralized zone occurs in a flat-lying sandstone unit beneath a gabbro sill, a similar setting to the L zone.

L-Zone Extensions: Little drilling has been done along strike to the east and west of the main Seru L zone, which is on a small Abitex claim block, completely surrounded by Virginia's Peribonka property. In 2011, a new boulder discovery was made 3.5 km along strike to the west of the Seru L zone. At the Blair boulder train, discovered in 2011, six angular sandstone boulders averaged 0.377% U₃O₈ and 1.71 g/t Au. The richest boulder assayed 1.31% U₃O₈ and 5.71 g/t Au. There has been no drilling in the area.

Lorenz Gully: This zone is located about 300 to 500 m from the unconformity on the northern basin margin. Drilling by Uranerz in 1978-78 cut narrow basement-hosted intersections such as 0.5 m grading 1.87% U₃O₈ and 3.0 m grading 1171 ppm U₃O₈. Stripping and prospecting by Virginia in 2009 extended the mineralized trend to an area of more than 900 m by 120 m. Grab samples on this trend range from about 0.1 to 1% U₃O₈. The mineralization occurs on a low ridge with minimal soil and moss cover. Additional stripping and channel sampling is recommended prior to drilling. There is potential here for both bulk-tonnage and high-grade mineralization.

Lac Tion: Two boulder trains contain small gabbro boulders grading up to 5.47% U₃O₈. A historic Winkie hole by Seru cut 1.5 m grading 0.555% U₃O₈ in gabbro, beginning at 4.75 m depth. 2009 work has defined new magnetic structures and soil anomalies for drill testing. The target is a high-grade Matoush-type structure.

Red-Green: A total of about 20 strongly altered, radioactive boulders up to 2 m in diameter are present on Virginia's Trident property. The boulders grade up to 0.83% U₃O₈and 3.3 g/t Au and are thought to be close to their bedrock source. Three holes holes were drilled in 2011 but were not successful in locating mineralization in place. Additional field studies are required to define new targets.

Marc-Andre: A Matoush-type gabbro dike has been traced for nearly four kilometres. At the Marc-André prospect, overburden stripping has exposed a 10 x 25 metre mineralized area along the faulted contact between gabbro and sandstone. The best 2008 channel sample cut 1.5 metres grading 0.146 % U₃O₈ and some samples were also anomalous in Au. Limited past drilling has cut weakly mineralized alteration beneath the trench and more drilling is warranted.

Access to the Virginia properties is currently by floatplane or helicopter, however, Quebec has announced a project to upgrade the existing Eastmain winter road to all-weather status. This road, to be called the Route 167 Extension, will provide access for several mining projects in the region and will pass within a few kilometres of Virginia's claims. Construction is underway.

Maps and Photos