Virginia Wins the Title 'Prospector of the Year 2004': Closing of a $1,5 Million Private Placement.

QUEBEC CITY, Quebec -- Virginia Gold Mines Inc. ("Virginia") is pleased to announce that it was awarded the title Prospector of the Year 2004 during the Quebec Exploration 2004 Convention.

This reward honours Virginia's successes on its Coulon and Eleonore projects and the excellent work of its exploration team in the Bay James area during the last years.Pioneer in the exploration of this region, Virginia has numerous significant discoveries to its credit. These discoveries confirm the area's potential underestimated until then and have also generated an important exploration activity from other mining companies.

Virginia is proud of this honour considered as the most prestigious in the Quebec mining community.We would like to take this opportunity to thank all partners and people who gave Virginia their support.

Virginia also wishes to announce the closing of the private placement with Mavrix Funds (CA$1 million) and NCE Diversified Flow Through (04) Limited Partnership (CA$500,000) announced on November 22, 2004. The financing consists of 403 333 flow-through common shares at a price of $3.75 per share for net proceeds of CA$1.5 million. The proceeds from the offering will be used to fund exploration on its Eleonore project on which Virginia announced a significant discovery during the last months.

Virginia Gold Mines Inc. is among the most active mining exploration companies in Quebec with a working capital of over $17 million, debt free, and with approximately 37 million shares issued and outstanding.Virginia's shares trade on the Toronto Stock Exchange (TSX) under the symbol VIA. Virginia concentrates its activities on its numerous properties that are spread over the vast unexplored regions of northern Quebec.

Virginia Gold Mines Inc. (TSX:VIA)