NEWS RELEASE
LEXAM Announces C$3 MILLION INVESTMENT In VG GOLD
Exploration Next To Major Mines In Timmins, Ontario
Promising Drill Results, Good High Grade Potential at Depth!
Toronto, July 21, 2009 LEXAM EXPLORATIONS INC. (TSX-V:LEX) is pleased to announce that it
has agreed to make a C$3,000,000 strategic investment in VG Gold Corp. (“VG Gold”) for an
aggregate subscription of 37,500,000 units issued by way of a private placement. Each unit is priced
at C$0.08 and includes one common share and one common share purchase warrant exercisable at
$0.15 per share for a period of eighteen months. The private placement will be completed in two
tranches. Upon closing of both tranches Lexam will own approximately 27% of VG Gold’s
outstanding shares and 42% on a partially diluted basis. The first tranche consisting of 12,594,814
units closed earlier today. Lexam is now VG Gold’s largest shareholder.
“VG Gold’s properties are situated in the heart of the Timmins gold camp where 67 million ounces of
gold have been produced. The company’s drill results have encountered attractive grades and good
widths. Companies such as West Timmins Mining and Lake Shore Gold are proving there is much
more gold to be found in this historic camp.” stated Rob McEwen, Chairman and CEO of Lexam.
DETAILS OF LEXAM INVESTMENT
The private placement will be completed in two tranches and consists of 37,500,000 units. Each unit
is comprised of one share and one common share purchase warrant of VG Gold. One common
share purchase warrant entitles Lexam to purchase one additional common share at an exercise
price of C$0.15 per share over a period of eighteen months from closing. Securities issued are
subject to a four-month hold period. The first tranche consisting of 12,594,814 units for gross
proceeds of C$1,007,585 was closed earlier today, giving Lexam an ownership position of
approximately 11% of VG Gold’s outstanding shares and 20% on a partially diluted basis. The
second tranche of the private placement is subject to receiving all necessary regulatory and
shareholder approvals and is expected to close in early September.
Under terms of the arrangement Lexam will have the right to nominate a director and a right to
participate pro-rata in future VG Gold financings, provided Lexam’s aggregate interest remains
above 10% of common shares outstanding.
Lexam may increase or reduce its investment in VG Gold according to market conditions or other
relevant factors.
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INVESTMENT RATIONALE
Potential to discover additional high-grade gold mineralization in one of Canada’s most prolific gold
camps. Gold production in the Timmins area totals over 67 million ounces since 1910, making it one
of the largest gold producing areas in the world. Recent discoveries by West Timmins Mining and
Lake Shore Gold have clearly demonstrated that the area is still highly prospective for large, highgrade
gold discoveries. VG Gold’s key assets are located adjacent to Goldcorp’s Porcupine gold
mines (Figure 1 & 2).
PAYMASTER WEST DRILL PROGRAM
The majority of the proceeds provided by Lexam will be used for drilling on VG Gold’s Paymaster
West property in order to earn a 60% interest from Goldcorp.
The Paymaster property, which produced 1.19 million gold oz, from 1915 to 1966, is located on the
east-west trending Porcupine Syncline geological structure that is host to several current and former
producing gold mines in Timmins, Ontario Canada (Figure 1 and 2). For a list of selective historic
drill holes click: www.vggoldcorp.com/downloads/Drill_Hole_Table_Paymaster.pdf
and for cross sections click: www.vggoldcorp.com/property/paymaster.cfm
DAVIDSON TISDALE PROJECT
Davidson Tisdale is 68.5% owned by VG Gold and located approximately 3 km northeast along
strike from other major mines in the Timmins camp (Figure 1 & 2). Between 2003-2006 VG Gold
conducted an extensive drill program returning significant drill results. These drill results are very
encouraging and possibly indicative of what could be found at depth. Lexam’s management is
excited about the future exploration potential of this property. Drilling is expected to commence once
VG Gold has fulfilled it option on the Paymaster West property. For a list of previous holes completed
by VG Gold, please click: www.vggoldcorp.com/downloads/Drill_Hole_Table_Tisdale.pdf
ABOUT LEXAM
Lexam Explorations Inc. is a North American exploration company. The company is advancing the
Baca Oil & Gas Project located in south-central Colorado, USA, which is 75% owned by Lexam and
25% by ConocoPhillips, it also has a 50% joint venture interest in the Otish Basin uranium project
located in Quebec, Canada with Golden Valley Mines and the Company holds significant equity
stakes in Rubicon Minerals Corp. and VG Gold Corp.
QUALIFIED PERSON
Kenneth Guy, P. Geo., is a Qualified Person (as such term is defined in National Instrument 43-101-
Standards of Disclosure for Mineral Projects),