Virginia Gold Mines Inc. (“Virginia”) is pleased to announce the signing of a strategic alliance with Cree Gold Exploration Inc. (“Cree Gold”). Both companies will jointly carry out geological reconnaissance, sampling, and exploration work on a territory covering a surface area of more than 14,210 square kilometres, in the Middle North of Quebec.

Through this agreement called the “Mistissini Strategic Alliance”, Virginia and Cree Gold will look for auriferous and base-metal deposits associated to different geological contexts. Work will be done on a 50-50 basis with Virginia being the operator. The first phase of reconnaissance work is planned for the summer of 2004.

Virginia is proud to join with Cree Gold, a mining exploration company controlled by some Cree from the Mistissini community, to develop this unexplored region of Quebec. Jimmy MacLeod, president of Cree Gold, and the Mistissini community are among the most involved contributors in mining exploration in Quebec.

This agreement is subject to the approval of the regulatory authorities.

Virginia Gold Mines Inc . is among the most active mining exploration companies in Quebec with a working capital of over $18 million, debt free, and with approximately 36 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.

For additional information, please contact:

André Gaumond, President
Paul Archer, V.P. Exploration (QP)
Amélie Laliberté, Investor Relations
Tel.:(800) 476-1853 – (418) 694-9832
Fax: (418) 694-9120
Email: mines@virginia.qc.ca
Web : www.virginia.qc.ca