Page 1

Page 2

Page 3

Page 4

Page 5

Page 6

The financial information as at November 30, 2007 and for the three and nine-month periods ended November 30, 2007 and 2006 is unaudited. However, in the opinion of management, all adjustments necessary to present fairly the results of these periods have been included. The adjustments made were of a normal recurring nature. Interim results may not necessarily be indicative of results anticipated for the year.

These unaudited interim financial statements have been prepared in accordance with Canadian generally accepted accounting principles and use the same accounting policies and methods used in the preparation of Virginia Mines Inc's. ("Virginia Mines") most recent annual financial statements except for the new accounting standards as described in note 2. All disclosures required for annual financial statements have not been included in these financial statements. These unaudited interim financial statements should therefore be read in conjunction with Virginia Mines' most recent audited financial statements.

Financial instruments

In January 2005, the CICA issued four new accounting standards in relation with financial instruments: section 3855 "Financial Instruments – Recognition and measurement", section 3865 "Hedges", section 1530 "Comprehensive Income" and section 3251 "Equity".

Section 3855 expands on section 3860 "Financial Instruments – Disclosure and Presentation", by prescribing when a financial instrument is to be recognized on the balance sheet and at what amount. It also specifies how financial instrument gains and losses are to be presented.

Section 3865 provides alternative treatments to section 3855 for entities which choose to designate qualifying transactions as hedges for accounting purposes. It replaces and expands on Accounting Guideline AcG-13 "Hedging Relationships", and the hedging guidance in Section 1650 "Foreign Currency Translation" by specifying how hedge accounting is applied and what disclosure is necessary when it is applied.

Section 1530 "Comprehensive Income" introduces a new requirement to temporarily present certain gains and losses outside net income.

Consequently, Section 3250 "Surplus" has been revised as Section 3251 "Equity".

Sections 1530, 3251, 3855 and 3865 were adopted by the Company on March 1, 2007.

Recognition of financial assets and liabilities

Short-term investments

The short-term investments are classified as available-for-sale investments. The Company recognizes transactions on the settlement date.

These investments are recognized at fair value. Unrealized gains and losses are recognized, net of income taxes, if any, in "Accumulated other comprehensive income". Upon the disposal or impairment of these investments, these gains or losses are reclassified in the statement of earnings.

A difference of $4,998,383 (net of income taxes expenses of $880,965) between the carrying amount and the fair value of investments classified as available for sale is recognized as an adjustment to the opening balance of "Accumulated other comprehensive income".

Page 7

Accounting changes

Effective January 1, 2007, the Company adopted CICA Handbook Section 1506 “Accounting Changes”. This Section establishes criteria for changes in accounting policies, accounting treatment and disclosures regarding changes in accounting policies, estimates and corrections of errors. In particular, this Section allows for voluntary changes in accounting policy only when they result in the financial statements providing reliable and more relevant information. Furthermore, this section requires disclosure of when an entity has not applied a new source of GAAP that has been issued but is not yet effective. Such disclosures are provided below. The adoption of this Section had no further effects on the financial statements for the quarter and the three and six-month period ended August 31, 2007.

Impact of accounting pronouncements not yet adopted

Capital Disclosures

The CICA issued Section 1535, “Capital Disclosures”. This standard establishes guidelines for disclosure of information regarding an
entity’s capital which will enable users of its financial statements to evaluate an entity’s objectives, policies and processes for managing capital, including disclosures of any externally imposed capital requirements and the consequences of non-compliance. The new requirements will be effective on fiscal years beginning on or after January 1, 2008. The Company is presently evaluating the impact of this new standard.

Financial Instruments – Disclosures and Financial Instruments - Presentation

The CICA issued Section 3862, “Financial Instruments – Disclosures” and Section 3863, “Financial Instruments – Presentation” which replace Section 3861, “Financial Instruments – Disclosure and Presentation”. The new disclosure standard requires the disclosure of additional detail of financial asset and liability categories as well as a detailed discussion on the risks associated with the company’s financial instruments. This standard harmonizes disclosures with International Financial Reporting Standards (“IFRS”). The presentation requirements are carried forward unchanged. These new standards will be effective on fiscal years starting January 1, 2008. The Company is presently evaluating the impact of these new standards.

The asset-backed commercial paper market was shaken by a liquidity crisis in August 2007. Hence, since August 13, 2007, the Company has not been able to receive payments for the amounts due upon maturity of the non-bank-sponsored ABCP that it holds.

During the month of August, a group of investors proposed an agreement, "the Montreal agreement," to investors who hold non-bank-sponsored ABCP in the expectation to establish normal activities in the ABCP Canadian market. Since this date, the maturity dates of commercial papers of the Company were spread until July 2008. In September, a pan-Canadian committee headed by Purdy Crawford, and composed of participants in the Montreal agreement, was formed to oversee the restructuring process. In mid October, the committee chairman announced the successful restructuring of a first conduit of the 22 affected by the Montreal agreement, and the acceptance by the participants in the agreement of the extension of the standstill agreement until January 2008.

As at November 30, 2007, included in long term investments were asset backed commercial paper (“ABCP”) with the par value of $3,800,000. These investments have been classified as held to maturity on initial recognition. The new maturity dates of ABCP held by the company are spreading between March and July 2008.

While the credit rating of the investments is under review, at the time of investment they were rated R1-high for $3,500,000 and R1-middle for $300,000 by Dominion Bond Rating Service, the highest credit rating for this type of investment.

Page 8

Since there is no active market for ABCP securities subject to the Montreal Accord, the Company estimated the fair value by estimating the probability to collect all amounts due (capital and accrued interests) according to the original contractual terms, to the prolongation of the initial maturity and the applicable discount rate. An impairment loss totalling $384,770, of which $4,770 has accounted in the third quarter, representing the difference between the fair value and amortized cost of investments was recorded on the basis that it is probable that the Company will not be able to collect all amounts due according to the original contractual terms. It is reasonably possible that actual timing and amount ultimately recovered may differ materially from this estimate.

Page 9

Page 10

* On August 28, 2007, the Company entered into agreement with Strateco Resources Inc. pursuant to which
Strateco Resources Inc. acquires a 100% interest in the 88 claims of the Apple property, in exchange for the
issuance to the Company of 3,250,000 common shares of Strateco Resources Inc. at a price per share of
$1.8455. This value has been calculated with the average stock price for the five previous and subsequents
days of the transaction. The value of the shares received has been reduced by 12% as to consider the four-
month period sale restriction. The agreement is subject to a 2% net smelter return (NSR) in favour of the
Company. Strateco may buy back 1% of the royalty for $1,000,000. The gain of $5,250,826 arising from this
transaction is presented in the financial statements under "Gain on sale of mining properties".

Page 11

Page 12

Page 13