Market Overview

Virgin Metals Inc.: Closes First Tranche of a $175,000 Private Placement


TORONTO, ONTARIO--(Marketwire - Oct. 25, 2012) -


Virgin Metals Inc. (the "Company") (TSX VENTURE:VGM) is pleased to announce that it has closed, subject to TSX Venture Exchange approval, the first tranche of a non-brokered private placement of common shares in the capital of the Corporation (the "Common Shares and each, a "Common Share") at a price of $0.15 per Common Share for aggregate gross proceeds of $100,000 (the "Private Placement").

An additional tranche of $75,000 is expected to close prior to the end of the month.

56,667 finder's warrants (the "Finder's Warrants" and each a "Finder's Warrant") were issued in relation to this Private Placement, exercisable at a price of $0.1875 per Finder's Warrant for 18 months following the closing of the Private placement. Each Finder's Warrant is exercisable for one Common Share.

The securities issued under the private placement will be subject to a four-month and a day hold period from the date of closing in accordance with applicable securities legislation.

The net proceeds of this Private Placement will be used to further advance the pre-feasibility report on the Company's Los Verdes property, as well as for working capital and general administrative purposes.

About Virgin Metals

Virgin Metals Inc. is a junior exploration and development company; its projects include two copper-molybdenum porphyry properties in Sonora, northern Mexico. One of these, Los Verdes, is currently the subject of a pre-feasibility study while the other, Cuatro Hermanos, is the focus of ongoing exploration efforts.

The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the benefit of U.S. persons except in certain transactions exempt from the registration requirements of such Act. This news release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Disclosure regarding forward-looking statements

Note: This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

Virgin Metals Inc.
Chris Frostad
(416) 306-0990

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