Viking Gold Completes Non-brokered Private Placement to Finance Summer Exploration Program

Monday, Jul 06, 2009

Viking Gold Exploration Inc. (TSX-V: VCG) is pleased to announce that it has completed a non-brokered private placement of 4,091,500 units for gross proceeds of $325,000. The Company sold 3,937,500 flow-through units at a price of $0.08 per unit and 154,000 non-flow-through units at a price of $0.065 per unit. Each unit is comprised of one common share and one common share purchase warrant entitling the holder to purchase one additional common share at a price of $0.20 per share for a period of 36 months following the closing of the offering. The common shares and warrants comprising the units are subject to a statutory hold period expiring October 31, 2009. The Company paid finder’s fees of $19,600 in connection with certain subscriptions under the offering.

The proceeds of the offering will be used to carry out an estimated $250,000 summer field program on its Viking Gold property situated 65 miles northwest of Yellowknife, NWT. The program includes over 1000 meters of diamond drilling in at least six holes. The program will concentrate on testing geochemical/geophysical anomalous zones situated on the Viking property on what is considered the south-westerly extension of the Ormsby Zone owned by Tyhee Development Corp. Tyhee has publically disclosed that the Ormsby Zone contains nearly 11 million tonnes of measured and indicated resources averaging 3.42 grams gold per tonne.

Viking management is very encouraged by the existence and extent of anomalous geochemical results in such a favourable structural setting on strike with an established gold deposit of economic interest. Field crews mobilized July 2nd and drilling is scheduled to commence by mid-month.

Source: Viking Glod