Virgin Metals Inc. Closes Convertible Debenture Financing of $1,095,000

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TORONTO, ONTARIO -- (Marketwire - Dec. 22, 2011) - Virgin Metals Inc. (the “Company“ or “Virgin“) (TSX VENTURE:VGM) is pleased to announce that it has closed a non-brokered private placement of $1,095,000 by way of an 8% secured convertible debenture (the “Debentures“). The private placement is subject to the final approval of the TSX Venture Exchange.

Each Debenture carries a yield of 8% per annum, with interest calculated and payable quarterly in arrears on that portion of the principal amount outstanding and maturing two (2) years from the date of issuance or such earlier date as may be provided for in the Debenture. As security for the due payment of the proceeds hereunder, the Debenture will be secured by a mortgage over the Corporation's Los Verdes Property.

Each Debenture is convertible into fully paid common shares of the Company at a price equal to $0.30 per common share. The Company may redeem all or any portion of the Debenture after March 31, 2012 or force the conversion of all of the Debentures in the event that the common shares of the Company trade at an average closing price of $0.60 over a 20-day trading period on the TSX Venture Exchange.

In connection with the private placement, the Company paid finders' fees of $23,100 to certain finders.

The net proceeds will be used by Virgin to finalize the acquisition of the Potreritos property in Santa Rosa, municipality of Santa Ana de Yecora, State of Sonora, Mexico, as well as for working capital and general administrative purposes.


About Virgin Metals

Virgin Metals 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.



Neither the Investment Industry Regulatory Organization of Canada nor the TSX Venture Exchange accepts responsibility for the adequacy or accuracy of this press release.

Except for statements of historical fact contained herein, the information in this press release may constitute “forward-looking information“ within the meaning of Canadian securities law. Other than statements of historical fact, all statements are “forward-looking statements“, including the use of the net proceeds of the private placement that involve various known and unknown risk and uncertainties and other factors, such as market conditions. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these “forward-looking statements“. Except as otherwise required by applicable securities statutes or regulation, Virgin expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.



Contact Information

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