Equities: VGZ) announced today that its wholly owned Mexican subsidiary, Minera Paredones Amarillos S.A. de

C.V. («MPA») has received notice from the Mexican Secretariat of Environment and Natural Resources

(«SEMARNAT») that SEMARNAT has dismissed, on administrative grounds, MPA’s application for the Change

of Forest Land Use Permit («CUSF») for the Company’s Paredones Amarillos gold project in Baja California Sur,

Mexico («Paredones Project»). Specifically, SEMARNAT dismissed the CUSF application, without a review of

its substantive merit, for MPA’s alleged failure to satisfy certain procedural and informational requirements. The

CUSF is required before the Company can commence construction of the Paredones Project. The Company is

currently amending its CUSF application to address SEMARNAT’s specific procedural and informational

requirements and intends to re-file the application shortly.

In addition, while not formally the basis for SEMARNAT’s dismissal, SEMARNAT communicated what it

believes are additional issues with the Company’s CUSF application, which SEMARNAT stated it was not able to

resolve due to a lack of information, including:

• SEMARNAT’s refusal to recognize the validity of the Temporary Occupation Permits granted to MPA by

the Mexican General Direction of Mines, which are a pre-requisite to filing for a CUSF, on the basis that

the project is located in an environmentally protected area over which the Mexican General Direction of

Mines does not have jurisdiction;

• The National Commission for Biodiversity objects to the project on environmental grounds; and

• MPA’s failure to obtain an official communication from the Mexican Natural Protected Areas

Commission («CONANP») acknowledging CONANP’s conformity with MPA’s application for the CUSF.

While the Company believes these comments are without legal merit and that several of the comments are beyond

the scope of SEMARNAT’s legal authority in connection with a review of a CUSF application, the Company

expects the dismissal of the CUSF application will delay the commencement of construction, development and

production of the Paredones Project. In addition to re-filing its CUSF application, the Company is working with

its legal counsel and political experts in Mexico on a broader strategy for the advancement of the permitting

process for the Paredones Project. This includes a potential court challenge to SEMARNAT’s dismissal of the

CUSF application as the Company’s advisors believe the legal basis for the dismissal was incorrect. The

Company will continue to provide information and updates as they become available.