Virginia Mines Inc.: $3 M Flow-Through Private Placement Financing

QUEBEC CITY, QUEBEC -- (Marketwire) -- 10/07/10 -- Virginia Mines Inc. ('Virginia')(TSX: VGQ) announces that it has entered into an Engagement Letter with Laurentian Bank Securities Inc. (the 'Agent') for a $3 million private placement of 240,000 flow-through common shares at a price of $12.50 per share, representing an approximate 66% premium to the 10 day volume weighted average trading price of Virginia's common shares for the period preceding the signing of the engagement letter.

A total finder's fee equal to 6% of the gross proceeds of the financing will be paid to the Agent at closing.

The financing is scheduled to close on or about October 29, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.

Proceeds from the offering will be used to fund exploration work on Virginia's numerous projects.

About Virginia

Virginia is among the most active mining exploration companies in Quebec with a working capital of $45 M as at May 31, 2010, and 30,215,442 shares issued and outstanding as at September 30, 2010. Virginia trades on the Toronto Stock Exchange (TSX) under the ticker symbol VGQ. Virginia concentrates its activities on its numerous properties that are spread over the vast unexplored regions of northern Quebec.

Note to U.S. Investors

Cautionary Note to U.S. Investors concerning estimates of Measured and Indicated Resources: This press release uses the terms 'measured and indicated resources'. We advise U.S. investors that while these terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.

Cautionary Note to U.S. Investors concerning estimates of Inferred Resources: This press release uses the term 'inferred resources'. We advise U.S. investors that while this term is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. 'Inferred resources' have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases U.S. investors are cautioned not to assume that any part or all of an inferred resource exists or is economically or legally mineable.

Cautionary Note to U.S Investors -- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this press releases, such as 'measured,' 'indicated,' and 'inferred' 'resources,' that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our latest Annual Report on Form 40F, No. 000-29880, which may be secured from us, or from the SEC's website at ttp://www.sec.gov/edgar.shtml

This press release may also contain information about adjacent properties or other properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in Virginia's periodic reports filed with the security commissions of Alberta, Ontario and Quebec, and in the annual report on Form 40-F filed with the U.S. Securities and Exchange Commission. Virginia undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events.

Contacts:

Virginia Mines Inc.

Andre Gaumond

President

800-476-1853 or 418-694-9832

418-694-9120 (FAX)


Virginia Mines Inc.

Paul Archer

V-P Exploration

800-476-1853 or 418-694-9832

418-694-9120 (FAX)
www.virginia.qc.ca
mines@virginia.qc.ca