Virgin Metals Inc.: Completes Private Placement of 6,000,000 Units

TORONTO, ONTARIO--(Marketwire - Sept. 23, 2011) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Virgin Metals Inc. (the "Company" or "Virgin") (TSX VENTURE:VGM) is pleased to announce that it has closed a private placement of 6,000,000 units (each, a "Unit") at a price of $0.25 per Unit for aggregate gross proceeds of $1,500,000 (the "Private Placement"). Each Unit is comprised of one common share (each, a "Common Share") and one Common Share purchase warrant (each, a "Warrant") of the Company. Each Warrant will entitle the holder to purchase one Common Share for a period of 24 months following the closing date of the Private Placement (the "Closing Date") at a price of $0.35.

The Private Placement was brokered by INTAC (BVI) International Investments Limited ("INTAC"), a private investment fund based in the British Virgin Islands. A finder's fee of $150,000 was paid to INTAC in connection with the Private Placement and the Company has granted 600,000 finder's fee Units to INTAC. The private placement is subject to the final approval of the TSX Venture Exchange.

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

All securities issued pursuant to the Private Placement are subject to a four month hold period.

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.