Lexam VG Gold Inc.

Published : December 20th, 2013

Lexam Announces Update on the Preliminary Economic Assessment

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Lexam VG Gold Inc.
TSX: LEX
OTCQX: LEXVF
FRANKFURT: VN3A
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December 20, 2013
Lexam Announces Update on the Preliminary Economic Assessment
TORONTO, ONTARIO--(Marketwired - Dec. 20, 2013) - Lexam VG Gold Inc. (the "Company", "Lexam") (TSX:LEX)(OTCQX:LEXVF)(FRANKFURT:VN3A) announces that the Preliminary Economic Assessment ("PEA") commenced earlier this year will be extended into 2014 due to a re-evaluation of the parameters necessitated by the decline in the price of gold ("Au") since the initiation of the PEA and the earlier completion of this year's resource estimates. This will result in a PEA that reflects the current environment and will allow Lexam to better assess the potential of their assets moving forward.

The PEA is designed to assess the open pit economic potential of Lexam's gold projects, which include Buffalo Ankerite, Davidson Tisdale, Fuller and Paymaster properties. The study was commenced utilizing parameters that include gold price: US$1,400/ ounce ("oz"), exchange rate: US$1.02 = C$1.02, toll mill scenario. This initial price of gold was derived from a range of values based on a consensus from a variety of sources (banks and major producers). The price of gold presently is considerably lower than the price utilized at the commencement of the PEA (August 2013) (US$1,400 vs less than US$1,200).

The resource estimates utilized an approximate 30 month trailing average gold price of US$1,600/ oz and an exchange rate of US$1.00 = C$1.00, which resulted in a cut-off grade calculation of 0.51 grams per tonne ("gpt") Au for open pit mineral resources.

As the price of gold is presently considerably lower than the price utilized in the Company's studies conducted earlier in 2013, management decided that in order to align to the current realities of the gold mining industry, the PEA will need to reflect the recent movement of the price of gold to below US$1,200/ oz.

With these new parameters in mind, Lexam has concluded that the PEA is in need of updating to reflect the present realty. This will involve updating the cut-off grade constraining the open pit shells to be utilized in the PEA.

The PEA is being undertaken by RPA Inc. of Toronto, Canada and it will maintain its focus on the open pit gold projects from Buffalo Ankerite, Davidson Tisdale, Fuller and Paymaster properties, with parameters adjusted from the mineral resource estimate presented in the National Instrument 43-101 compliant technical report dated June 20, 2013 (available on SEDAR, www.sedar.com, and on the Company's web site, www.lexamvggold.com).

Qualified Person

Kenneth W. Guy, P.Geo, a consultant to Lexam, is the Qualified Person who supervised the preparation of the technical data in this news release.

About Lexam VG Gold

Lexam VG Gold explores for gold in the Timmins area of northern Ontario, Canada. The Company is carrying out ongoing exploration programs, designed to build the resource base and to test the growth potential and determine the economics on its four key property assets: Buffalo Ankerite (100% interest), Fuller (100% interest), Davidson Tisdale (68.5% interest) and Paymaster (60% interest). Lexam had $3.8 million in cash on September 30, 2013, with no bank debt. The Company has 226,570,860 issued and outstanding shares, with 27% owned by Chairman Rob McEwen.

Cautionary Note to U.S. Investors

All resource estimates reported by Lexam VG Gold are calculated in accordance with NI 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. These standards are different from the standards generally permitted in reports filed with the SEC. Under NI 43-101, Lexam VG Gold reports indicated and inferred resources, measurements which are generally not permitted in filings made with the SEC. According to Canadian NI 43-101 criteria, the estimation of indicated resources involve greater uncertainty as to their economic feasibility than the estimation of proven and probable reserves. Under SEC Industry Guide 7 criteria, measured, indicated and inferred resources are considered Mineralized Material. The SEC considers that in addition to greater uncertainty as to the economic feasibility of Mineralized Material compared to Proven and Probable reserves, there is also greater uncertainty as to the existence of Mineralized Material. U.S. investors are cautioned not to assume that Measured or Indicated resources will be converted into economically mineable reserves. The estimation of Inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources.

Caution Concerning Forward-Looking Statements

This press release contains certain forward-looking statements and information. The forward-looking statements and information express, as at the date of this press release, Lexam VG Gold's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, risks related to: litigation, property title, the Paymaster Option, the state of the capital markets, whether shareholder and regulatory approvals for any proposed transaction are forthcoming, environmental risks and hazards, uncertainty as to calculation of mineral resources and reserves and other risks. Readers should not place undue reliance on forward-looking statements or information. Lexam VG Gold undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See Lexam VG Gold's Annual Information Form for the period ended December 31, 2012 and available on SEDAR (www.sedar.com) for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. All forward-looking statements and information made in this news release are qualified by this cautionary statement.

To learn more about Lexam VG Gold (TSX:LEX), visit our website: www.lexamvggold.com.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

CONTACT INFORMATION:
Lexam VG Gold Inc.
Mihaela Iancu
Director, Corporate Administration
(647) 258-0395 ext. 320 or Toll Free: (866) 441-0690
Fax: (647) 258-0408
info@lexamvggold.com
www.lexamvggold.com

or

Mailing Address: Lexam VG Gold Inc.
181 Bay Street
Suite 4750, P.O. Box 792
Toronto, ON, Canada
M5J 2T3
INDUSTRY: Manufacturing and Production - Mining and Metals

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Data and Statistics for these countries : Canada | All
Gold and Silver Prices for these countries : Canada | All

Lexam VG Gold Inc.

EXPLORATION STAGE
CODE : LEX.TO
CUSIP : 918216 10 2
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Lexam VG Gold is a gold exploration company based in Canada.

Lexam VG Gold holds various exploration projects in Canada.

Its main exploration properties are TIMMINS GOLD, DAVIDSON-TISDALE, FULLER, PAYMASTER and BUFFALO ANKENITE in Canada.

Lexam VG Gold is listed in Canada and in Germany. Its market capitalisation is CA$ 49.8 millions as of today (€ 45.7 millions).

Its stock quote reached its lowest recent point on February 08, 2002 at CA$ 0.01, and its highest recent level on January 07, 2011 at CA$ 1.52.

Lexam VG Gold has 226 570 860 shares outstanding.

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Project news of Lexam VG Gold Inc.
12/20/2013Lexam Announces Update on the Preliminary Economic Assessmen...
6/21/2013Files NI 43-101 Technical Re =?ISO-8859-1?Q?port=20on=20Buff...
6/21/2013(Paymaster)Files NI 43-101 Technical Report on Buffalo Ankerite, Davids...
6/3/2013LEXAM FOCUSES on POTENTIAL for OPEN PIT Mining in Timmins-Up...
5/9/2013Reports Resource Update at Buffalo Ankerite
9/20/2012Increases Gold Resources
6/18/2012Lexam VG Gold Exercises Paymaster Property Option-Enters Int...
6/18/2012(Paymaster)Exercises Paymaster Property Option-Enters Into Joint Ventur...
3/1/2012Lexam VG Gold Inc=2E: Fuller Property Continues to Deliver G...
3/1/2012(Fuller)Fuller Property Continues to Deliver Good Results 2.53 Grams...
7/28/2011(Buffalo Ankenite)Drilling at Buffalo Ankerite Returns More Positive Explorati...
1/10/2011(Paymaster)Reports Initial Paymaster West Resource & New Exploration Dr...
Corporate news of Lexam VG Gold Inc.
6/8/2016Lexam VG Gold at PDAC 2016
5/9/2016Lexam VG Gold Announces Election of Directors
3/3/2015LEXAM VG EXPANDS HOLDINGS IN THE PROLIFIC TIMMINS GOLD DISTR...
3/3/2015Lexam VG Expands Holdings in the Prolific Timmins Gold Distr...
3/3/2015(Timmins Gold)Expands Holdings in the Prolific Timmins Gold District
6/6/2014Lexam Files NI 43-101 Preliminary Economic Assessment Techni...
5/9/2014Lexam VG Gold Announces Results of Annual General Meeting
4/23/2014Lexam Announces Positive Preliminary Economic Assessment Res...
6/3/2013FOCUSES on POTENTIAL for OPEN PIT Mining in Timmins-Updated ...
5/10/2013Announces Results of Annual General Meeting
5/10/2013Announces Results of Annual General Meeting
1/31/2013(Fuller)Drilling at Fuller Intersects 19.1 Metres of 3.19 Grams Per ...
11/7/2012Files NI 43-101 Technical Report on the Buffalo Ankerite Pro...
7/11/2012Lexam VG Gold Inc=2E: Final Results From 2011-2012 Drill Pro...
7/11/2012(Fuller)Final Results From 2011-2012 Drill Program at Fuller; 2.44 G...
3/21/2012Lexam VG Gold: Drilling Continues to Expand Gold Mineralizat...
3/21/2012Drilling Continues to Expand Gold Mineralization at Buffalo ...
3/21/2012Drilling Continues to Expand Gold Mineralization at Buffalo ...
1/4/2012Lexam VG Gold Announces Management Changes
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11/30/2011Lexam VG Gold Inc=2E: New Gold Mineralization Encountered at...
11/29/2011(Fuller)New Gold Mineralization Encountered at Fuller Property
7/19/2011Acquires Shares of Uranium Valley Mines Ltd.
6/9/2011Exploration Delivers Good Drill Results
1/4/2006has acquired an additional 40% interest in the Davidson Tisd...
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