Notice of Upgrading from 1,000 CPS to 2,000 CPS

Dear Shareholders:

The new circular with regards to the minimum CPS to be held by Virgin Gold shareholders was announced by our CEO, Mr. Elinger, in December 2011. This announcement hereby further clarifies this matter.

Effective as of the 1st of January 2012; all VGMC shareholders MUST maintain a minimum of 2,000 CPS (accumulated amount in one shareholder’s account) ON the 90th calendar day, calculated from their initial subscription date.

Shareholders holding less than 2,000 CPS will face automatic un-subscription on day-90, calculated from their initial subscription date as day-1.

A further example is shown below:

Initial Subscription Date: 5th January 2012

The shareholder MUST maintain 2,000 CPS within 90 days = 5th January + 90days
• January 5th – 31st = 26 days
• February 1st – 29th = 29 days
• March 1st – 31st = 31 days
• April 1st – 4th = 4 days

Failure to maintain 2,000 CPS before the 4th of April will result in automatic un-subscription on the 4th of April.

Un-subscription price: Current month CPS price

Payment: Like regular CPS un-subscription, full payment minus administration charges will be returned to the shareholder’s credit account after 45 days.

All VGMC Shareholders who had subscribed for CPS before 1st January 2012 need to maintain a minimum of 2,000 CPS (accumulated amount in one shareholder’s account) at the latest by the 29th of March 2012. Failure to do so will result in automatic un-subscription on the 30th of March 2012.

Reminders will be sent and/or posted in all shareholders´ accounts that have yet to maintain the minimum required CPS before the expiry date. However, we remind all shareholders who have yet to upgrade to 2,000 CPS to do so as early as possible. Un-subscription of CPS is an automatic procedure and non-reversible.

Thank you for your support and understanding.


Matthew Jacobsen
Vice President Investor Relations
Virgin Gold Mining Corporation