Virginia Energy and Energy Fuels Announce Financing; Virginia

Virginia Energy and Energy Fuels Announce Financing; Virginia Energy
Closes Bridge Loan 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/28/12 -- Virginia
Energy Resources Inc. (TSX VENTURE:VUI) ("Virginia Energy") and
Energy Fuels Inc. ("Energy Fuels") (TSX:EFR) are pleased to announce
that they have reached understandings amongst themselves and others
pursuant to which Virginia Energy proposes to issue and sell, subject
to regulatory approval, by way of a non-brokered private placement
financing, 14,285,714 common shares in the capital of Virginia Energy
(each, a "Common Share") at a price of $0.42 per Common Share for
expected aggregate gross proceeds (in cash and shares) of up to
$6,000,000 (the "Offering"). The lead investors in the capital raise
are Energy Fuels and Sprott Resource Corp. ("Sprott"). 
Virginia Energy owns 100% of the Coles Hill uranium project, a large
uranium development project located in south central Virginia. Coles
Hill hosts the largest known uranium deposit in the United States
with 119.6 million tons of Indicated Resource with an average grade
of 0.056% eU3O8 containing 133 million pounds of eU3O8. An updated
preliminary environmental assessment was announced by Virginia Energy
in September 2012 and can be viewed on Virginia Energy's profile on
SEDAR (see 
Energy Fuels' investment in Virginia Energy is expected to bring
significant expertise to the Coles Hill project from a technical and
regulatory perspective on uranium mining, milling and tailings
management. Energy Fuels is currently the largest conventional
uranium producer in the United States. It owns the White Mesa uranium
mill, near Blanding, Utah, the only operating uranium mill in the US.
Energy Fuels also has a dominant resource position in three of the
most productive historical uranium districts in the US. In addition,
Energy Fuels has long-term supply contracts to provide fuel for
nuclear power plants owned by a number of US and foreign utilities. 
Stephen Antony, the CEO of Energy Fuels, commented, "The Coles Hill
uranium project is the largest uranium development project in the US
and has strong technical and economic merit. The US is currently the
biggest consumer of uranium in the world, yet we import more than 90%
of our supply requirements. We are pleased to partner with Virginia
Energy and help advance the Coles Hill project toward becoming a
major domestic uranium producer that is committed to the highest
standards of operational safety and environmental protection. We are
also confident that the Coles Hill project has the potential to
create significant economic value for the state of Virginia and
generate strong investment returns for Virginia Energy shareholders." 
Energy Fuels will acquire 9,439,857 common shares of Virginia Energy
or approximately 19.9% of Virginia Energy upon completion of the
Offering and will be granted the right to nominate one director for
election or appointment to the Board of Directors of Virginia Energy
as long as it holds at least 5% of the issued and outstanding Common
Shares, increasing to 9.9% after 2 years. Graham Moylan has been
proposed as Energy Fuels' initial nominee and would also serve on the
audit committee. Mr. Moylan is a licensed Certified Public
Accountant, currently serves as the Chief Financial Officer of Energy
Fuels and previously worked as an investment banker at a Canadian
investment dealer gaining extensive financing and financial advisory
experience within the uranium sector. The appointment is subject to
the approval of the TSX Venture Exchange. 
Walter Coles Sr., CEO of Virginia Energy, commented, "Energy Fuels is
the recognized leader in conventional uranium mining and milling in
the United States. Their investment brings with it vast experience
and technical expertise. We are excited to have Energy Fuels as a
partner and with their assistance we hope to eventually permit and
build one of the safest and most productive new uranium mines in the
Energy Fuels' subscription will be paid through a combination of
$250,000 of cash and 21,851,411 Energy Fuels common shares issued on
a private placement basis. Energy Fuels' participation in the
Offering and the issuance of the Energy Fuels common shares to
Virginia Energy is subject to the approval of the Toronto Stock
Mr. Coles added, "This will be a valuable strategic partnership
between Energy Fuels and Virginia Energy and we expect the resulting
synergies to create value for both companies. Energy Fuels brings
substantial technical expertise in terms of permitting, developing
and operating uranium mines in the U.S. We believe it is important to
realize these synergies now, because we are approaching a very
important period with respect to advancing the development of the
Coles Hill project. At the present time both parties recognize and
believe that our industry and in particular, our respective
companies, are significantly undervalued. Therefore Virginia Energy
is pleased to receive Energy Fuels stock in lieu of cash for a large
portion of their subscription." With regard to the balance of the
Offering, Sprott will acquire approximately 20% of the private
placement for $1.2 million of cash. Other current shareholders are
expected to acquire the remaining approximately $835,000 of the
Offering. The total cash to be received by Virginia Energy in the
Offering is expected to be approximately $2,285,000. 
Common Shares issued under the Offering will be subject to a hold
period of four months and one day from the applicable closing date of
the Offering. In accordance with regulations of the TSX Venture
Exchange, finder's fees may be payable to accredited agents on that
portion of the Offering from purchasers identified by such finder,
including the subscription by Energy Fuels. Funds from the Offering
will be used for general working capital. The completion of the
Offering is subject to the approval of the TSX Venture Exchange. 
In addition, on December 27, 2012, Virginia Energy closed a bridge
loan facility for a total amount of $750,000 with Sprott Resource
Lending Partnership. The bridge loan is repayable on closing of the
Virginia Energy's equity financing, but no later than February 28,
2013 and bears an annual interest rate of 12%. No securities of
Virginia Energy were issued or made issuable in connection with the
bridge loan from Sprott Resource Lending Partnership. 
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, or applicable state securities
laws, and may not be offered or sold in the United States absent
registration or an exemption from such registration requirements.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful. 
About Virginia Energy Resources Inc. 
Virginia Energy Resources Inc. is a uranium development and
exploration company. The company holds a 100% stake in the advanced
stage Coles Hill uranium project located in south central Virginia,
USA. Additionally, the company operates a uranium exploration program
in the Otish Basin of Quebec, Canada. 
About Energy Fuels Inc. 
Energy Fuels Inc. is America's largest conventional uranium producer,
supplying approximately 25% of the uranium produced in the U.S., and
is a significant producer of vanadium. Energy Fuels operates the
White Mesa Mill, which is the only conventional uranium mill
currently operating in the U.S., capable of processing 2,000 tons per
day of uranium ore. Energy Fuels has projects located throughout the
Western U.S., including producing mines, standby mines, and other
mineral properties in various stages of permitting and development. 
Cautionary Note Regarding Forward-Looking Statements and Information 
Certain of the statements and information in this press release
constitute "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable
Canadian securities laws. Forward-looking information includes, but
is not limited to, statements relating to the plans for completion of
the Offering. Forward-looking statements and information generally
express predictions, expectations, beliefs, plans, projections, or
assumptions of future events or performance, do not constitute
historical fact and are subject to a variety of risks and
uncertainties which could cause actual events or results to differ
materially from those reflected in such statements, including,
without limitation: the risk that the Offering will not be approved
by the Toronto Stock Exchange or TSX Venture Exchange; risks and
uncertainties related to the full Offering not being completed in the
event that there are not sufficient subscribers or the conditions
thereto are not satisfied, including the acceptance by the Toronto
Stock Exchange or the TSX Venture Exchange. Forward-looking
statements and information contained in this release are based on the
beliefs, estimates, and opinions of management on the date the
statements are made. There can be no assurance that such statements
or information will prove accurate. Actual results may differ
materially from those anticipated or projected. Virginia Energy and
Energy Fuels expressly disclaim any intention or obligation to update
or revise any forward-looking statements and information whether as a
result of new information, future events or otherwise, except as
otherwise required by applicable securities legislation. No
production decision with respect to the Coles Hill project has been
made nor will a production decision be made until Virginia Energy has
completed a feasibility study. 
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release. 
Virginia Energy Resources Inc.
Walter Coles, Jr.
Executive Vice President
(604) 669-4799 
Virginia Energy Resources Inc. - Investor Relations
Tony Perri
Investor Relations, Manager
(604) 669-4799 
Energy Fuels Inc. - Investor Relations
Curtis H. Moore
Director - Investor & Public Relations
(303) 974-2140
Energy Fuels Inc.
Stephen P. Antony
President & CEO
(303) 974-2140
Press spacebar to pause and continue. Press esc to stop.