Thanks to Randy Hayes and Ethan Lane of Foundation Earth for the following research:

FACT: Virginia Uranium is 100% owned by Virginia Energy Resources, Inc, a Vancouver, British Columbia-based company

*****************************************************************************************

The Virginia Uranium website proudly states that VUI is a “Virginia-owned, Virginia-managed” company with “roots running deep into Virginia history.” In fact, a key theme of Virginia Uranium’s multi-million dollar marketing campaign to allow uranium mining in Southside Virginia is its claim to being a local Virginia firm.

As with other parts of the Virginia Uranium story, an altogether different picture emerges upon closer examination of the facts.

Virginia Uranium is actually 100% owned by Virginia Energy Resources, Inc (VERI), based in Vancouver, BC.

Information about Virginia Energy Resources can be found on the SEDAR website. SEDAR is the Canadian government’s clearinghouse for securities information on Canadian companies like VERI. Their current SEDAR profile, shows both a head office and mailing address in British Columbia, as well as a Vancouver phone number and Canadian email address.

Virginia Energy Resources Inc. Profile Mailing Address: 611 - 675 West Hastings Street Vancouver, British Columbia V6B 1N2 Head Office Address: 611 - 675 West Hastings Street Vancouver, British Columbia V6B 1N2 Contact Name: Karen A. Allan

Business e-mail address: This email address is being protected from spambots. You need JavaScript enabled to view it. Telephone Number: 604 669-4799 Fax Number: 604 669-2543 Principal Regulator: British Columbia Reporting Jurisdictions: British Columbia, Alberta, Quebec Stock Exchange: TSX Venture Date of Formation: Sep 27 2012 Stock Symbol: VUI Short Form Prospectus Issuer: No Jurisdiction Where Formed: British Columbia Auditor: KPMG LLP Industry Classification: metals and minerals - mining General Partner: CUSIP Number: 92780V Transfer Agent: Computershare Investor Services Inc. Financial Year-End: Dec 31 Size of Issuer (Assets): Under $5,000,000

According to a June 2013 report by MiningWatch Canada, a majority 60% ownership in VERI is divided between three Canadian firms that specialize in mining speculation around the world - Sprott Resources, Pinetree Capital, and Energy Fuels, Inc. The remaining 40% is owned by Coles Hill property owner Walter Coles.

FACT: Virginia Uranium is overvaluing uranium prices by 80% in their economic studies

********************************************************************************************************

Nearly all of Virginia Uranium’s claims about the benefits of large-scale uranium mining in Southern Virginia have centered around a simple theme -- a $7 billion economic miracle for the region lies just below the surface of Coles Hill. That figure is based on a uranium spot price of $64 per pound, almost double the current market price of $35 per pound. Additionally, the market is not expected to return to levels anywhere near $64 per pound in the foreseeable future.

This chart shows the market price for uranium as of October 7, 2013 in addition to the price history since July 16:

alt

alt

The industry chart below shows uranium prices over the last 18 years: Industry experts are predicting that under the best-case scenario for the next 18 months, uranium could “rebound” to $50 per pound - making up only half of the difference between reality and Virginia Uranium’s $64 per pound estimate used throughout their studies and reports.

This modest anticipated rise in prices has been predicated on the assumption that nuclear reactors taken offline following the Fukushima nuclear meltdown in Japan would begin to ramp back up. Instead, regulators in Japan are extending the clean-up around the crippled plant through 2017 as radioactive water overflowed containment barriers following heavy rains in the area. In all, more than 90,000 people remain displaced from their homes due to radioactive contamination around the Fukushima nuclear plant.

The long term effects of Fukushima on the uranium market are unknown, as are the plans of current uranium mining operations around the world that have been operating for quite some time at a fraction of full capacity due to the adverse market conditions. A tripling of production at existing uranium mines could serve to ease supply concerns and provide downward pressure on an already fragile market in the coming years.

Despite bullish predictions from analysts, prices remain at $35 per pound today, while long-term cleanup and supply issues continue to raise questions about future prices. Given those uncertainties, Virginia Uranium’s $64 per pound price estimate represents a significant overvaluation of the entire Coles Hill project and a dangerous gamble for the people of Southside Virginia.

FACT: Virginia Uranium’s is overstating its Net Present Value (NPV) by $660 million

*****************************************************************************************

In a recently revised technical report required by Canadian securities authorities, Virginia Energy Resources, Inc (VERI), the Vancouver, British Columbia based owner of Virginia Uranium, Inc (VUI), acknowledged its failure to present current and accurate information on the price of uranium on the world market.

Despite the acknowledgment, VERI continued to use this $64 per pound figure in the rest of the report, including its projected net present value (NPV) of $427 million. The NPV is a critical number used by investors to evaluate the expected return on an investment over time.

VERI addressed the issue in a “Clarification of Technical Disclosure” issued in August of 2013 in response to a British Columbia Securities Commission review of mining industry disclosure practices. In that “clarification,” buried amongst pages of revisions to misleading information regarding its proposed project, VUI simply states that:

With respect to the Company’s disclosure of the Coles Hill PEA [Preliminary Economic Assessment] on its website and corporate presentations, the economic analysis appears unbalanced because the Company discloses upside uranium price sensitivity without providing equal downside sensitivity. Those references have been removed from the website and replaced with the following wording: “a change of US$5 per pound in uranium selling prices causes the project NPV to rise or fall by US$110 M”

Despite adding this admission and providing a formula to correct the overvaluation, the Company goes on to use the very same numbers it just corrected, failing to apply its own formula in its calculation of the stated Net Present Value (NPV), thereby perpetuating the inaccurate information it was supposedly correcting:

“The economic analysis at a yellowcake price of $64/lb shows an internal rate of return of 36.3% before income taxes; at a discount rate of 7% the net present value is $427 million, including a 25% contingency. The economics indicate a project worthy of further evaluation.”

Coles Hill Technical Report

1Revised Updated Preliminary Economic Assessment - Coles Hill Uranium Property - August 19,2013

2Virginia Energy Announces Clarification of Technical Disclosure and Revision of Coles Hill 43-101 Technical Report

If VUI’s own formula is applied to its stated Net Present Value, it shows the mine currently projected to lose $233,000,000:

Virginia Uranium Stated Net Present Value at $64/lb................$427,000,000

Adjustment of $110 million per $5/lb price change at $35/lb......$660,000,000

Net Present Value based on accurate market price..................($233,000,000)

Put simply, until Virginia Energy Resources, Inc applies its own formula to the Net Present Value in its own report, the Company is overvaluing the proposed Coles Hill mine by $660 million.

They Leave with the Profit, Virginia Taxpayers Bear the Cost - Report shows that Virginia would foot the bill for foreign uranium mine operator

********************************************************************************************************

The findings from a Virginia Uranium-funded report indicate that they aren’t just asking Virginians to lift our 30 year-long ban on uranium mining, they are asking us to foot the bill for an enormous new regulatory burden just when our state coffers are rebounding from the recession.

In August of 2009 the Virginia Coal and Energy Commission requested that the National Academy of Sciences conduct a study of the issues related to uranium mining in Virginia. That report, “Uranium Mining in Virginia” (December 19, 2011), was completed and published in December of 2011 thanks to funding provided by Virginia Uranium, Inc., the US subsidiary of Vancouver, Canada-based Virginia Energy Resources, Inc.

The report concludes the following:

“Uranium mining, processing, and reclamation in Virginia have the potential to affect surface water quality and quantity, groundwater quality and quantity, soils, air quality, and biota.” - (Summary page 6)

While these issues are present anywhere that uranium mining occurs, the unique Virginia climate creates an entirely new set of issues that neither the mining industry nor the government is prepared to deal with. From the report:

“Virginia is subject to extreme natural events, including relatively large precipitation events and earthquakes.” (Summary page 2)

Added to this is Virginia’s lack of infrastructure to regulate this potentially dangerous new industry:

“Because the Commonwealth of Virginia enacted a moratorium on uranium mining in 1982, the state has essentially no experience regulating uranium mining and there is no existing regulatory infrastructure specifically for uranium mining.” -(Summary page 7)

Finally, the problem is compounded by the federal government’s lack of experience regulating uranium mining in wet climates where there is a much higher likelihood of dangerous radioactive material leaching into the wet soil:

“The U.S. federal government has only limited recent experience regulating conventional processing facilities. Because almost all uranium mining and processing to date has taken place in parts of the United States that have a negative water balance, federal agencies have limited experience applying laws and regulations in positive water balance situations.” (Summary page 7)

The term “negative water balance” refers to a dry, arid climate with a low level of soil moisture. Current uranium mining locations like Nevada and Arizona are good examples of this. “Positive water balance,” on the other hand, refers to wetter climates with heavy rainfall and an abundance of moisture in the soil, like Virginia.

A process that is known for soil and water contamination, in a region that provides the perfect conditions to spread that contamination, in a state with no experience in the industry.

Virginia Uranium wants to extract billions of dollars of Virginia’s resources and quietly hand taxpayers the bill.

Influence Peddling

The Virginia Public Access Project’s Top Lobbying Spenders report for the one year period ending in April 2013.

********************************************************************************************************

Vancouver, Canada-based Virginia Energy Resources, doing business in the United States as Virginia Uranium, spent $572,607 lobbying Virginia public officials last year. That’s the most of any group in Virginia over the last five years. In fact, it's as much as the next two top spenders combined.

The breakdown of how that $572,607 was spent sheds very little light on just what Virginia Uranium is getting for their investment. Amongst the usual travel and office expenses are some big ticket items that are described either vaguely or not at all on the disclosure forms:

Communications - $114,781 (no description included) Compensation - $306,118 (No explanation beyond listing the 5 high-powered lobbying firms employed in the last year) Other - $136,246 (Described only as “Regional/Field Coordinating Services)

This kind of spending on Virginia politics is not new for the Canadian firm. A previous disclosure shows a total of $364,992 spent in the period ending in April 2012.

The biggest change between this year’s spending and last centers around Communications and Entertainment spending. Both years’ disclosures document thousands of dollars spent at steakhouses and golf resorts, but VUI’s 2012 disclosure included no communications spending and more than $100,000 to pay for several trips to France to visit “uranium related facilities”. Attendees included multiple state officials, some of whom are listed on the Virginia Public Access Project website.

Another area of note is Virginia Uranium’s activity as a direct contributor to the campaigns of elected officials from around the state. Records indicate that VUI has made direct campaign contributions totalling $324,650 to more than 100 candidates and committees since 2008, with an average total of more than $2800 per candidate or committee. Those numbers would be impressive at the Federal level for most lobbying operations.