SUN VALLEY, IDAHO--(Marketwired - Oct 31, 2016) - Sun Valley Gold LLC ("Sun Valley") announced today that it has acquired control and direction over an aggregate of 44,000 common shares ("Common Shares") of Victoria Gold Corp. ("Victoria Gold") for and on behalf of client accounts, including Sun Valley Gold Master Fund, Ltd. (the "Master Fund"), over which it has discretionary trading authority. The Common Shares were acquired over the facilities of the TSX Venture Exchange for a purchase price of $0.59 per share. Of the 44,000 Common Shares over which Sun Valley acquired control and direction, the Master Fund acquired beneficial ownership of 38,280.

Following the acquisition, Sun Valley exercises control and direction over an aggregate of 79,334,570 Common Shares and 10,000,000 share purchase warrants ("Warrants"), in each case for and on behalf of client accounts. The 79,334,570 Common Shares over which Sun Valley exercises control and direction represent approximately 15.98% of the issued and outstanding Common Shares. If exercised, the 10,000,000 Warrants over which Sun Valley exercises control and direction would, together with the 79,334,570 Common Shares over which Sun Valley exercises control and direction, represent approximately 17.64% of the issued and outstanding Common Shares (after giving effect to the exercise of such Warrants, but not the exercise of any other share purchase warrants issued by Victoria Gold).

Following the acquisition, the Master Fund beneficially owns 46,846,246 Common Shares and 5,990,000 Warrants. The 46,846,246 Common Shares beneficially owned by the Master Fund represent approximately 9.44% of the issued and outstanding Common Shares. If exercised, the 5,990,000 Warrants beneficially owned by the Master Fund would, together with the 46,846,246 Common Shares beneficially owned by the Master Fund, represent approximately 10.52% of the issued and outstanding Common Shares (after giving effect to the exercise of such Warrants, but not the exercise of any other share purchase warrants issued by Victoria Gold).

The securities of Victoria Gold were acquired for investment purposes. Sun Valley and the Master Fund may increase or decrease their ownership of securities of Victoria Gold depending upon future market conditions.

FOR FURTHER INFORMATION, OR TO OBTAIN A COPY OF THE EARLY WARNING REPORT FILED BY SUN VALLEY UNDER APPLICABLE SECURITIES LEGISLATION, PLEASE SEE THE CONTACT INFORMATION BELOW:

Linda J. Kish
Chief Legal Officer, Sun Valley Gold LLC
Tel: (208) 726-2399
Fax: (208) 726-0842