Virgin Metals Announces Adjournment of Shareholder Meeting Scheduled for June 30, 2009



    TSX
    Symbol: VGM

    TORONTO, June 29 /CNW Telbec/ - Virgin Metals Inc. ("Virgin Metals" or
the "Company") announces that the Company has adjourned the annual and special
meeting of shareholders of the Company (the "Shareholder Meeting") scheduled
for June 30, 2009. The adjourned Shareholder Meeting has now been scheduled
for July 23, 2009 at the same time and place as set out in the Shareholder
Meeting materials previously delivered to shareholders. The record date will
remain May 26, 2009, so all shareholders who have already sent in proxies do
not need to resubmit proxies as the proxies previously sent in will be
recognized for the adjourned meeting to be held on July 23, 2009.
    The Company has determined that an adjournment of the Shareholder Meeting
is necessary to protect the interests of the minority shareholders of the
Company. Late in the day on Thursday, June 25, 2009, one day prior to the last
day that proxies could be submitted for use at the Shareholder Meeting, the
Company's transfer agent received blank proxies from approximately 10
shareholders (the "Dissident Shareholders") representing approximately 27.8
million shares of the Company, which represent approximately 27% of the issued
and outstanding shares of the Company. It was later confirmed on Friday, June
26, 2009, that these shareholders intend to propose an alternative slate of
directors at the Shareholder Meeting.
    Prior to receipt of these blank proxies, the Company had received proxies
representing approximately 22.3 million shares of the Company, with 99.9% of
those proxies having been voted "FOR" the management proposed slate of
directors. As with most annual meetings where there are not matters out of the
ordinary course of business on the agenda, it is unusual to have a significant
shareholder vote turnout as many shareholders tend to dispose of their proxies
upon receipt. In fact, the Company has received direct feedback from certain
shareholders that this has in fact occurred with the respect to the
Shareholder Meeting. As a result, the Company has determined that it is in the
best interests of the minority shareholders of the Company that they have
additional time to consider and vote their proxy. In that regard, the Company
will deliver new proxies to the shareholders of the Company so that they may
submit a proxy in the event that they have destroyed the proxy previously
delivered by the Company. Once again, those shareholders who have already
submitted proxies do not need to resend their proxies.
    Despite difficult market conditions, the Company has made great strides
in advancing their two primary projects, the Los Verdes Project and the Cuatro
Hermanos project, both located in the State of Sonora, Mexico.
    The Los Verdes Project has been developed to the pre-feasibility stage.
In addition, the Company has developed a very good working relationship with
the local Ejido community and the local and federal governments. As described
in the Company's press release on December 17, 2008, the Company continues to
focus its efforts on the potential development to production of the Los Verdes
project as a high grade underground project using either local milling
facilities or constructing a small plant on site. Discussions are being held
with numerous parties on potential mining contracts, potential milling
contracts and potential financing. On site facilities would be reduced to a
minimum, leading to substantial savings in capital cost. The relative recovery
in copper and molybdenum prices over the past few months has improved the
potential economics of such a project. Essential permits for such an operation
are in place. The Company will provide updates as they become available.
    The Company has also made significant advancement on the Cuatro Hermanos
property. Although early exploration work has been conducted on the property
over the years, the Company delivered the first resource calculation on the
property (please see the Company's press release of July 10, 2008). The
results demonstrate the enormous size of this system. Previous drilling
indicated that this might be the case, but drill spacing was too great to
calculate a resource. The area underlain by this resource is a relatively
small part of the area known to be underlain by porphyry-style mineralization,
which has been noted over an area of about 4.5 km x 2.5 km. The Company has
been engaged in discussions with major copper producers on joint venturing the
property in order to conduct a large scale exploration program, but given
current resource prices, the Company has decided to hold off on entering into
any agreements until the best terms possible can be achieved for the Company.
    Chris Davie, President and CEO of the Company: "While we fully respect
the rights of certain shareholders to propose alternatives to the current
board and management, we feel it is important that all shareholders, not only
those who attend the meeting, be informed of the names and qualifications of
any proposed alternative board and of the plans for the Company so that they
may make an informed decision. Management looks forward to continuing to work
with the highly qualified board of the Company, for whom 99.9% of votes cast
to date have been in favor."
    The Company invites the Dissident Shareholders to issue a press release
or deliver a dissident circular to the shareholders of the Company outlining
their plans for the Company and a description of their proposed slate of
directors.

    About Virgin Metals

    Virgin Metals is a junior exploration and development company; its
projects include two copper-molybdenum porphyry properties in Sonora, northern
Mexico. One of these, Los Verdes, has been the subject of a pre- feasibility
study and is expected to evolve rapidly towards production while the other,
Cuatro Hermanos, has been the focus of an intense exploration effort.

    FORWARDLOOKING STATEMENTS

    This press release includes certain "forwardlooking information" within
the meaning of the Securities Act (Ontario), including, but not limited to,
statements as to: development of the Los Verdes project; future exploration of
the Cuatro Hermanos project; timing and extent of exploration programs; and,
the availability of exploration results. As such, forwardlooking information
addresses future events and conditions and so involves inherent risks and
uncertainties, as disclosed under the heading Risk Factors and elsewhere in
Virgin Metals documents filed from time to time with the Ontario Securities
Commission and other regulatory authorities. Actual results could differ
significantly from those currently projected as a result of, among those
factors, adverse weather, regulatory changes, delays in receiving permits,
accidents and delays in completing exploration activities not all of which are
in the control of Virgin Metals. The forwardlooking information contained
herein is Virgin Metals reasonable estimate today of future events and
conditions, but no assurance can be given that such events or conditions will
occur.




For further information:

For further information: Kookie Miller, (416) 364-9988,
kmiller@virginmetals.com

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VIRGIN METALS INC.

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