Company Information for Virgin Metals Inc

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Company Statement

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, is undergoing a feasibility study and is expected to evolve rapidly towards production while the other, Cuatro Hermanos, is presently the focus of an intense exploration effort.

Current Operations

Los Verdes
The Los Verdes property is a historic molybdenum producer and was extensively drilled in the 1970s. Repetition and expansion of that drilling by Virgin in 2006 and 2007 has resulted in the completion of a Pre-Feasibility Study. The pre-feasibility study has demonstrated in considerable detail a robust project based on molybdenum and copper recovery only; upside exists in tungsten recovery and improved molybdenum recovery. Reserve of 7.05 million tonnes at 0.137% Mo and 0.657% Cu gives a project life of 8 years and NPV of $96.9 million and IRR of 23%. Direct cash costs of $22.7/tonne of ore, cost per lb Mo less than $1/lb after copper credits.

During 2007 the Company extended its drilling onto the Bacanora claim, increased the density of reverse circulation drilling throughout the deposit and expanded its knowledge of the geology of the deposit by drilling a number of diamond drill holes. The total drilling now stands at 8,500 meters in 75 reverse circulation holes and 2,500 in 25 diamond drill holes. In addition to geologic data, the diamond drill core was also used for geotechnical and density data before being submitted for assay.

Our plans for 2008 call for the completion of the Feasibility study, project financing and permitting and the start of project construction before the end of the year. Meanwhile, the potential for additional mineralization within the Company.s extensive land position at Los Verdes is being explored by company geologists, who have discovered outcropping mineralization at several locations in the district and are developing new drill targets.

Cuatro Hermanos
The property is located in south east Sonora, just west of the Yaqui River which is located in the western flank of the Sierra Madre. It lies at the southern end of the well known and very prolific copper porphyry province of the southwestern United States and northwestern Mexico. The property is 100% owned by Virgin Metals Inc.

The mineralizing system at Cuatro Hermanos is considerably larger than that of the nearby Los Verdes project, but it has been less intensively explored. The property contains a large Cu-Mo porphyry with numerous exploration targets, and widespread hydrothermal alteration encompassing an area of more than 14 sq km. Previous wide-spaced drilling has shown consistent copper-molybdenum mineralization across substantial widths, and over an area of at least 4.5 sq km. Recent developments on the property include completion of a 5,907 m reverse circulation drill program, a NI 43-101 compliant resource estimate, and the initiation of a 5,000 m deep core drilling program. Our target at Cuatro Hermanos is a resource containing many hundreds of millions of tonnes of mineralization at modest Cu-Mo grades, along with Ag credits. Drilling by Virgin Metals has confirmed widespread mineralization; grades are generally seen to increase at depth with the presence of potassic alteration. Cuatro Hermanos bears striking similarities to other large porphyry deposits such as the producing Sierrita mine, located to the north in southern Arizona.

Four exploratory drill holes were completed on a separate porphyry target located 2.5 kilometers west of the Main Zone, a topographic promontory known as Moly Hill, an area historically called the West Zone. Known for its high grade molybdenum values in surface exposures, recent exploration drilling at Moly Hill has provided considerable encouragement. The West Zone will be further evaluated during 2008.

At the Company's 53 square kilometer San Lorenzo property, located a few kilometers southwest of Cuatro Hermanos, reconnaissance prospecting, rock chip sampling and geologic mapping were done during the second half of 2007. The San Lorenzo claim block is underlain by a corridor of hydrothermally altered, Lower Tertiary to Upper Cretaceous intermediate to felsic intrusive and volcanic rocks which have the potential to host additional porphyry style mineralization. First pass sampling has provided encouragement and management believes that continued exploration over the property during 2008 will produce targets worthy of follow-up drilling.

Geographical Spread

Mexico

Board of Directors and Key Management

Broker/Analyst Reports

01/08/07 - Loeb Aron & Company Ltd - Research Note

Major Shareholders

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