Named in Lawsuit by Sparton Resources

NR: 12-04

Virginia Energy Resources Inc. (TSX.V: VAE) (OTCQX: VAERF) ("the Company") and Boss Power Corp. and its subsidiary Blizzard Uranium Corp., have been named as defendants in a lawsuit by Sparton Resources Inc. ("Sparton") over alleged obligations with respect to the Blizzard Uranium Property acquisition by Virginia with Sparton. The Province of British Columbia is also named as a defendant. The Company believes that the claim against it is without merit and will vigorously defend it.

About Virginia Energy Resources Inc.
Virginia Energy Resources Inc. is a uranium development and exploration company that holds a 29% stake in the advanced stage Coles Hill uranium project in Virginia. The Company is also pursuing active exploration programs in the Athabasca Basin of Saskatchewan and in the Otish Basin of Quebec. Virginia Energy Resources Inc. trades on the TSX Venture Exchange under the symbol VAE and on the OTCQX under the symbol VAERF.

On Behalf of the Board of Directors
VIRGINIA ENERGY RESOURCES INC.

Walter Coles Jr., President & CEO

Neither the 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.

For further information contact: Walter Coles, Jr., President/CEO
or Tony Perri - Investor Relations, Manager
Suite 611, 675 W. Hastings Street Vancouver, British Columbia, Canada V6B 1N2
Tel: (604) 669-4799 Website: www.virginiaenergyresources.com