Vermillion Gold Secures Funding for 2016 Exploration

Program Following Successful Q4 2015 Drilling PDAC – Toronto, Ontario & Minneapolis, MN – March 4, 2016, Vermillion Gold Inc., a Northern Minnesota gold exploration company, announced today it has raised over $250,000 to fund its 2016 exploration activities. Vermillion completed seven core drill holes on its Virginia Horn gold prospect in northern Minnesota in late 2015. Last year’s program was designed to evaluate soil samples with anomalous gold and arsenic values and to gain further insight into the geometry of gold mineralization on the property. The 2015 drilling was quite successful with intersections of over 1 gram/ton gold in five of the seven shallow drill holes. One hole, oriented perpendicular (90 degrees) to all prior holes, produced one of the best-ever gold intersections in Minnesota.

Much of Vermillion’s 2016 exploration focus will be on Linden Grove, a highly prospective gold target located near a fault boundary within the prolific Abitibi-Wawa greenstone belt. An initial overburden drilling program consisting of 6 to 10 rotosonic drill holes is planned for late winter. Overburden drilling programs are a highly effective exploration method in glacial drift covered areas and played an integral part in the discovery of New Gold’s Rainy River deposit in northwestern Ontario, just across the border from Vermillion’s Minnesota prospects. The 6.7 million ounce (reserves plus resources) Rainy River deposit is slated to commence production at a rate of 325,000 oz./year in mid-2017 with all-in costs estimated at an attractive $670/oz.

Vermillion’s 2015 Virginia Horn drilling program was partially funded by a 40% drilling cost rebate from the Iron Range Resources and Rehabilitation Board (IRRRB), an agency of the State of Minnesota. An application will be made to the IRRRB to qualify 2016 drilling for the same rebate. Minnesota is one of very few jurisdictions in the world to support exploration activities with cost rebates.

Ronald Shorr, Vermillion Chairman and CEO, commented, “We are encouraged by the success of our exploration efforts and the financial support we have secured to resume drilling within about a month. What looks like the start of a renewed bull market in gold should increase interest in companies such as ours with excellent prospects and funded, high-quality exploration activity.” Mr. Shorr is available to meet with interested parties during the annual PDAC resource convention in Toronto. About Vermillion Gold (www.vermilliongold.com) Vermillion Gold is a gold exploration company focused on the northern Minnesota extensions of the prolific Wawa-Abitibi and Wabigoon greenstone belts that host several multi-million ounce gold deposits just across the border in Ontario. Vermillion has five target areas on roughly 8,000 acres. Each target has known gold mineralization that was explored during the 1980’s by Newmont, Rio Tinto, Vale-Inco, Meridian Gold, and others. The mining-friendly region has excellent talent and infrastructure from the nearby Mesabi Iron Range, along with access to paved roads, railroads, power, water and other facilities. Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian Securities laws. Forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, the impact of the general economic conditions, industry conditions, dependence upon regulatory approvals and the availability of financing. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements." Contact: Company Media & Investors Ronald Shorr, CEO David Collins Vermillion Gold Catalyst Global (212) 288-1811 (212) 914-9800 rshorr@vermilliongold.com vg@catalyst-ir.com