VUI Virginia Energy Resources Inc

Virginia Energy Resources Inc. (TSX VENTURE:VUI) ("Virginia Energy") and Energy
Fuels Inc. ("Energy Fuels") (TSX:EFR) are pleased to announce that they have
reached understandings amongst themselves and others pursuant to which Virginia
Energy proposes to issue and sell, subject to regulatory approval, by way of a
non-brokered private placement financing, 14,285,714 common shares in the
capital of Virginia Energy (each, a "Common Share") at a price of $0.42 per
Common Share for expected aggregate gross proceeds (in cash and shares) of up to
$6,000,000 (the "Offering"). The lead investors in the capital raise are Energy
Fuels and Sprott Resource Corp. ("Sprott").


Virginia Energy owns 100% of the Coles Hill uranium project, a large uranium
development project located in south central Virginia. Coles Hill hosts the
largest known uranium deposit in the United States with 119.6 million tons of
Indicated Resource with an average grade of 0.056% eU3O8 containing 133 million
pounds of eU3O8. An updated preliminary environmental assessment was announced
by Virginia Energy in September 2012 and can be viewed on Virginia Energy's
profile on SEDAR (see www.sedar.com).


Energy Fuels' investment in Virginia Energy is expected to bring significant
expertise to the Coles Hill project from a technical and regulatory perspective
on uranium mining, milling and tailings management. Energy Fuels is currently
the largest conventional uranium producer in the United States. It owns the
White Mesa uranium mill, near Blanding, Utah, the only operating uranium mill in
the US. Energy Fuels also has a dominant resource position in three of the most
productive historical uranium districts in the US. In addition, Energy Fuels has
long-term supply contracts to provide fuel for nuclear power plants owned by a
number of US and foreign utilities.


Stephen Antony, the CEO of Energy Fuels, commented, "The Coles Hill uranium
project is the largest uranium development project in the US and has strong
technical and economic merit. The US is currently the biggest consumer of
uranium in the world, yet we import more than 90% of our supply requirements. We
are pleased to partner with Virginia Energy and help advance the Coles Hill
project toward becoming a major domestic uranium producer that is committed to
the highest standards of operational safety and environmental protection. We are
also confident that the Coles Hill project has the potential to create
significant economic value for the state of Virginia and generate strong
investment returns for Virginia Energy shareholders."


Energy Fuels will acquire 9,439,857 common shares of Virginia Energy or
approximately 19.9% of Virginia Energy upon completion of the Offering and will
be granted the right to nominate one director for election or appointment to the
Board of Directors of Virginia Energy as long as it holds at least 5% of the
issued and outstanding Common Shares, increasing to 9.9% after 2 years. Graham
Moylan has been proposed as Energy Fuels' initial nominee and would also serve
on the audit committee. Mr. Moylan is a licensed Certified Public Accountant,
currently serves as the Chief Financial Officer of Energy Fuels and previously
worked as an investment banker at a Canadian investment dealer gaining extensive
financing and financial advisory experience within the uranium sector. The
appointment is subject to the approval of the TSX Venture Exchange.


Walter Coles Sr., CEO of Virginia Energy, commented, "Energy Fuels is the
recognized leader in conventional uranium mining and milling in the United
States. Their investment brings with it vast experience and technical expertise.
We are excited to have Energy Fuels as a partner and with their assistance we
hope to eventually permit and build one of the safest and most productive new
uranium mines in the world."


Energy Fuels' subscription will be paid through a combination of $250,000 of
cash and 21,851,411 Energy Fuels common shares issued on a private placement
basis. Energy Fuels' participation in the Offering and the issuance of the
Energy Fuels common shares to Virginia Energy is subject to the approval of the
Toronto Stock Exchange.


Mr. Coles added, "This will be a valuable strategic partnership between Energy
Fuels and Virginia Energy and we expect the resulting synergies to create value
for both companies. Energy Fuels brings substantial technical expertise in terms
of permitting, developing and operating uranium mines in the U.S. We believe it
is important to realize these synergies now, because we are approaching a very
important period with respect to advancing the development of the Coles Hill
project. At the present time both parties recognize and believe that our
industry and in particular, our respective companies, are significantly
undervalued. Therefore Virginia Energy is pleased to receive Energy Fuels stock
in lieu of cash for a large portion of their subscription." With regard to the
balance of the Offering, Sprott will acquire approximately 20% of the private
placement for $1.2 million of cash. Other current shareholders are expected to
acquire the remaining approximately $835,000 of the Offering. The total cash to
be received by Virginia Energy in the Offering is expected to be approximately
$2,285,000.


Common Shares issued under the Offering will be subject to a hold period of four
months and one day from the applicable closing date of the Offering. In
accordance with regulations of the TSX Venture Exchange, finder's fees may be
payable to accredited agents on that portion of the Offering from purchasers
identified by such finder, including the subscription by Energy Fuels. Funds
from the Offering will be used for general working capital. The completion of
the Offering is subject to the approval of the TSX Venture Exchange.


In addition, on December 27, 2012, Virginia Energy closed a bridge loan facility
for a total amount of $750,000 with Sprott Resource Lending Partnership. The
bridge loan is repayable on closing of the Virginia Energy's equity financing,
but no later than February 28, 2013 and bears an annual interest rate of 12%. No
securities of Virginia Energy were issued or made issuable in connection with
the bridge loan from Sprott Resource Lending Partnership.


The securities offered have not been registered under the U.S. Securities Act of
1933, as amended, or applicable state securities laws, and may not be offered or
sold in the United States absent registration or an exemption from such
registration requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful.


About Virginia Energy Resources Inc.

Virginia Energy Resources Inc. is a uranium development and exploration company.
The company holds a 100% stake in the advanced stage Coles Hill uranium project
located in south central Virginia, USA. Additionally, the company operates a
uranium exploration program in the Otish Basin of Quebec, Canada.


About Energy Fuels Inc.

Energy Fuels Inc. is America's largest conventional uranium producer, supplying
approximately 25% of the uranium produced in the U.S., and is a significant
producer of vanadium. Energy Fuels operates the White Mesa Mill, which is the
only conventional uranium mill currently operating in the U.S., capable of
processing 2,000 tons per day of uranium ore. Energy Fuels has projects located
throughout the Western U.S., including producing mines, standby mines, and other
mineral properties in various stages of permitting and development.


Cautionary Note Regarding Forward-Looking Statements and Information

Certain of the statements and information in this press release constitute
"forward-looking statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and "forward-looking information"
within the meaning of applicable Canadian securities laws. Forward-looking
information includes, but is not limited to, statements relating to the plans
for completion of the Offering. Forward-looking statements and information
generally express predictions, expectations, beliefs, plans, projections, or
assumptions of future events or performance, do not constitute historical fact
and are subject to a variety of risks and uncertainties which could cause actual
events or results to differ materially from those reflected in such statements,
including, without limitation: the risk that the Offering will not be approved
by the Toronto Stock Exchange or TSX Venture Exchange; risks and uncertainties
related to the full Offering not being completed in the event that there are not
sufficient subscribers or the conditions thereto are not satisfied, including
the acceptance by the Toronto Stock Exchange or the TSX Venture Exchange.
Forward-looking statements and information contained in this release are based
on the beliefs, estimates, and opinions of management on the date the statements
are made. There can be no assurance that such statements or information will
prove accurate. Actual results may differ materially from those anticipated or
projected. Virginia Energy and Energy Fuels expressly disclaim any intention or
obligation to update or revise any forward-looking statements and information
whether as a result of new information, future events or otherwise, except as
otherwise required by applicable securities legislation. No production decision
with respect to the Coles Hill project has been made nor will a production
decision be made until Virginia Energy has completed a feasibility study.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Virginia Energy Resources Inc. - Investor Relations
Tony Perri
Investor Relations, Manager
(604) 669-4799
tperri@va-energy.com
www.virginiaenergyresources.com


Energy Fuels Inc.
Stephen P. Antony
President & CEO
(303) 974-2140
santony@energyfuels.com


Energy Fuels Inc. - Investor Relations
Curtis H. Moore
Director - Investor & Public Relations
(303) 974-2140
cmoore@energyfuels.com


Virginia Energy Resources Inc.
Walter Coles, Jr.
Executive Vice President
(604) 669-4799
wcolesjr@va-energy.com

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