LEX Longhorn Exploration Corp

LEXAM EXPLORATIONS INC. (TSX VENTURE: LEX) is pleased to announce that it has agreed to make a C$3,000,000 strategic investment in VG Gold Corp. ("VG Gold") for an aggregate subscription of 37,500,000 units issued by way of a private placement. Each unit is priced at C$0.08 and includes one common share and one common share purchase warrant exercisable at $0.15 per share for a period of eighteen months. The private placement will be completed in two tranches. Upon closing of both tranches Lexam will own approximately 27% of VG Gold's outstanding shares and 42% on a partially diluted basis. The first tranche consisting of 12,594,814 units closed earlier today. Lexam is now VG Gold's largest shareholder.

"VG Gold's properties are situated in the heart of the Timmins gold camp where 67 million ounces of gold have been produced. The company's drill results have encountered attractive grades and good widths. Companies such as West Timmins Mining and Lake Shore Gold are proving there is much more gold to be found in this historic camp." stated Rob McEwen, Chairman and CEO of Lexam.

DETAILS OF LEXAM INVESTMENT

The private placement will be completed in two tranches and consists of 37,500,000 units. Each unit is comprised of one share and one common share purchase warrant of VG Gold. One common share purchase warrant entitles Lexam to purchase one additional common share at an exercise price of C$0.15 per share over a period of eighteen months from closing. Securities issued are subject to a four-month hold period. The first tranche consisting of 12,594,814 units for gross proceeds of C$1,007,585 was closed earlier today, giving Lexam an ownership position of approximately 11% of VG Gold's outstanding shares and 20% on a partially diluted basis. The second tranche of the private placement is subject to receiving all necessary regulatory and shareholder approvals and is expected to close in early September.

Under terms of the arrangement Lexam will have the right to nominate a director and a right to participate pro-rata in future VG Gold financings, provided Lexam's aggregate interest remains above 10% of common shares outstanding.

Lexam may increase or reduce its investment in VG Gold according to market conditions or other relevant factors.

INVESTMENT RATIONALE

Potential to discover additional high-grade gold mineralization in one of Canada's most prolific gold camps. Gold production in the Timmins area totals over 67 million ounces since 1910, making it one of the largest gold producing areas in the world. Recent discoveries by West Timmins Mining and Lake Shore Gold have clearly demonstrated that the area is still highly prospective for large, high-grade gold discoveries. VG Gold's key assets are located adjacent to Goldcorp's Porcupine gold mines (Figure 1 & 2).

PAYMASTER WEST DRILL PROGRAM

The majority of the proceeds provided by Lexam will be used for drilling on VG Gold's Paymaster West property in order to earn a 60% interest from Goldcorp.

The Paymaster property, which produced 1.19 million gold oz, from 1915 to 1966, is located on the east-west trending Porcupine Syncline geological structure that is host to several current and former producing gold mines in Timmins, Ontario Canada (Figure 1 and 2). For a list of selective historic drill holes click: http://www.vggoldcorp.com/downloads/Drill_Hole_Table_Paymaster.pdf

and for cross sections click: http://www.vggoldcorp.com/property/paymaster.cfm.

DAVIDSON TISDALE PROJECT

Davidson Tisdale is 68.5% owned by VG Gold and located approximately 3 km northeast along strike from other major mines in the Timmins camp (Figure 1 & 2). Between 2003-2006 VG Gold conducted an extensive drill program returning significant drill results. These drill results are very encouraging and possibly indicative of what could be found at depth. Lexam's management is excited about the future exploration potential of this property. Drilling is expected to commence once VG Gold has fulfilled it option on the Paymaster West property. For a list of previous holes completed by VG Gold, please click: http://www.vggoldcorp.com/downloads/Drill_Hole_Table_Tisdale.pdf

ABOUT LEXAM

Lexam Explorations Inc. is a North American exploration company. The company is advancing the Baca Oil & Gas Project located in south-central Colorado, USA, which is 75% owned by Lexam and 25% by ConocoPhillips, it also has a 50% joint venture interest in the Otish Basin uranium project located in Quebec, Canada with Golden Valley Mines and the Company holds significant equity stakes in Rubicon Minerals Corp. and VG Gold Corp.

QUALIFIED PERSON

Kenneth Guy, P. Geo., is a Qualified Person (as such term is defined in National Instrument 43-101- Standards of Disclosure for Mineral Projects), and is responsible for the geological information presented herein.

CAUTIONARY STATEMENT

Some of the statements contained in this release are "forward-looking statements". Such forward- looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: ability to raise financing for further exploration and development activities; risks relating to estimates of reserves, deposits and production costs; extraction and development risks; the risk of commodity price fluctuations; political, regulatory and environmental risks; and other risks and uncertainties in the reports and disclosure documents filed by Lexam from time-to-time with Canadian securities regulatory authorities. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The complete fourth quarter 2008 and first quarter 2009 reports including management's discussion and analysis, financial statements and notes can be found on our Company's website at www.lexamexplorations.com and on SEDAR at www.sedar.com.

Please note: Figure 1 is available at the following link: http://media3.marketwire.com/docs/lexam721figure1.pdf.

Please note: Figure 2 is available at the following link: http://media3.marketwire.com/docs/lexam721figure2.pdf.

Contacts: Lexam Explorations Inc. Ian Ball VP, Corporate Development (647) 258-0395, Toll Free: (866) 441-0690 (647) 258-0408 (FAX) Lexam Explorations Inc. Mailing Address 99 George Street, 3rd Floor Toronto, ON M5A 2N4 E-mail: info@lexamexplorations.com