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|[ef2014_ex2001.jpg]                                                           
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|AUDITED CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
FEBRUARY 28, 2014

MANAGEMENTS REPORT   Responsibility for Financial Information  Virginia Mines management is responsible for the preparation, integrity and objectivity of the consolidated financial statements and other financial information presented in this Annual Report. These consolidated financial including the accounts of Virginia Mines Inc. and those of its subsidiary have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standard Board and include some amounts that are based on estimates and judgments. Management has determined such amounts on a reasonable basis in order to ensure that the consolidated financial statements are presented fairly in all material respects.  Virginia Mines policy is to maintain systems of internal accounting, and administrative and disclosure controls reinforced by standards of conduct and ethics set out in written policies to provide reasonable assurance that the financial information is relevant, accurate and reliable, and that assets are appropriately accounted for and adequately safeguarded.  The Board of Directors is responsible for ensuring that management fulfills its responsibilities for financial reporting and is ultimately responsible for reviewing and approving the consolidated financial statements. The Board carries out this responsibility principally through its Audit Committee. The Audit Committee is appointed by the Board and is composed of independent outside directors. The Committee meets periodically with management and external auditor to review accounting, auditing and internal control matters. These consolidated financial statements have been reviewed and approved by the Board of Directors on the recommendation of the Audit Committee.  The consolidated financial statements have been audited by PricewaterhouseCoopers LLP/s.r.l./s.e.n.c.r.l., the independent auditor, in accordance with the Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States) on behalf of the shareholders. The external auditor has full and free access to the Audit Committee.   Internal Control over Financial Reporting  Virginia Mines management is responsible for establishing and maintaining adequate internal control over financial reporting. Virginia Mines internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with IFRS.  Virginia Mines internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of Virginia Mines assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit the preparation of the consolidated financial statements in accordance with IFRS, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of Virginia Mines; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of Virginia Mines assets that could have a material effect on the consolidated financial statements.  Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.     Management conducted an evaluation of the effectiveness of the Companys internal control over financial reporting based on the criteria established in Internal ControlIntegrated Framework(1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).  Based on the evaluation, the management concluded that Virginia Mines internal control over financial reporting was effective as of February 28, 2014.  The effectiveness of the Companys internal control over financial reporting as at February 28, 2014, has been audited by PricewaterhouseCoopers LLP/s.r.l./s.e.n.c.r.l., the independent auditor, as stated in its report, which appears herein.    /S/ André Gaumond/S/ Robin VilleneuveAndré Gaumond
President and CEORobin Villeneuve
CFO


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|VIRGINIA MINES INC.
Consolidated Balance Sheets
|                                               
|(expressed in Canadian dollars)                




|                                                                                        |                    |              |  |   |             
|--------------------------------------------------------------------------------------- | ------------------ | ------------ |  | - | ------------
|                                                                                        | As at February 28,
|                                                                                        |                    | 2014         |  |   | 2013        
|Assets                                                                                  |                    |              |  |   |             
|                                                                                        |                    |              |  |   |             
|Current assets                                                                          |                    |              |  |   |             
|Cash                                                                                    | $                  | 8,750,235    |  | $ | 4,057,508   
|Short-term investments (note 5)                                                         |                    | 36,540,357   |  |   | 37,111,095  
|Tax credits for mining exploration and commodity                                        |                    |              |  |   |             
|taxes receivable (note 6)                                                               |                    | 2,736,163    |  |   | 2,344,559   
|Other amounts receivable                                                                |                    | 39,888       |  |   | 60,296      
|Prepaid expenses                                                                        |                    | 312,556      |  |   | 122,536     
|                                                                                        |                    | 48,379,199   |  |   | 43,695,994  
|                                                                                        |                    |              |  |   |             
|Non-current assets                                                                      |                    |              |  |   |             
|Mining properties (note 8)                                                              |                    | 63,104,594   |  |   | 58,857,272  
|Royalty interests in mining properties (note 9)                                         |                    | 425,763      |  |   | 233,363     
|Property, plant and equipment (note 10)                                                 |                    | 658,063      |  |   | 728,977     
|Deferred tax assets (note 21)                                                           |                    | 2,311,534    |  |   | 1,298,006   
|                                                                                        | $                  | 114,879,153  |  | $ | 104,813,612 
|                                                                                        |                    |              |  |   |             
|Liabilities                                                                             |                    |              |  |   |             
|                                                                                        |                    |              |  |   |             
|Current liabilities                                                                     |                    |              |  |   |             
|Accounts payable and accrued liabilities (note 11)                                      | $                  | 3,546,026    |  | $ | 3,966,973   
|Current portion of deferred lease inducements                                           |                    | 9,404        |  |   | 9,404       
|Current portion of deferred royalties (note 12)                                         |                    | 2,860,000    |  |   | -           
|                                                                                        |                    | 6,415,430    |  |   | 3,976,377   
|                                                                                        |                    |              |  |   |             
|Non-current liabilities                                                                 |                    |              |  |   |             
|Deferred lease inducements                                                              |                    | 91,690       |  |   | 101,094     
|Deferred tax liabilities (note 21)                                                      |                    | 5,237,595    |  |   | 4,019,246   
|Deferred royalties (note 12)                                                            |                    | 2,270,660    |  |   | 4,825,300   
|Liability related to share exchange rights (note 13)                                    |                    | 3,041,640    |  |   | -           
|                                                                                        |                    | 10,641,585   |  |   | 8,945,640   
|                                                                                        |                    |              |  |   |             
|Shareholders' Equity                                                                    |                    |              |  |   |             
|                                                                                        |                    |              |  |   |             
|Share capital (note 14)                                                                 |                    | 136,061,154  |  |   | 130,396,873 
|Stock options (note 15)                                                                 |                    | 6,692,514    |  |   | 7,523,608   
|Contributed surplus                                                                     |                    | 492,005      |  |   | 480,819     
|Deficit                                                                                 |                    | (50,932,453) |  |   | (48,039,245)
|Accumulated other comprehensive income                                                  |                    | 3,360,802    |  |   | 1,529,540   
|                                                                                        |                    | 95,674,022   |  |   | 91,891,595  
|                                                                                        |                    |              |  |   |             
|Non-controlling interest (note 16)                                                      |                    | 2,148,116    |  |   | -           
|                                                                                        |                    | 97,822,138   |  |   | 91,891,595  
|                                                                                        | $                  | 114,879,153  |  | $ | 104,813,612 
|Commitments (note 24)                                                                   |                    |              |  |   |             
|Subsequent events (note 25)                                                             |                    |              |  |   |             
|The accompanying notes are an integral part of these consolidated financial statements.

Approved by the Board of Directors   (signed) André Gaumond, Director(signed) André Lemire, Director  1.


|                                                   
|---------------------------------------------------
|VIRGINIA MINES INC.
Consolidated Statements of Loss
|                                                   
|(expressed in Canadian dollars)                    




|                                                                                        |                         |             |  |   |            
|--------------------------------------------------------------------------------------- | ----------------------- | ----------- |  | - | -----------
|                                                                                        | Years Ended February 28
|Expenses                                                                                |                         | 2014        |  |   | 2013       
|                                                                                        |                         |             |  |   |            
|Salaries                                                                                | $                       | 1,179,188   |  | $ | 1,137,656  
|Professional and maintenance fees                                                       |                         | 744,589     |  |   | 408,471    
|General administrative expenses (note 18)                                               |                         | 724,688     |  |   | 930,932    
|Stock-based compensation (note 15)                                                      |                         | -           |  |   | 1,523,101  
|Interest expense on liability related to share exchange rights (note 13)                |                         | 17,822      |  |   | -          
|Depreciation of property, plant and equipment                                           |                         | 101,280     |  |   | 91,667     
|General exploration costs (note 19)                                                     |                         | 1,000,135   |  |   | 1,014,454  
|Grants, credit on duties refundable for loss and refundable tax credit for resources    |                         | -           |  |   | (42,556)   
|Cost of mining properties abandoned or written off (note 8)                             |                         | 3,511,843   |  |   | 1,862,390  
|                                                                                        |                         | 7,279,545   |  |   | 6,926,115  
|                                                                                        |                         |             |  |   |            
|Other income (expenses)                                                                 |                         |             |  |   |            
|Dividends                                                                               |                         | 244,394     |  |   | 247,641    
|Interest                                                                                |                         | 741,241     |  |   | 886,580    
|Fees invoiced to partners                                                               |                         | 165,518     |  |   | 475,770    
|Option payments received in excess of cost of mining properties                         |                         | 1,250       |  |   | 10,000     
|Loss on sale of mining property                                                         |                         | -           |  |   | (5,722)    
|Gain (loss) on sale of available-for-sale investments                                   |                         | 168,957     |  |   | (18,938)   
|Gain on investments held for trading                                                    |                         | 604,628     |  |   | -          
|Loss on investments designated as held for trading                                      |                         | (1,755)     |  |   | (11,704)   
|Other than temporary write-down on available-for-sale investments                       |                         | (341,750)   |  |   | -          
|                                                                                        |                         | 1,582,483   |  |   | 1,583,627  
|                                                                                        |                         |             |  |   |            
|Loss before income taxes                                                                |                         | (5,697,062) |  |   | (5,342,488)
|Deferred tax recovery (note 21)                                                         |                         | 3,125,788   |  |   | 2,439,671  
|Net loss                                                                                | $                       | (2,571,274) |  | $ | (2,902,817)
|                                                                                        |                         |             |  |   |            
|Net loss for the year attributable to:                                                  |                         |             |  |   |            
|Shareholders of the parent                                                              |                         | (2,568,922) |  |   | (2,902,817)
|Non-controlling interest                                                                |                         | (2,352)     |  |   | -          
|                                                                                        |                         |             |  |   |            
|                                                                                        |                         |             |  |   |            
|Per share(note 22)                                                                      |                         |             |  |   |            
|                                                                                        |                         |             |  |   |            
|Basic net loss                                                                          | $                       | (0.078)     |  | $ | (0.090)    
|                                                                                        |                         |             |  |   |            
|Diluted net loss                                                                        | $                       | (0.078)     |  | $ | (0.090)    
|                                                                                        |                         |             |  |   |            
|                                                                                        |                         |             |  |   |            
|                                                                                        |                         |             |  |   |            
|                                                                                        |                         |             |  |   |            
|                                                                                        |                         |             |  |   |            
|                                                                                        |                         |             |  |   |            
|The accompanying notes are an integral part of these consolidated financial statements.

2.


|                                                                 
|-----------------------------------------------------------------
|VIRGINIA MINES INC.
Consolidated Statements of Comprehensive Loss
|                                                                 
|(expressed in Canadian dollars)                                  




|                                                                                        |                          |             |  |   |            
|--------------------------------------------------------------------------------------- | ------------------------ | ----------- |  | - | -----------
|                                                                                        | Years Ended February 28,
|                                                                                        |                          | 2014        |  |   | 2013       
|                                                                                        |                          |             |  |   |            
|Net loss                                                                                | $                        | (2,571,274) |  | $ | (2,902,817)
|                                                                                        |                          |             |  |   |            
|Other comprehensive income (loss)                                                       |                          |             |  |   |            
|Items that may be reclassified subsequently to net loss                                 |                          |             |  |   |            
|Unrealized gain (loss) on available-for-sale investments, net of related income tax     |                          |             |  |   |            
|expense of $260,439 (income tax recovery of $12,092 in 2013)                            |                          | 1,675,914   |  |   | (77,814)   
|Reclassification of other-than-temporary declines in value on available-for-sale        |                          |             |  |   |            
|investments, net of income taxes of $46,866 (nil in 2013)                               |                          | 301,580     |  |   | -          
|Reclassification of loss (gains) on available-for-sale investments realized upon sale,  |                          |             |  |   |            
|net of income tax expense of $22,725 (income tax recovery of $2,547 in 2013)            |                          | (146,232)   |  |   | 16,391     
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          | 1,831,262   |  |   | (61,423)   
|                                                                                        |                          |             |  |   |            
|Comprehensive loss                                                                      | $                        | (740,012)   |  | $ | (2,964,240)
|                                                                                        |                          |             |  |   |            
|Comprehensive loss for the year attributable to:                                        |                          |             |  |   |            
|Shareholders of the parent                                                              | $                        | (737,660)   |  | $ | (2,964,240)
|Non-controlling interest                                                                | $                        | (2,352)     |  | $ | -          
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          |             |  |   |            
|                                                                                        |                          |             |  |   |            
|The accompanying notes are an integral part of these consolidated financial statements.

3.


|                                                                              
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|VIRGINIA MINES INC.
Consolidated Statements of Changes in Shareholders Equity
|                                                                              
|(expressed in Canadian dollars)                                               




|                                           |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |             | 
|------------------------------------------ | ------------- |  | ------------- |  | ------------------- |  | ------------------- |  | -------------------------------------- |  | -------------------------------------- |  | ------------------------- |  | ----------- | 
|                                           | Share
capital |  | Stock
options |  | Contributed
surplus |  | Deficit             |  | Accumulated
other
comprehensive
income |  | Total                                  |  | Non-
controlling
interest |  | Total      
|                                           | $             |  | $             |  | $                   |  | $                   |  | $                                      |  | $                                      |  | $                         |  | $          
|                                           |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|Balance as at March 1, 2013                | 130,396,873   |  | 7,523,608     |  | 480,819             |  | (48,039,245)        |  | 1,529,540                              |  | 91,891,595                             |  | -                         |  | 91,891,595 
|                                           |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|Net loss                                   | -             |  | -             |  | -                   |  | (2,568,922)         |  | -                                      |  | (2,568,922)                            |  | (2,352)                   |  | (2,571,274)
|                                           |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|Unrealized gain on available-              |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|for-sale investments, net of               |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|related income taxes                       | -             |  | -             |  | -                   |  | -                   |  | 1,675,914                              |  | 1,675,914                              |  | -                         |  | 1,675,914  
|                                           |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|Reclassification of other-than-            |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|temporary declines in value on             |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|available-for-sale investments,            |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|net of related income taxes                | -             |  | -             |  | -                   |  | -                   |  | 301,580                                |  | 301,580                                |  | -                         |  | 301,580    
|                                           |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|Reclassification of gains on               |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|available-for-sale investments             |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|realized upon sale, net of related         |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|income taxes                               | -             |  | -             |  | -                   |  | -                   |  | (146,232)                              |  | (146,232)                              |  | -                         |  | (146,232)  
|Comprehensive loss for the year            | -             |  | -             |  | -                   |  | (2,568,922)         |  | 1,831,262                              |  | (737,660)                              |  | (2,352)                   |  | (740,012)  
|Stock options exercised                    | 2,313,082     |  | (819,908)     |  | -                   |  | -                   |  | -                                      |  | 1,493,174                              |  | -                         |  | 1,493,174  
|Stock options cancelled                    | -             |  | (11,186)      |  | 11,186              |  | -                   |  | -                                      |  | -                                      |  | -                         |  | -          
|Issuance of shares for                     |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|acquisition of mining property             | 49,851        |  | -             |  | -                   |  | -                   |  | -                                      |  | 49,851                                 |  | -                         |  | 49,851     
|                                           |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|Issuance of shares for cash                |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|consideration                              | 3,284,820     |  | -             |  | -                   |  | -                   |  | -                                      |  | 3,284,820                              |  | -                         |  | 3,284,820  
|                                           |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|Issuance of shares for acquisition         |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|of royalty interest in mining              |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|property                                   | 192,400       |  | -             |  | -                   |  | -                   |  | -                                      |  | 192,400                                |  | -                         |  | 192,400    
|                                           |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|Investment in the subsidiary by            |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|non-controlling interest, net of           |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|share issue expenses                       | -             |  | -             |  | -                   |  | -                   |  | -                                      |  | -                                      |  | 4,850,000                 |  | 4,850,000  
|                                           |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|Gain on dilution in the subsidiary         | -             |  | -             |  | -                   |  | 2,699,532           |  | -                                      |  | 2,699,532                              |  | (2,699,532)               |  | -          
|Liability related to share exchange rights | -             |  | -             |  | -                   |  | (3,023,818)         |  | -                                      |  | (3,023,818)                            |  | -                         |  | (3,023,818)
|Share issue expenses                       | (175,872)     |  | -             |  | -                   |  | -                   |  | -                                      |  | (175,872)                              |  | -                         |  | (175,872)  
|Balance as at February 28, 2014            | 136,061,154   |  | 6,692,514     |  | 492,005             |  | (50,932,453)        |  | 3,360,802                              |  | 95,674,022                             |  | 2,148,116                 |  | 97,822,138 
|                                           |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|                                           | Share
capital |  | Warrants      |  | Stock
options       |  | Contributed
surplus |  | Deficit                                |  | Accumulated
other
comprehensive
income |  | Total                     |  |            
|                                           | $             |  | $             |  | $                   |  | $                   |  | $                                      |  | $                                      |  | $                         |  |            
|                                           |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|Balance as at March 1, 2012                | 124,688,911   |  | 14,358        |  | 6,625,705           |  | 385,549             |  | (45,136,428)                           |  | 1,590,963                              |  | 88,169,058                |  |            
|                                           |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|Net loss                                   | -             |  | -             |  | -                   |  | -                   |  | (2,902,817)                            |  | -                                      |  | (2,902,817)               |  |            
|                                           |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|Unrealized loss on available-for-sale      |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|investments, net of related income taxes   | -             |  | -             |  | -                   |  | -                   |  | -                                      |  | (77,814)                               |  | (77,814)                  |  |            
|                                           |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|Reclassification of loss on available-for- |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|sale investments realized upon sale, net   |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|of related income taxes                    | -             |  | -             |  | -                   |  | -                   |  | -                                      |  | 16,391                                 |  | 16,391                    |  |            
|                                           |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|Comprehensive loss for the year            | -             |  | -             |  | -                   |  | -                   |  | (2,902,817)                            |  | (61,423)                               |  | (2,964,240)               |  |            
|Stock-based compensation                   | -             |  | -             |  | 1,523,101           |  | -                   |  | -                                      |  | -                                      |  | 1,523,101                 |  |            
|Stock options exercised                    | 1,452,309     |  | -             |  | (544,286)           |  | -                   |  | -                                      |  | -                                      |  | 908,023                   |  |            
|Stock options cancelled                    | -             |  | -             |  | (80,912)            |  | 80,912              |  | -                                      |  | -                                      |  | -                         |  |            
|Warrants expired                           | -             |  | (14,358)      |  | -                   |  | 14,358              |  | -                                      |  | -                                      |  | -                         |  |            
|Issuance of shares for acquisition of      |               |  |               |  |                     |  |                     |  |                                        |  |                                        |  |                           |  |            
|mining properties                          | 75,345        |  | -             |  | -                   |  | -                   |  | -                                      |  | -                                      |  | 75,345                    |  |            
|Issuance of shares for cash consideration  | 4,314,145     |  | -             |  | -                   |  | -                   |  | -                                      |  | -                                      |  | 4,314,145                 |  |            
|Share issue expenses                       | (133,837)     |  | -             |  | -                   |  | -                   |  | -                                      |  | -                                      |  | (133,837)                 |  |            
|Balance as at February 28, 2013            | 130,396,873   |  | -             |  | 7,523,608           |  | 480,819             |  | (48,039,245)                           |  | 1,529,540                              |  | 91,891,595                |  |            

The accompanying notes are an integral part of these consolidated financial statements.  4.


|                                                         
|---------------------------------------------------------
|VIRGINIA MINES INC.
Consolidated Statements of Cash Flows
|                                                         
|(expressed in Canadian dollars)                          




|                                                                                        |                          |              |  |   |             
|--------------------------------------------------------------------------------------- | ------------------------ | ------------ |  | - | ------------
|                                                                                        | Years Ended February 28,
|                                                                                        |                          | 2014         |  |   | 2013        
|Cash flows used in operating activities                                                 |                          |              |  |   |             
|Net loss                                                                                | $                        | (2,571,274)  |  | $ | (2,902,817) 
|                                                                                        |                          |              |  |   |             
|Adjustments for :                                                                       |                          |              |  |   |             
|Deferred tax recovery                                                                   |                          | (3,125,788)  |  |   | (2,439,671) 
|Other than temporary write-down on available-for-sale investments                       |                          | 341,750      |  |   | -           
|Loss on investments designated as held for trading                                      |                          | 1,755        |  |   | 11,704      
|Gain on investments held for trading                                                    |                          | (604,628)    |  |   | -           
|Loss (gain) on sale of available-for-sale investments                                   |                          | (168,957)    |  |   | 18,938      
|Loss on sale of mining property                                                         |                          | -            |  |   | 5,722       
|Option payments received in excess of cost of mining properties                         |                          | (1,250)      |  |   | (10,000)    
|Cost of mining properties abandoned or written off                                      |                          | 3,511,843    |  |   | 1,862,390   
|Depreciation of property, plant and equipment                                           |                          | 101,280      |  |   | 91,667      
|Interest expense on liability related to share exchange rights                          |                          | 17,822       |  |   | -           
|Stock-based compensation                                                                |                          | -            |  |   | 1,523,101   
|Amortization of deferred lease inducements                                              |                          | (9,404)      |  |   | (2,351)     
|                                                                                        |                          | (2,506,851)  |  |   | (1,841,317) 
|                                                                                        |                          |              |  |   |             
|Variation in deferred royalties                                                         |                          | 305,360      |  |   | 1,195,620   
|                                                                                        |                          |              |  |   |             
|Changes in items of working capital (note 20a)                                          |                          | 533,516      |  |   | (2,892,766) 
|                                                                                        |                          | (1,667,975)  |  |   | (3,538,463) 
|                                                                                        |                          |              |  |   |             
|                                                                                        |                          |              |  |   |             
|Cash flows from financing activities                                                    |                          |              |  |   |             
|Issuance of common shares, net of share issue expenses                                  |                          | 7,091,131    |  |   | 7,882,040   
|Contribution of non-controlling shareholders, net of share issue expenses               |                          | 4,850,000    |  |   | -           
|                                                                                        |                          | 11,941,131   |  |   | 7,882,040   
|                                                                                        |                          |              |  |   |             
|Cash flows used in investing activities                                                 |                          |              |  |   |             
|Acquisition of short-term investments                                                   |                          | (13,395,320) |  |   | (19,539,072)
|Disposition of short-term investments                                                   |                          | 16,439,123   |  |   | 21,804,230  
|Acquisition of mining properties and capitalized exploration costs                      |                          | (8,732,105)  |  |   | (14,522,696)
|Change in credit on duties refundable for loss and refundable tax credit                |                          |              |  |   |             
|related to exploration costs                                                            |                          | 128,173      |  |   | 2,280,092   
|Acquisition of property, plant and equipment                                            |                          | (60,300)     |  |   | (509,973)   
|Option payments received                                                                |                          | 40,000       |  |   | 70,000      
|Acquisition of royalty interest in mining property                                      |                          | -            |  |   | (233,363)   
|                                                                                        |                          | (5,580,429)  |  |   | (10,650,782)
|                                                                                        |                          |              |  |   |             
|Net change in cash                                                                      |                          | 4,692,727    |  |   | (6,307,205) 
|Cash - Beginning of year                                                                |                          | 4,057,508    |  |   | 10,364,713  
|Cash - End of year                                                                      | $                        | 8,750,235    |  | $ | 4,057,508   
|                                                                                        |                          |              |  |   |             
|                                                                                        |                          |              |  |   |             
|Interest received                                                                       | $                        | 792,757      |  | $ | 820,636     
|Dividends received                                                                      | $                        | 244,394      |  | $ | 247,641     
|                                                                                        |                          |              |  |   |             
|Supplemental information (note 20b)                                                    
|                                                                                       
|The accompanying notes are an integral part of these consolidated financial statements.

5.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




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|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1 | General information

Virginia Mines Inc. (the "Company") incorporated under the Canada Business Corporations Act, is in the business of acquiring and exploring mining properties. It has not yet determined whether its properties contain ore reserves that are economically recoverable. The recoverability of the amounts shown for mining properties is dependent upon the existence of economically recoverable ore reserves, the ability of the Company to obtain necessary financing to continue the exploration and development of its properties, and upon future profitable production or proceeds from the disposal of properties.

The address of its registered office is 300 St-Paul st., Suite 200, Quebec City, Quebec, Canada.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
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|2 | Basis of operation

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), as defined in the Chartered Professional Accountants of Canada Handbook and adapted by the International Accounting Standards Board ("IASB"). These consolidated financial statements have been prepared on a going concern basis, under the historical cost convention, except for financial instruments categorized at fair value through profit or loss and available-for-sale.

These consolidated financial statements were approved by the Board of Directors for issue on May 15, 2014.

Consolidation

The consolidated financial statements include the accounts of the Company and those of its subsidiary owned at 89.8%, Mines Coulon Inc. ("Mines Coulon"). The Company controls an entity when the Company is exposed to, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns, through its power over the entity. Mines Coulon is fully consolidated from the date on which control is obtained by the Company and is deconsolidated from the date that control ceases. All intercompany accounts and transactions are eliminated.

Non-controlling interest represents an equity interest in a subsidiary owned by an outside party. The share of net assets of the subsidiary attributable to the non-controlling interest is presented as a component of equity. Its share of net loss and comprehensive loss is recognized directly in equity. Changes in the Companys ownership interest in the subsidiary that do not result in a loss of control are accounted for as equity transactions.
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|3 | Summary of significant accounting policies

The significant accounting policies described below have been applied consistently to all years presented in these annual consolidated financial statements.

Cash

Cash includes cash on hand and balances with banks.

Short-term investments

Short-term investments consist of bonds, warrants, trust units, convertible debentures and investments in public companies. Purchases and sales of short-term investments are recognized in the consolidated financial statements on the trade date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

6.


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|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




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| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Financial instruments

Financial assets and liabilities are recognized when the Company becomes a party to the contractual provision of the instrument. Financial assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership.

The standards require that financial assets and financial liabilities, including derivative financial instruments, be initially measured at fair value. Subsequent to initial recognition, financial assets and financial liabilities are measured based on their classification: at fair value through profit or loss, available-for-sale investments, loans and receivables or financial liabilities at amortized cost.

●
At fair value through profit or loss – Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short-term or if so designated by management. Assets in this category principally include embedded derivatives and derivatives which do not qualify for hedge accounting.

Financial instruments in this category are recognized initially and subsequently at fair value. Transaction costs are expensed in the consolidated statements of loss. Gains and losses arising from changes in fair value are presented in the consolidated statements of loss in the period in which they arise.

Financial instruments in this category are included in non-current assets unless the investments mature within 12 months or management intends to dispose of them within 12 months.

Financial assets designated as at fair value through profit or loss at inception are those that are managed and whose performance is evaluated on a fair value basis.

The Company's financial assets at fair value through profit or loss comprise warrants and convertible debentures. The Company has designated its convertible debentures as held for trading.

●
Available for sale – Available-for-sale investments are non-derivatives that are either designated in this category or not classified in any of the other categories. Financial assets classified as available for sale are recognized initially at fair value plus transaction costs and are subsequently carried at fair value. Unrealized gains and losses are recognized directly in other comprehensive income (loss), except for significant or prolonged decline in value, which are recognized in the consolidated statements of loss. Upon derecognition of the financial asset, the accumulated gains or losses previously recognized in accumulated other comprehensive income are reclassified to the consolidated statements of loss.

Available-for-sale investments are included in non-current assets unless the investments mature within 12 months or management intends to dispose of them within 12 months.

The Companys available-for-sale assets comprise bonds, trust units and investments in public companies.

●
Loans and receivables – Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Financial assets classified as loans and receivables are recognized initially at the amount expected to be received less, when material, a discount to reduce the loans and receivables to fair value. Subsequently, they are measured at amortized cost using the effective interest method less a provision for impairment. They are included in current assets except for those with maturities greater than 12 months after the reporting period, which would be classified as non-current assets.

The Company's loans and receivables include cash and other amounts receivable in the consolidated balance sheet.

7.


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|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
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| | Financial liabilities at amortized cost Financial liabilities include accounts payable and accrued liabilities and are initially recognized at the amount required to be paid less, when material, a discount to reduce the payable to fair value. Subsequently, they are measured at amortized cost using the effective interest method, which corresponds to par value due to their short-term maturity. They are included in current liabilities if payment is due within 12 months. Otherwise, they are presented as non-current liabilities.

Financial liabilities at amortized cost include the liability related to share exchange rights, which represents a put option held by the non-controlling shareholders in Mine Coulon. At any time, until October 20, 2017, the non-controlling shareholders have the option to convert their shares of Mines Coulon into a variable number of common shares of the Company corresponding to 75% of the cost of their investment, based on the fair market value of the Companys shares at the time of conversion.  The number of common shares of the Company to be issued in respect of this put option cannot exceed 25% of the total number of the Companys common shares issued. The put option is measured initially at the present value of the redemption amount of the option. The financial liability is remeasured at each reporting period at amortized cost using the effective interest method with any differences recognized as interest expense in the consolidated statements of loss.

Impairment of financial assets

At each reporting date, the Company assesses whether there is objective evidence that a financial asset is impaired. If such evidence exists, the Company recognizes an impairment loss, as follows:

a)
Financial assets carried at amortized cost: The loss is the difference between the amortized cost of the loan or receivable and the present value of the estimated future cash flows, discounted using the instruments original effective interest rate. The carrying amount of the asset is reduced by this amount either directly or indirectly through the use of an allowance account.

b)
Available-for-sale financial assets: The impairment loss is the difference between the original cost of the asset and its fair value at the measurement date, less any impairment losses previously recognized in the consolidated statements of loss. This amount represents the cumulative loss in accumulated other comprehensive income that is reclassified to the consolidated statements of loss.

Impairment losses on financial assets carried at amortized cost and available-for-sale debt securities are reversed in subsequent periods if the amount of the loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized. Impairment losses on available-for-sale equity instruments are not reversed.

Property, plant and equipment and depreciation

Property, plant and equipment are recorded at cost less accumulated depreciation and impairment, and are depreciated using the straight-line method to reduce the carrying amounts to estimated residual values of the assets. Cost includes expenditures that are directly attributable to the acquisition of the assets. Residual values, method of amortization and useful lives of the assets are reviewed annually and adjusted if appropriate.

The major categories of property, plant and equipment are depreciated as follows:

Period
Office furniture
5 to 10 years
Computer equipment
5 years
Field equipment
7 years
Leasehold improvements
12 years

8.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Impairment of property, plant and equipment

Property, plant and equipment are tested for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purpose of measuring recoverable amounts, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units  "CGUs"). The recoverable amount is the higher of an asset's fair value less costs to dispose and value in use (being the present value of the expected future cash flows of the relevant assets of the CGU). An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount.

The Company evaluates impairment losses for potential reversals when events or circumstances require such consideration.

Leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are recognized in the consolidated statements of loss on a straight-line basis over the period of the lease.

In the event that lease incentives are received to enter into operating leases, such incentives are recognized as deferred lease inducements. The aggregate benefit of incentives is recognized as a reduction of rental expense on a straight-line basis over the term of the related lease.

Mining properties

The Company records its acquisition of interests in mining properties and areas of geological interest at cost less option payments received and other recoveries. These acquisition costs are recognized as intangible assets. Exploration costs related to these interests and projects are capitalized on the basis of specific claim blocks or areas of geological interest until the mining properties to which they relate are placed into production, sold or abandoned. These exploration costs are recognized as tangible assets. Management reviews for impairment the carrying amount of mining properties on a regular basis. These costs will be amortized over the estimated recoverable resources in the current mine plan using a unit of production basis or written off if the mining properties are sold or projects are abandoned. General exploration costs not related to specific mining properties are expensed as incurred.

Although management has taken actions to verify the ownership rights for mining properties in which the Company owns an interest in accordance with industry standards for the current exploration phase of these properties, these procedures give no assurance to the Company as to title. The title of property may be subject to unrecognized prior agreements and not compliant with regulatory requirements.

Mining properties are reviewed for impairment at each reporting date whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the mining property carrying amount exceeds its recoverable amount. The recoverable amount is the higher of the mining property's fair value less costs to dispose and value in use. Value in use is determined using discounted estimated future cash inflows. Impairment losses are recognized in the consolidated statements of loss under caption Cost of mining properties abandoned or written off. For the purpose of assessing impairment, mining properties are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Impairments are reviewed for potential reversals at each reporting date. Impairment can be reversed but is limited to the carrying amount that would have been determined net of depreciation, as if no impairment to the carrying amount would have been recognized.

Royalty interests in mining properties

Royalty interests in mining properties include the acquired royalties interests in exploration and developement stage mineral properties. The royalty interests are recorded initially at their cost, capitalized as tangible assets and are being amortized using the units of production method over the expected life of the mining properties, which is determined using available estimates of proven and probable reserves.

9.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




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| | Joint arrangements

The Company conducts exploration on some mining properties through joint operations where the joint arrangement participants are bound by a contractual agreement establishing joint control over the assets of the joint arrangement. As for joint operations, each party recognizes its rights to the assets, liabilities, revenues and expenses of the arrangement.

Provisions

Provisions for environmental restoration, restructuring costs and legal claims, where applicable, are recognized when: (i) the Company has a present legal or constructive obligation as a result of past events; (ii) it is more likely than not that an outflow of resources will be required to settle the obligation; and (iii) the amount can be reliably estimated.

Provisions are measured at management's best estimate of the expenditure required to settle the obligation at the end of the reporting period, and are discounted to present value where the effect is material. The increase in the provision due to passage of time is recognized as interest expense. Changes in assumptions or estimates are reflected in the period in which they occur.

Provision for environmental restoration represents the legal and constructive obligations associated with the eventual closure of the Company's property, plant and equipment. These obligations consist of costs associated with reclamation and monitoring of activities and the removal of tangible assets. The discount rate used is based on a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability, excluding the risks for which future cash flow estimates have already been adjusted.

The Company had no material provisions as at February 28, 2014 and 2013.

Credit on duties refundable for loss and refundable tax credit for resources

The Company is entitled to a credit on duties refundable for loss of 8% under the Mining Duties Act and a refundable tax credit for resources which may reach 38.75% under the Quebec Income Tax Act. Those credits are calculated on qualified exploration expenditures incurred.

Those credits are accounted for using the cost reduction method. Accordingly they are recorded as a reduction of the related expenses or capital expenditures in the year the expenses are incurred provided there is reasonable assurance that the Company has complied with all the conditions related to those credits and that those credits will be received.

Flow-through shares

The Company finances some exploration expenditures through the issuance of flow-through shares. The resource expenditure deductions for income tax purposes are renounced to investors in accordance with the appropriate income tax legislation. The difference between the quoted price of the common shares and the amount the investors pay for the shares (the "premium"), measured in accordance with the residual value method, is recognized as a liability which is reversed into the consolidated statements of loss as a deferred tax recovery when eligible expenditures have been made. The Company recognizes a deferred tax liability for the expenses renounced and a deferred tax expense at the moment the eligible expenditures are made.

10.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




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| | Income taxes

The Company provides for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on deductible or taxable temporary differences between the carrying amount and tax bases of assets and liabilities using enacted or substantively enacted income tax rates expected to be in effect for the year in which the differences are expected to reverse. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the financial position reporting date.

A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized.

Deferred tax assets and liabilities are presented as non-current and are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when deferred tax assets and liabilities levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

Basic and diluted earnings per share

Basic earnings per share are calculated using the weighted average number of common shares outstanding during the year.

Diluted earnings per share are calculated using the weighted average number of common shares outstanding during the year, plus the effects of dilutive potential common shares outstanding during the year.

The calculation of diluted earnings per share is made using the treasury stock method, as if all dilutive potential shares had been issued at the later of the beginning of the year or the date of issuance, as the case may be, and as if the funds obtained thereby had been used to purchase common shares of the Company at the average quoted market value of the participating shares during the year.

Stock-based compensation plan

The Company has established a stock-based compensation plan, which is described in note 15. The Company accounts for compensation costs for all forms of stock-based compensation awarded to employees and non-employees, including stock options at fair value, using a fair value-based method.

Fair value is measured on the date of grant. The fair value of options granted is measured using the Black-Scholes option-pricing model, taking into account the terms and conditions upon which the options were granted. On the date of grant, the fair value of stock options is recognized as an expense under caption Stock-based compensation as stock vest immediately, if any. Upon the exercise of stock options, any consideration received from plan members is credited to share capital and the fair value of the exercised stock options is reclassified from Stock options to Share capital.

Foreign currency transactions

Transactions denominated in foreign currencies are translated into Canadian dollars as follows: monetary assets and liabilities are translated at the exchange rate in effect at the reporting date and revenues and expenses are translated at the average exchange rate for the year. Non-monetary assets and liabilities are translated at historical rates. The Company's functional currency is the Canadian dollar. All foreign exchange gains and losses are recognized in the consolidated statements of loss.

Revenue recognition

Interest on short-term investments, calculated using the effective interest method, is recognized in the consolidated statements of loss as part of interest income on an accrual basis.

Dividends on short-term investments are recognized in the consolidated statements of loss as part of dividends when the Company's right to receive the payment is established.

11.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The fees invoiced to partners are recognized when the services are provided as project operator based on a percentage of exploration costs incurred.

Deferred royalties will be recognized into income once the Éléonore mine will go into production, on the basis that the production royalties will initially be paid out of these advance payments received by the Company.

Segment reporting

The Company currently operates in one business segment, being the acquisition and the exploration of mining properties. All of the Company's mining properties are located in Quebec, Canada.

New accounting standards and interpretations adopted during the year

The Company has adopted the following new and revised standards, along with any consequential amendments, effective March 1, 2013. These changes were made in accordance with the applicable transitional provisions.

IAS 1, Presentation of Financial Statements, (IAS 1)

The Company has adopted the amendments to IAS 1 effective March 1, 2013. These amendments required the Company to group other comprehensive income (loss) items based on whether or not they may be reclassified to net earnings in the future. These changes did not result in any adjustments to other comprehensive income (loss) or comprehensive income (loss).

IFRS 10, Consolidated Financial Statements, (IFRS 10)

IFRS 10 replaces the guidance on control and consolidation in IAS 27, Consolidated and Separate Financial Statements, and SIC-12, Consolidation  Special Purpose Entities. IFRS 10 requires consolidation of an investee only if the investor possesses power over the investee, has exposure to variable returns from its involvement with the investee and has the ability to use its power over the investee to affect its returns. Detailed guidance is provided on applying the definition of control. The accounting requirements for consolidation have remained largely consistent with IAS 27. The adoption of IFRS 10 did not affect the Company's consolidated financial statements.

IFRS 11, Joint Arrangements, (IFRS 11)

IFRS 11 supersedes IAS 31, Interests in Joint Ventures, and requires joint arrangements to be classified either as joint operations or joint ventures depending on the contractual rights and obligations of each investor that jointly controls the arrangement. For joint operations, a company recognizes its share of assets, liabilities, revenues and expenses of the joint operation. An investment in a joint venture is accounted for using the equity method as set out in IAS 28, Investments in Associates and Joint Ventures (IAS 28). We conducted a review of our working interests and determined that the adoption of IFRS 11 did not result in any changes to the accounting treatment of these working interests.

IFRS 12, Disclosure of Interests in Other Entities, (IFRS 12)

IFRS 12 establishes disclosure requirements for interests in other entities, such as subsidiaries, joint arrangements, associates, and unconsolidated structured entities. The standard carries forward existing disclosures and also introduces significant additional disclosures that address the nature of, and risks associated with, an entitys interests in other entities. The standard includes disclosure requirements for entities covered under IFRS 10 and IFRS 11. The Company has incorporated the required disclosures within the consolidated financial statements.

IFRS 13, Fair Value Measurement, (IFRS 13)

IFRS 13 provides a single framework for measuring fair value. The measurement of the fair value of an asset or liability is based on assumptions that market participants would use when pricing the asset or liability under current market conditions, including assumptions about risk. The Company adopted IFRS 13 on March 1, 2013 on a prospective basis. The adoption of IFRS 13 did not require any adjustments to the valuation techniques used by the Company to measure fair value and did not result in any measurement adjustments as at March 1, 2013.

12.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  | New accounting standards not yet adopted

The Company has not yet adopted certain standards, interpretations to existing standards and amendments which have
been issued but have an effective date of later than January 1, 2013. Many of these updates are not relevant to the
Company and are therefore not discussed herein.

IFRS 9, Financial Instruments (IFRS 9)

In November 2009 and October 2010, the IASB issued the first phase of IFRS 9, Financial Instruments. In November 2013, the IASB issued a new general hedge accounting standard, which forms part of IFRS 9. The new standard removes the January 1, 2015 effective date of IFRS 9. The new mandatory effective date will be determined once the classification and measurement and impairment phases of IFRS 9 are finalized. This standard is part of a wider project to replace IAS 39, Financial Instruments: Recognition and Measurement (IAS 39). IFRS 9 replaces the current multiple classification and measurement models for financial assets and liabilities with a single model that has only two classification categories: amortized cost and fair value. The basis of classification depends on the entitys business model and the contractual cash flow characteristics of the financial asset or liability. It also introduces additional changes relating to financial liabilities and aligns hedge accounting more closely with risk management. The mandatory effective date is not yet determined; however, early adoption of the new standard is still permitted. The Company does not intend to early adopt IFRS 9 in its consolidated financial statements for the annual period beginning March 1, 2014. The extent of the impact of adoption of IFRS 9 has not yet been determined.

IFRIC 21, Levies (IFRIC 21)

In May 2013, the IASB issued International Financial Reporting Interpretations Committee (IFRIC) 21, Levies. IFRIC 21 is effective for annual periods beginning on or after January 1, 2014 and is to be applied retrospectively. IFRIC 21 provides guidance on accounting for levies in accordance with IAS 37, Provisions, Contingent Liabilities and Contingent Assets. The interpretation defines a levy as an outflow from an entity imposed by a government in accordance with legislation and confirms that an entity recognizes a liability for a levy only when the triggering event specified in the legislation occurs. The Company will adopt IFRIC 21 in its consolidated financial statements for the annual period beginning March 1, 2014. The extent of the impact of adoption of IFRIC 21 has not yet been determined.
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|4 | Critical accounting estimates and judgments

The preparation of the consolidated financial statements in conformity with IFRS requires the Company to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These consolidated financial statements include estimates that, by their nature, are uncertain. The impacts of such estimates are pervasive throughout the consolidated financial statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. These judgments, estimates and assumptions are based on historical experience, current and future economic conditions and other factors, including expectations of future events that are believed to be reasonable under the circumstances.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

13.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | a)
Critical accounting estimates and assumptions

Critical accounting estimates and assumptions are those that have a significant risk of causing material adjustment and are often applied to matters or outcomes that are inherently uncertain and subject to change. As such, management cautions that future events often vary from forecasts and expectations and that estimates routinely require adjustments. The following discusses the most significant accounting estimates and assumptions that the Company has made in the preparation of the consolidated financial statements.

Mining properties

The Companys evaluation of the recoverable amount with respect to the mining properties is based on numerous assumptions including long-term commodity prices, future capital requirements, exploration potential and operations performance and may differ significantly from actual values. The recoverable amounts are based, in part, on certain factors that may be partially or totally outside of the Companys control. This evaluation involves a comparison of the estimated recoverable amounts of mining properties to carrying values. Assets are reviewed for an indication of impairment at each reporting date and when there are indicators of impairment. This determination requires significant judgment. Factors which could trigger an impairment review include, but are not limited to, interruptions in exploration activities and significant negative industry or economic trends.

Stock-based payments

The Company makes certain estimates and assumptions when calculating the fair values of stock options granted. The significant assumptions used include estimates of expected volatility, expected life and expected risk-free rate of return. The expected life is estimated using historical data and current expectations. The expected volatility is estimated using the historical volatility of the Company's stock over the same period as the expected life. Assumptions used to calculate the fair value are described in note 15.

Deferred tax assets and liabilities

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The determination of the ability of the Company to utilize tax losses carry forwards to offset deferred tax liabilities requires management to exercise judgment and make certain assumptions about the future performance of the Company. Management is required to assess whether it is probable that the Company will benefit from these prior losses and other deferred tax assets. Changes in economic conditions, commodity prices and other factors could result in revisions to the estimates of the benefits to be realized or the timing of utilizing the losses.

Liability related to share exchange rights

Estimates and assumptions used to calculate the value of the liability related to share exchange rights include the interest rate used to discount the amount of redemption (6%) and the estimated period of time over which the put option could be exercised by the non-controlling shareholders (October 20, 2017).

Deferred royalties

The Company makes certain estimates and assumptions for calculating the current portion of the deferred royalties. The significant assumptions used include gold price estimates ($1,300) and gold production estimates from Goldcorp Inc.s (Goldcorp) public information.

14.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  | b)
Critical judgments in applying the entity's accounting policies

Short-term investments

At each reporting date, the Company assesses whether there is objective evidence that a financial asset (other than a financial asset classified as fair value through profit or loss) is impaired. Objective evidence of an impairment loss includes: i) significant financial difficulty of the obligor; ii) delinquencies in interest or principal payments; iii) increased probability that the borrower will enter bankruptcy or other financial reorganization; and iv) in the case of equity securities, a significant or prolonged decline in the fair value of the security below its cost. Assumptions used to calculate the fair value are described in note 7b.

Liability related to share exchange rights

The put option is classified as a financial liability using the present-access method. Under this method, non-controlling interests continue to be recognized because the non-controlling shareholders still have present access to the returns associated with the underlying ownership interests; therefore, the debit entry is posted to deficit.
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|5 | Short-term investments

a)
Allocation of investments by instrument

Short-term investments available for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            




| |                                                       |                    |            |  |   |            | 
| | ----------------------------------------------------- | ------------------ | ---------- |  | - | ---------- | 
| |                                                       | As at February 28, |           
| |                                                       |                    | 2014       |  |   | 2013       | 
| | Bonds                                                 |                    |            |  |   |            | 
| | Federal                                               | $                  | 2,104,084  |  | $ | 1,577,956  | 
| | Para-governmental                                     |                    | 3,414,847  |  |   | 4,276,085  | 
| | Municipal                                             |                    | 20,693,022 |  |   | 25,280,833 | 
| | Companies                                             |                    | 314,630    |  |   | 319,558    | 
| | Financial institutions                                |                    | 1,105,523  |  |   | 126,820    | 
| |                                                       |                    |            |  |   |            | 
| |                                                       |                    | 27,632,106 |  |   | 31,581,252 | 
| |                                                       |                    |            |  |   |            | 
| | Preferred shares                                      |                    | 1,234,824  |  |   | 1,310,580  | 
| | Common shares                                         |                    | 6,849,754  |  |   | 3,293,815  | 
| | Trust units                                           |                    | -          |  |   | 794,500    | 
| |                                                       |                    |            |  |   |            | 
| | Total                                                 | $                  | 35,716,684 |  | $ | 36,980,147 | 
| |                                                       |                    |            |  |   |            | 
| | Short-term investments designated as held for trading
| |                                                       |                    |            |  |   |            | 
| |                                                       | As at February 28, |           
| |                                                       |                    | 2014       |  |   | 2013       | 
| |                                                       |                    |            |  |   |            | 
| | Convertible debentures                                | $                  | -          |  | $ | 130,948    | 

15.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




|  |                                                                                                                   |           |  |                    |  |            |  |           
|- | ----------------------------------------------------------------------------------------------------------------- | --------- |  | ------------------ |  | ---------- |  | ----------
|  | Short-term investments held for trading                                                                          
|  |                                                                                                                   |           |  |                    |  |            |  |           
|  |                                                                                                                   |           |  | As at February 28, |  |           
|  |                                                                                                                   |           |  | 2014               |  | 2013       |  |           
|  |                                                                                                                   |           |  | $                  |  | $          |  |           
|  |                                                                                                                   |           |  |                    |  |            |  |           
|  | Warrants                                                                                                          |           |  | 823,673            |  | -          |  |           
|  |                                                                                                                   |           |  |                    |  |            |  |           
|  | Total short-term investments                                                                                      |           |  | 36,540,357         |  | 37,111,095 |  |           
|  |                                                                                                                   |           |  |                    |  |            |  |           
|  |                                                                                                                   |           |  |                    |  |            |  |           
|  | b) Allocation of bonds and convertible debentures by maturity date                                                |           |  |                    | 
|  |                                                                                                                   |           |  |                    |  |            |  |           
|  | Bonds maturity                                                                                                    |           |  |                    |  |            |  |           
|  |                                                                                                                   | Less than |  | From 1 to          |  | More than  |  |           
|  |                                                                                                                   | 1 year    |  | 5 years            |  | 5 years    |  | Total     
|  |                                                                                                                   | $         |  | $                  |  | $          |  | $         
|  |                                                                                                                   |           |  |                    |  |            |  |           
|  | As at February 28, 2014                                                                                           | 9,345,829 |  | 15,381,423         |  | 2,904,854  |  | 27,632,106
|  |                                                                                                                   |           |  |                    |  |            |  |           
|  | As at February 28, 2013                                                                                           | 6,982,772 |  | 16,866,500         |  | 7,731,980  |  | 31,581,252
|  |                                                                                                                   |           |  |                    |  |            |  |           
|  |                                                                                                                   |           |  |                    |  |            |  |           
|  | Convertible debentures maturity                                                                                   |           |  |                    |  |            |  |           
|  |                                                                                                                   |           |  |                    |  |            |  |           
|  |                                                                                                                   | Less than |  | From 1 to          |  | More than  |  |           
|  |                                                                                                                   | 1 year    |  | 5 years            |  | 5 years    |  | Total     
|  |                                                                                                                   | $         |  | $                  |  | $          |  | $         
|  |                                                                                                                   |           |  |                    |  |            |  |           
|  | As at February 28, 2013                                                                                           | 51,772    |  | 79,176             |  | -          |  | 130,948   
|  |                                                                                                                   |           |  |                    |  |            |  |           
|  |                                                                                                                   |           |  |                    |  |            |  |           
|  | c) Interest rate                                                                                                  |           |  |                    |  |            |  |           
|  |                                                                                                                  
|  | The bonds bear interest at fixed rates ranging from 1.40% to 7.75% (from 1.50% to 7.75% as at February 28, 2013).
|  |                                                                                                                   |           |  |                    |  |            |  |           
|  |                                                                                                                   |           |  |                    |  |            |  |           
|  |                                                                                                                   |           |  |                    |  |            |  |           
|6 | Tax credits for mining exploration and commodity taxes receivable                                                 |           |  |                   
|  |                                                                                                                   |           |  |                    |  |            |  |           
|  |                                                                                                                   |           |  | As at February 28, |  |           
|  |                                                                                                                   |           |  | 2014               |  | 2013       |  |           
|  |                                                                                                                   |           |  | $                  |  | $          |  |           
|  |                                                                                                                   |           |  |                    |  |            |  |           
|  | Refundable tax credit for resources                                                                               |           |  | 2,070,899          |  | 1,384,707  |  |           
|  | Credit on duties refundable for loss                                                                              |           |  | 265,268            |  | 306,671    |  |           
|  | Commodity taxes receivable                                                                                        |           |  | 399,996            |  | 653,181    |  |           
|  |                                                                                                                   |           |  | 2,736,163          |  | 2,344,559  |  |           

16.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




|  |                                                                                                                                                                                                                           |                                      |                    |                       |  |                                         |  |                         |           
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------ | ------------------ | --------------------- |  | --------------------------------------- |  | ----------------------- | ----------
|7 | Financial instruments and fair value measurement                                                                                                                                                                          |                                      |                    |                       |  |                                         | 
|  |                                                                                                                                                                                                                           |                                      |                    |                       |  |                                         |  |                         |           
|  | a) Financial instruments                                                                                                                                                                                                  |                                      |                    |                       |  |                                         |  |                         |           
|  |                                                                                                                                                                                                                           |                                      |                    |                       |  |                                         |  |                         |           
|  | The classification of financial instruments as at February 28, 2014 and 2013 is summarized as follows:                                                                                                                    |                                     
|  |                                                                                                                                                                                                                           |                                      |                    |                       |  |                                         |  |                         |           
|  |                                                                                                                                                                                                                           |                                      |                    |                       |  |                                         |  | As at February 28, 2014
|  |                                                                                                                                                                                                                           |                                      |                    |                       |  |                                         |  | Carrying value          | Fair value
|  |                                                                                                                                                                                                                           | At fair value through profit or loss | Available-for-sale | Loans and receivables |  | Financial liabilities at amortized cost |  | Total                   | Total     
|  |                                                                                                                                                                                                                           | $                                    | $                  | $                     |  | $                                       |  | $                       | $         
|  | Financial assets                                                                                                                                                                                                          |                                      |                    |                       |  |                                         |  |                         |           
|  | Cash                                                                                                                                                                                                                      | -                                    | -                  | 8,750,235             |  | -                                       |  | 8,750,235               | 8,750,235 
|  | Short-term investments                                                                                                                                                                                                    | 823,673                              | 35,716,684         | -                     |  | -                                       |  | 36,540,357              | 36,540,357
|  | Other amounts receivable                                                                                                                                                                                                  | -                                    | -                  | 39,888                |  | -                                       |  | 39,888                  | 39,888    
|  |                                                                                                                                                                                                                           | 823,673                              | 35,716,684         | 8,790,123             |  | -                                       |  | 45,330,480              | 45,330,480
|  |                                                                                                                                                                                                                           |                                      |                    |                       |  |                                         |  |                         |           
|  | Financial liabilities                                                                                                                                                                                                     |                                      |                    |                       |  |                                         |  |                         |           
|  | Accounts payable and accrued                                                                                                                                                                                              |                                      |                    |                       |  |                                         |  |                         |           
|  | liabilities                                                                                                                                                                                                               | -                                    | -                  | -                     |  | 3,312,366                               |  | 3,312,366               | 3,312,366 
|  | Liability related to share                                                                                                                                                                                                |                                      |                    |                       |  |                                         |  |                         |           
|  | exchange rights                                                                                                                                                                                                           | -                                    | -                  | -                     |  | 3,041,640                               |  | 3,041,640               | 3,041,640 
|  |                                                                                                                                                                                                                           | -                                    | -                  | -                     |  | 6,354,006                               |  | 6,354,006               | 6,354,006 
|  |                                                                                                                                                                                                                           |                                      |                    |                       |  |                                         |  |                         |           
|  |                                                                                                                                                                                                                           |                                      |                    |                       |  |                                         |  |                         |           
|  |                                                                                                                                                                                                                           |                                      |                    |                       |  |                                         |  | As at February 28, 2013
|  |                                                                                                                                                                                                                           |                                      |                    |                       |  |                                         |  | Carrying value          | Fair value
|  |                                                                                                                                                                                                                           | At fair value through profit or loss | Available-for-sale | Loans and receivables |  | Financial liabilities at amortized cost |  | Total                   | Total     
|  |                                                                                                                                                                                                                           | $                                    | $                  | $                     |  | $                                       |  | $                       | $         
|  | Financial assets                                                                                                                                                                                                          |                                      |                    |                       |  |                                         |  |                         |           
|  | Cash                                                                                                                                                                                                                      | -                                    | -                  | 4,057,508             |  | -                                       |  | 4,057,508               | 4,057,508 
|  | Short-term investments                                                                                                                                                                                                    | 130,948                              | 36,980,147         | -                     |  | -                                       |  | 37,111,095              | 37,111,095
|  | Other amounts receivable                                                                                                                                                                                                  | -                                    | -                  | 60,296                |  | -                                       |  | 60,296                  | 60,296    
|  |                                                                                                                                                                                                                           | 130,948                              | 36,980,147         | 4,117,804             |  | -                                       |  | 41,228,899              | 41,228,899
|  |                                                                                                                                                                                                                           |                                      |                    |                       |  |                                         |  |                         |           
|  | Financial liabilities                                                                                                                                                                                                     |                                      |                    |                       |  |                                         |  |                         |           
|  | Accounts payable and accrued                                                                                                                                                                                              |                                      |                    |                       |  |                                         |  |                        
|  | liabilities                                                                                                                                                                                                               | -                                    | -                  | -                     |  | 3,304,417                               |  | 3,304,417               | 3,304,417 
|  |                                                                                                                                                                                                                           |                                      |                    |                       |  |                                         |  |                         |           
|  |                                                                                                                                                                                                                           |                                      |                    |                       |  |                                         |  |                         |           
|  | The Company's financial assets at fair value through profit or loss comprise convertible debentures and warrants. The available-for-sale assets comprise bonds, trust units and investments in public companies (shares).
|  |                                                                                                                                                                                                                          
|  | Cash, other amounts receivable and accounts payable and accrued liabilities are financial instruments whose carrying value approximates their fair value due to their short-term maturity.                               

17.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | b)
Fair value measurement

Financial instruments recorded at fair value on the consolidated balance sheet are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

Level 1  valuation based on quoted prices observed in active markets for identical assets or liabilities.

Level 2  valuation techniques based on inputs that are quoted prices of similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; inputs other than quoted prices used in a valuation model that are observable for that instrument; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3  valuation techniques with significant unobservable market inputs.

A financial instrument is classified to the lowest level of the hierarchy for which a significant input has been considered in measuring fair value.

As at February 28, 2014, the classification of the Company's financial instruments, recorded at fair value on a recurring basis, was as follows:




| |                                                                                                                                                                                                                                                                                                                                                               |                         |            |  |         |  | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------- | ---------- |  | ------- |  | 
| |                                                                                                                                                                                                                                                                                                                                                               | As at February 28, 2014 |            | 
| |                                                                                                                                                                                                                                                                                                                                                               | Level 1                 | Level 2    |  | Level 3 |  | 
| |                                                                                                                                                                                                                                                                                                                                                               | $                       | $          |  | $       |  | 
| | Financial assets                                                                                                                                                                                                                                                                                                                                              |                         |            |  |         |  | 
| |                                                                                                                                                                                                                                                                                                                                                               |                         |            |  |         |  | 
| | Shares                                                                                                                                                                                                                                                                                                                                                        | 7,806,994               | 277,584    |  | -       |  | 
| | Bonds                                                                                                                                                                                                                                                                                                                                                         | -                       | 27,632,106 |  | -       |  | 
| | Warrants                                                                                                                                                                                                                                                                                                                                                      | -                       | 823,673    |  | -       |  | 
| |                                                                                                                                                                                                                                                                                                                                                               |                         |            |  |         |  | 
| |                                                                                                                                                                                                                                                                                                                                                               | 7,806,994               | 28,733,363 |  | -       |  | 
| |                                                                                                                                                                                                                                                                                                                                                               |                         |            |  |         |  | 
| |                                                                                                                                                                                                                                                                                                                                                               |                         |            |  |         |  | 
| |                                                                                                                                                                                                                                                                                                                                                               | As at February 28, 2013 |            | 
| |                                                                                                                                                                                                                                                                                                                                                               | Level 1                 | Level 2    |  | Level 3 |  | 
| |                                                                                                                                                                                                                                                                                                                                                               | $                       | $          |  | $       |  | 
| | Financial assets                                                                                                                                                                                                                                                                                                                                              |                         |            |  |         |  | 
| |                                                                                                                                                                                                                                                                                                                                                               |                         |            |  |         |  | 
| | Shares and trust units                                                                                                                                                                                                                                                                                                                                        | 5,398,895               | -          |  | -       |  | 
| | Bonds and convertible debentures                                                                                                                                                                                                                                                                                                                              | -                       | 31,712,200 |  | -       |  | 
| |                                                                                                                                                                                                                                                                                                                                                               |                         |            |  |         |  | 
| |                                                                                                                                                                                                                                                                                                                                                               | 5,398,895               | 31,712,200 |  | -       |  | 
| |                                                                                                                                                                                                                                                                                                                                                               |                         |            |  |         |  | 
| | On November 30, 2013, the Company transferred from level 2 to level 1 an amount of $1,428,749 of common shares that were no longer on a sale period restriction.

No other transfer attributable to changes in the observability of market data was made among the fair value measurement hierarchy levels during the years ended February 28, 2014 and 2013.

18.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The valuation techniques that are used to measure fair value are as follows:

i) Financial instruments in level 1

The fair value of shares and trust units is established using the bid price on the most beneficial active market for these instruments that is readily available to the Company. When a bid price is not available, the Company uses the closing price of the most recent transaction on such instrument. If the instrument is on a sale period restriction, the fair value is discounted and the instrument is classified in level 2.

ii) Financial instruments in level 2

The fair value of warrants is established through the use of the Black & Scholes pricing model, which uses share price inputs and volatility measurements. If the instrument is on a sale period restriction, the fair value is discounted.

The fair value of bonds and convertible debentures is valued at the bid price using independent pricing services or dealer prices.

c)
Financial risks

The Company has exposure to various financial risks, such as credit risk, liquidity risk and market risk from its use of financial instruments.

Credit risk

Credit risk associated with cash and short-term investments arises mainly from the possibility that the issuer of securities may be unable to fulfill payment obligations. The Company minimizes its exposure to issuer risk by investing only in products having a high quality investment-grade rating. In addition, the Company attempts to minimize its risks by entering into agreements only with Canadian institutions with strong credit rating and their subsidiaries. Exposure to these risks is closely monitored and maintained within the limits stated in the investment policy of the Company, which is revised regularly.

Credit risk associated with other amounts receivable arises from the possibility that the Company's partners may not be able to repay their debts. These receivables result from exploration work carried out on projects in partnership with other mining companies. The Company considers that the credit risk related to amounts receivable from such partnerships is minimal, because the Company usually signs agreements with major mining companies.

The maximum exposure to credit risk for cash and short-term investments approximates the amount recognized on the consolidated balance sheet. The Company does not hold any collateral as security.

Liquidity risk

Liquidity risk is the risk that the Company may be unable to fulfill its financial obligations related to financial liabilities. The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidities to meet liabilities when due. As at February 28, 2014, the Company had a cash balance of $8,750,235 ($4,057,508 as at February 28, 2013) to settle current liabilities of $3,312,366 ($3,304,417 as at February 28, 2013).  All of the Company's financial liabilities have contractual maturities of less than 30 days and are subject to normal trade terms.

19.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk includes interest rate risk, currency risk and other price risks such as equity risk.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes to market interest rates. The Company's current policy is to invest excess cash principally in bonds and/or in interest-bearing accounts of Canadian banks and their subsidiaries.

Changes in fair value of available-for-sale bonds are recorded in Other comprehensive income (loss). For the Companys available-for-sale bonds, a variation of ± 1% of interest rates as at February 28, 2014, would result in an estimated after-tax effect in Other comprehensive income (loss) of $549,000 ($930,000 for the year ended February 28, 2013).

Foreign exchange risk

The Company's functional currency is the Canadian dollar and most of its purchases are made in Canadian dollars. From April 1, 2009, through May 1, 2013, the Company received monthly advance payments of US$100,000 for a total of US$5,000,000 (see note 12). The Company holds foreign currency in a chartered Canadian bank account as at February 28, 2014, but the risk is minimized because the balance of the bank account is not significant for the Company. As a result, the Company's exposure to foreign exchange risk is minimal.

Equity risk

Equity risk is the risk that the fair value of a financial instrument varies due to equity market changes. An investment policy is in place and its application is monitored by the Board of Directors on a quarterly basis.

Changes in fair value of available-for-sale shares are recorded in Other comprehensive income (loss). A variation of ± 10% of the quoted market prices as at February 28, 2014, would result in an estimated after-tax effect in Other comprehensive income (loss) of $700,000 ($467,000 for the year ended February 28, 2013).

Changes in fair value of warrants at fair value through profit or loss are recorded in the consolidated statements of loss. A variation of ± 10% in market prices as at February 28, 2014, would result in a maximal estimated after-tax effect in the consolidated statements of loss of $101,000 (nil for the year ended February 28, 2013).

d)
Other information

As at February 28, 2014, gross unrealized losses on available-for-sale securities totalled $165,143 ($67,937 as at February 28, 2013). Of this sum, an amount of $55,281 ($16,308 as at February 28, 2013) is related to bonds and results from changes in market interest rates and not to deterioration in the creditworthiness of issuers. The balance of $109,862 ($51,629 as at February 28, 2013) related to common shares is mainly explained by fluctuations of prices in the market. The Company has the ability and intent to hold these securities for a period of time sufficient to allow for recovery in fair value. It assesses that the gross unrealized losses are not significant or prolonged.

The total interest income for financial assets that are not classified as at fair value through profit or loss is $677,000 ($798,000 for the year ended February 28, 2013).

20.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




|  |                                                       
|- | ------------------------------------------------------
|8 | Mining properties

Reconciliation of mining properties




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                   |                   |                  |             |   |           |   |            
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------- | ----------------- | ---------------- | ----------- | - | --------- | - | -----------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                   |                   | Acquisition cost |             |  
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Exploration
costs | Mining
properties | Claims           | Total      
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                   |                   |                  |             |   |           |   |            
| | Balance as at March 1, 2012                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | $                 | 35,681,128        | $                | 8,880,623   | $ | 3,398,593 | $ | 47,960,344 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                   |                   |                  |             |   |           |   |            
| | Costs incurred                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                   | 13,491,183        |                  | 137,288     |   | 720,878   |   | 14,349,349 
| | Mining properties under option                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                   | (36,455)          |                  | (22,031)    |   | (1,514)   |   | (60,000)   
| | Mining properties abandoned, written off or sold                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                   | (1,618,576)       |                  | (60,597)    |   | (188,939) |   | (1,868,112)
| | Credit on duties refundable for loss and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                   |                   |                  |             |   |           |   |            
| | refundable tax credit for resources                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                   | (1,524,309)       |                  | -           |   | -         |   | (1,524,309)
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                   |                   |                  |             |   |           |   |            
| | Balance as at February 28, 2013                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                   | 45,992,971        |                  | 8,935,283   |   | 3,929,018 |   | 58,857,272 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                   |                   |                  |             |   |           |   |            
| | Costs incurred                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                   | 7,960,313         |                  | 51,323      |   | 437,808   |   | 8,449,444  
| | Mining properties under option                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                   | (10,464)          |                  | (29,375)    |   | (161)     |   | (40,000)   
| | Mining properties abandoned or written off                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                   | (2,026,468)       |                  | (1,196,614) |   | (288,761) |   | (3,511,843)
| | Credit on duties refundable for loss and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                   |                   |                  |             |   |           |   |            
| | refundable tax credit for resources                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                   | (772,962)         |                  | -           |   | -         |   | (772,962)  
| | Non-refundable tax adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                   | 122,683           |                  | -           |   | -         |   | 122,683    
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                   |                   |                  |             |   |           |   |            
| | Balance as at February 28, 2014                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $                 | 51,266,073        | $                | 7,760,617   | $ | 4,077,904 | $ | 63,104,594 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                   |                   |                  |             |   |           |   |            
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                   |                   |                  |             |   |           |   |            
| | a)
On April 26, 2007, IAMGOLD Corporation ("IAMGOLD") granted the Company the option to acquire a 100% interest in the Anatacau property for a consideration consisting of $25,000 in cash and exploration work totalling $3,000,000 to be carried out no later than December 31, 2015. As at February 28, 2014, the Company made a cash payment of $25,000 and spent $2,609,654 on exploration work.

b)
On March 7, 2011, the Company entered into an agreement with Anglo American Exploration (Canada) Ltd. ("AAEC"), whereby the Company has transferred to AAEC a 50% interest in the mining claims of the Baie Payne property. AAEC must fund an aggregate of $4,000,000 in expenditures over a six-year period to maintain its 50% interest in the Baie Payne property. In August 2012, AAEC reach the $4,000,000 in exploration expenditures in the Baie Payne property. Based on the initial agreement with the Company, the exploration expenses were on a 50% - 50% basis between AAEC and the Company. On March 12, 2013, the Company elected not to participate in the 2013 campaign and consequently, its participation has been diluted.

21.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | c)
On April 18, 2011, Arianne Phosphate Inc. ("Arianne") granted the Company the option to acquire a 50% interest in the Opinaca property for a consideration consisting of the issuance of 26,330 shares of the Company and exploration work totalling $878,000 to be carried out no later than April 18, 2016. As at February 28, 2014, the Company issued 26,330 shares to Arianne and spent $266,789 on exploration work.

d)
On June 8, 2011, the Company entered into an agreement with KGHM International Ltd. ("KGHM") on the Lac Gayot property. As per the agreement, KGHM has the option to acquire a 50% interest in the Lac Gayot property, in consideration of payments totalling $100,000 and $10,000,000 in exploration work to be carried out over a nine-year period. As at February 28, 2014, KGHM made a cash payment of $100,000 and spent $3,314,713 on exploration work.

e)
On November 23, 2011, the Company entered into an agreement with AAEC, whereby the Company has transferred to AAEC a 50% interest in the mining claims of the Ashuanipi property. AAEC must fund an aggregate of $5,000,000 in expenditures over a five-year period to maintain its 50% interest in the Ashuanipi property. As at February 28, 2014, AAEC spent $3,391,102 on exploration work.

f)
On April 12, 2012, the Company entered into an agreement with Komet Manufacturers Inc. ("Komet") on the FCI property. As per the agreement, Komet has the option to acquire a 50% interest in the FCI property, in consideration of the issuance of 25,000 shares of Komet and $4,000,000 in exploration work to be carried out over a six-year period. As at February 28, 2014, Komet issued 25,000 shares and spent $378,937 on exploration work.

g)
On June 28, 2013, the Company signed a strategic alliance with Altius Minerals Corporation ("Altius") whereby the Company and Altius will cooperate to explore geological settings favourable for different types of mineralization in the Labrador Trough. A budget of approximately $600,000 has been allocated to the 2013 campaign.

h)
On July 11, 2013, IAMGOLD put an end to the agreement pursuant to which the Company conferred IAMGOLD the option of acquiring a 50% interest in the Lac Pau property.

i)
On September 12, 2013, Shield Gold Inc. ("Shield Gold") ended the agreement pursuant to which the Company conferred Shield Gold the option of acquiring a 50% interest in the La Grande Nord property.

22.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




| |                             |          |                    |                             |                |                                                                                  |                                
| | --------------------------- | -------- | ------------------ | --------------------------- | -------------- | -------------------------------------------------------------------------------- | -------------------------------
| | Detail of mining properties
| |                             | # Claims | Undivided
interest | Balance as at
March 1, 2013 | Costs
incurred | Mining
properties
abandoned,
written off or
under option
and related
tax credits | Balance as at
February 28, 2014
| |                             |          | %                  | $                           | $              | $                                                                                | $                              
| | Anatacau (note 8a)          | 207      |                    |                             |                |                                                                                  |                                
| | Acquisition costs           |          | 0                  | 96,346                      | 3,024          | -                                                                                | 99,370                         
| | Exploration costs           |          |                    | 1,338,328                   | 481,524        | -                                                                                | 1,819,852                      
| |                             |          |                    | 1,434,674                   | 484,548        | -                                                                                | 1,919,222                      
| |                             |          |                    |                             |                |                                                                                  |                                
| | Ashuanipi (note 8e)         | 596      |                    |                             |                |                                                                                  |                                
| | Acquisition costs           |          | 50                 | 88,949                      | -              | -                                                                                | 88,949                         
| | Exploration costs           |          |                    | 1,563,678                   | -              | -                                                                                | 1,563,678                      
| |                             |          |                    | 1,652,627                   | -              | -                                                                                | 1,652,627                      
| |                             |          |                    |                             |                |                                                                                  |                                
| | Baie Payne (note 8b)        | 471      |                    |                             |                |                                                                                  |                                
| | Acquisition costs           |          | 40.2               | 605,545                     | -              | -                                                                                | 605,545                        
| | Exploration costs           |          |                    | 534,849                     | -              | -                                                                                | 534,849                        
| |                             |          |                    | 1,140,394                   | -              | -                                                                                | 1,140,394                      
| |                             |          |                    |                             |                |                                                                                  |                                
| | Corvet Est                  | 599      |                    |                             |                |                                                                                  |                                
| | Acquisition costs           |          | 50                 | 111,912                     | 13,761         | (100,224)                                                                        | 25,449                         
| | Exploration costs           |          |                    | 1,647,234                   | 3,743          | (1,316,645)                                                                      | 334,332                        
| |                             |          |                    | 1,759,146                   | 17,504         | (1,416,869)                                                                      | 359,781                        
| |                             |          |                    |                             |                |                                                                                  |                                
| | Coulon (note 16)            | 498      |                    |                             |                |                                                                                  |                                
| | Acquisition costs           |          | 89.8               | 4,949,117                   | 43,551         | (1,219,000)                                                                      | 3,773,668                      
| | Exploration costs           |          |                    | 14,472,752                  | 3,007,994      | (779,279)                                                                        | 16,701,467                     
| |                             |          |                    | 19,421,869                  | 3,051,545      | (1,998,279)                                                                      | 20,475,135                     
| |                             |          |                    |                             |                |                                                                                  |                                
| | Éléonore Régional           | 903      |                    |                             |                |                                                                                  |                                
| | Acquisition costs           |          | 100                | 460,145                     | 29,189         | (4,862)                                                                          | 484,472                        
| | Exploration costs           |          |                    | 2,118,111                   | 574,536        | (26,433)                                                                         | 2,666,214                      
| |                             |          |                    | 2,578,256                   | 603,725        | (31,295)                                                                         | 3,150,686                      
| |                             |          |                    |                             |                |                                                                                  |                                
| | Lac Gayot (note 8d)         | 530      |                    |                             |                |                                                                                  |                                
| | Acquisition costs           |          | 100                | 1,897,727                   | -              | (29,536)                                                                         | 1,868,191                      
| | Exploration costs           |          |                    | 672,310                     | -              | (10,464)                                                                         | 661,846                        
| |                             |          |                    | 2,570,037                   | -              | (40,000)                                                                         | 2,530,037                      
| |                             |          |                    |                             |                |                                                                                  |                                
| | (forward)                   |          |                    | 30,557,003                  | 4,157,322      | (3,486,443)                                                                      | 31,227,882                     

23.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




| |                    |                    |                             |                |                                                                                  |                                 |           
| | ------------------ | ------------------ | --------------------------- | -------------- | -------------------------------------------------------------------------------- | ------------------------------- | ----------
| | # Claims           | Undivided
interest | Balance as at
March 1, 2013 | Costs
incurred | Mining
properties
abandoned,
written off or
under option
and related
tax credits | Balance as at
February 28, 2014
| |                    | %                  | $                           | $              | $                                                                                | $                              
| | (brought forward)  |                    | 30,557,003                  | 4,157,322      | (3,486,443)                                                                      | 31,227,882                     
| |                    |                    |                             |                |                                                                                  |                                 |           
| | La Grande Sud      | 188                |                             |                |                                                                                  |                                 |           
| | Acquisition costs  |                    | 100                         | 77,580         | 13,104                                                                           | -                               | 90,684    
| | Exploration costs  |                    |                             | 1,577,840      | 14,340                                                                           | -                               | 1,592,180 
| |                    |                    |                             | 1,655,420      | 27,444                                                                           | -                               | 1,682,864 
| |                    |                    |                             |                |                                                                                  |                                 |           
| | Lac Pau (note 8h)  | 802                |                             |                |                                                                                  |                                 |           
| | Acquisition costs  |                    | 100                         | 162,029        | 6,944                                                                            | -                               | 168,973   
| | Exploration costs  |                    |                             | 3,339,113      | 1,496                                                                            | -                               | 3,340,609 
| |                    |                    |                             | 3,501,142      | 8,440                                                                            | -                               | 3,509,582 
| |                    |                    |                             |                |                                                                                  |                                 |           
| | Nichicun           | 298                |                             |                |                                                                                  |                                 |           
| | Acquisition costs  |                    | 100                         | 77,066         | 27,177                                                                           | -                               | 104,243   
| | Exploration costs  |                    |                             | 2,265,356      | 56,712                                                                           | -                               | 2,322,068 
| |                    |                    |                             | 2,342,422      | 83,889                                                                           | -                               | 2,426,311 
| |                    |                    |                             |                |                                                                                  |                                 |           
| | Poste Lemoyne Ext. | 610                |                             |                |                                                                                  |                                 |           
| | Acquisition costs  |                    | 100                         | 1,247,293      | 57,374                                                                           | -                               | 1,304,667 
| | Exploration costs  |                    |                             | 7,051,696      | 560,797                                                                          | -                               | 7,612,493 
| |                    |                    |                             | 8,298,989      | 618,171                                                                          | -                               | 8,917,160 
| |                    |                    |                             |                |                                                                                  |                                 |           
| | Trieste            | 525                |                             |                |                                                                                  |                                 |           
| | Acquisition costs  |                    | 100                         | 130,615        | 12,348                                                                           | -                               | 142,963   
| | Exploration costs  |                    |                             | 1,406,821      | 148,324                                                                          | -                               | 1,555,145 
| |                    |                    |                             | 1,537,436      | 160,672                                                                          | -                               | 1,698,108 
| |                    |                    |                             |                |                                                                                  |                                 |           
| | Wabamisk           | 1,004              |                             |                |                                                                                  |                                 |           
| | Acquisition costs  |                    | 100                         | 848,492        | 12,704                                                                           | (54,939)                        | 806,257   
| | Exploration costs  |                    |                             | 4,914,182      | 1,813,531                                                                        | (345,401)                       | 6,382,312 
| |                    |                    |                             | 5,762,674      | 1,826,235                                                                        | (400,340)                       | 7,188,569 
| |                    |                    |                             |                |                                                                                  |                                 |           
| | Others             |                    |                             |                |                                                                                  |                                 |           
| | Acquisition costs  |                    |                             | 2,111,485      | 269,955                                                                          | (106,350)                       | 2,275,090 
| | Exploration costs  |                    |                             | 3,090,701      | 1,297,316                                                                        | (208,989)                       | 4,179,028 
| |                    |                    |                             | 5,202,186      | 1,567,271                                                                        | (315,339)                       | 6,454,118 
| |                    |                    |                             |                |                                                                                  |                                 |           
| | Total              |                    |                             |                |                                                                                  |                                 |           
| | Acquisition costs  |                    |                             | 12,864,301     | 489,131                                                                          | (1,514,911)                     | 11,838,521
| | Exploration costs  |                    |                             | 45,992,971     | 7,960,313                                                                        | (2,687,211)                     | 51,266,073
| |                    |                    |                             | 58,857,272     | 8,449,444                                                                        | (4,202,122)                     | 63,104,594

24.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




| |                   |          |                    |                             |                |                                                                                  |                                
| | ----------------- | -------- | ------------------ | --------------------------- | -------------- | -------------------------------------------------------------------------------- | -------------------------------
| |                   | # Claims | Undivided
interest | Balance as at
March 1, 2012 | Costs
incurred | Mining
properties
abandoned,
written off or
under option
and related
tax credits | Balance as at
February 28, 2013
| |                   |          | %                  | $                           | $              | $                                                                                | $                              
| | Anatacau          | 207      |                    |                             |                |                                                                                  |                                
| | Acquisition costs |          | 0                  | 74,206                      | 22,140         | -                                                                                | 96,346                         
| | Exploration costs |          |                    | 1,070,858                   | 328,184        | (60,714)                                                                         | 1,338,328                      
| |                   |          |                    | 1,145,064                   | 350,324        | (60,714)                                                                         | 1,434,674                      
| |                   |          |                    |                             |                |                                                                                  |                                
| | Ashuanipi         | 596      |                    |                             |                |                                                                                  |                                
| | Acquisition costs |          | 50                 | 88,949                      | -              | -                                                                                | 88,949                         
| | Exploration costs |          |                    | 1,563,678                   | -              | -                                                                                | 1,563,678                      
| |                   |          |                    | 1,652,627                   | -              | -                                                                                | 1,652,627                      
| |                   |          |                    |                             |                |                                                                                  |                                
| | Baie Payne        | 471      |                    |                             |                |                                                                                  |                                
| | Acquisition costs |          | 50                 | 601,549                     | 3,996          | -                                                                                | 605,545                        
| | Exploration costs |          |                    | 147,923                     | 645,949        | (259,023)                                                                        | 534,849                        
| |                   |          |                    | 749,472                     | 649,945        | (259,023)                                                                        | 1,140,394                      
| |                   |          |                    |                             |                |                                                                                  |                                
| | Corvet Est        | 627      |                    |                             |                |                                                                                  |                                
| | Acquisition costs |          | 50                 | 84,953                      | 26,959         | -                                                                                | 111,912                        
| | Exploration costs |          |                    | 1,548,562                   | 154,367        | (55,695)                                                                         | 1,647,234                      
| |                   |          |                    | 1,633,515                   | 181,326        | (55,695)                                                                         | 1,759,146                      
| |                   |          |                    |                             |                |                                                                                  |                                
| | Coulon            | 661      |                    |                             |                |                                                                                  |                                
| | Acquisition costs |          | 100                | 4,937,672                   | 11,445         | -                                                                                | 4,949,117                      
| | Exploration costs |          |                    | 10,339,655                  | 4,267,952      | (134,855)                                                                        | 14,472,752                     
| |                   |          |                    | 15,277,327                  | 4,279,397      | (134,855)                                                                        | 19,421,869                     
| |                   |          |                    |                             |                |                                                                                  |                                
| | Éléonore Régional | 902      |                    |                             |                |                                                                                  |                                
| | Acquisition costs |          | 100                | 365,878                     | 97,099         | (2,832)                                                                          | 460,145                        
| | Exploration costs |          |                    | 1,737,030                   | 475,502        | (94,421)                                                                         | 2,118,111                      
| |                   |          |                    | 2,102,908                   | 572,601        | (97,253)                                                                         | 2,578,256                      
| |                   |          |                    |                             |                |                                                                                  |                                
| | Lac Gayot         | 530      |                    |                             |                |                                                                                  |                                
| | Acquisition costs |          | 100                | 1,919,879                   | -              | (22,152)                                                                         | 1,897,727                      
| | Exploration costs |          |                    | 680,158                     | -              | (7,848)                                                                          | 672,310                        
| |                   |          |                    | 2,600,037                   | -              | (30,000)                                                                         | 2,570,037                      
| |                   |          |                    |                             |                |                                                                                  |                                
| | (forward)         |          |                    | 25,160,950                  | 6,033,593      | (637,540)                                                                        | 30,557,003                     

25.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




| |                    |                    |                             |                |                                                                                  |                                 |           
| | ------------------ | ------------------ | --------------------------- | -------------- | -------------------------------------------------------------------------------- | ------------------------------- | ----------
| | # Claims           | Undivided
interest | Balance as at
March 1, 2012 | Costs
incurred | Mining
properties
abandoned,
written off or
under option
and related
tax credits | Balance as at
February 28, 2013
| |                    | %                  | $                           | $              | $                                                                                | $                              
| | (brought forward)  |                    | 25,160,950                  | 6,033,593      | (637,540)                                                                        | 30,557,003                     
| |                    |                    |                             |                |                                                                                  |                                 |           
| | La Grande Sud      | 188                |                             |                |                                                                                  |                                 |           
| | Acquisition costs  |                    | 100                         | 67,248         | 10,332                                                                           | -                               | 77,580    
| | Exploration costs  |                    |                             | 788,833        | 797,534                                                                          | (8,527)                         | 1,577,840 
| |                    |                    | 856,081                     | 807,866        | (8,527)                                                                          | 1,655,420                      
| |                    |                    |                             |                |                                                                                  |                                 |           
| | Lac Pau            | 802                |                             |                |                                                                                  |                                 |           
| | Acquisition costs  |                    | 100                         | 163,422        | -                                                                                | (1,393)                         | 162,029   
| | Exploration costs  |                    |                             | 3,356,676      | 10,991                                                                           | (28,554)                        | 3,339,113 
| |                    |                    |                             | 3,520,098      | 10,991                                                                           | (29,947)                        | 3,501,142 
| |                    |                    |                             |                |                                                                                  |                                 |           
| | Nichicun           | 272                |                             |                |                                                                                  |                                 |           
| | Acquisition costs  |                    | 100                         | 103,751        | (26,685)                                                                         | -                               | 77,066    
| | Exploration costs  |                    |                             | 1,266,957      | 1,027,844                                                                        | (29,445)                        | 2,265,356 
| |                    |                    |                             | 1,370,708      | 1,001,159                                                                        | (29,445)                        | 2,342,422 
| |                    |                    |                             |                |                                                                                  |                                 |           
| | Poste Lemoyne Ext. | 605                |                             |                |                                                                                  |                                 |           
| | Acquisition costs  |                    | 100                         | 1,230,688      | 16,605                                                                           | -                               | 1,247,293 
| | Exploration costs  |                    |                             | 6,215,067      | 941,557                                                                          | (104,928)                       | 7,051,696 
| |                    |                    |                             | 7,445,755      | 958,162                                                                          | (104,928)                       | 8,298,989 
| |                    |                    |                             |                |                                                                                  |                                 |           
| | Trieste            | 525                |                             |                |                                                                                  |                                 |           
| | Acquisition costs  |                    | 100                         | 54,651         | 92,272                                                                           | (16,308)                        | 130,615   
| | Exploration costs  |                    |                             | 543,804        | 1,057,051                                                                        | (194,034)                       | 1,406,821 
| |                    |                    |                             | 598,455        | 1,149,323                                                                        | (210,342)                       | 1,537,436 
| |                    |                    |                             |                |                                                                                  |                                 |           
| | Wabamisk           | 1,073              |                             |                |                                                                                  |                                 |           
| | Acquisition costs  |                    | 100                         | 739,423        | 109,069                                                                          | -                               | 848,492   
| | Exploration costs  |                    |                             | 3,100,217      | 1,984,626                                                                        | (170,661)                       | 4,914,182 
| |                    |                    |                             | 3,839,640      | 2,093,695                                                                        | (170,661)                       | 5,762,674 
| |                    |                    |                             |                |                                                                                  |                                 |           
| | Others             |                    |                             |                |                                                                                  |                                 |           
| | Acquisition costs  |                    |                             | 1,846,947      | 494,934                                                                          | (230,396)                       | 2,111,485 
| | Exploration costs  |                    |                             | 3,321,710      | 1,799,626                                                                        | (2,030,635)                     | 3,090,701 
| |                    |                    | 5,168,657                   | 2,294,560      | (2,261,031)                                                                      | 5,202,186                      
| |                    |                    |                             |                |                                                                                  |                                 |           
| | Total              |                    |                             |                |                                                                                  |                                 |           
| | Acquisition costs  |                    |                             | 12,279,216     | 858,166                                                                          | (273,081)                       | 12,864,301
| | Exploration costs  |                    |                             | 35,681,128     | 13,491,183                                                                       | (3,179,340)                     | 45,992,971
| |                    |                    |                             | 47,960,344     | 14,349,349                                                                       | (3,452,421)                     | 58,857,272

26.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                         |          |           |         |  |         | 
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------- | -------- | --------- | ------- |  | ------- | 
|  | Cost of mining properties abandoned or written off                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                         |          |           |         | 
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                         |          |           |         |  |        
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Year Ended February 28, |          |           |        
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 2014                    |          | 2013      |         |  |        
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | $                       |          | $         |         |  |        
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                         |          |           |         |  |        
|  | Bienville                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | -                       |          | 30,050    |         |  |        
|  | Corvet Est                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 1,416,869               |          | -         |         |  |        
|  | Coulon                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 1,348,000               |          | -         |         |  |        
|  | Éléonore régional                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 31,295                  |          | 16,743    |         |  |        
|  | FCI                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 68,908                  |          | 32,958    |         |  |        
|  | Génération Grenville                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | -                       |          | 254,870   |         |  |        
|  | LG4-Diamants-CONSOREM                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 1,708                   |          | 42,915    |         |  |        
|  | Lac Farley                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 11,829                  |          | -         |         |  |        
|  | Murdoch                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 211                     |          | 567,804   |         |  |        
|  | Pénélope                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | -                       |          | 334,158   |         |  |        
|  | Reccey Sakami                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 6,396                   |          | 41,006    |         |  |        
|  | Sarcelle                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 179,623                 |          | 227,056   |         |  |        
|  | Tilly                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | -                       |          | 46,647    |         |  |        
|  | Trieste                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | -                       |          | 191,963   |         |  |        
|  | Wabamisk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 400,340                 |          | -         |         |  |        
|  | Wahemen                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 26,653                  |          | 14,992    |         |  |        
|  | Wemindji                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2,152                   |          | 37,978    |         |  |        
|  | Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 17,859                  |          | 23,250    |         |  |        
|  | Total *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 3,511,843               |          | 1,862,390 |         |  |        
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                         |          |           |         |  |        
|  | * Mining properties are abandoned or written off in whole or in part because of their low discovery potential.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                         |          |           |         |  |        
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                         |          |           |         |  |        
|9 | Royalty interests in mining properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                         |          |           |         |  |        
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                         |          |           |         |  |        
|  | Reconciliation of royalty interests in mining properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                         |          |           |         | 
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                         |          |           |         |  |         | 
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Éléonore                | Eastmain |           | TerraX  |  | Total   | 
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | $                       | $        |           | $       |  | $       | 
|  | Balance as at March 1, 2013                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | -                       | 233,363  |           | -       |  | 233,363 | 
|  | Acquisitions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | -                       | -        |           | 192,400 |  | 192,400 | 
|  | Balance as at February 28, 2014                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | -                       | 233,363  |           | 192,400 |  | 425,763 | 
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                         |          |           |         |  |         | 
|  | Details of royalty interests:

The Company holds a 2.2% NSR on the Éléonore gold project with the possibility of reaching 3.5% depending on the gold ounces produced. Goldcorp is the owner of the property.

On September 27, 2012, the Company acquired from CBay Minerals Inc., jointly with Franco-Nevada Corporation, a 2% NSR royalty on the initial 250,000 ounces produced from the Eastmain Property. The acquisition was made for a cash consideration of $225,000.

On May 8, 2013, TerraX Minerals Inc. ("TerraX") granted the Company the option to purchase a 2% NSR on the Northbelt Property in Yellowknife, NWT, in consideration of the issuance of 20,000 shares of the Company. This option will entitle the Company to purchase a 2% NSR on production by payment of $2,000,000 within three months following commencement of production.

27.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




|   |                               |           |           |           |              |          
|-- | ----------------------------- | --------- | --------- | --------- | ------------ | ---------
|10 | Property, plant and equipment |           |           |           |              |          
|   |                               |           |           |           |              |          
|   |                               | Office    | Computer  | Field     | Leasehold    |          
|   |                               | furniture | equipment | equipment | improvements | Total    
|   |                               | $         | $         | $         | $            | $        
|   | As at March 1, 2012           |           |           |           |              |          
|   | Cost                          | 86,277    | 169,968   | 86,588    | -            | 342,833  
|   | Accumulated depreciation      | (48,328)  | (101,380) | (25,237)  | -            | (174,945)
|   |                               |           |           |           |              |          
|   | Net carrying amount           | 37,949    | 68,588    | 61,351    | -            | 167,888  
|   |                               |           |           |           |              |          
|   | Year ended February 28, 2013  |           |           |           |              |          
|   | Additions                     | 111,386   | 80,356    | 28,304    | 432,710      | 652,756  
|   | Depreciation                  | (26,185)  | (41,845)  | (14,621)  | (9,016)      | (91,667) 
|   |                               |           |           |           |              |          
|   | Closing net carrying amount   | 123,150   | 107,099   | 75,034    | 423,694      | 728,977  
|   |                               |           |           |           |              |          
|   |                               |           |           |           |              |          
|   | As at February 28, 2013       |           |           |           |              |          
|   | Cost                          | 197,663   | 250,324   | 114,892   | 432,710      | 995,589  
|   | Write off                     | (48,316)  | (54,188)  | -         | -            | (102,504)
|   |                               |           |           |           |              |          
|   |                               | 149,347   | 196,136   | 114,892   | 432,710      | 893,085  
|   |                               |           |           |           |              |          
|   | Accumulated depreciation      | (74,513)  | (143,225) | (39,858)  | (9,016)      | (266,612)
|   | Write off                     | 48,316    | 54,188    | -         | -            | 102,504  
|   |                               |           |           |           |              |          
|   |                               | (26,197)  | (89,037)  | (39,858)  | (9,016)      | (164,108)
|   |                               |           |           |           |              |          
|   | Net carrying amount           | 123,150   | 107,099   | 75,034    | 423,694      | 728,977  
|   |                               |           |           |           |              |          
|   |                               |           |           |           |              |          
|   |                               |           |           |           |              |          
|   | Year ended February 28, 2014  |           |           |           |              |          
|   | Additions                     | 5,800     | 24,566    | -         | -            | 30,366   
|   | Depreciation                  | (17,021)  | (33,038)  | (15,161)  | (36,060)     | (101,280)
|   |                               |           |           |           |              |          
|   | Closing net carrying amount   | 111,929   | 98,627    | 59,873    | 387,634      | 658,063  
|   |                               |           |           |           |              |          
|   | As at February 28, 2014       |           |           |           |              |          
|   | Cost                          | 155,147   | 220,702   | 114,892   | 432,710      | 923,451  
|   | Accumulated depreciation      | (43,218)  | (122,075) | (55,019)  | (45,076)     | (265,388)
|   |                               |           |           |           |              |          
|   | Net carrying amount           | 111,929   | 98,627    | 59,873    | 387,634      | 658,063  
|   |                               |           |           |           |              |          

28.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                    |  |           |  |  | 
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------ |  | --------- |  |  | 
|11 | Accounts payable and accrued liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                    |  |           |  |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                    |  |           |  |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | As at February 28, |  |           | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 2014               |  | 2013      |  |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | $                  |  | $         |  |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                    |  |           |  |  | 
|   | Advances from partners (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 1,069,418          |  | 679,742   |  |  | 
|   | Trade                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 2,242,948          |  | 2,624,675 |  |  | 
|   | Premium related to flow-through shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 233,660            |  | 662,556   |  |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                    |  |           |  |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 3,546,026          |  | 3,966,973 |  |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                    |  |           |  |  | 
|   | (a) Advances are made regularly by the partners for exploration work that will be performed by the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                    |  |           |  |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                    |  |           |  |  | 
|12 | Deferred royalties

Advance payments on the royalty held by the Company on the Éléonore deposit, started on April 1, 2009 (up to May 1, 2013). These payments were made by Les Mines Opinaca, a subsidiary held 100% by Goldcorp, paid on the basis of US$100,000 per month up to 50 months, unless the mine production was preceded. In such case, the royalties will be paid according to deposit production.

To secure these advance payments, Goldcorp granted the Company a US$5 million immovable hypothec on the Éléonore property.

The Company will recognize into income these advance payments, which are currently classified as deferred royalties, once the Éléonore mine goes into production, on the basis that the production royalties will be paid out of advance payments received by the Company. The production period represents the performance period over which the earnings process will be completed.

Based on Goldcorp's public information, first gold production at Éléonore is expected in the last quarter of the 2014 calendar year with an estimated production between 40,000 and 60,000 ounces. As at February 28, 2014, total deferred royalties amounting $5,130,660 were presented in the consolidated balance sheets with an amount of $2,860,000 in current liabilities.

If the Éléonore mine is not brought to production, the Company will recognize the non-refundable advance payments into income.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                    |  |           |  |  | 
|13 | Liability related to share exchange rights                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                    |  |           |  |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | As at February 28, |  |           | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 2014               |  | 2013      |  |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | $                  |  | $         |  |  | 
|   | Put option held by non-controlling shareholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                    |  |           |  |  | 
|   | to exchange their shares in Mine Coulon for a                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                    |  |           |  |  | 
|   | variable number of common shares of the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                    |  |           |  |  | 
|   | Company corresponding to 75% of the cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                    |  |           |  |  | 
|   | of their investment, effective interest rate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                    |  |           |  |  | 
|   | of 6%, maturing October 20, 2017                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 3,041,640          |  | -         |  |  | 

29.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                          |  |                                 |  |            |                                
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------ |  | ------------------------------- |  | ---------- | -------------------------------
|14 | Share capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                          |  |                                 |  |            |                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                          |  |                                 |  |            |                                
|   | Authorized                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                          |  |                                 |  |            |                                
|   | Unlimited number of common shares, voting and participating, without par value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                          |  |                                
|   | Issued and fully paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                          |  |                                 |  |            |                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                          |  |                                 |  |            |                                
|   | The share capital issued has varied as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                          |  |                                 |  |            |                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Years ended February 28,
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2014                     |  | 2013                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Number                   |  | $                               |  | Number     | $                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                          |  |                                 |  |            |                                
|   | Balance - beginning of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 32,506,633               |  | 130,396,873                     |  | 31,884,740 | 124,688,911                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                          |  |                                 |  |            |                                
|   | Stock options exercised                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 249,450                  |  | 2,313,082                       |  | 167,250    | 1,452,309                      
|   | Issuance of shares for acquisition of mining properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 3,571                    |  | 49,851                          |  | 7,500      | 75,345                         
|   | Issuance of shares for the acquisition of a royalty                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                          |  |                                 |  |            |                                
|   | interest in a mining property                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 20,000                   |  | 192,400                         |  | -          | -                              
|   | Issuance of shares for a cash consideration (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 331,800                  |  | 3,284,820                       |  | 447,143    | 4,314,145                      
|   | Share issue expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | -                        |  | (175,872)                       |  | -          | (133,837)                      
|   | Balance - end of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 33,111,454               |  | 136,061,154                     |  | 32,506,633 | 130,396,873                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                          |  |                                 |  |            |                                
|   | (a) Detail of the issuance of flow-through shares:

On March 20, 2013, the Company closed a private placement of 331,800 flow-through common shares at a price of $18.10 per share for gross proceeds of $6,005,580. A premium of $2,557,514, net of issue expenses, was accounted for as a premium related to flow-through shares in accounts payable and accrued liabilities. Issue expenses of $385,844 related to this placement were incurred.                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                          |  |                                 |  |            |                                
|15 | Stock options

The Company has established a stock option plan under which certain key employees, officers, directors and suppliers may be granted stock options of the Company. The number of stock options cannot exceed, at any time, 10% of the number of outstanding shares. Options vest immediately and are exercisable over a maximum period of ten years following the grant date. The stock options price is always higher than the last closing price on the day of grant at the Toronto Stock Exchange.

At the next shareholders' meeting, the Company's shareholders will be asked to approve and authorize all unallocated options issuable under the plan for three years.

The following table presents the stock option activity since March 1, 2012 and summarizes information about stock options outstanding and exercisable as at February 28, 2014:
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                          |  |                                 |  |            |                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Years ended February 28,
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2014                     |  | 2013                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Number                   |  | Weighted
average
exercise price |  | Number     | Weighted
average
exercise
price
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                          |  | $                               |  |            | $                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                          |  |                                 |  |            |                                
|   | Outstanding and exercisable - beginning of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2,193,750                |  | 6.55                            |  | 1,997,000  | 5.94                           
|   | Granted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | -                        |  | -                               |  | 383,000    | 9.40                           
|   | Exercised                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | (249,450)                |  | 5.99                            |  | (167,250)  | 5.43                           
|   | Cancelled                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | (2,500)                  |  | 9.18                            |  | (19,000)   | 9.09                           
|   | Outstanding and exercisable - end of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 1,941,800                |  | 6.62                            |  | 2,193,750  | 6.55                           

30.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                     |              |                                             |                  |  |  | 
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------- | ------------ | ------------------------------------------- | ---------------- |  |  | 
|   | For the year ended February 28, 2014, the weighted average share price on the date of exercise of stock options was $11.18 ($9.78 for the year ended February 28, 2013).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   | The following table summarizes information about stock options outstanding and exercisable as at February 28, 2014:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Options outstanding and exercisable                                 |             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                     |              |                                             |                  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Range of exercise
prices                                            | Number       | Weighted average
remaining contractual
life | Weighted
average | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                     |              | (years)                                     | $                | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | $3.21 to $4.44                                                      | 592,300      | 2.77                                        | 4.05             | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | $5.22 to $7.68                                                      | 740,750      | 4.97                                        | 6.49             | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | $9.00 to $9.87                                                      | 608,750      | 8.18                                        | 9.28             | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                     |              |                                             |                  | 
|   | The fair value of stock options granted has been estimated using the Black & Scholes model with the following assumptions:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                     |              |                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                     | Year Ended   |                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                     | February 28, |                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                     | 2013         |                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                     |              |                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Risk-free interest rate                                             | 1.38%        |                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Expected volatility                                                 | 44%          |                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Dividend yield                                                      | Nil          |                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Weighted average expected life                                      | 69 months    |                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Weighted average fair value of options granted                      | $3.98        |                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Weighted average fair value of share price at the date of the grant | $9.39        |                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                     |              |                                             |                  |  |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                     |              |                                             |                  |  |  | 
|16 | Non-controlling interest

On January 31, 2014, the Company entered into an agreement with three institutional funds including SODEMEX Development, the Fonds de solidarité des travailleurs du Québec and SIDEX Limited Partnership to finance a $28,000,000 accelerated exploration program on the Coulon project located in James Bay, Québec. The Company first transferred all interests it held in the Coulon project in favour of a newly constitued subsidiary called Mines Coulon Inc. In return, the Company received common shares of Mines Coulon for a value of $42,000,000. The Company and the institutional shareholders then agreed to subscribe, over a four-year period, to $28,000,000 in common shares of Mines Coulon. Subscriptions will be completed by annual instalments of $7,000,000.

The institutional shareholders were granted a right to exchange 75% of their respective investment in Mines Coulon for a variable number of common shares of the Company, at their option anytime or automatically, in the case of one of the events described hereafter occur, but no later than October 20, 2017:

·
Sale of the Éléonore royalty;
·
Change of control of the Company;
·
Failure by the Company to subscribe in Mines Coulon; or
·
Sale of Mines Coulon.

This put option has been presented as a liability related to exchange rights (note 13).

31.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                    |                          |           |         |   |  | 
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------ | ------------------------ | --------- | ------- | - |  | 
|   | In addition, in the case that the Company disposes of its Éléonore royalty before January 31, 2016, non-controlling shareholders of Mines Coulon will have the right to receive a cash payment based on their share of participation in the available liquidity of Mines Coulon, without exceeding 15% of their investment costs. Available liquidity is defined as cash and cash equivalents plus tax credits receivable less accounts payable and financial commitments.

This instrument has been classified as an equity instrument at a nil amount as management determined that the contingent cash outflow is within the control of the Company.

As at February 28, 2014, the non-controlling shareholders invested $5,000,000 in cash in Mines Coulon and as a result, the Company owns 89.8% of its subsidiary.

The following is the summary of financial information of Mines Coulon before intercompany eliminations:
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                    |                          |           |         |   |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | As at February 28, |                          |           |         |   |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2014               |                          |           |         |   |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | $                  |                          |           |         |   |  | 
|   | Financial positions:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                    |                          |           |         |   |  | 
|   | Current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 7,206,243          |                          |           |         |   |  | 
|   | Non-current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 43,004,423         |                          |           |         |   |  | 
|   | Current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 2,083,824          |                          |           |         |   |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                    |                          |           |         |   |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Year Ended         |                          |           |         |   |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | February 28, 2014  |                          |           |         |   |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | $                  |                          |           |         |   |  | 
|   | Operating results:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                    |                          |           |         |   |  | 
|   | Comprehensive loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | (23,058)           |                          |           |         |   |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                    |                          |           |         |   |  | 
|   | Cash flows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                    |                          |           |         |   |  | 
|   | Operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (242,372)          |                          |           |         |   |  | 
|   | Financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 6,900,000          |                          |           |         |   |  | 
|   | Investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (583,565)          |                          |           |         |   |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                    |                          |           |         |   |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                    |                          |           |         |   |  | 
|17 | Related party transactions

The related parties of the Company include companies owned by the key management personnel. The key management personnel includes the directors, the president, the vice-president exploration and the CFO. The short-term employee benefits include salaries for the key management personnel and fees for directors. The share-based payments are grants of stock options of the Company.

The Company entered into the following transactions with the key management personnel :                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                    |                          |           |         |   | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                    | Years Ended February 28, |           |        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                    | 2014                     |           | 2013    |   | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                    |                          | $         |         | $ |  | 
|   | Short-term employee benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                    | 841,498                  |           | 847,278 |   | 
|   | Share-based payments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                    | -                        |           | 397,481 |   | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                    |                          |           |         |   | 
|   | Total compensation of the key management personnel                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 841,498            |                          | 1,244,759 |         |  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                    |                          |           |         |   | 
|   | The Company entered into transactions with companies owned by a director. For the year ended February 28, 2014, these transactions amounted to $48,703 ($116,531 for the year ended February 28, 2013) and are presented under caption General administrative expenses in the consolidated statements of loss.

These transactions were concluded under normal terms and conditions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

32.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




|   |                                                                                                                                                                                                                                                                        |                          |           |  |   |           | 
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------ | --------- |  | - | --------- | 
|18 | General administrative expenses                                                                                                                                                                                                                                        |                          |           |  |   |           | 
|   |                                                                                                                                                                                                                                                                        |                          |           |  |   |           | 
|   |                                                                                                                                                                                                                                                                        | Years Ended February 28, |          
|   |                                                                                                                                                                                                                                                                        |                          | 2014      |  |   | 2013      | 
|   |                                                                                                                                                                                                                                                                        |                          |           |  |   |           | 
|   | Office rental                                                                                                                                                                                                                                                          | $                        | 164,190   |  | $ | 216,555   | 
|   | Administrative and professional services                                                                                                                                                                                                                               |                          | (25,229)  |  |   | (23,085)  | 
|   | Advertising and exhibitions                                                                                                                                                                                                                                            |                          | 103,816   |  |   | 113,327   | 
|   | Travel expenses                                                                                                                                                                                                                                                        |                          | 95,999    |  |   | 93,766    | 
|   | Donations and sponsorships                                                                                                                                                                                                                                             |                          | 41,355    |  |   | 136,624   | 
|   | Training and tuition                                                                                                                                                                                                                                                   |                          | 52,057    |  |   | 48,326    | 
|   | Insurance                                                                                                                                                                                                                                                              |                          | 46,091    |  |   | 46,442    | 
|   | Interest on notices of assessment (note 19a)                                                                                                                                                                                                                           |                          | -         |  |   | 43,537    | 
|   | Office expenses and other                                                                                                                                                                                                                                              |                          | 246,409   |  |   | 255,440   | 
|   |                                                                                                                                                                                                                                                                        | $                        | 724,688   |  | $ | 930,932   | 
|   |                                                                                                                                                                                                                                                                        |                          |           |  |   |           | 
|   |                                                                                                                                                                                                                                                                        |                          |           |  |   |           | 
|19 | General exploration costs                                                                                                                                                                                                                                              |                          |           |  |   |           | 
|   |                                                                                                                                                                                                                                                                        |                          |           |  |   |           | 
|   |                                                                                                                                                                                                                                                                        | Years ended February 28, |          
|   |                                                                                                                                                                                                                                                                        |                          | 2014      |  |   | 2013      | 
|   |                                                                                                                                                                                                                                                                        |                          |           |  |   |           | 
|   |                                                                                                                                                                                                                                                                        |                          |           |  |   |           | 
|   | Salaries and fees                                                                                                                                                                                                                                                      | $                        | 616,141   |  | $ | 456,087   | 
|   | Transport                                                                                                                                                                                                                                                              |                          | 202,676   |  |   | 169,931   | 
|   | Field expenditures                                                                                                                                                                                                                                                     |                          | 169,797   |  |   | 148,653   | 
|   | Other (a)                                                                                                                                                                                                                                                              |                          | 11,521    |  |   | 239,783   | 
|   |                                                                                                                                                                                                                                                                        | $                        | 1,000,135 |  | $ | 1,014,454 | 
|   |                                                                                                                                                                                                                                                                        |                          |           |  |   |           | 
|   | (a) In the year ended February 28, 2013, the Company received notices of assessment for the years 2008 to 2011. A total of $218,259 of the refundable tax credit for resources for those years were refused by Revenu Québec. The Company filed a notice of objection.
|   |                                                                                                                                                                                                                                                                        |                          |           |  |   |           | 

33.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




|   |                                                                                                             |                          |           |  |   |             |  | 
|-- | ----------------------------------------------------------------------------------------------------------- | ------------------------ | --------- |  | - | ----------- |  | 
|20 | Cash flows                                                                                                  |                          |           |  |   |             |  | 
|   |                                                                                                             |                          |           |  |   |             |  | 
|   | a)
Changes in items of working capital                                                                      |                          |           |  |   |             |  | 
|   |                                                                                                             | Years Ended February 28, |           | 
|   |                                                                                                             |                          | 2014      |  |   | 2013        |  | 
|   |                                                                                                             |                          |           |  |   |             |  | 
|   | Tax credits for mining exploration and commodity                                                            |                          |           |  |   |             |  | 
|   | taxes receivable                                                                                            | $                        | 253,185   |  | $ | (261,307)   |  | 
|   | Other amounts receivable                                                                                    |                          | 94,515    |  |   | 317,155     |  | 
|   | Prepaid expenses                                                                                            |                          | (190,020) |  |   | 15,485      |  | 
|   | Accounts payable and accrued liabilities                                                                    |                          | 375,836   |  |   | (2,964,099) |  | 
|   |                                                                                                             | $                        | 533,516   |  | $ | (2,892,766) |  | 
|   |                                                                                                             |                          |           |  |   |             |  | 
|   |                                                                                                             |                          |           |  |   |             |  | 
|   | b)
Items not affecting cash                                                                                 |                          |           |  |   |             |  | 
|   |                                                                                                             | Years Ended February 28, |           | 
|   |                                                                                                             |                          | 2014      |  |   | 2013        |  | 
|   |                                                                                                             |                          |           |  |   |             |  | 
|   | Related to financing activities:                                                                            |                          |           |  |   |             |  | 
|   |                                                                                                             |                          |           |  |   |             |  | 
|   | Share issue expenses included in accounts payable and                                                       |                          |           |  |   |             |  | 
|   | accrued liabilities                                                                                         | $                        | -         |  | $ | 5,441       |  | 
|   |                                                                                                             |                          |           |  |   |             |  | 
|   |                                                                                                             |                          |           |  |   |             |  | 
|   | Related to investing activities:                                                                            |                          |           |  |   |             |  | 
|   |                                                                                                             |                          |           |  |   |             |  | 
|   |                                                                                                             |                          |           |  |   |             |  | 
|   | Acquisition of mining properties and exploration costs included in accounts payable and accrued liabilities | $                        | 1,629,852 |  | $ | 1,962,364   |  | 
|   | Non-refundable tax credit applied against mining properties                                                 | $                        | 122,683   |  | $ | -           |  | 
|   | Acquisition of property, plant and equipment included                                                       |                          |           |  |   |             |  | 
|   | in accounts payable and accrued liabilities                                                                 | $                        | -         |  | $ | 29,934      |  | 
|   |                                                                                                             |                          |           |  |   |             |  | 
|   |                                                                                                             |                          |           |  |   |             |  | 

34.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




|   |                                                                                                                                                                                                                 |                          |             |  |   |             |  | 
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------ | ----------- |  | - | ----------- |  | 
|21 | Deferred tax                                                                                                                                                                                                    |                          |             |  |   |             |  | 
|   |                                                                                                                                                                                                                 |                          |             |  |   |             |  | 
|   | The major components of income tax provision are as follows:                                                                                                                                                    |                          |             |  |   |            
|   |                                                                                                                                                                                                                 |                          |             |  |   |            
|   |                                                                                                                                                                                                                 | Years Ended February 28, |             | 
|   |                                                                                                                                                                                                                 |                          | 2014        |  |   | 2013        |  | 
|   |                                                                                                                                                                                                                 |                          |             |  |   |             |  | 
|   | Current income tax adjustment in respect of prior                                                                                                                                                               |                          |             |  |   |             |  | 
|   | years expense                                                                                                                                                                                                   | $                        | 122,683     |  | $ | -           |  | 
|   |                                                                                                                                                                                                                 |                          |             |  |   |             |  | 
|   | Deferred income tax recovery                                                                                                                                                                                    |                          | 3,003,105   |  |   | 2,439,671   |  | 
|   |                                                                                                                                                                                                                 |                          |             |  |   |             |  | 
|   | Deferred tax recovery                                                                                                                                                                                           | $                        | 3,125,788   |  | $ | 2,439,671   |  | 
|   |                                                                                                                                                                                                                 |                          |             |  |   |             |  | 
|   |                                                                                                                                                                                                                 |                          |             |  |   |             |  | 
|   | The reconciliation of income taxes, calculated using the combined federal and Quebec provincial statutory tax rates, to income taxes presented in the consolidated financial statements is detailed as follows:
|   |                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                 | Years Ended February 28, |             | 
|   |                                                                                                                                                                                                                 |                          | 2014        |  |   | 2013        |  | 
|   |                                                                                                                                                                                                                 |                          |             |  |   |             |  | 
|   | Loss before income taxes                                                                                                                                                                                        | $                        | (5,697,062) |  | $ | (5,342,488) |  | 
|   |                                                                                                                                                                                                                 |                          |             |  |   |             |  | 
|   |                                                                                                                                                                                                                 |                          |             |  |   |             |  | 
|   | Combined federal and provincial income tax rate of 26.9%                                                                                                                                                        |                          | 1,533,000   |  |   | 1,437,000   |  | 
|   | Non-deductible stock-based compensation                                                                                                                                                                         |                          | -           |  |   | (410,000)   |  | 
|   | Share issue expenses not affecting earnings                                                                                                                                                                     |                          | 88,000      |  |   | 69,000      |  | 
|   | Non-taxable items                                                                                                                                                                                               |                          | 88,000      |  |   | 67,000      |  | 
|   | Adjustment in respect of prior years                                                                                                                                                                            |                          | 122,683     |  |   | -           |  | 
|   | Change in unrecognized deferred tax assets                                                                                                                                                                      |                          | 248,000     |  |   | (12,000)    |  | 
|   | Tax impact on flow-through shares                                                                                                                                                                               |                          | 1,090,000   |  |   | 1,271,000   |  | 
|   | Other                                                                                                                                                                                                           |                          | (43,895)    |  |   | 17,671      |  | 
|   | Deferred tax recovery                                                                                                                                                                                           | $                        | 3,125,788   |  | $ | 2,439,671   |  | 
|   |                                                                                                                                                                                                                 |                          |             |  |   |             |  | 

35.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




| |                                                                                                                                                                                           |           |             |             |                   |                        |             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- | ----------- | ----------- | ----------------- | ---------------------- | ------------
| | The movement in deferred income tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows:
| |                                                                                                                                                                                           |           |             |             |                   |                        |             
| | Deferred tax assets                                                                                                                                                                       |           |             |             |                   |                        |             
| |                                                                                                                                                                                           | Deferred  | Share issue | Capital     | Non-capital       |                        |             
| |                                                                                                                                                                                           | royalties | expenses    | losses      | losses            | Other                  | Total       
| |                                                                                                                                                                                           | $         | $           | $           | $                 | $                      | $           
| | As at March 1, 2012                                                                                                                                                                       | 976,384   | 306,382     | 188,135     | 92,323            | 86,117                 | 1,649,341   
| | Credited/(charged) to the                                                                                                                                                                 |           |             |             |                   |                        |             
| | statement of loss                                                                                                                                                                         | 321,622   | (61,279)    | 52          | 183,674           | (11,453)               | 432,616     
| | Credited to share                                                                                                                                                                         |           |             |             |                   |                        |             
| | capital                                                                                                                                                                                   | -         | 49,250      | -           | -                 | -                      | 49,250      
| | Credited to accounts payable                                                                                                                                                              |           |             |             |                   |                        |             
| | and accrued liabilities                                                                                                                                                                   | -         | 5,467       | -           | -                 | -                      | 5,467       
| | Credited to other                                                                                                                                                                         |           |             |             |                   |                        |             
| | comprehensive loss                                                                                                                                                                        | -         | -           | 12,092      | -                 | -                      | 12,092      
| | As at February 28, 2013                                                                                                                                                                   | 1,298,006 | 299,820     | 200,279     | 275,997           | 74,664                 | 2,148,766   
| | Credited/(charged) to the                                                                                                                                                                 |           |             |             |                   |                        |             
| | statement of loss                                                                                                                                                                         | 82,142    | (86,032)    | 287,919     | 5,660,207         | (1,524)                | 5,942,712   
| | Credited to share capital                                                                                                                                                                 | -         | 63,064      | -           | -                 | -                      | 63,064      
| | Charged to accounts payable                                                                                                                                                               |           |             |             |                   |                        |             
| | and accrued liabilities                                                                                                                                                                   | -         | (2,323)     | -           | -                 | -                      | (2,323)     
| | As at February 28, 2014                                                                                                                                                                   | 1,380,148 | 274,529     | 488,198     | 5,936,204         | 73,140                 | 8,152,219   
| |                                                                                                                                                                                           |           |             |             |                   |                        |             
| |                                                                                                                                                                                           |           |             |             |                   |                        |             
| | Deferred tax liabilities                                                                                                                                                                  |           |             |             |                   |                        |             
| |                                                                                                                                                                                           |           |             |             |                   |                        |             
| |                                                                                                                                                                                           |           |             |             | Mining
properties | Short-term
investments | Total       
| |                                                                                                                                                                                           |           |             |             | $                 | $                      | $           
| | As at March 1, 2012                                                                                                                                                                       |           |             |             | (2,601,271)       | (188,135)              | (2,789,406) 
| | Charged to the statement of loss                                                                                                                                                          |           |             | (2,068,456) | (12,144)          | (2,080,600)           
| | As at February 28, 2013                                                                                                                                                                   |           |             |             | (4,669,727)       | (200,279)              | (4,870,006) 
| | Charged to the statement of loss                                                                                                                                                          |           |             | (5,920,355) | (27,480)          | (5,947,835)           
| | Charged to other comprehensive loss                                                                                                                                                       |           |             | -           | (260,439)         | (260,439)             
| | As at February 28, 2014                                                                                                                                                                   |           |             |             | (10,590,082)      | (488,198)              | (11,078,280)
| |                                                                                                                                                                                           |           |             |             |                   |                        |             

36.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                    |             |  |   |             |  |  |            | 
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------ | ----------- |  | - | ----------- |  |  | ---------- | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | As at February 28, |            
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                    | 2014        |  |   | 2013        | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                    |             |  |   |             | 
| | Presented in the consolidated balance sheet as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                    |             |  |   |             | 
| | Deferred tax assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | $                  | 2,311,534   |  | $ | 1,298,006   | 
| | Deferred tax liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | $                  | (5,237,595) |  | $ | (4,019,246) | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                    |             |  |   |             | 
| | Unrecognized deferred tax assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                    |             |  |   |             | 
| | Share issue expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $                  | 40,350      |  | $ | -           | 
| | Capital losses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $                  | 338,753     |  | $ | 626,671     | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                    |             |  |   |             | 
| | In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income.

As at February 28, 2014, the Company has non-capital losses of $22,121,000 ($1,026,000 as at February 28, 2013) available to reduce Canadian taxable income in future years and expiring at the latest in 2034.

The analysis of deferred tax assets and liabilities is as follows:
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | As at February 28, |            
| | Deferred tax assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                    | 2014        |  |   | 2013        | 
| | Deferred tax assets to be realized within 12 months                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | $                  | 769,340     |  | $ | -           | 
| | Deferred tax assets to be realized after more than 12 months                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                    | 1,542,194   |  |   | 1,298,006   | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                    | 2,311,534   |  |   | 1,298,006   | 
| | Deferred tax liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                    |             |  |   |             | 
| | Deferred tax liabilities to be realized after more than 12 months                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                    | (5,237,595) |  |   | (4,019,246) | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                    |             |  |   |             | 
| | Deferred tax liabilities net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | $                  | (2,926,061) |  | $ | (2,721,240) | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                    |             |  |   |             | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                    |             |  |   |             | 
| | As at February 28, 2014, the non-refundable federal tax credits and non-refundable provincial tax credits for resources were as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                    |             |  |   |             | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Expiry
Date        | Federal     |  |   | Expiry
Date |  |  | Provincial | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                    | $           |  |   |             |  |  | $          | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2027               | 234,114     |  |   | 2017        |  |  | 249,391    | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2028               | 625,925     |  |   | 2018        |  |  | 545,564    | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2029               | 533,078     |  |   |             |  |  |            | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2030               | 220,782     |  |   |             |  |  |            | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2031               | 143,022     |  |   |             |  |  |            | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2032               | 157,259     |  |   |             |  |  |            | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2033               | 243,081     |  |   |             |  |  |            | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2034               | 102,338     |  |   |             |  |  |            | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                    |             |  |   |             |  |  |            | 
| | These credits can be used up to the amount of income taxes payable for those years. These credits are not recognized because the Company considered that is not more likely than not that the credits will be realized.                                                                                                                                                                                                                                                                                                                                                                 

37.


|                                                                                                             
|-------------------------------------------------------------------------------------------------------------
|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
|                                                                                                             
|(expressed in Canadian dollars)                                                                              




|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                          |  |            |  | 
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------------------------ |  | ---------- |  | 
|22 | Earnings per share

For the years ended February 28, 2014 and 2013, there was no difference between the basic and diluted loss per share since the stock options were anti-dilutive. Accordingly, the diluted loss per share for these years was calculated using the basic weighted average number of shares outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                          |  |            |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                          |  |            |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | Years ended February 28, |  |           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | 2014                     |  | 2013       |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                          |  |            |  | 
|   | Basic weighted average number of shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 32,921,160               |  | 32,169,347 |  | 
|   | Stock options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | 788,162                  |  | 728,805    |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                          |  |            |  | 
|   | Diluted weighted average number of shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  | 33,709,322               |  | 32,898,152 |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                          |  |            |  | 
|   | Items excluded from the calculation of diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                          |  |            |  | 
|   | loss per share because the exercise price was greater                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |                          |  |            |  | 
|   | than the average quoted value of the common shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |                          |  |            |  | 
|   | Stock options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | -                        |  | 175,750    |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                          |  |            |  | 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                          |  |            |  | 
|23 | Capital management

The Company considers the items included in shareholders' equity as capital components.

The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to support the acquisition and exploration of mining properties. Given that the Company is in the mineral exploration business, the Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business.

In management's opinion, the working capital as at February 28, 2014 will cover current expenditures and exploration fees in the coming year.

The mining properties in which the Company currently has an interest are in the exploration stage. Since the Company has enough cash, it is not dependent on external financing to fund its activities. Furthermore, the Company can rely on its partnership agreements, credit on duties refundable for loss, refundable tax credit for resources and its return on short-term investments as sources of capital.

The transactions which had an effect on shareholders' equity are presented in the consolidated statements of changes in shareholders' equity.

The Company is not subject to externally imposed capital requirements or other external requirements.

38.


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|VIRGINIA MINES INC.
Notes to Consolidated Financial Statements
For the years ended February 28, 2014 and 2013
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|(expressed in Canadian dollars)                                                                              




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|24 | Commitments

The Company is also committed to incurring exploration expenses of $8,005,585 by December 31, 2014 and transferring these expenditures to the subscribers of its flow-through share underwriting completed on January 16, 2013 and March 20, 2013. As at February 28, 2014, the Company spent $7,467,139 according to this commitment.

The Company has signed various exploration cost contracts and is committed to paying approximately $125,000 in the next 12 months under those contracts.

In November 2012, the Company signed a seven-year rental lease for its administrative office. The rental lease cost is $154,698 per year with an annual increase of 2.5%. The lease includes an option to renew for a five-year period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
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|25 | Subsequent events

On March 6, 2014, the Company concluded a new acquisition agreement with Arianne on the Opinaca and Black Dog properties in James Bay, province of Quebec. As per the agreement, the Company acquires a 100% interest in both properties in consideration of the issuance to Arianne of 15,000 common shares of the Company. Ressources Vantex Ltée owns a 1.5% NSR on the Black Dog property.

On March 7, 2014, the Company closed a private placement of 353,334 flow-through common shares at a price of $24.00 per share for gross proceeds of $8,480,016. A premium of $3,417,659, net of issue expenses, will be accounted for in the Company as premium related to flow-through shares in accounts payable and accrued liabilities. Related issue expenses of approximately $570,000 will be incurred.

On April 7, 2014, the Company entered into an agreement with Alto Ventures Ltd. ("Alto") pursuant to which the Company acquires Alto's underlying 0.5% net smelter return royalty (NSR) in the Windfall and Alcane properties located in northern Quebec, covering most of the Windfall Lake gold project in consideration of the issuance to Alto of 57,692 shares of the Company. In connection with the agreement, the Company will purchase, through a non-brokered placement, 1,666,666 common shares of Alto at a price of $0.15 per share for gross proceeds of $250,000.

39.