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Vista Gold Corp. Announces 2012 Results and Provides Update on Recent Activities; Shares Fell 6.5% Wednesday

Vista Gold Corp. (VGZ.TO), which fell 6.5% Wednesday, reported a net loss of $70.7 million or $0.95 per share for the year ended December 31, 2012. This includes an unrealized $50.4 million mark-to-market loss on its investment in Midas Gold Corp., partly offset by a $20.1 million deferred tax benefit substantially related to this loss and a $6 million impairment of mill assets that had originally been purchased for use at the Los Cardones gold project. The mill assets are now held for sale. During the year ended December 31, 2011, it reported net income of $51.5 million, or $0.75 per share.

Frederick H. Earnest, President and CEO, said: "The market for gold equities since the beginning of the fourth quarter of last year has been extraordinarily challenging, with the GDXJ trading down over 34%. Despite the difficult markets, the company is currently adequately financed and we are implementing steps to make sure we remain so. Although we had intended to complete a Preliminary Feasibility Study on the Mt. Todd gold project earlier this year, present market conditions have given us reason to re-evaluate our development strategy. Previous studies indicated that a larger project would be optimal, but we are currently focusing our analysis on defining a project that limits CapEx and maximizes operating margins, to the extent possible. We expect completion of a PFS within the next two months and will discuss our plans for the Mt. Todd gold project PFS in further detail during the conference call on Thursday after the market close."

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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