NYSE-A and TSX: VGZ

Vista Gold

Vista Gold Corp. On the Road to Production at Paredones Amarillos

The NI 43-101 Technical Report on the Paredones Amarillos Gold Project has been filed and is available on SEDAR and also on Vista’s website under the Properties/Paredones tabs.

Vista has completed a definitive feasibility study on the Paredones Amarillos Gold Project reflecting an anticipated production rate of 130,000-160,000 ounces per year during the 9.5 year life of the reserve. The economic analysis was completed using a gold price of US$850/oz in the first three years of production, decreasing to US$725/oz for the remainder. The mineralized zone comprises of 71 million tonnes of measured and indicated resource with a gold grade of 0.93 g/t and a gold content of 2.1 million ounces. Economic reserves comprise of 38 million tones of proven and probable ore with a grade of 1.08 g/t and a gold content of 1.3 million ounces.

Based on the study, the estimated life-of-mine average cash production costs are projected to be US$419/oz, with lower costs of US$388/oz projected during the first five years of production. Pre-production capital costs, using conservative contingencies, owner’s costs and working capital, are estimated to be US$196.7 million or US$165/oz of gold produced.

Vista plans to utilize outside sources to provide the additional capital required for the project capital costs and will be proceeding to examine various project financing alternatives, including debt and equity components. Vista has already purchased the major mill equipment for the project and intends to identify the remaining long delivery items for order. In addition, during the same period Vista intends to retain project engineers to prepare a detailed design of the project and to examine alternative construction management and project execution arrangements. Upon successful completion of project financing, and the issuance of a new Change of Land Use Permit, construction on the Paredones project could begin shortly thereafter.

The Paredones project is located in a special use (reserved for mining) area within the buffer zone of the Sierra Laguna Biosphere Reserve. The special use area forms the northern limit of the buffer zone and has unimpeded access from the north. As previously reported, earlier in 2008 Vista announced that it had received correspondence from the local La Paz office of the Mexican Environmental and Natural Resource Service (“SEMARNAT”) which indicates that staff in that office are of the opinion that the Change of Land Use Permit approved by SEMARNAT in 1997 in relation to the Paredones project is no longer valid. This permit is necessary for the development of the project to proceed. Vista’s advisors and counsel in Mexico were of the opinion that the permit remained valid, however, they also advised Vista that a new Change of Land Use Permit application would be the most expeditious way to obtain the necessary approvals. As previously announced (see press releases dated September 8 and July 2, 2008), Vista indicated that it had decided to apply for a new Change of Land Use Permit (“CUSF”). In a press release dated November 10, 2008, Vista indicated it was in final negotiations to purchase the land required for the process plant and tailings impoundment facility and had presented an application for a Temporary Occupation Permit (“TOP”) for the use of the federal land which overlies the deposit. The land purchase and TOP are necessary pre-requisites for the CUSF application. On December 23, 2008, we reached agreement to purchase approximately 500 hectares of land for the mill site and other infrastructure. We have not yet received the TOP, which was expected by the end of 2008. Communications that our advisors have had with the office of the General Director of Mines of the Ministry of Economy (the department responsible for awarding the TOP) indicate that the approval process is proceeding normally, but at a slower pace than expected. Vista has already obtained the necessary environmental permit and completed the other prerequisite studies for the submittal of the CUSF permit application and will file that permit application as soon as the TOP is received.

On December 5, 2008, Vista completed another transaction to purchase the land for a desalination plant for the Paredones project. The property is located on the Pacific Coast, 25 kilometers SW of the project. The four-acre parcel of land is zoned for industrial use and approval has been received from the Municipality of La Paz for the installation of the desalination plant.

Fred Earnest, President and COO of Vista, commented, “The acquisition of the two parcels of land are important steps in the development of the project. We are disappointed that the process to acquire the TOP is taking longer than we had expected; however, we are using the time to undertake other critical path programs for the development of the project.”

In August 2002, Vista completed the acquisition of the Paredones Amarillos Project in Baja California Sur, Mexico, from Viceroy Resource Corporation, for $2.3 million.

Company Profile

Vista Gold Corp. is an international gold mining company based in Littleton, Colorado, with a plus 20-year history of gold exploration, development and operations. Vista is traded on both the TSX and NYSE Amex under the symbol VGZ. Since 2001, Vista correctly anticipated that gold prices would increase and higher prices would be sustained for many years to come. As a result, Vista acquired a number of discovered and tested gold projects during 2001-2006. During 2006 and 2007, Vista completed transactions that resulted in the formation and successful spin-off to its shareholders of Allied Nevada Gold Corp. Since the spin-off Vista has sold one project and currently holds six projects with an estimated 1.3 million ounces of proven and probable reserves, 10.9 million measured and indicated resources and 4.2 million inferred. Vista is undertaking programs to advance its Paredones Amarillos project and has completed a bankable feasibility study and purchased certain long delivery equipment items for use at the project. If the remaining permits are received by mid-year and financing arrangements for the Paredones Amarillos project are completed during the second half of the year, Vista has prepared a development schedule which anticipates that the project would be in production during 2011. In January, Vista announced the results of the new resource estimate for Mt. Todd. The 2008 drilling program resulted in a 57% increase in gold resources with measured and indicated mineral resources now estimated to be 4.5 million ounces of gold. Additional technical studies are underway at the Mt. Todd project, with the preparation of a preliminary feasibility study targeted for 2009. Vista’s other holdings include the Guadalupe de los Reyes project in Mexico, Yellow Pine project in Idaho, Awak Mas project in Indonesia, and Long Valley project in California.

Please refer to in this web site. “Cautionary Note Regarding Forward-Looking Statements”

(Dollars Referenced are U.S. dollars)

Contact Us

VISTA GOLD CORP.
Executive Office
Suite 5 7961 Shaffer Parkway Littleton, Colorado USA 80127
Tel: (720) 981-1185 Fax: (720) 981-1186
1 - 866 - 981 - 1185