PHOSCO LTD — Share Issue/Capital Change 2009

Dec 15, 2009

[Type text] Comesky Drilling

Victorian Gold Mines N.L ACN 139 255 771 ABN 82 139 255 771 PO Box 1075 Bendigo Central Victoria 3552 Phone: 03 5441 5678 Fax: 03 5442 5038 Email generaladmin@victoriangoldmines.com.au

15 December 2009

Ms Kate Kidson Principle Advisor ASX Markets Supervision Pty Ltd Level 45, South Tower 525 Collins Street Melbourne VIC 3000

Dear Ms Kidson,

Confirmation of Sales Agreements

We confirm that completion of the following tenement transfer agreements ( Sales Agreements ) has been effected:

1. Wedderburn Agreement ‐ EL 5188, EL 5116, MIN 5471 and plant and equipment;

2. Moliagul Agreement – MIN 5371; and

3. Sheeps Head Agreement ‐ MIN 4986 and plant and equipment.

The Company has paid the following consideration under each of the Sales Agreements:

1. Wedderburn Agreement – The allotment of 700,000 ordinary fully paid up shares in Victorian Gold Mines NL to Huang Jin Mining Pty Ltd. A cash payment of $385,000 (inclusive of GST) to Huang Jin Mining Pty Ltd.

2. Molliagul Agreement – The allotment of 25,000 ordinary fully paid up shares in Victorian Gold Mines NL to Robert Palmer, and the allotment of 25,000 ordinary fully paid up shares in Victorian Gold Mines NL to Douglass Wakley Cahill.

3. Sheeps Head Agreement – A cash payment of $50,000 to James McNamara, representing the total consideration payable under the agreement.

[Type text] Comesky Drilling

Victorian Gold Mines N.L ACN 139 255 771 ABN 82 139 255 771 PO Box 1075 Bendigo Central Victoria 3552 Phone: 03 5441 5678 Fax: 03 5442 5038 Email generaladmin@victoriangoldmines.com.au

Yours sincerely

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Michael Trifunovic Company Secretary