LEXINGTON, Ky., July 15 /PRNewswire-FirstCall/ -- VHGI Holdings, Inc. (OTC Bulletin Board: VHGI), today announced that its subsidiary, VHGI Gold, LLC, has entered into a Letter of Intent to purchase the Federal Leases and related assets to the Gold Creek Placer Mine in Granite County, Montana from GeoTerra Resources, LLC. The purchase price is $1,500,000, of which $10,000 was paid upon signing of the Letter of Intent, and the remainder of which will be payable at the closing.

Gold Creek Placer Mine is made up of four leases: the Wisner Placer lease, the Christian Placer lease, the Pineau Placer lease and the Hughes Placer lease, which consists of 1,060 acres in the aggregate and is credited with being the location of the first verified gold strike in Montana. In totality, according to studies undertaken by GeoTerra Resources, this mine appears to contain approximately 1.8 million cubic yards of gold bearing material that is inferred to contain in excess of 100,000 ounces of placer gold with an expected average working grade of 0.04 - 0.06 ounces of placer gold per cubic yard.

Closing of the transaction is subject to certain conditions precedent, including the execution an delivery of definitive transactions documents mutually satisfactory to the parties and satisfactory completion of due diligence by VHGI Gold. Closing is expected to occur on or prior to August 30, 2010, subject to extension for completion of due diligence. There can be no assurances that the closing will occur, or if it does occur, what the final terms of the transaction will be.

"We are very excited about this opportunity and we have already commenced our due diligence evaluation," stated VGHI Gold's President Mr. Jim Renfro. "If we can complete this transaction in August or September, we anticipate commencing operations in September. We also have one of the company mining representatives on site this week and are pleased at our progress to date," added Mr. Renfro.

Investors are invited to obtain information concerning our operations at http://www.vhgigold.com or by calling shareholder relations at 561-515-6035 or emailing info@dpmartin.com.

About VHGI and VHGI Gold

VHGI is a diverse company with assets and interests focusing on opportunities within the Precious Metals Markets and Energy Markets as well as some Healthcare related Assets. VHGI Gold, a wholly owned subsidiary of VHGI has recently initiated steps to leverage the company's operating history and corporate resources within the Gold Mining Industry and intends to pursue these opportunities through Lease-Purchase opportunities, Acquisitions and Joint Ventures.

Safe Harbor Statement:

The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development and any other statements not constituting historical facts are "forward-looking statements," within the meaning of and subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. This document may contain forward-looking statements concerning the Company's operations, current and future performance and financial condition. These items involve risks, contingencies and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, the ability to consummate and integrate acquisitions, and other risks, contingencies and uncertainties detailed in the Company's SEC filings, which could cause the company's actual operating results, performance or business plans or prospects to differ materially from those expressed in, or implied by these statements. The Company undertakes no obligation to revise any of these statements to reflect the future circumstances or the occurrence of unanticipated events.

For Further Information:

Shareholder Relations - Communications 561-515-6035

SOURCE VHGI Holdings, Inc.