LEXINGTON, Ky., Aug. 18 /PRNewswire-FirstCall/ -- VHGI Holdings, Inc. (OTC Bulletin Board: VHGI) today announced that is has completed its second quarter financial filings and that it has increased its assets by 3% as assets increased to 3,295,325.00 in 2010 as compared to 3,188,880.00 in second quarter 2009. VHGI also has reduced its debt from 2,824,640.00 in 2009 to 1,540,534.00 in 2010 which is a 45.5% reduction from last year. The company has begun to execute its plans as it has divested itself of certain healthcare assets through the sale of those assets to increase its cash position as well as being able to now focus on its core business VHGI GOLD. Jim Renfro the company's President stated, "As we see the economy today and with gold being over 1,200.00 per ounce we see this as a solid investment for the future. We now have a great opportunity to produce cash to the bottom line from the assets we have recently acquired. The value here is that we know what we have in the ground and we are able to produce cash to build shareholder value and we also know our cost that will be associated with getting the Gold out of the ground so the accounting part will be easy to monitor based on the future price of Gold."

The VHGI Gold operating team is currently in discussions with several potential operating companies which specialize in gold mining production as well as with Western Sierra Mining, the former owners of these leases to remain field operators. "This agreement will set another milestone for us toward the opening of our mining operations and we are extremely pleased that Western Sierra has chosen to speak with us about staying on as the operator of this venture," said Mr. Eric Leonetti, Vice President and COO of VHGI Gold; the newest addition of VHGI team as announced last week. Mike Chaffee and his team at Western Sierra have years of experience in gold mining operations and are extremely well versed in the Turkey Creek Mining District in which Sun Gold is one of the oldest and best producing group of leases.

"The process of producing preliminary budgets and mining plans are also well under way with the hope of having all of this ready prior completion of the 43-101 report. As we move forward we intend to mine certain of our lease holdings while simply collecting royalties from others, "stated Mr. Renfro.

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.

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Shareholder Relations - Communications 561-515-6035

SOURCE VHGI Holdings, Inc.