First Gold Exploration Inc.

First Gold Exploration Inc.

April 23, 2010 08:56 ET

First Gold Closes a Private Placement for $2,000,000

LAVAL, QUEBEC--(Marketwire - April 23, 2010) - First Gold Exploration Inc. (TSX VENTURE:EFG)(FRANKFURT:F12) is pleased to announce that it has closed a non-brokered private placement for proceeds of $2,000,000, as discussed in its press release dated April 7, 2010.

Private placement of common shares units

First Gold has issued 10,000,000 common share units at a subscription price of $0.20 per unit, for total gross proceeds of $2,000,000. Each unit consists of one common share of the Company priced at $0.20 per share and one common share purchase warrant. Each warrant entitles its holder to purchase one common share of the Company at $0.30 for a 24-month period following the closing of the private placement. The units are subject to a four-month escrow period as of the closing date.

The Company paid intermediary fees of $46,100 to Canaccord Financial Ltd., $2,000 to Raymond James Ltd. and $3,250 to Woodstone Capital Inc., along with 273,000 compensation options entitling their holders to purchase 273,000 common shares of the Company at a price of $0.30 per share for a 24-month period following the closing of the private placement. Six members of the pro group and one insider of the Company participated in the private placement.

The Company will use the proceeds of the private placement for working capital and project development purposes.

"First Gold is in an excellent position to move all its project forward, with over $4.2 million in the bank and zero debt," said Éric Leboeuf, President.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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