First Gold Exploration Inc.

First Gold Exploration Inc.

February 22, 2010 10:33 ET

First Gold Exploration Inc.: Formal Agreement on Mexican Option and Amendment to Terms

LAVAL, QUEBEC--(Marketwire - Feb. 22, 2010) - First Gold Exploration Inc. (TSX VENTURE:EFG)(FRANKFURT:F12) is pleased to announce that on January 22, 2010, it concluded a binding letter agreement with Camsim Minas S.A. de C.V. ("Camsim") relating to the option on the San Francisco Javier Silver property located in Mexico (See November 9, 2009 press release). The letter of intent called for, among other things, an issuance of 2,000,000 shares over a period of two (2) years, of which 500,000 where to be issued upon the signing of a binding agreement and 750,000 shares to be issued on the first and second anniversary thereof. The parties agreed in the binding letter agreement that First Gold would issue 750,000 shares on the signing of the binding agreement and that a final tranche of 500,000 shares would be issued on the second anniversary. Furthermore, First Gold would like to announce that on February 10, 2010, it signed an amending agreement with Camsim whereby the first year work commitment to be incurred by First Gold was reduced from US$1,000,000 to US$750,000 in exchange for the issuance of 250,000 shares of First Gold. This amendment is subject to regulatory approval and all securities issued thereunder will be subject to a four (4) month hold period from their date of issuance.

The Company also announces the appointment of Richard T. Groome as a director of the Company. Richard T. Groome is managing partner of Notre-Dame Capital Inc., a financial advisory firm based in Montreal, Que. His expertise is in the financing of small and mid-size emerging growth companies. Prior to starting this business in September, 2005, he was senior vice-president of Strategic Capital from January, 2003, through September, 2005, and senior vice-president of institutional equity sales from August, 2001, to January, 2003, at Desjardins Securities, a Quebec-based firm. Mr. Groome has been in the financial industry for more than 20 years at such firms as Groome Capital (his own firm), Marleau Lemire Securities, Sprott Securities and Levesque Beaubien Geoffrion. He has a BA in economics from McGill University. Mr. Groome is very active in several non-profit, charitable organizations specializing in helping underprivileged children.

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