FDG Discovers New Gold Targets at Topacio: Phase I Exploration Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 20, 2011) - F.D.G. Mining Inc. (TSX VENTURE:FDG) is pleased to provide an update on exploration progress at its Topacio gold project in Nicaragua.

An FDG exploration crew has discovered a new mineralized zone on its 9300 hectare Topacio property. The discovery consists of quartz breccia exposed in outcrop for 20 metres along a creek bed and has returned values of 7.63 g/t and 4.76 g/t gold in two grab samples. The new zone, located immediately to the west of the known historical vein district, is open in all directions. This is the first documented mineralization of this type at Topacio but similar quartz breccia bodies host several deposits in the La Libertad-Santo Domingo mine camps 40 km to the northwest and could prove to be a significant new bulk mineable target on FDG's concession. The outcrop was discovered in conjunction with regional prospecting as Company geologists complete a Phase I exploration geochemical survey along the western and northern extensions of the central Topacio structures where the company has previously defined a 114,000 ounce inferred resource. See "About F.D.G. Mining Inc." below.

Despite heavy seasonal rains, FDG crews completed seven new trenches in June on the western extension of the formerly producing Mico vein with assay results expected at any time. Company geologists are mapping this part of the district and areas to the north where alteration of the host rocks appears to be more pervasive and widespread. Geochemical soil surveys are also underway in this area to detect additional structures and to determine the potential for larger bulk tonnage targets. A new unnamed vein has been discovered about 1 km north of the Mico trenching where sampling over 1.5 metres (true width) returned a promising 1.43 g/t from one sample. The past-producing Mico vein lies about 1 km northwest of the inferred resource at Topacio.

New trenching is focused on the Brasil vein located about 500 metres south of the Topacio structure. Historic trenching and drilling results have identified a gold bearing structure that has been mapped for several kilometres along strike. FDG is planning two drill holes in this area where one historic drill hole and two trenches returned promising multigram gold intercepts. The current trenching and proposed drill holes are planned to verify the accuracy of the historical data.

Sampling during regional reconnaissance and trenching follows strict QA/QC protocols set up by FDG for the project. Samples are sealed in bags on site and securely stored until picked up by Inspectorate Labs for transport to their Managua prep lab and onward to Vancouver, B.C. where they are analyzed by fire-assay AA methods for gold and silver, and by 30-element ICP analysis for trace elements. Blanks and duplicates are routinely inserted into the sample stream.

About F.D.G. Mining Inc. (www.fdgmining.com)

F.D.G. Mining Inc. is a Canadian junior mining company engaged in acquisition, exploration and development of precious metal properties in Nicaragua. The Company is currently focused on advancing its core property, the past-producing 9300 hectare Topacio gold concession. Topacio has an NI 43-101 compliant inferred resource of 680,000 tonnes grading 5.2 g/t gold and 34 g/t silver, and a similar geological setting to B2Gold's La Libertad and El Limon mines to the northwest. FDG trades on the TSX Venture Exchange under the symbol FDG.

On Behalf of the Board of Directors

Mit D. Tilkov, President and Chief Executive Officer

This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. See the cautionary statement "Forward-Looking Statements" and "Risk Factors" in the Company's prospectus dated April 14, 2011, available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. References to historical data and information in this news release are not National Instrument 43-101 ("NI 43-101") compliant and should not be relied upon for evaluation purposes. The Company uses historical data and information solely as a guide to future exploration and development activities. The technical disclosure in this news release has been prepared by or under the supervision of Mit D. Tilkov, P. Geo., the President and Chief Executive Officer of the Company and a Qualified Person as defined by NI 43-101 of the Canadian Securities Administrators.