F.D.G. Mining Inc.
TSX VENTURE : FDG

F.D.G. Mining Inc.

May 31, 2011 09:30 ET

F.D.G. Mining Signs Drill Contract and Reports Progress at Topacio, Nicaragua

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 31, 2011) - F.D.G. Mining Inc. (TSX VENTURE:FDG) ("FDG" or the "Company") announces that the Company has signed a diamond drill contract with R&R Drilling of Tegucigalpa, Honduras to drill a minimum of 1,800 metres on FDG's flagship Topacio gold concession in Nicaragua as part of its Phase 1 exploration program thereon. Mobilization of the drill rig and bulldozer will begin during the first two weeks of June with drilling expected to commence before the end of the month. Initially, the Company will be targeting infill drilling and confirmation as well as exploration for extensions immediately to the west of the known inferred resource on the Topacio vein. As previously reported (FDG News Release, May 18, 2011) Phase 1 trenching over the Topacio vein returned significant gold in 15 of 21 trenches over the vein including 17.0 metres of 9.4 g/t gold in trench FT11-024 and 18.5 metres of 8.3 g/t in trench FT11-026 that included an interval of 24.6 g/t over 5.0 metres.

After completion of a side car financing and the Company's recent Initial Public Offering (IPO) on May 10, 2011, the Company has approximately CDN$3.5 million in the treasury and is well funded to complete its Phase 1 exploration program on Topacio. The total cost of Phase 1 is estimated at $934,000. FDG continues to compile historical data, is selecting targets for further trenching and soil geochemistry in the known historical part of the property and is continuing to complete surface agreements with land owners in the outlying areas of the large (9,300 hectares) concession where new exploration targets have been identified. One new vein (Veta Gallina) has already been discovered north of the northern-most past producing vein in the historical vein district. Channel samples along a road cut returned encouraging results of up to 9.8 g/t gold over 2 metres. Further exploration is planned in this area in June and July.

A 16km. road is being constructed to the property and is now passable by four wheel drive vehicles. Upon completion, expected over the next month, the road will be all-weather allowing the Company to continue drilling and exploring through Nicaragua's rainy season from June to December. Contingent on the success of Phase 1 exploration at Topacio, the Company plans to start Phase 2 exploration as detailed in the Company's final prospectus at the beginning of the next dry season in January, 2012.

For further detail and previously disclosed results including Phase 1 trenching results to date, see FDG's documents filed at www.sedar.com including the Company's prospectus dated April 14, 2011 and the Topacio NI43-101 technical report. Previous news releases, property information and presentations are available on the Company's website at www.fdgmining.com. FDG also plans to be at the upcoming World Resource Investment Conference (Cambridge House: Vancouver June 5 & 6, 2011) at booth # 802 where Company representatives will be available to answer questions.

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. 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 National Instrument 43-101 of the Canadian Securities Administrators.

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 news release.

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