Fire River Gold Corp.
TSX VENTURE : FAU
OTCQX : FVGCF
FRANKFURT : FWR

Fire River Gold Corp.

October 21, 2010 20:29 ET

Fire River Gold Announces Non-Brokered Private Placement to Complete CIL Circuit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 21, 2010) - Fire River Gold Corp. (TSX VENTURE:FAU)(OTCQX:FVGCF)(FRANKFURT:FWR) (the "Company" or "FAU") wishes to announce a non-brokered private placement of up to 15,555,555 units at a purchase price of $0.45 per unit for gross proceeds of up to $7,000,000.

Each unit will consist of one common share and one-half of one non-transferable share purchase warrant. Each whole share purchase warrant entitles the holder to purchase one common share of the Company at a price of $0.65 per share for 18 months, subject to accelerated expiry, such expiry being accelerated to 30 days in the event the Company's shares have closed at or above a price of $0.90 per share for 10 consecutive trading days.

A finder's fee may be payable in relation to this financing, in accordance with regulatory policies. The foregoing is subject to regulatory approval.

The funds from the private placement will be used for the completion of the carbon-in-leach (CIL) circuit.

"This financing represents a "GO" decision on production at the Nixon Fork Mine site and the funds from the private placement will be used for the completion of the CIL circuit, preserving the cash on hand for ongoing development and evaluation work, diamond drilling, and to prepare the mine for the eventual resumption of production," says Harry Barr, President & CEO of Fire River Gold Corp.

For further information about the Preliminary Economic Assessment (PEA) for recovering gold from tailings at Nixon Fork Mine using conventional cyanidation processing, please refer to Fire River Gold Corp's press release dated September 29, 2010: http://www.firerivergold.com/s/NewsReleases.asp?ReportID=421082).

Benefit for Future Mining

Beyond the immediate financial recovery from the residual gold in the tailings pond, the completion of the cyanidation circuit is integral to the overall plan, as it could increase the combined gold recovery of the previous two producers significantly, from between 68% and 83% to as high as 97% (see press release dated September 29, 2010: http://www.firerivergold.com/s/NewsReleases.asp?ReportID=421082) with only incremental additional costs.

About Fire River Gold Corp.

Fire River Gold Corp. is a near term production company with an experienced technical team focused on bringing its flagship project, the Nixon Fork Gold Mine, back into production in 10 months. The Nixon Fork Gold Mine (http://www.firerivergold.com/s/NixonFork.asp) is a fully permitted and bonded mine with past production values averaging 39g/t (1.14 opt). Facilities at the Nixon Fork Gold Mine include a 200 tpd processing plant with a gravity gold separation circuit and a sulphide flotation circuit. In 2008, a CIL gold leaching circuit was purchased and partially installed. The mine also includes a fleet of mining vehicles, a self-contained power plant, maintenance facilities, drilling equipment, an 85 person camp, office facilities and a 1.2 km long landing strip. Fire River Gold Corp is a member of the International Metals Group (http://www.internationalmetalsgroup.com/index.html).

In addition, the Company is presently conducting a 28,000 metre drill program on both surface and underground for the purpose of expanding the mineral resources and increasing the confidence of the mine plan with infill drilling. The surface program is testing to expand six known zones of mineralization which have the potential to provide additional resources to the mill. The underground portion of the drill program is focusing on expanding resources, particularly in the 3300 Zone, 3500, 3100, as well as other prospective zones.

On September 1, 2010 (http://www.firerivergold.com/s/NewsReleases.asp?ReportID=416973), FAU engaged Snowden Mining Industry Consultants Inc. "Snowden" to prepare a PEA to evaluate the economic viability of resuming underground commercial production. The study will present a preliminary mine plan for the project, including dilution and recovery analysis, stoping method selection, production and development forecasts, capital and operating cost estimations, revenue projection, and a financial model. The tentative date for completion of the study is mid December 2010.

It will be based on the October 2010 resource estimate (http://www.firerivergold.com/s/NewsReleases.asp?ReportID=422241) and will therefore not include any drill results from the 2010 drilling program. It will represent a "starting point" for the Company, which will be enhanced through the course of additional exploration, ore definition, and detailed engineering which will result in a production decision for the resumption of underground mining.

On behalf of the Board of Directors, I look forward to keeping you updated with our corporate developments.

Harry Barr, President and C.E.O.

Disclaimer: Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. A feasibility study has not been completed and there is no certainty the disclosed targets will be reached nor that the proposed operations will be economically viable. We seek safe harbour.

The TSX Venture Exchange or its Regulation Services Provider have not reviewed and do not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.

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