First Gold Exploration Inc.
TSX VENTURE : EFG

First Gold Exploration Inc.

August 21, 2007 16:30 ET

First Gold Closes a $250,000 Private Placement for its Drilling Programs in Progress and Signs Investor Relation Program With Paradox

MONTREAL, QUEBEC--(Marketwire - Aug. 21, 2007) - First Gold Exploration Inc. (TSX VENTURE:EFG) ("First Gold") is pleased to announce the closing of a private placement consisting of 1,250,000 Units issued at a price of $0.20 per Unit for total gross proceeds of $250,000, with each Unit consisting of one flow-trough common share and one-half common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share of the Corporation for a period of twelve months at a price of $0.25 per share.

Jones, Gable & Company Limited received a cash finders fee of $4,800 and Augen Capital Corp. one of the subscribers will receive $5,000 as a due diligence fee. There are ten subscribers to the private placement including Augen Capital Corp. of Toronto for $150,000. The securities issued pursuant to the Offering are subject to a 4 month hold period expiring on December 22nd, 2007.

Augen Capital Corp. is a Toronto-based merchant bank that specializes in the financing of and investment in early stage resource companies. Information on Augen Capital Corp. is available at www.augencc.com.

First Gold has also entered into a Investor Relations contract with Relations publiques Paradox Inc. ("Paradox") dated effective August 15th, 2007, subject to acceptance by the TSX Venture Exchange. Paradox has been engaged pursuant to a 12 month Agreement with a mutual review after 6 months. The Company has agreed to pay Paradox $4,000 per month plus applicable taxes, plus any approved expenses related to providing said services.

As well, the Company has granted Paradox options entitling Paradox to purchase a total of 250,000 common shares at an exercise price of $0.25 per share for a period of one year and vested at a rate of 25 % quarterly.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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