First Gold Exploration Inc.

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

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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