First Gold Exploration Inc.
TSX VENTURE : EFG
FRANKFURT : F12
OTCQX : FGEXF

First Gold Exploration Inc.

December 31, 2010 11:10 ET

First Gold Closes a $2,900,000 Private Placement With the MineralFields Group

LAVAL, QUEBEC--(Marketwire - Dec. 31, 2010) - First Gold Exploration Inc. (TSX VENTURE:EFG)(FRANKFURT:F12)(OTCQX:FGEXF) is pleased to announce the closing of a non-brokered private placement with the MineralFields Group. The offering consists of 7,250,000 Units at a price of $0.40 per Unit for total gross proceeds of $2,900,000. Each Unit is comprised of one (1) flow-through common share and one half of one common share purchase warrant. Each whole warrant entitles the holder thereof to subscribe for one (1) common share of the Corporation for a period of twelve months at a price of $0.75 per share.

Limited Market Dealer Inc. received a cash finder's fee of 5% of the gross proceeds and 543,750 non-transferable finder's fees warrants equal to 7.5% of the number of Units issued. Each finder's fee warrant entitles to subscribe for one (1) unit of the Corporation for a period of 12 months at a price of $0.40 per unit. Each Unit is comprised of one (1) common share and one half of one common share purchase warrant. Each whole warrant entitles to subscribe for one (1) common share of the Corporation for a period of twelve months at a price of $0.75 per share.

The securities issued pursuant to the offering are subject to a 4 month and one (1) day statutory hold period expiring on May 1, 2011. 

Proceeds of the private placement will be used for property development.

MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver, Montreal and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Fund Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®.

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 release.

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