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

First Gold Exploration Inc.

December 29, 2010 16:31 ET

First Gold Exploration Inc.: Update

LAVAL, QUEBEC--(Marketwire - Dec. 29, 2010) - Exploration First Gold Inc. (TSX VENTURE:EFG)(FRANKFURT:F12)(OTCQX:FGEXF) is pleased to provide an update on its exploration projects.

Lac Pivert/Rose

According to the resource estimate by InnovExplo, the Rose showing contains an indicated resource of 11,436,000 tonnes at 1.34% Li2O (337,133,280 pounds of Li2O), 165 ppm Ta2O5 (4,156,255 pounds of Ta2O5) and 377 ppm BeO (9,496,414 pounds of BeO) and an inferred resource of 2,170,000 tonnes grading 1.27% Li2O (60,629,800 pounds of Li2O), 138 ppm Ta2O5 (659,604 pounds of Ta2O5) and 311 ppm BeO (1 486 498 pounds of BeO). The resource estimate was calculated using a cutoff grade of 0.75% Li2O to reflect current market conditions. This initial resource estimate only takes into account zones mineralized in lithium. The now-complete interpretation of the deposit appears to suggest that the deposit should be reassessed to take into account other elements (particularly tantalum). Areas of the deposit with high tantalum grades (but low lithium grades) have been identified but were not included in the current resource estimate. The Company has therefore retained InnovExplo to recalculate the resource immediately, taking tantalum into account. The Company expects to drill a minimum of 15,000 metres on the property to increase the Rose resource and determined the resources at the other known project showings (JR, Hydro, Helico, Pivert, Pivert East and Pivert South). In accordance with the terms of the agreement dated August 19, 2009, the Company issued 3,000,000 common shares to the vendors (1,125,000 to Jean-Sébastien Lavallée) upon production of a resource estimate of at least 125,000 tonnes of Li2O at a cutoff grade of 0.8% Li2O for a total of at least 220,000,000 pounds of Li2O. Finally, the Company is currently preparing a broad program of mapping, prospecting and soil and rock geochemical sampling for the 2011 summer season.

Croinor

As announced by press release on December 24, First Gold and Blue Note Mining have agreed to extend the agreement announced on July 19, 2010, (the "Agreement") for Blue Note's acquisition of all of First Gold's interest in the Croinor gold property near Val-d'Or, Quebec.

As per the terms of the agreement, Blue Note paid First Gold a total of $100,000, and for an additional $25,000, now has up until March 31, 2011, to make a final payment of $2,250,000 to complete the transaction. The agreement also provides for the issuance of 17.5 million escrowed common shares of Blue Note, which will be released at a rate of 500,000 per month over a 35-month period from closing. The agreement includes First Gold's 71% interest in the Matchi-Manitou property.

San Franscico Javier

The Company did not carry out the required exploration work by October 1, 2010. As it was then in default and management did not wish to negotiate a new agreement given the new focus on rare earths, management decided to drop the project and write off the mining property and related exploration expenditures. 

Rocky Mountain Rare Earths Project, British Columbia

The Company is currently designing an exploration program for the 2011 summer season. A massive mapping, prospecting and sampling program is planned, to be followed by drilling to test the best targets identified during mapping.

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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