First Gold Exploration Inc.
TSX VENTURE : EFG

First Gold Exploration Inc.

May 01, 2007 10:23 ET

First Gold Exploration Options Croinor Project

MONTREAL, QUEBEC--(CCNMatthews - May 1, 2007) - First Gold Exploration Inc. (TSX VENTURE:EFG) ("First Gold") is pleased to announce that it has concluded two joint-venture agreements with the South-Malartic Exploration Inc. (TSX VENTURE:MSU) ("South-Malartic") with the objective of acquire an interest of 50 %in the Croinor project located in the Pershing, Vauquelin and Haig townships in the Abitibi region of Quebec. The property located 75 km by road from Val-d'Or covers an area of 4,518 hectares and is composed of 289 contiguous claims and a mining lease of 90 hectares.

The first joint-venture (Croinor 1) includes the Croinor deposit which is located on the Mining Lease and adjacent claims. A 43-101 report prepared in November 2005 by Carl Pelletier, M. Sc. P. Geo from the firm Innovexplo Inc. of Val-d'Or, Quebec - a copy of which is available in the South-Malartic profile on www.sedar.com - confirms the following resource estimate:



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Cut-off Cut-off
2,00 g/tm Au 5,00 g/tm Au
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Category Tonnes Grade Ounces Tonnes Grade Ounces
™ (g/tm Au) ™ (g/tm Au)
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Mesured 10,383 8,11 2,706 6,541 10,73 2,256
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Indicated
continuous 1,109,717 6,40 228,265 498,337 10,20 163,377
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Indicated
isolated 308,975 5,93 58,919 115,340 11,10 41,160
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Total 1,429,075 6,31 289,890 620,218 10,37 206,792
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These resources are within 200 meters from surface First Gold can acquire a 50% interest by issuing common shares and completing exploration work as follows:



Number of shares Exploration work

i) Signature of a
formal agreement 300,000 --
ii) On December 31st, 2007 -- $650,000
iii) On January 31st, 2008 400,000 --
iv) On December 31st, 2008 -- $750,000
v) On January 31st, 2009 4,300,000 --
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TOTAL 5,000,000 $1,400,000


The exploration program of $650,000 that has to be completed prior to December 31st, 2007 must include at least 5,000 meters in diamond drilling. First Gold can elect, at its sole discretion, to substitute the issuance of 4,300,00 shares in January 2009 for a $5,000,000 cash payment. First Gold intends to test the deposit for both lateral and depth extension (from 200 meters down to 400-450 meters from surface).

The second joint-venture (Croinor 2) includes the entire Croinor property less what is covered by the first joint-venture. First Gold can acquire a 30% interest in the Croinor 2 project by issuing 250,000 common shares and by completing exploration for an amount of $500,000 as follows:



Number of shares Exploration work

i) Signature of a
formal agreement 100,000 --
ii) On December 31st, 2007 -- $200,000
iii) On January 31st, 2008 150,000 --
iv) On December 31st, 2008 -- $300,000
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TOTAL 250 000 $500,000


The exploration program that must be completed before December 31st, 2007 for an amount of $200,000 must include a complete compilation to be prepared by the Innovexplo Group from Val d'Or and a 1,500 meter diamond drill program in the Lake Bug extension sector.

First Gold will then have the option to acquire an additional 20% undivided interest in the Croinor 2 project by issuing another 200,000 common shares and by completing exploration work for an amount of $500,000 before December 31st, 2009.

First Gold will then have acquired an interest of 50% in Croinor 2 after having issued a total of 450,000 common shares and completing exploration work for an amount of $1,000,000 before the end of December 2009 and subject to the approval of regulatory bodies.

For both of these joint-ventures, the parties will form once First Gold has earned a 50% interest a full joint-venture and will conclude a formal agreement with the standard clauses to that effect.

It is important to note that with the previous financings completed in December 2006 ($980,000 available for CEE) and April 2007 ($275,000 available for CEE), First Gold anticipates to have sufficient funds to meet its commitments for the year 2007 on the Noyell project ($400,000) and Croinor ($650,000 plus $200,000).

The Croinor project meets all of the First Gold criteria as to the selection of its projects:

1) accessibility;

2) drill stage; and

3) geological potential

The five joint-venture agreements signed by First Gold since its inception in the Fall of 2006 all meet these same criteria and are located in the same sector, the Abitibi region in Quebec.

The closing of the above transactions is subject to the approval of the TSX Venture exchange (the "Exchange"). Moreover, before the last tranche is issued in early 2009 in order to earn the 50% interest in Croinor 1(ie 4,300,000 shares) First Gold has to obtain approval from the Exchange and from its shareholders.

Mr. Pierre O'Dowd, a Qualified Person under NI 43-101 has revised and approved the technical content of this release. Mr. O'Dowd will supervise the field worked that will bbe executed on these projects.

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

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