SOURCE: Firstgold, Inc.

May 02, 2008 08:00 ET

Firstgold Corp. Announces Completion of Financing

CAMERON PARK, CA--(Marketwire - May 2, 2008) - Firstgold Corp. (OTCBB: FGOC) is pleased to announce that it has closed a private placement of a $1,100,000 US convertible debenture with a private investor. The debenture bears interest at 10 percent, has a term of 20 months and is convertible into common shares of the Company at the rate of $0.80 US per share. Firstgold will also issue the investor warrants to purchase $1,100,000 of the Company's common stock exercisable at $1.00 US per share for a term of 30 months from closing. The funds have been escrowed until the related security has been recorded in the next few days.

Steve Akerfeldt, CEO of the Company, says that "A condition precedent of Firstgold receiving a listing on the TSX was that Firstgold obtain long term capital funding of $9,000,000 net of commissions. With the closing of this transaction for $1,100,000 in conjunction with warrant exercise we have raised the $1,200,000 we identified in our last press release as being required in addition to the previously announced and closed equity financing of $8.5 million. This total of $9.7 million dollars minus commissions means we have now achieved the funding target as established by the TSX. With this now in place we expect to proceed with completion of the listing process."

Firstgold currently leases over 30,000 acres of prime exploration property in Nevada, including 965 acres at its principal project, Relief Canyon. The Relief Canyon Gold Mine Project recently had its Plan of Operation reinstated in the state of Nevada and the company is conducting extensive drilling and development analysis on the project. Relief Canyon is located outside Lovelock Nevada on the site of the previously producing Pegasus Gold Mine. Additional information about Firstgold Corp. can be found by visiting its web site at www.firstgoldcorp.com.

Safe Harbor Statement

The matters discussed in this release contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended that involve risks and uncertainties. Although Firstgold Corp. believes that the expectations reflected in such forward-looking statements are reasonable; the forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected. Firstgold Corp. cautions investors that any forward-looking statements made by Firstgold Corp. are not guarantees of future performance and those actual results may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those reflected in forward-looking statements include, but are not limited to, risks and uncertainties regarding the actual mineralization of Firstgold Corp.'s mining properties, the unproven nature of and potential changes to Firstgold Corp.'s business model, the risk that the capital and other resources that Firstgold Corp. will need to exploit its business model will not be available, and the risks discussed in Firstgold Corp.'s Form 10-KSB and in Firstgold Corp.'s 10-QSBs and in Firstgold Corp.'s other filings with the Securities and Exchange Commission.

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