SOURCE: Firstgold Corp.

Firstgold Corp.

April 23, 2009 10:20 ET

Firstgold Engages Haywood Securities Inc. to Assist in Restructuring and/or Sale of Company in Light of Creditors Default Notice

CAMERON PARK, CA--(Marketwire - April 23, 2009) - Firstgold Corp. (TSX: FGD) (OTCBB: FGOC) announced today that it is actively considering various financing, restructuring and strategic alternatives. The Company engaged Haywood Securities Inc. to assist in this process. As previously disclosed, as of December 15, 2008, Firstgold was in default of certain debt covenants in its credit facility and securitization agreements. Subsequently a forbearance agreement was announced on March 31, 2009 providing the company with a standstill agreement with the lenders until April 30, 2009. However, late yesterday the two primary lenders terminated the forbearance period and declared defaults under their respective Senior Secured Promissory Notes. While the Company is continuing to work with its lenders and advisors to satisfactorily resolve these issues, it was deemed prudent at this time to consider all options including an outright sale of the Company.

CEO Steve Akerfeldt commented, "We believe our fully permitted producing mine at Relief Canyon has the potential to be a world class asset. Unfortunately with our current financial condition it has been difficult to arrange the capital necessary to enable the plant to reach peak operating capacity. Therefore the Company's Board of Directors has taken the step today to formally review all options including the ultimate sale and/or merger of the Company. To this end the Company has already begun discussions with three interested partners and plans to move expeditiously to conclude a transaction we believe would best suit our shareholders. We will also be working with our two major lenders to allow sufficient time for us to develop these alternative strategies."

Until new financing can be obtained to bridge the gap between start up of the mine and cash flow from production, the Company has been forced to suspend any additional crushing activity at the plant and will run its operations on a care and maintenance basis until such time as full operations can be restored.

"The equity and credit markets have become very difficult to access for companies like Firstgold. Currently Firstgold in addition to being in breach of its debt obligation to lenders has approximately $3.7 million dollars in payables that cannot be repaid until new financing has been obtained. These are difficult times but we believe the steps we have implemented today will enable us to preserve and enhance our shareholders value," said Akerfeldt.

Over the last 24 months Firstgold has spent $16 million developing a processing facility at Relief Canyon, located outside Lovelock, Nevada, on the site of the previously producing Pegasus Gold Mine. Firstgold currently leases over 10,000 acres of prime exploration property in Nevada. 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 that 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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