FirstGrowth Capital Inc.

FirstGrowth Capital Inc.

August 15, 2007 08:00 ET

FirstGrowth Capital Inc. Announces Closing of $4.2 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 15, 2007) - FirstGrowth Capital Inc. (TSX VENTURE:FGC)(FRANKFURT:G8Q) is pleased to announce that it has completed its non-brokered private placement financing for aggregate proceeds of $4,200,000 (see news release dated August 3, 2007). The TSX Venture Exchange issued its acceptance bulletin on August 13, 2007. Proceeds from the financings will be used to fund the company's continued growth and for working capital.

The private placement consisted of 4,000,000 units at a purchase price of $1.05 per unit. Each unit consists of one share and one full share purchase warrant. One whole warrant will entitle the holder to purchase an additional share in the company at the price of $1.75 for 24 months. The units are subject to a four-month hold period following the closing. No finder's fee or commissions are being paid in connection with any of these financings.

A major portion of the placement was taken by various funds managed by Sprott Asset Management.

"This strategic business relationship with Sprott is an important milestone for the company," stated Gil Schneider, President and CEO of FirstGrowth, "many of Sprott's resource clients are prospective clients of FirstGrowth."

About Sprott Asset Management

Founded in August 2000, Sprott Asset Management Inc. (SAM) is a private independent fund company, owned by its employees, dedicated to achieving superior returns for its investors over time. Currently, SAM manages over CDN$5 billion in assets among its various long/short equity strategies, mutual funds and managed accounts.

Taking a consistent, disciplined approach to investing, based on sound fundamental analysis and independent research, the investment team at SAM carefully explores, analyzes and selects what they consider to be a portfolio of the "best ideas" that equity markets have to offer in the given macro-economic environment.

About FirstGrowth

FirstGrowth is an oil, gas and mineral exploration services company focused on the organic growth of its subsidiary, Kinetex Inc. In addition, FirstGrowth's goal is to make acquisitions in the resource services sector accretive to Kinetex's current seismic imaging services.

Kinetex has been a developer of advanced exploration techniques for over six years as a Calgary-based integrator of applied sciences to the resource industry, including oil & gas exploration and development, and precious and base mineral exploration and evaluation. One of Kinetex's primary services is targeted implementation and optimization of seismic imaging using the proprietary VectorSeis Recording System and Digital 3 Component Full Wave Imaging.

Kinetex continues to be focused on offering value added services which accelerate the advancement of both grass roots exploration and development.


Gil Schneider

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