NFX Commences Diamond Drilling at Lemoyne North Property in James Bay District, Quebec

TORONTO, ONTARIO, Jan 22 (MARKET WIRE) --
NFX GOLD INC. (TSX VENTURE: NFX) (the "Company" or "NFX") is pleased to
announce that a surface diamond drilling program has commenced on the
Lemoyne North Property, pursuant to the Company's July 2007 option and
joint venture agreement with Eloro Resources Ltd. ("Eloro").

The 100 km2 Lemoyne North Property is located within the La Grande Belt
in the James Bay district of Quebec and straddles the northern border of
Virginia Mines Inc.'s Poste Lemoyne property where Virginia Mines Inc.
has outlined a 95,000 ounce gold resource grading 14.5 g/t gold, that
included intersections of up to 43.09 g/t gold over 11.65 m (Source:
Virginia Mines Inc. website).

Recent work completed at the Lemoyne North Property has identified felsic
volcanic rocks with sulphide mineralization and accompanying alteration
similar to the world-class Doyon-Bousquet-LaRonde Camp of the Abitibi
Belt. The work has identified targets for immediate drilling where the
alteration is strongest, and where Eloro's 2006 drilling intersected
semi-massive sulphides anomalous in gold, silver and zinc. Historic grab
sample assays at Lemoyne North (Virginia Gold Mines, 1996, Boreal
Exploration, 1998), include grades up to 4% copper, 21 g/t gold and 38
g/t silver.

In July 2007 Eloro optioned four mineral properties located within the La
Grande belt to the Company. The properties involved in the transaction
are the Lemoyne North, Horseshoe, Taiga and Taiga West properties (the
"Properties"). Under the terms of the option and joint venture agreement,
the Company has an option to earn a 50% interest in the Properties by
incurring C$ 3 million in exploration related expenditures on or before
July 15, 2011.

The Company has initiated a 2,000 meter surface drilling program to test
the sulphide zone associated with alumina and magnesium bearing
alteration, typical of the Doyon-Bousquet-La Ronde Camp. This wide
alteration zone has been delineated over a 3 km strike length by
geophysics and is more than 200 m wide. Grab samples from this zone
consist of abundant pyrite - pyrrhotite (iron sulphides) and minor
chalcopyrite (copper sulphides) and sphalerite (zinc sulphides).

This release contains certain "forward-looking statements". All
statements, other than statements of historical fact, that address
activities, events or developments that the Company believes, expects or
anticipates will or may occur in the future, are forward-looking
statements. Potential quantity and grade is conceptual in nature. There
has been insufficient exploration to define a mineral resource on the
properties mentioned above and it is uncertain if further exploration
will result in any such target being delineated as a mineral resource.
Forward-looking statements reflect the current internal projections,
expectations or beliefs of the Company based on information currently
available to the Company. Forward-looking statements are subject to a
number of risks and uncertainties, including those detailed from time to
time in filings made by the Company with securities regulatory
authorities, that may cause the actual results of the Company to differ
materially from those discussed in the forward-looking statements, and
even if such actual results are realized or substantially realized, there
can be no assurance that they will have the expected consequences to, or
effects on, the Company.

TSX Venture Exchange Inc. has not reviewed and does not
accept responsibility for the adequacy or accuracy of this release.

Contacts:
NFX Gold Inc.
Thomas G. Larsen
President and Chief Executive Officer
(416) 360-8006
(416) 361-1333 (FAX)

NFX Gold Inc.
Jorge Estepa
Vice President
(416) 360-8006
(416) 361-1333 (FAX)
Website: www.nfxgold.com

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