First Gold Signs Letter of Intent for a 50% Interest in a Past Producing High Grade Silver/Lead/Zinc/Copper Project

LAVAL, QUEBEC, Nov 09 (MARKET WIRE) --
First Gold Exploration Inc. (TSX VENTURE: EFG) (FRANKFURT: F12) is
pleased to announce that it has signed a letter of intent (LOI) to earn a
50% interest in the San Javier silver property located in the
Municipality of Malinalpetec, State of Guerrero, Mexico.

The 253 hectares property hosts a silver-gold-lead-zinc epithermal
mineralization typical the Mexican precious metal belt. It is located
within the Sierra Madre del Sur, therefore in the southern portion of the
precious metal belt. This portion of the belt is characterized by a high
Silver/Gold ratio.

Approximately 30 quartz-sulphide veins have been discovered in the
district so far. They are hosted in a weathered granodiorite. According
to the vendors, the veins run for 400-500 metres and their average
thickness is in the order of 1.5 metres. Historical and recent sampling
indicates that the veins carry grades above 500 g/t Ag, 1-2% Pb and 1-2%
Zn. These epithermal veins hosts a variety of sulphide minerals such as
argentite, pyrite, galena, sphalerite, arsenopyrite and chalcopyrite. The
following table was provided by the vendors. It gives examples of results
from high grade vein material found on the property. Sampling procedures
are not known.

Ag Pb Zn
g/t oz/t % %
----------------------------
440 12.8 1.49 0.44
731 21.3 1.44 0.44
297 8.7 1.41 0.10
162 4.7 1.86 0.31
816 23.8 3.60 0.57
563 16.4 5.66 4.55
238 6.9 4.21 6.88
418 12.2 1.32 0.72
506 14.8 2.15 1.53
419 12.2 3.70 0.07
2290 66.8 4.81 2.83
1270 37.0 3.71 2.28
1760 51.3 2.93 1.88
12247 357.3 6.83 1.76
1930 56.3 7.15 3.67
481 14.0 8.86 3.30
----------------------------

Small underground workings are observed on the property and limited
mining was apparently recently carried out (A shaft 85 m deep, small pits
and other shafts have been constructed and seven of the thirty veins have
apparently produced high grade material in the past). A small processing
plant was built on site. Capacity and state of the equipment is not known
at present time. It will be investigated during the due diligence process.

Camsim Minas S.A DE C.V., a privately-held Mexican Corporation, currently
is the holder of an option to earn-in 100% of the title, subject to a 10%
Net Profit Interest (the 10% NPI can be reduced to 3.5% at any time in
the future, by making a one-time payment in the amount of USD $8M), in
the "La Mina San Francisco Javier" property, which is comprised of
approximately 253 hectares, situated in Tiapa District, Malinaltepec in
the state of Guerrero, Mexico. Under the terms of the proposed Option
Agreement, First Gold Exploration will acquire 50% of the right, title
and interest of the "La Mina San Francisco Javier" Property by spending
US $3,000,000 Three Million U.S. Dollars, plus applicable Federal Mexican
I.V.A tax(es), on the property on or before October 1, 2012 as follows:

- $1M by October 1, 2010

- $1M by October 1, 2011

- $1M by October 1, 2012

These obligations include any Mexican Government exploration funding or
grant(s) assistance. It is also understood and agreed that First Gold
will be the Operator of the project, and therefore, will be responsible
for directing how project-related monies are spent.

In addition to the above expenditures schedule, First Gold Exploration
Inc. also agrees to make a one-time cash payment within seven days of the
signing of the binding Option Agreement in the amount of CAD $150,000.00
and issue for the benefit of Camsim Minas S.A. DE C.V., two million
common shares of the company per the following schedule:

- 500,000 shares upon the signing of the binding Option Agreement;

- 750,000 shares on the first year anniversary of the signing of the
binding Option Agreement;

- 750,000 shares on the second year anniversary of the signing of the
binding Option Agreement.

Camsim Minas S.A. DE C.V. will receive a monthly consulting fee in the
amount of CAD $15,000.00 in order to assist First Gold Exploration Inc.
in local community, State and Federal Government relations, securing
Government funding assistance for the project, and assisting in
identifying local staff and contractors. If the aforementioned Government
funding is received in excess of USD $1.0M (for the first US$3M spent on
the property) then said monthly consulting fee will be increased to CDN
$30,000 (effective from the date of the Option Agreement being executed).

The formal Option Agreement necessary to be executed to close the
transaction, including, without limitation, agreements of purchase and
sale of the Property interest, any regulatory filings and approvals, or
similar, shall be negotiated on mutually agreeable terms between the
parties and shall contain the usual and customary representations and
warranties, covenants and other agreements in a form satisfactory to the
parties and their respective solicitors.

THE CLOSING OF THE TRANSACTION SHALL BE SUBJECT TO THE FOLLOWING
CONDITIONS:

- Approval from the boards of each of Camsim and First Gold Exploration
Inc within 7 days of the execution of this Letter Of Intent;

- Completion of due diligence reviews of La Mina San Francisco Javier and
the completion of a 43-101 report by First Gold Exploration Inc., for the
project, with results satisfactory to each of the parties, within 40 days
of the execution of the Letter Of Intent;

- The completion of the binding Option Agreement mutually satisfactory to
the applicable parties, implementing the arrangements agreed to above by
December 15, 2009;

- Delivery of normal and customary closing certificates and other
documentation on the closing date; and

- The passage of all necessary corporate resolutions and obtaining of any
shareholder, regulatory or securities approvals as may be required to
authorize the transaction contemplated by the binding Option Agreement on
the closing date;

- The funding of CAD $150,000.00 by First Gold Exploration Inc. to
Camsim. It is understood that such funds are being advanced to pay for
the costs associated with the completion of a National Instrument 43-101
Technical Report and for costs associated with preparing the property for
the initial stage of exploration (The first payment will be of 75,000$
and will be before or on Nov. 20th, 2009. These funds will be managed by
the Operator;

- The payment of CAD $150,000.00 by First Gold Exploration Inc. to Camsim
within seven days from the date of execution of the binding Option
Agreement.

First Gold is sending a technical team on November 12th to carry a due
diligence, collect information for the writing of a NI43-101 report and
prepare the first phase of drilling. Pierre O'Dowd, p. Geo. And Qualified
Person reviewed and approved the technical content of this press release.

Below is the link to the Cansim Website and a video taken on the property:

Video: http://www.youtube.com/watch?v=aIngr52l1xs&feature=channel_page

Web Site: www.camsimminas.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

Contacts:
First Gold Exploration Inc.
Eric Leboeuf
President and Chief Executive Officer
514-862-6889
president@firstgoldexploration.com
www.firstgoldexploration.com

Copyright 2009, Market Wire, All rights reserved.

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