First Mexican Gold drills five holes at Guadalupe

2011-02-15 09:38 ET - News Release

Mr. Jim Voisin reports

FIRST MEXICAN UPDATES EXPLORATION PROGRAM IN SONORO, MEXICO

First Mexican Gold Corp. has completed the planned drilling program originally announced in Stockwatch on Jan 10, 2011, on the Guadalupe property package which is contiguous to Corex Gold Corp.'s Santana property where consistent exploration results have been demonstrated. As planned, 5 holes were completed in the Karen zone which had been identified and now confirmed as a high grade target plus 3 holes were completed in the Dianna zone which was identified as a lower grade, potentially large tonnage target. The final 2 holes that were targeted for the gold/silver/copper bearing Bailey zone were not completed due to a late developing property access issue.

Subsequently, the Company has now signed a four year agreement with the Adjito of Guadalupe Tayopa which permits access to all properties as required. Further access arrangements have been agreed to with the individual property holders for the same four year term. First Mexican Gold looks forward to continued good relations with the local Adjitos in the area.

Post agreement the Company immediately conducted a rock chip sampling survey on the Bailey zone which comprised 37 samples over 55.5 metres. This was done to further build the data base on this high potential target in lieu of the planned drilling which could not be completed as referenced above. Assays are pending and will be reported shortly.

Results to Date

The initial three holes from the Karen zone (HDH 11-04, HDH 11-05, HDH 11-06) returned very good grade intersections from surface or near surface occurrences over potential mineable widths and were reported on Jan 21, 2011 (see table below).

Holes HDH 11-07 and HDH 11-08 were drilled on the Karen zone and had visual non mineralized sections with assays reporting only anomalous gold/silver/copper. Both holes were drilled to approximately 140 metres. It appears hole 7 was drilled parallel to the zone and hole 8 undercut the zone, or may have stopped short of the zone. These holes were unsuccessful in locating the continuation of the Karen zone and an IP survey is presently underway to better define drill parameters prior to continuing the drilling on this very high grade zone.

Hole HDH 11-09 was collared on the Diana zone which was targeted as a lower grade, potential large tonnage zone. The hole was drilled at a -45 degree angle and approximately 100 metres in length. Hole HDH 11-10 was also drilled on the Diana zone at a 90 degree (vertical) angle and approximately 152 metres in length. Both holes demonstrated porphyry rock type mineralization with the thought of a possible convergence of the suspected 3 to 4 near vertical parallel zones at depth. An IP survey is being conducted over the area to better define targets for the next round of drilling.

Summary Table of Drill Results

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DRILL FROM TO LENGTH AU AG CU

ZONE HOLE (M) (M) (M) (G/T) (G/T) (%) MISC

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KAREN

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HDH 09-01 15.55 21.35 5.8 3.67 753 non-

compliant

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HDH 09-02 3.05 18.30 15.25 2.58 47 non-

compliant

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HDH 09-03 0.00 37.80 37.8 6.51 678 non-

compliant

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HDH 11-04 0.00 15.24 15.24 1.57 336 0.18 compliant

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in addition 21.35 43.70 22.35 0.35 200 1.21 compliant

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HDH 11-05 0.00 33.46 33.46 4.27 395 1.24 compliant

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HDH 11-06 17.90 39.50 21.60 4.90 104 0.73 compliant

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HDH 11-07 NS NS NS compliant

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HDH 11-08 NS NS NS compliant

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RC hole #2 41 43 2.0 1.48 1330 compliant

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RC hole #3 18 36 18 6.52 61 compliant

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DIANNA

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HDH 11-09 9.70 25.40 15.70 .77 105 NS compliant

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including 10.70 22.00 11.30 .91 142 NS

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plus 36.10 36.80 .70 2.58 12 .123

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HDH 11-10 0.00 39.00 39 .40 135 NS compliant

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including 9.88 39.00 29.12 .47 172 NS

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plus 4.20 .59 2.69 .10

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plus 9.22 .40 2.61 .04

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NS = not significant; Misc. = 43-101 compliant or non-compliant

"We are pleased to have confirmed the high grade potential of the Karen zone and lower grade/higher tonnage potential of the Diana zone with this initial round of drilling. Both targets will be pursued more aggressively in the next phase of drilling which is being planned to commence later in Q1," said Jim Voisin, President and Chief Executive Officer of First Mexican. Mr. Voisin adds: "The ongoing IP survey data will greatly assist in further delineating these very interesting discoveries which have occurred so early in our exploration program. We are presently chasing a chargeability anomaly that will be an additional high priority target on our next drilling program."

SJ Geophysics Ltd. of Delta B.C. is continuing with the extensive IP survey (Induced Polarization) totaling 45 kilometres of lines. This 3D IP program is designed to enhance the drill targeting over future multiple target rich areas and provide follow-up data to assist in the next phase of drilling within our continually expanding property package.

John Archibald, PGeo, of Billiken Management Services Inc., a qualified person pursuant to NI 43-101, has reviewed and approved the technical information in this press release on behalf of the company. Samples were prepared and assayed by an accredited lab, ALS Chemex, Vancouver, BC. Quality control is monitored on a continual basis and utilizes a system of standards, blanks and duplicates to ensure analytical accuracy.

We seek Safe Harbor.