Guadalupe Property in Mexico

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TSX-V Trading Symbol: FMG




VANCOUVER, Jan. 21, 2013 /CNW/ - First Mexican Gold Corp. (the "Company"
or "FMG") (TSX-V: FMG, Frankfurt: 21M) is pleased to announce that it
has signed a non-binding letter agreement with Compania de Minas
Buenaventura S.A.A. ("BVN") (NYSE: BVN, BVL: BVN), pursuant to the
terms of which BVN has been granted the right, for a period of 60 days
from the signing, to complete due diligence and the right, at BVN's
discretion, to negotiate terms and sign a definitive agreement with FMG
to earn a 70% interest in the Company's 100% owned Guadalupe project.
The objective of this proposed transaction is to further develop the
Guadalupe property in Mexico, to provide capital for the Company and
significantly expand the exploration program. The Company retains the
Panda claim block for future exploration.


The FMG claim blocks are located along a trend of producing mines in the
Sierra Madre Occidental, including the Mulatos mine of Alamos Gold
Inc., Dolores mine of Pan American Silver Corp and Ocampo mine of
Minera Frisco, S.A.B. de C.V. The property is also contiguous to Corex
Gold Corp (CGE -TSX-V) Santana Property where Corex and Vale are now
drilling subsequent to the option agreement finalized in December 2012.


Terms


Provided that BVN is satisfied with the results of its due diligence, it
is anticipated the definitive agreement will grant BVN an option to
acquire a 70% undivided interest in the Guadalupe project by BVN making
payments to FMG totaling $5,000,000 within a four year period, and BVN
completing the drilling of 11,000 meters within a four year period. In
addition to the minimum required meters to be drilled BVN will conduct
mapping, sampling and ground geophysics as required to best access the
property potential and target drill locations. The terms of the
definitive agreement will be subject to the approval of the TSX Venture
Exchange. In order to facilitate matters for the Company, BVN has
agreed to enter into a convertible loan arrangement, pursuant to the
terms of which BVN has agreed to loan the sum of $250,000 to FMG, which
loan is automatically convertible into 2,777,778 common shares of FMG
at the price of $0.09 per share in the event a definitive agreement is
not concluded within the 60-day period. The $250,000 will be advanced
by BVN to FMG within two business days of FMG obtaining TSX Venture
Exchange approval to the convertible loan and will be used to fund
general operations. In the event a definitive agreement is concluded
within the 60-day period, the convertible loan will be terminated and
credited towards the first cash payment payable to FMG.


"The Company is very pleased to have a company such as BVN as a
strategic partner to further advance the Guadalupe property to its next
phase of development " said Jim Voisin, President and Chief Executive
Officer of FMG. Mr. Voisin adds: "we remain committed to our
shareholders to build a good resource base in what we believe to be the
high potential Guadalupe property."


Some Historical Data


Karen zone drill highlights to date: all near surface intercepts see news releases
April 28, 2011, February 27, 2012 & October 15, 2012.



DDH #1: 5.8 meters of 3.67 g/t Au, 753 g/t Ag


DDH #2: 15.2 meters of 2.58 g/t Au, 47 g/t Ag


DDH #3: 37.8 meters of 6.51 g/t Au, 678 g/t Ag


RC hole #2: 2 meters of 1.48 g/t Au & 1330 g/t Ag


RC hole #3: 18 meters of 6.52 g/t Au & 61 g/t Ag


HDH 11-04: 15.2 meters of 1.57 g/t Au, 335 g/t Ag, 0.18% Cu plus 22.3
meters of .35 g/t Au, 200 g/t Ag, 1.21% Cu


HDH 11-05: 33.4 meters of 4.27 g/t Au, 395 g/t Ag, 1.24% Cu


HDH 11-06: 21.6 meters of 4.90 g/t Au, 104 g/t Ag, 0.73% Cu


HDH 11-27: 9.7 meters of 6.22 g/t Au, 1853 g/t Ag, 12.62% Cu


HDH 11-29: 12.2 meters of 1.86 g/t Au, 70 g/t Ag, .14% Cu


HDH 11-30: 24.4 meters of .34 g/t Au, 25.8 g/t Ag, .42% Cu


HDH 11-32: 7.6 meters of 3.64 g/t Au,


HDH 11-33: 10.9 meters of 2.70 g/t Au, 152 g/t Ag, .20% Cu







Diana zone drill highlights to date: all near surface intervals, see news release
March 10, 2011.



HDH 11-09: 15.7 meters of .77 g/t Au, 105 g/t Ag (143.7 silver eq. g/t)


HDH 11-10: 39.0 meters of .40 g/t Au, 135 g/t Ag (154.9 silver eq. g/t)


HDH 11-11: 49.5 meters of .42 g/t Au, 86 g/t Ag (107 silver eq. g/t)
including 13.3 meters of .75 g/t Au, 195 g/t Ag (232.7 silver eq. g/t)







John Archibald, PGeo, 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.


The Company is an active explorer for precious metals in Mexico and
holds a 100% interest in the Guadalupe property package. The Company
holds extensive exploration rights in this high potential exploration
area that is attracting attention from major mining companies.


BVN is Peru's largest, publicly traded, precious metals company and a
major holder of mining rights in Peru. The company has been listed on
the Lima Stock Exchange (BVL:BVN) since 1971 and on the New York Stock
Exchange (NYSE:BVN) since 1996. It has over 60 years of mining
tradition and is engaged in the mining, processing, development and
exploration of gold and silver and other metals via wholly owned mines
as well as through its participation in joint exploration projects.


BVN currently operates several mines in Peru (Orcopampa, Uchucchacua, La
Zanja, Tantahuatay, Mallay, Julcani/Recuperada, Breapampa, Cedimin and
El Brocal) and has minority interests in several other mining
companies. These include a significant ownership interest in Minera
Yanacocha S.R.L (43.65%), in partnership with Newmont Mining, in
Sociedad Minera Cerro Verde (19.6%) and 49% of Canteras del Hallazgo
S.A, owner of the Chucapaca project, via a partnership with Goldfields.


On behalf of the Board of Directors,


Jim Voisin

President & CEO

First Mexican Gold Corp.

519 699 5352


We seek safe harbour.




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


This news release includes certain forward-looking statements or
information. All statements other than statements of historical fact
included in this release, including, without limitation, statements
relating to the potential mineralization and geological merits of the
Guadalupe property and other future plans, objectives or expectations
of the Company are forward-looking statements that involve various
risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to
differ materially from the Company's plans or expectations include
risks relating to the actual results of current exploration activities,
fluctuating gold prices, possibility of equipment breakdowns and
delays, exploration cost overruns, availability of capital and
financing, general economic, market or business conditions, regulatory
changes, timeliness of government or regulatory approvals and other
risks detailed herein and from time to time in the filings made by the
Company with securities regulators. The Company expressly disclaims
any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise except as otherwise required by applicable securities
legislation.





SOURCE: First Mexican Gold Corp.



For further information:



Vancouver Head Office #1000, 355 Burrard Street Vancouver, B.C. V6C 2G8 Canada Phone: 604 681 7265 Website: http://www.fmgoldcorp.com/">www.fmgoldcorp.com