Croinor Gold Project Scoping Study Filed X-Ore and First Gold Engage Minvestec Capital

The study was prepared by Francois Chabot, P.Eng under engineering firm Golder Associates and confirms that the Croinor gold deposit has the potential to be an economic underground mining operation with production achievable within one year (see release of May 26, 2009).

The scoping study highlights the following:

- Production of approximately 35,000 ounces per year at a cash cost of US $492 per ounce (Canadian-US exchange rate of 1.2);

- Pretax internal rate of return of 205 per cent at US $850 gold price (Canadian-US exchange rate of 1.2)

- Total capital investment of $11 million

- 10-month pre-production period

The short lead-time to start-up and low capital cost is attributed to the availability of fully permitted plants located within 100km of the site for custom milling, and the existing underground infrastructure including a ramp to the 125 ft level and shaft to the 525 ft level, as well as more than 2km of drifts on four levels, all-weather roads and water sedimentation pond and building. Note that this preliminary assessment is preliminary in nature and includes mineral resources that are not mineral reserves and do not have demonstrated economic viability. There is no certainty that the preliminary assessment will be realized as presented since certain engineering parameters related to construction, environment and rocks mechanics will have to be validated at the preproduction phase.

In addition, the report indicates excellent potential to delineate additional resources at Croinor over that reported in the 43-101 report by Innovexplo Inc. in November 2005 (filed on Sedar) as this data is based on information to the 200 metre level only, and has been extended to 300 metres by subsequent drilling campaigns by First Gold in 2007 and 2008 (see press release November 21, 2008)

Engagement of Minvestec Capital Corp.

The companies are also pleased to announce the engagement of Toronto-based Minvestec Capital Corp. to evaluate and advise on strategic alternatives to maximize the value of the jointly-owned gold project. These alternatives may include financing to advance the Croinor Project to production, a business transaction with a strategic partner, or any number of available options. The management and the board of directors of both First Gold and X-Ore will work with Minvestec to ensure that all alternatives available to both Companies are properly considered and evaluated.

Leon Methot, Chairman of X-Ore and Eric Leboeuf, President & CEO of First Gold jointly commented, "We are pleased to have the services of Minvestec to maximize the value of our important asset for our shareholders. The principal of Minvestec Capital, Ms. Minh-Thu Dao-Huy, has over twenty-seven years of experience in successfully handling investment banking transactions for the Mining Sector globally. After a successful eight years as a corporate finance executive at Merrill Lynch Canada Mining Team, Minh-Thu co-founded IBK Capital Corp. in 1989 and for twenty years was instrumental in transforming IBK into a major player in financing the junior mining resource sector, helping its clients raised over $500 million in capital, globally".

"We know that Minvestec has a worldwide network of contacts to help us evaluate the full range of alternatives available to us. Management and the board firmly believe that Minvestec will help both our companies unlock the true value of our gold assets for the substantial benefit of our shareholders, in light of a very strong gold market."

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