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Montreal (Quebec), June 12th, 2008 - First Gold Exploration Inc. (the "Corporation") (TSX Venture: EFG) (Frankfurt Exchange: F12) announces that it is currently arranging non-brokered private placements for up of $1,750,000, consisting in three private placements:
<!--[if !supportLists]-->� <!--[endif]-->Private placement of Unit common shares.
500 common shares Units at a cost of $1,000 per Unit. Each Unit includes 4,000 common shares at a price of $0.25 per share and 4,000 common share purchase warrants of the Corporation. Each warrant entitles the holder thereof to purchase one common share of the Corporation for a period of twelve months at a price of $0.35 per share and thereafter at a price of $0.45 per share for another twelve months.
<!--[if !supportLists]-->� <!--[endif]-->Private placement of flow-through Units for residents of the province of Quebec.
650 flow-through Units at a cost of $1,000 per Unit. Each Unit includes 2,500 flow-through common shares at a price of $0.30 per share and 1,000 common shares at a price of $0.25 per share with 3,500 common share purchase warrants of the Corporation. Each warrant entitles the holder thereof to purchase one common share of the Corporation for a period of twelve months at a price of $0.40.
<!--[if !supportLists]-->� <!--[endif]-->Private placement of flow-through Units for Canadian residents outside of the Province of Quebec.
2,000 flow-through Units at a cost of $300 per Unit. Each Unit includes 1,000 flow-through common shares at a price of $0.30 per share and 500 common share purchase warrants of the Corporation. Each warrant entitles the holder thereof to purchase one common share of the Corporation for a period of twelve months at a price of $0.40.
In connection with those private placements, a finder's fee commission will be paid out in cash and finder's fee warrants to qualified individuals and brokers. The flow-through common shares and the common shares are subject to a four-month hold period from closing.
First Gold Exploration Inc. is pleased to announce the first closing of its private placements consisting of 366 Quebec residents flow-through Units issued at a price of $1,000 per Unit for total gross proceeds of $366,000, with each Unit consisting of 2,500 flow-through common shares at a price of $0.30 and 1,000 common shares at a price of $0.25 per share with 3,500 common share purchase warrants of the Corporation. Each warrant entitles the holder thereof to purchase one common share of the Corporation for a period of twelve months at a price of $0.40.
First Gold Exploration Inc., also closed, 50 common shares Units at a price of $1,000 per Unit for total gross proceeds of $50,000, with each Unit consisting of 4,000 common shares of the Corporation at a price of $0.25 per share and 4,000 common share purchase warrants of the Corporation. Each warrant entitles the holder thereof to purchase one common share of the Corporation for a period of twelve months at a price of $0.35 per share and thereafter at a price of $0.45 per share for another twelve months.
Two insiders participated in the first closing, Eric Leboeuf for 30 flow-through Units at $1,000 per Unit and Pierre Forget for 10 flow-through Units at $1,000 per Unit representing a total of $40,000 and 3 pro's also participated for a total of 46 flow-through Units at $1,000 per Unit and 50 common shares Units at a price of $1,000 per Unit for total gross proceeds of $96,000.
As finders' fee in connection with the private placements, the Corporation also issued a total of 30,333 Agent's warrant entitling the holder to purchase 30,333 common share purchase warrants at price of $0.40 per share, paid a $37,700 cash commission.
The final closing of the private placements will occur on or about the 30th, June, 2008
First Gold Exploration Inc. is advancing rapidly on its current drilling campaign on the Croinor property. As promised the campaign got started in May. Seven holes have been drilled to date and the first assays should arrive within 3 to 4 weeks.
Eric Leboeuf
President and Chief Executive Officer
(514) 234-6488
Email: president@firstgoldexploration.com
www.firstgoldexploration.com
For more information about First Gold Exploration:
Agoracom IR
Hub Home for First Gold:
http://www.agoracom.com/ir/FirstGoldExploration
Profile for First Gold:
http://www.agoracom.com/ir/FirstGoldExploration/profile
Broker Fact Sheet:
http://www.agoracom.com/company/broker_fact_sheet/563067/Microsoft_PowerPoint_-_EFG-BFS-April24-08.pdf
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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