First Mexican Increases Land Package to 15,112 Hectares

VANCOUVER, BRITISH COLUMBIA -- (Marketwire - Feb. 17, 2011) - First Mexican Gold Corp. (TSX VENTURE: FMG) is pleased to announce that it has entered into an Option Agreement with Kootenay Gold Inc. (TSX VENTURE: KTN) which adds significantly to its property package at its Guadalupe Property in Sonora State, Mexico. The Company's current property package of 11,506 hectares is contiguous to Corex Gold Corp.'s (TSX VENTURE: CGE) Santana Property where consistently good drilling results have been demonstrated to date.

The Option Agreement with Kootenay Gold continues the land package expansion strategy of First Mexican management. The property package comprises 3606 hectares that are contiguous to the present land holdings and is considered very prospective for gold and silver mineralization with numerous historic workings present. The claims include La Cabana 1 Frac I, La Cabana 1 Frac II, La Cabana 1 Frac III and Cuatas which are 100% owned by Kootenay.

The Option Agreement allows First Mexican to acquire a 60% undivided interest by paying US$25,000 on signing, issuing an aggregate 1,200,000 common shares of FMG over 5 years and spending US$2 million on the property over 5 years. Plus Kootenay retains a 1% NSR interest which can be purchased for US$1 million. The earn-in period can be accelerated at the discretion of FMG. At completion of the earn-in a JV Agreement will be formalized. This property has been added to the existing Option Agreement with International Millennium Mining Corp. (TSX VENTURE:IMI).

Historic and recent non-compliant sampling has been conducted by Kootenay Gold with over 120 samples assayed with the highlights listed below. The samples from the Minas Viejas area of the La Cabana Frac II property is on trend and very close to the recently reported samples (news release Feb 16, 2011) from the Bailey zone of First Mexican.


Sample Highlights

- sample # FA1322G returned 11.40 g/t gold, 92 g/t silver
- sample # LM1041D returned 1.54 g/t gold, 672 g/t silver, .69% copper
- sample # CA1032D returned 3.25 g/t gold, 4620 g/t silver, .698% copper
- sample # CA984D returned 12.20 g/t gold, 877 g/t silver, 13.40% copper
- sample # LM1046G returned 4.49 g/t gold, 504 g/t silver, 2.70% copper

Table of Key Sample Results

LOCATION   SAMPLE NUMBER   AU (g/t)   AG (g/t)   CU (%)   SB ppm   PB ppm
CUATAS 	  	  	  	  	  	 
Cruz de Mayo 	FA1322G 	11.4 	94 	.046 	2080 	 
  	LM1041D 	1.54 	672 	.69 	620 	510
Urquidez 	  	  	  	  	  	 
  	LM1118F 	0.179 	2 	  	  	 
  	MK788 	0.145 	7 	  	  	 
  	MK796 	0.128 	4 	  	  	 
La CABANA FRAC II 	  	  	  	  	  	 
Minas Viejas 	CA1032D 	3.25 	4620 	.698 	11500 	860
  	MK782 	1.03 	182 	.08 	370 	2990
  	CA1034D 	0.45 	1595 	.645 	4830 	70000
  	CA1028G 	0.257 	3050 	.127 	5410 	116000
  	CA1029G 	0.176 	2540 	.091 	3400 	115000
  	CA1038G 	0.117 	1560 	.304 	1040 	15600
Promontorio 	  	  	  	  	  	 
  	CA984D 	12.2 	877 	13.40 	15450 	15650
  	FA1323D 	0.46 	53 	.295 	1200 	14050
  	LM1045CH 	5.42 	119 	.077 	3710 	3980
  	LM1046G 	4.49 	504 	2.70 	11750 	33500
  	TR588 	0.421 	5 	.070 	120 	2450
  	TR589D 	.017 	3 	4.50 

blanks = not significant

“The Kootenay Option Agreement allows First Mexican to acquire a significant interest in ground considered highly prospective and on trend with identified targets from our existing property package. Initial reconnaissance has already begun and we intend to pursue exploration in the immediate area of the Bailey zone, we look forward to working with Kootenay going forward,“ said Jim Voisin, President and Chief Executive Officer of First Mexican.

SJ Geophysics Ltd. of Delta, B.C., is currently on-site continuing with the extensive 3D IP survey totaling 45 kilometres of lines which includes the survey being extended towards the Bailey zone. This 3D IP program is designed to enhance the drill targeting over multiple identified target rich areas and provide follow-up data to assist in the next phase of drilling within our continually expanding property package.

First Mexican Gold Corp. is an active explorer for precious metals in Mexico and holds an option to acquire 80% interest in the Guadalupe property package from Minera Internacional Milenio S.A. de C.V., a wholly owned subsidiary of International Millennium Mining Corp. (TSX VENTURE:IMI). The Company now has an interest in 15,112 hectares in this high potential precious metals exploration area.


On behalf of the Board of Directors,

Jim Voisin, President & CEO



We seek safe harbour.

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.



Contact Information

First Mexican Gold Corp.
Jim Voisin, President & CEO
519-699-5352
www.fmgoldcorp.com