Mr. Harry Barr reports

FIRE RIVER GOLD ANNOUNCES UPDATE ON TAILINGS PRELIMINARY ECONOMIC ASSESSMENT, NIXON FORK GOLD MINE, ALASKA

Fire River Gold Corp. has provided this update regarding the progress of work on the preliminary economic assessment (PEA) for the tailings reprocessing option at the Nixon Fork mine.

The previous operator of the mine designed and partially installed a 250-tonne-per-day CIL circuit for the purpose of recovering gold from the impounded tails and increasing gold recovery from continuing mining operations (refer to Stockwatch news release dated April 6, 2010, for an overview of the tailings reprocessing program). The company's original plan was to complete construction according to the last operator's design, with only minor modifications and enhancements as required. This base case has no provision for recycling cyanide in the circuit -- all leaching solution is passed to a cyanide-destruct circuit at the end of the process. It has become obvious through the course of work on the PEA that economics of the base case will be significantly enhanced by recycling the cyanide solution, reducing reagent consumption, and the associated purchase and transportation costs.

Three alternatives are being evaluated:

1. Use an existing thickener after the CIL process to recycle cyanide solution and thereby decreasing the cyanide-destruct circuit operating cost;
2. Installation of a new filter to further increase cyanide recycling, and reduce cyanide destruction requirements and associated costs;
3. Assess the benefits of installing a Merrill Crowe system for gold recovery with shipment of gold bars rather than loaded carbon off-site.

To properly assess these enhancements, additional test work is required, which is being performed at the PRA Metallurgical Lab in Richmond, B.C. G.R. Rawsthorne and Associates is overseeing this work on behalf of the company. The company is now projecting completion and release of the preliminary economic assessment on the tailings program by late July.

High-grade tailings

Due to a previous production average of 42 grams per tonne gold (1.4 ounces per ton) and a recovery rate of 83 per cent, Fire River Gold is in the process of completing a resource estimate on Nixon Fork gold mine's high-grade tailings pond. In 2009, the company began a $1.25-million evaluation of the project to confirm the status of the geological work, confirm both the gold grade from the tailings pond and further metallurgical assessment through testwork. The evaluation program is continuing into 2010, with key milestones including a determination of a go, no-go decision for completing the CIL circuit to process tailings by fall 2010; defining exploration targets for underground and surface drilling commencing in summer 2010; the preparation of a new resource estimate for the property by fall 2010; and the determination of a go, no-go decision for the resumption of underground mining by the end of the year.

                            PAST PRODUCTION AVERAGES

                      Grade          Mined         Recovered         Recovered
Mining      Tonnes   Au   Au       Au      Au     Au      Au        Cu      Cu
period       mined  (g/t)(opt)     (g)    (oz)    (g)    (oz)      (kg)    (lbs)

1995-1999   122,381  42.0 1.2 5,136,118 165,130 4,284,473 137,749 952,544 2,100,000

2007 (6 mos) 18,105  17.1 0.5   309,635   9,955   210,726   6,775  35,672    78,644

Total       140,486  38.8 1.1 5,445,753 175,085 4,495,199 144,524 988,216 2,178,644