Mr. Jim Voisin reports

FIRST MEXICAN REVIEWING PRODUCTION OPTIONS FOR THE GUADALUPE PROPERTY IN MEXICO

First Mexican Gold Corp. is updating its shareholders on activities at the Guadalupe property exploration site. Corex Gold Corp., which property is contiguous to Guadalupe, announced on June 23, 2014, that it has entered into a letter of agreement with H. Morgan & Co. to provide financing of up to $1.65-million, and to provide operational and management services in regard to the company's Santana exploration property, with the intent of moving the company into production. Subsequently, First Mexican Gold has granted verbal permission to a third party to allow sampling of its Diana zone. The Diana zone is located two kilometres east of the Nicho zone of Corex and is interpreted to be up to 1,500 metres long, and on strike with a mineralized zone located on its northern face.

FMG is currently in the final stages of obtaining a grant from SGM (Mexican Ministry of Mines) to be used to drill the Diana zone, should an interested third party decide to independently confirm mineralization in this area.

The FMG claims are located along a trend of producing mines in the Sierra Madre Occidental, including the Mulatos mine of Alamos Gold Inc., the Dolores mine of Pan American Silver Corp. and the Ocampo mine of Minera Frisco SAB de CV. FMG is concurrently looking for financing to finance an engineering study of the viability of putting the Karen zone into production through an open-cut mining method and heap-leach recovery pad. The high-grade Karen mineralized zone occurs at or near surface and is amenable to an open-cut technique, allowing extraction of the rock and processing on a leach pad that would be situated on site. The initial overview of this possibility is encouraging. At the last annual general meeting, FMG was approved by shareholders to incorporate an advanced-notice procedure but has not implemented this.

Some historical data

Karen zone drill highlights to date (all near-surface intercepts; see news releases dated April 28, 2011, Feb. 27, 2012, and Oct. 15, 2012) and Diana zone drill highlights to date (all near-surface intervals; see news release on March 10, 2011) are set out in an attached table.

Drill hole     Length (m)    Au (g/t)    Ag (g/t)   Cu (%)     AgEq (g/t)*

Karen
HDH 09-01            5.8        3.67         753                     934
HDH 09-02           15.2        2.58          47                     198
HDH 09-03           39.2        6.06         669     0.94           1094
RC hole No. 2        2.0        1.48        1330                    1357
RC hole No. 3         18        6.52          61
HDH 11-04           15.2        1.57         336     0.18
Plus               22.35        0.35         200     1.21
HDH 11-05          33.46        4.27         395     1.24            785
HDH 11-06          21.60        4.90         104     0.73
HDH 11-27           9.70        6.22        1853    12.62           3288
HDH 11-28           1.50        0.56        20.4     0.20             73
HDH 11-29          12.20        1.86          70     0.14            177
Plus               51.85        0.16        6.15     0.52
HDH 11-30          24.40        0.34        25.8     0.42             87
Including           1.50        4.44         380     1.64            792
HDH 12-32           7.65        3.64                                 217
HDH 12-33           10.9        2.70         152     0.20            306
Diana
HDH 11-09          15.70        0.77         105                     146
Plus                0.70        2.58          12     0.12
HDH 11-10           39.0        0.40         135                     153
HDH 11-11          49.50        0.42          86                     107
Including          13.30        0.75         195                     231

*Numbers used for silver-equivalent calculations: gold -- $1,308; silver
 -- $21.94; copper -- $3.23; troy ounce -- 31.1 grams

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