First Mexican Gold Corp. - Updated 43-101 Report & Approval of Shares for Debt

TSX-V Trading Symbol: FMG

VANCOUVER, Oct. 28, 2014 /CNW/ - First Mexican Gold Corp. (the "Company" or "FMG") (TSX-V: FMG), would like to report that a number of developments have occurred and presently underway as outlined below.

The Company is pleased to announce it has completed an updated 43-101 resource report on the Hilda 30 claim that contains the Karen zone situated within the companies Guadalupe Property, Sonora Sate, Mexico. This report outlines approximately 225,000 gold equivalent ounces near surface.

The updated report has compiled drilling data carried out in the Karen zone of the Hilda 30 property. The data was formatted for import and loaded into MineSight mining/modelling software to create an inferred resource calculation.

The inferred resource is calculated as 1,067,000 tonnes of 6.566 g/t Au equivalent (eq.) outlining approximately 225,000 gold eq. ounces broken down as 65,842 ounces of gold and 9,559,000 ounces of silver at a .2 g/t Au cut-off.

The table below indicates the inferred resource based on various cut off grades and is expressed in Gold equivalent grade based on a 60 to 1 silver to gold ratio. The table also reflects both grade and contained metal for each cut of grade shown.

The occurrence is found to be very close to or starting at surface and appears to be mineable by an open cut method of extraction which is an extremely cost effective way of extracting the rock for processing. The Company has been developing production plans to exploit this high grade inferred resource.

"The Company is very pleased to make available this high grade 43-101 resource report on the Karen zone and continues to focus on completing funding to production" said Jim Voisin, President and Chief Executive Officer of FMG. Mr. Voisin adds: "we remain committed to our shareholders to build a sustainable project on what we believe to be the high potential Guadalupe property in a difficult market environment for junior exploration producers."

Further to the above Mr. Voisin comments "the project offers a unique high grade exploitable opportunity at what by most standards will be a low cost production profile, not a common occurrence."

Further to the Company's news release of September 8, 2014, the Company is pleased to announce it has received TSX Venture Exchange approval for and closed its shares for debt of 1,876,923 common shares, to satisfy debt in the amount of $122,000 for management fees, after receiving disinterested shareholder approval for the issuance of the shares for debt at the Company's Annual General Meeting held on October 6, 2014.

These shares are subject to a hold period expiring February 17, 2014, except as permitted by applicable Canadian securities laws and the TSX Venture Exchange.

The Company's Chief Executive Officer, Jim Voisin, acquired control over 1,876,923 common shares of the Company through a holding company, Kargi Consulting Corp., as part of the Company's debt settlement agreements. Mr. Voisin acquired the securities for investment purposes. Mr. Voisin intends to evaluate his investment in the Company and to increase or decrease his beneficial shareholdings from time to time as he may determine appropriate for investment purposes.

Following the debt settlement, Mr. Voisin and his joint actors beneficially own, directly, 8,301,380 common shares and 2,200,000 incentive options, which, upon exercise of such incentive options, represent 15.5% of the issued and outstanding common shares of the Company on a partially diluted basis.

The participation by such officer and director is considered a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction is exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 as neither the fair market value of the shares issued to, nor the consideration paid by, the related party exceeded 25% of the Company's market capitalization.

The Company did not file a material change report more than 21 days before the expected closing of the shares for debt as the details of the shares for debt and the participation by the related party was not settled until shortly prior to closing and the Company wished to close the shares for debt on an expedited basis for sound business reasons.

The company has signed multiple Confidentiality Agreements with qualified well-funded potential partners and is focussed on advancing the Guadalupe property to early leach pad production, review previously released assay results to get a better understanding of production potential. As indicated in many previous releases, all results to date are at or near surface.

John Archibald, PGeo, a qualified person pursuant to National Instrument 43-101, has reviewed and approved the technical information in this press release on behalf of the company. Any samples were prepared and assayed by an accredited lab, ALS Chemex, Vancouver, B.C. Quality control is monitored on a continual basis, and utilizes a system of standards, blanks and duplicates to ensure analytical accuracy.

First Mexican Gold Corp is an active explorer for precious metals in Mexico and controls a 100% interest in the Guadalupe property package with the intention of becoming an active producer. The Company holds extensive exploration rights in this high potential exploration area that is now attracting attention from major mining companies.

On behalf of the Board of Directors,

Jim Voisin
President and CEO
First Mexican Gold Corp.
519 699 5352