TORONTO -- (Marketwire) -- 12/21/09 -- Firstgold Corp. (TSX:FGD) (FGOC) ("Firstgold" or "the Company") has been advised by Northwest Non Ferrous International Investment Company Ltd. ("Northwest") that they will withdraw their application to the Committee of Foreign Investment in the United States (CFIUS) today and will not proceed with their investment in Firstgold. As discussed in the Firstgold press release on December 18, 2009, CFIUS has determined through their investigation that serious, significant and consequential national security issues existed resulting in its disapproval of the proposed transaction between Northwest and Firstgold. In particular they highlighted the proximity of Firstgold's properties in proximity to the Fallon Naval Air Station and related facilities. CFIUS had considered several mitigation possibilities and concluded that none would sufficiently resolve the national security issues. This withdrawal of the CFIUS Application ends the CFIUS review process and eliminates the need to refer the CFIUS decision to the President.

"We are very disappointed to receive this news but not surprised. Northwest had thought they were making a simple investment in a mining property and had not anticipated on getting involved in what became a contentious national security issue. We are not sure of Northwest's next step. In addition to their proposed equity investment in Firstgold they do have a separate agreement to purchase the senior secured debt in our Company from our secured lenders. We are not sure how their CFIUS withdrawal will affect that agreement. In light of these developments Firstgold has had preliminary talks with other interested parties looking at investing in Firstgold, acquiring our Company outright and/or merging and we will now focus our attention on those opportunities," commented Terry Lynch Firstgold CEO.

Firstgold has spent $16 million over the last 24 months developing a processing facility at Relief Canyon, located outside Lovelock Nevada, on the site of the previously producing Pegasus Gold Mine. Additional information about Firstgold Corp. can be found by visiting its web site at www.firstgoldcorp.com