December 30, 2010 - Vancouver, Canada --
Fire River Gold Corp. (TSX.V: FAU; OTCQX: FVGCF; FSE: FWR) (the
"Company") is pleased to announce that further to its news releases
dated on October 21, 2010 and November 24, 2010 it has closed the third
and final tranche of its non-brokered private placement financing. Due
to strong interest, the private placement was over-subscribed. The
Company issued an aggregate 18,795,008 units (the "Units") at a price of
$0.45 per Unit generating gross proceeds of $8,457,754. The third
tranche consisted of 3,128,514 units for gross proceeds of $1,407,831.
Each Unit consists of one common share and one-half share purchase
warrant. Each whole warrant entitles the holder to purchase one
additional common share at $0.65 per warrant for a period of 18 months.
Finder's fees were paid in connection with this closing.
In compliance with the TSX Venture Exchange and Canadian securities
laws, all of the securities issued in connection with the closing of the
third tranche carry a legend restricting them from trading until May 1,
The funds from the private placement will be used for the completion of
the gold recovery system at the Nixon Fork Gold Mine and for general
About Fire River Gold
Fire River Gold Corp. is a near term production company with an
experienced technical team focused on bringing its flagship project, the
Nixon Fork Gold Mine, back into production in 2011. The Nixon Fork Gold
Mine is a fully permitted and bonded mine with past production values
averaging 1.14 opt (39 gpt). Facilities at the Nixon Fork Gold Mine
include a 200 tpd flotation plant with a gravity gold separation circuit
and a sulphide flotation circuit. In 2008, a gold recovery plant / CIL
gold leaching circuit was purchased and partially installed. The mine
also includes a fleet of mining vehicles, a self-contained power plant,
maintenance facilities, drilling equipment, an 85 person camp, office
facilities and a 1.2 km long landing strip.
Fire River Gold
Corp is a member of the International Metals Group.
On behalf of the Board of Directors, I look forward to keeping you
updated with our corporate developments.
President and C.E.O.
Certain information regarding the Company including management's
assessment of future plans and operations, may constitute forward-looking
statements under applicable securities laws and necessarily involve risks
associated with mining exploration and development, volatility of prices,
currency fluctuations, imprecision of resource estimates, environmental and
permitting risks, access to labour and services, competition from other
companies and ability to access sufficient capital. As a consequence, actual
results may differ materially from those anticipated in the forward-looking
statements. A feasibility study has not been completed and there is no certainty
the disclosed targets will be reached nor that the proposed operations will be
economically viable. The TSX Venture Exchange or its Regulation Services
Provider have not reviewed and do not accept responsibility for the adequacy or
accuracy of the contents of this news release, which has been prepared
by management. We seek