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Vancouver, British Columbia, August 9,
2012. Fire River Gold Corp. ("Fire River" or the "Company") has
closed the first tranche of its previously announced brokered private
placement financing (the "Offering"). Pursuant to the Offering, the
Company issued 88,417,458 Units at a price of $0.065 per Unit for
aggregate gross proceeds of $5,747,134.77. Each Unit consists of one
common share ("Common Share") and one common share purchase warrant (a
"Warrant"). Each Warrant entitles the purchaser to subscribe for one
additional common share (a "Warrant Share") at an exercise price $0.10
per Warrant Share for a period of five years.
BayFront Capital Partners Ltd. acted as agent in connection with the
Offering. The Company paid $137,040.80 and issued 2,108,320 compensation
options (each, a "Compensation Option") as commission in connection with
the Offering, other than in respect of subscriptions received from
certain president's list subscribers. Each Compensation Option is
exercisable into one Unit at a price of $0.065 for a period of five
years.
The use of proceeds of the Offering will be used for the further
development of the Company's Nixon Fork mine, satisfaction of an
outstanding debt and for working capital and general working capital.
All Common Shares, Warrants, and Compensation Options, carry a
four-month hold period restricting them from trading until December 10,
2012.
About Fire River Gold
Fire River Gold Corp. is Alaska's newest gold producer, with a projected
30,000 ounces per year of gold to be produced on its wholly owned Nixon
Fork Gold Mine located in the resource rich Tintina Gold Belt.
Operations started in July 2011, with a near term production target of
30,000 oz/Au by end of year 2012, projecting an increase to 40,000 oz/Au
per year in 2013, ramping up to a projected 50,000 ounces in 2014. This
year-round mine program is producing both concentrate and doré bars.
Fire River Gold has fantastic growth potential, with excellent targets
identified to grow its current high grade resource. Coupled with a
strong management team and board of directors, Fire River has a bright
future ahead.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. This news release contains forward-looking
statements regarding the business and operations of Fire River Gold. In
particular, statements regarding use of proceeds and production targets
in the upcoming years are forward-looking statements. There can be no
assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those anticipated
in such statements. Important factors that could cause actual results to
differ materially from Fire River's plans or expectations include risks
relating to the actual results of current exploration activities,
fluctuating gold prices, possibility of equipment breakdowns and delays,
exploration cost overruns, availability of capital and financing,
general economic, market or business conditions, regulatory changes,
timeliness of government or regulatory approvals and other risks
detailed herein and from time to time in the filings made by Fire River
with securities regulators. Fire River expressly disclaims any intention
or obligation to update or revise any forward-looking statements whether
as a result of new information, future events or otherwise except as
otherwise required by applicable securities legislation.
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