First Mexican Gold Corp.: New Target Confirmation & Exploration Update for Shareholders

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/20/11 -- First Mexican Gold Corp. (the 'Company' or 'FMG') (TSX VENTURE: FMG)(FRANKFURT: 21M) is pleased to provide its shareholders the following exploration update:

On June 2, at SJ Geophysics offices in Delta, BC, as part of finalizing and executing their agreed scope of supply, senior staff of SJ Geophysics met with FMG senior management and technical staff to present and discuss their findings and interpretations of the extensive 3D IP (Induced Polarization) geophysical survey carried out on the Company's Guadalupe Gold & Silver Project in SE Sonora, Mexico.

SJ Geophysics' scope of work involved acquisition and interpretation of 42 line kilometers of 3D IP (Induced Polarization) geophysical survey for chargeability and resistivity responses over two specific targeted zones: 1. The Diana zone, in order to compliment positive results from 3 earlier diamond drill holes HDH 11-9 thru HDH 11-11drilled over a 400 metre spacing on the eastern flank of a significant ridge in January & February 2011 and an earlier (2010) grid and trenched surface sampling campaign, and; 2. The North to South geographic corridor from the earlier discovered Karen zone (North) down to the Bailey zone (acquired thru acquisition in Q1-11) in the South, where a comprehensive and successful grid surface sampling program was carried out during the 2010 exploration campaign.

The acquisition survey program on both targets was configured on 100 meter spaced lines and dipole lengths for an optimized interpretation of expected near surface targets. The highlights of this survey and interpretations can be summarized as follows:

1. Diana Zone (11.3 line kilometers):

Strong (primary) chargeability in the range of 15 to 20ms (milliseconds) confirms a target that strongly correlates over the 400 meter spacing of holes HDH 11-9 thru 11 in the eastern flank, while also extending west an additional 600 metres at widths from 80 to 150 meters and reaching depths up to 175 metres below surface. Background values are at below 10 milliseconds.

Additionally, a secondary but almost equal in size chargeability target was discovered offset 90 degrees and only a couple of hundred meters north northwest from the western extent of the above (primary) Diana zone where no earlier prospecting, mapping, drilling or sampling by the Company has been carried out. To view a Plan View and snapshot of 3D modeling of the survey and interpretations visit the following links:

http://www.fmgoldcorp.com/Diana-3D-IP-06-11.pdf

http://www.fmgoldcorp.com/Diana-3D-IP-Chargeability-Plan-View 06-11.pdf

2. Corridor (North to South) from Karen to Bailey zones (30.5 line kilometers):

Discovery of a significant chargeability target now being referred to as the Erica zone lying near surface in the ridge adjacent (Southeast) of the known high grade Karen zone, trending south towards the known mineralized Bailey zone, with interpreted response at 12 to 14ms, indicates the presence of a near surface target measuring 1.1 kilometers in length, from 150 to 350 metres in width and an interpreted minimum (bottom) depth of at least 350 to 400 meters. A more defined target at a response of 18ms within this same area has a length of approximately 600 metres and widths from 75 to 250 metres. Background values are below 10 milliseconds.

Based on the survey's configuration, known regional characteristics of structures and geology, as well as known results from other surveys carried out in the area, SJ Geophysics concludes with confidence the likelihood or expectation of the structure responsible for this chargeability to be open at depth until further tested by either drilling or a 'depth' configured 3D-IP data acquisition survey. To view a snapshot of this 3D modeling and correlating surface sampling data select the following link:

http://www.fmgoldcorp.com/Karen-Erica-Bailey-3D-IP-06-11.pdf

3. Karen zone:

9 x 800 metre North to South survey lines on 100 meter spacing over the entire Karen zone area strongly confirm a secondary area of intruded chargeability under the known hematite cap lying at the top of the ridge from the Karen zone and on trend along a known andesite contact. This area is approximately 300m East NE of the strongly mineralized discovery hole HDH 09-03 in 2009 (eg: from surface to 37.8m averaging 6.5 gpt Au and 678 gpt Ag; also w/ a 16.9m intercept averaging 10.6 gpt Au and 1,400 gpt Ag beginning at 12.2m depth). Here the Company interprets a sulphide oxide transition zone similar, and associated, to what is encountered at the Karen zone. To view 4 Cross Sections covering this new area of interest (Karen East) please visit the following link:

http://www.fmgoldcorp.com/Karen-3D-IP-XSections-06-11.pdf

This area trending NW to SE along a known andesite contact for over 800 metres is proving to be comprised of moderately complicated geology hosting strongly mineralized oxides and sulphides with very significant Gold & Silver values.

After reviewing and evaluating the above results the Company's technical staff have designed and planned a next phase of drilling at the Diana zone that contemplates up to 15 strategically sequenced 100 metre spaced diamond drill holes to depths up to 200 metres in order to further delineate and define the extents of this target in a manner where positive results can support developing an inferred resource estimate compliant with NI 43-101.

Secondly, the Company now contemplates a first phase of drilling at the Erica zone that requires at least 10 holes (with depths up to 450 meters) to fully investigate the physical characteristics and extents of the interpreted structure. At present only 3 holes have been drilled so far (HDH 11-12 through HDH 11-14).

Lastly while drilling hole HDH 11-15 at the Bailey zone the drill rig broke down on May 24th due to mechanical failure of the drilling head. Repairs (re-build) were carried out in Hermosillo over the past couple of weeks with drilling operations only having resumed on June 18th. After completing HDH 11-15 this rig will resume drilling at the Karen zone to continue definition drilling as well as further investigate this new area of interest.

As the Company prepares for the arrival of a second drill on site, access road and drill pad construction continues along with selective prospecting, surface sampling and mapping of both existing known targets (within the original concessions) as well as new known targets within the recently acquired contiguous land packages.

In the absence of any major delays the above work is scheduled to be completed within the next 3 to 4 months. During this time the Company aims to continue providing shareholders ongoing updates and results as well as additional information and content for our website.

Additionally, the Company's newly constructed camp and compound area is now fully operational and secured.

'We're expecting the pace and scope of exploration and drilling to ramp up quite a bit in the near term. After meeting and reviewing the results with SJ Geophysics our level of confidence in the Diana zone having the size necessary to support a plus 1 million ounce gold equivalent target has been strongly demonstrated with the chargeability's strong correlation to our earlier drilling and surface sampling. Having discovered the Erica zone as a chargeability target that's considerably larger than Diana and also well supported by strongly correlated anomalous grid surface sampling is a real bonus for our shareholders and something we are very keen to fully investigate the potential of in these coming months. However just as encouraging for the near term is to learn how the area around the higher grade Karen zone appears to be expanding along this andesite contact,' remarks Jim Voisin, President & CEO.

John Archibald, PGeo, of Billiken Management Services Inc., a qualified person pursuant to NI 43-101, has reviewed and approved the technical disclosure of this press release on behalf of the Company, while Trent Pezzot, B.Sc., P.Geo., and Senior Geophysicist with SJ Geophysics has also reviewed and approved the technical disclosure relating to results and interpretations of the 3D-IP survey.

First Mexican Gold Corp is an active explorer for precious metals in Mexico and holds an option to acquire 80% interest in the Guadalupe property package from (MIMSA) a wholly owned subsidiary of International Millennium Mining Corp (TSX VENTURE: IMI). The Company now controls a total of 15,112 hectares in this high potential exploration area.

On behalf of the Board of Directors,

Jim Voisin, President & CEO

We seek safe harbour.

Cautionary Statement:

This document contains 'forward-looking statements' within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company's documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Contacts:

First Mexican Gold Corp.

Jim Voisin

President & CEO

604 681 7265
www.fmgoldcorp.com