Fire River Gold Update on Progress of the Nixon Fork Mine Start Up

VANCOUVER, Aug. 25, 2011 /CNW/ --
FAU: TSX.V


FVGCF: OTCQX


FSE: FWR

VANCOUVER, Aug. 25, 2011 /CNW/ - Fire River Gold Corp. and Mystery Creek
Resources Inc. (TSX.V: FAU), (OTCQX: FVGCF), (FSE: FWR) (collectively
'the Company') are pleased to provide this update for the Nixon Fork
Mine. It provides a summary of the progress of mining and milling
activities.

Mill commissioning started on July 4(th) 2011 and it has operated since that time at an average availability of
71%. A total of 3,078 tons of ore was processed in July and
approximately 2,500 so far this month. Only gravity and flotation
circuits are being operated at this time, while the CIL plant is still
under construction. The current mill feed head grade is averaging
approximately 20 g/t.

Over 30 tonnes of copper concentrate has been produced containing 18%
Cu, 779 g/t Au, and 398 g/t Ag. A total of 21 bags of concentrate
weighing 18,300 kg have been shipped to Anchorage using a Hercules
L-100 aircraft.

The concentrate has been markedly improved in comparison to the last
production period by increasing the grades and decreasing the moisture
content as follows:

                                           

Year       Cu %     Au g/t     Ag g/t     % Moisture

2011       18.2     779        398        9.0

2007       12.6     337        184        22.8

Change     5.6      442        215        -13.8

The moisture content has been further reduced to less than 6% in the
most recent bags.

Gravity separation has recovered approximately 500 ounces of gold in the
gravity concentrate, which will be poured into a 30 kg doré bar.

Total gold recovery has averaged 78% (24% from gravity and 54% in the
copper concentrate) which is close to expectations. By comparison,
recovery averaged 68% in 2007. Total gold recovery will increase
substantially with the addition of leaching as a third gold recovery
process.

Approximately 4,000 tonnes of ore has been mined to-date from five
stopes using room and pillar extraction. The mine is currently
producing approximately 170 tonnes per day at a grade of 18 g/t.

The property is evaluating other stoping methods, including longhole to
reduce costs and increase productivity. Equipment has been acquired to
test these other methods, including a remote control scooptram and
drill buggy. Non-explosive ore extraction is also being tested using
scaling machines with considerable success.

The Qualified Person for this news release is Richard Goodwin, P.Eng,
President & C.O.O for Fire River Gold.

On behalf of the Board of Directors,

(Signed)

Richard Goodwin


President & C.O.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. 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. We seek safe harbour.

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Tel: 1 604 685 1870  Fax: 1 604 685 8045
Email:  info@firerivergold.com or visit www.firerivergold.com
2303 West 41st Avenue, Vancouver, B.C., Canada, V6M 2A3