First Mexican Starts 2nd Drill Rig and Provides Update at Guadalupe

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/17/11 -- First Mexican Gold Corp. (the 'Company' or 'FMG') (TSX VENTURE: FMG)(FRANKFURT: 21M) is pleased to announce the arrival of a second diamond drill rig at its Guadalupe property in southeast Sonora State, Mexico.

While the Company continues ongoing drilling of BTW core at numerous prospects within the Guadalupe property, on August 11th Rig #2 began drilling a minimum 1,200 metres (5 to 6 holes) of HQ core to evaluate four high priority target areas, within the known Diana, Karen East, Erica, and Bailey zones of mineralization.

Rig #2 has initially been deployed at the first of the next two hole locations planned for the Diana zone. This first hole, HDH 11-18, is planned to drill to a depth of 300 metres to test the western extent of a very significant 1,700 metre long 100 metre wide chargeability anomaly discovered earlier this year using a 3D IP (Induced Polarization) survey, and strongly correlated with three earlier drill holes (HDH 11-09 thru HDH 11-11), which have already delineated 400 metres along the anomaly's eastern extension.

The second hole to be drilled at the Diana zone, during this phase, aims to test a secondary offset chargeability and possible enrichment zone lying northwest from Diana's western most extension. With these two holes, the Company intends to confirm that the Diana zone represents a minimum 1,700 meter long mineralized zone, with very strong potential for a near surface low dilution low grade bulk mineable Gold and Silver deposit. If successful, the Company will target the Diana zone with a resource drilling program to begin later in the Fall.

Subsequent to the completion of the two drill holes at the Diana zone, Rig #2 will drill the next hole at the newly discovered Karen East zone (as referenced in our June 20, 2011 news release) to a minimum depth of 200 meters. The Company has interpreted Karen East as being a vent associated to the mineralization which provided the excellent drill results encountered with earlier drilling at the Karen zone, located some 300 meters West and downhill from Karen East.

The fourth hole of the Rig #2 drilling program is planned for the Erica zone, targeted to drill the first of two known chargeability highs to a minimum depth of 300 meters at the northern extent of the chargeability anomaly. Although the first four holes (HDH 11-12 thru 11-15) drilled at the Erica zone have not returned significant assay results, they have added greatly to our understanding in the area. With this fourth hole the Company expects to better determine the physical and mineralized nature of the structure responsible for the Erica zone's chargeability anomaly, before finalizing the design of future drill holes.

The fifth hole is designated for the Bailey zone, to test the strong surface expression of mineralization and host rock around historical workings known to have produced high grade copper.

Depths to 300 metres are expected on selected holes. All locations within Rig #2's initial 1,200 metre program are considered high priority and have not been previously drilled. Multiple areas of interest for future HQ drilling are being evaluated.

Jim Voisin, President & CEO remarks, 'In light of these prevailing market conditions, we are delighted to begin drilling this next 1,200 metres of HQ drilling. The targets for each of these five holes in the four zones specified above are based on some very strong and correlating supporting data from our earlier work. Success in the next two holes at the Diana zone alone will offer the Company and, therefore, its shareholders, significant upside exploration potential to confirming the possibility of a sizeable low dilution bulk mineable gold and silver deposit.'

Ongoing road construction to access the contiguous area acquired earlier in the year through a joint venture with Kootenay Gold Inc. is progressing as expected, with completion scheduled for mid- to late August. Upon completion of this road construction, the Company will immediately begin extensive sampling and line cutting in preparation of another /-30 line kilometres of 3D IP survey to be carried by SJ Geophysics in November of this year. The Company will use the good results obtained from previous sampling by Kootenay Gold in this area (as referenced in the Company's February 14, 2011 news release) to assist in designing the planned 3D IP survey.

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.

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

First Mexican Gold Corp.

We seek safe harbour.

This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the Guadalupe property and other future plans, objectives or expectations of the Company are forward-looking statements that involve various risks and uncertainties. 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 the Company'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 the Company with securities regulators. The Company 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.

Contacts:

First Mexican Gold Corp.

Bob Butcher

Corporate Communications

604 681 7265
bob@fmgoldcorp.com
www.fmgoldcorp.com