First Mexican Announces Equity Financing

VANCOUVER, Oct. 22, 2012 /CNW/ - First Mexican Gold Corp. (the `Company` or `FMG`) (TSX-V: FMG, Frankfurt: 21M) has entered into a letter of engagement with Euro Pacific Canada Inc. (the Agent), pursuant to which the Agent has agreed to place, on a commercially reasonable best efforts basis, up to ten million units of the company at a price of $0.10 per unit for gross proceeds of up to $1.0 million dollars. Each unit consists of one common share plus one-half of one common share purchase warrant, with each whole purchase warrant exercisable into a common share at a price of $0.14 for a period of 24 months from closing.

The agents will receive a cash commission of 8 per cent of the gross proceeds raised, as well as 8 percent broker warrants.

The company intends to use the net proceeds of the offering to fund a 3000 meter drill program testing the Diana zone mineralization over an 900 meter strike length as well as the Ann zone over a 400 meter area plus one hole planned to intercept an area of high chargeability on the Linda zone and for working capital and other general corporate purposes.

First Mexican Gold Corp is an active explorer for precious metals in Mexico and has now completed the acquisition of a 100% interest in the Guadalupe property package.  The Company now holds extensive exploration rights in this high potential exploration area that is now attracting attention from major mining companies.

About Euro Pacific Canada Inc.

Euro Pacific Canada is an IIROC registered brokerage headquartered in Toronto, with offices in Montreal and Vancouver, specializing in foreign markets, precious and strategic metals investing. The firm offers an integrated platform of investment banking, institutional sales and trading, research, and private client services following the advice laid out by Euro Pacific Capital's Chief Global Strategist Peter Schiff, an internationally recognized and market strategist. Additional information is available at www.europac.ca.

For more information on this offering contact Tarek Mnaimne at Euro Pacific Canada at 416-649-4271 x308.

On behalf of the Board of Directors,

Jim Voisin
President & CEO
First Mexican Gold Corp.
519 699 5352

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.

SOURCE: First Mexican Gold Corp.

Vancouver Head Office
#1000, 355 Burrard Street Vancouver, B.C. V6C 2G8 Canada
Phone:  [phone]
Website: www.fmgoldcorp.com