First Mexican reviewing production options for the Guadalupe Property in Mexico

TSX-V Trading Symbol: FMG

VANCOUVER, July 17, 2014 /CNW/ - First Mexican Gold Corp. (the `Company` or `FMG`) (TSX-V: FMG, Frankfurt: 21M) would like to update its shareholders on activities at the Guadalupe property exploration site.

Corex Gold Corp, whose property is contiguous to Guadalupe, announced on June 23, 2014, that it has entered into a letter of agreement with H. Morgan & Co. to provide financing of up to $1.65-million, and to provide operational and management services in regard to the Company's Santana exploration property, with the intent of moving the company into production.  Subsequently, First Mexican Gold has granted verbal permission to a third party to allow sampling of its Diana zone.  The Diana zone is located 2 kilometres east of the Nicho zone of Corex and is interpreted to be up to 1500 meters long and on strike, with a mineralized zone located on its northern face.

FMG is currently in the final stages of obtaining a grant from SGM ( Mexican Ministry of Mines) to be used to drill the Diana zone should an interested third party decide to independently confirm mineralization in this area..

The FMG claims are located along a trend of producing mines in the Sierra Madre Occidental, including the Mulatos mine of Alamos Gold Inc., the Dolores mine of Pan American Silver Corp and the Ocampo mine of Minera Frisco, S.A.B. de C.V. 

FMG is concurrently looking for financing to fund an engineering study of the viability of putting the Karen zone into production via an open cut mining method and heap leach recovery pad. The high grade Karen mineralized zone occurs at or near surface and is amenable to an open cut technique allowing extraction of the rock and processing on a leach pad that would be situated on-site. The initial overview of this possibility is encouraging.

At the last annual general meeting, FMG was approved by shareholders to incorporate an advanced notice procedure but has not implemented this.

Some Historical Data

Karen zone drill highlights to date (all near-surface intercepts, see news releases dated April 28, 2011, Feb. 27, 2012, and Oct. 15, 2012) and Diana zone drill highlights to date (all near-surface intervals, see news release on March 10, 2011) are as follows:

Drill Hole	Length (m)	Au (g/t)	Ag (g/t)	Cu (%)	Ag Eq. g/t *
KAREN
HDH 09-01	5.8	3.67	753		934
HDH 09-02	15.2	2.58	47		198
HDH 09-03	39.2	6.06	669	.94	1094
RC hole #2	2.0	1.48	1330		1357
RC hole #3	18	6.52	61
HDH 11-04	15.2	1.57	336	.18
plus	22.35	.35	200	1.21
HDH 11-05	33.46	4.27	395	1.24	785
HDH 11-06	21.60	4.90	104	.73
HDH 11-27	9.70	6.22	1853	12.62	3288
HDH 11-28	1.50	.56	20.4	.20	73
HDH 11-29	12.20	1.86	70	.14	177
plus	51.85	.16	6.15	.52
HDH 11-30	24.40	.34	25.8	.42	87
including	1.50	4.44	380	1.64	792
HDH 12-32	7.65	3.64			217
HDH 12-33	10.9	2.70	152	.20	306
DIANA
HDH 11-09	15.70	.77	105		146
plus	.70	2.58	12	.12
HDH 11-10	39.0	.40	135		153
HDH 11-11	49.50	.42	86		107
including	13.30	.75	195		231.

*Numbers used for Ag Eq. calculations: Au $1308; Ag $21.94; Cu $3.23; troy oz. 31.1g

First Mexican Gold Corp is an active precious metals explorer in Mexico and holds a 100% interest in the Guadalupe property, located in an area currently attracting the attention of several major mining companies.

On behalf of the Board of Directors,

Jim Voisin
President & CEO
First Mexican Gold Corp
519 699 5352
[email protected]

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

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.

Jim Voisin, President & CEO, First Mexican Gold Corp, 519 699 5352, [email protected]