Debt Extension Gives Firstgold Until December 30, 2009 to Close Chinese Investment

TORONTO--(Marketwire - 11/23/09) - Firstgold Corp. (TSX:FGD - News) (Pinksheets:FGOC - News) ("Firstgold" or the "Company") announced today that it has reached an extension agreement with its lenders to give it until December 30, 2009 to close the previously announced sale of the outstanding secured debt which will be followed by the sale of shares representing 51% of the then outstanding shares of Firstgold to Northwest Non Ferrous International Investment Company Ltd. ("Northwest") for $9,500,000.

As previously announced, the Committee on Foreign Investment in the United States ("CFIUS") has been reviewing the agreement we have reached with Northwest to acquire a majority interest in Firstgold. The review is a national security protocol to ensure any takeover of a United States company does not adversely affect United States National security. The review period has an initial review of 30 days and can be extended one time for an additional 45 days if the review is not completed. We have been advised that while at this point there are no outstanding issues that would prevent the completion of our agreement with Northwest, that the CFIUS committee requires additional time to complete their review and has therefore extended the review period to December 21, 2009.

Terry Lynch, Firstgold CEO, commented, "In terms of global commerce Northwest's investment in Firstgold is relatively minor. We know of no reason why ownership of 51% of our small gold mining company would present a security threat to the United States and therefore are highly confident this review process will ultimately allow this investment to close."

The delay in closing the sale and subsequent investment has come at a cost to Firstgold. Northwest is not able to advance additional funds until CFIUS approval has been obtained. This has meant Firstgold has had to obtain financing as each delay requires Firstgold to renegotiate with its secured lenders and to provide for additional working capital to maintain core company operations. This extension agreement will cost Firstgold the following:

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--  A reduction in the exercise price of the 15,000,000 warrants that our
    secured creditors hold from the current strike price of $0.145 at any point
    before August 7, 2011 to $0.075 and the extension in term from August 7,
    2011 to August 7, 2012.
--  $500,000 if Firstgold pays our secured creditors $500,000 on or before
    November 27, 2009.
--  If Firstgold does not pay the secured creditors $500,000 on or before
    November 27, 2009 then it agrees to issue the secured creditors a
    convertible note in the amount of $3,000,000. Subject to regulatory
    approvals the convertible note would be convertible after closing of the
    Northwest transaction into 9.9 % of the then outstanding shares of
    Firstgold.