This post was a set of email strings allegedly from Terry Lynch and Eric Kepler:

From: Terry Lynch (terrylynch@gmail.com)
Sent: Mon 10/25/10 9:04 PM
To: Mark Taylor (tvmetguy@hotmail.com)


I couldn't agree more....I had offered to pay for all costs and put mine back into operation with
outside capital and no security before the assets were turned over....and they turned that down.

Terry


On Mon, Oct 25, 2010 at 8:57 PM, Mark Taylor <tvmetguy@hotmail.com> wrote:

Terry,

Thank you for the information. You aren't kidding, if someone can get 200,000 ounces out of the mine at 1500-2000/oz I'd say they are doing OK. Maybe a surprise bidder will show up. Why the secured lenders wouldn't wait until the permit to produce is established is beyond me? I know we are at record high gold prices right now, but the overwhelming consensus is for gold to be more next year, and even much more beyond that.

Mark


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Date: Mon, 25 Oct 2010 20:35:44 -0400
Subject: Re: FGOCQ Auction
From: terrylynch@gmail.com

To: tvmetguy@hotmail.com


Mark

I am sorry to advise you that baring a miracle I do not believe Firstgold will
see any recovery from the auction on the Relief Canyon assets. It has been very
difficult to get any investor group to come forward given the particular circumstances
of our project.

I doubt they will get more than $15 million for the mine.

The challenge is that while gold prices have risen we have had very little interest
in investors unless they could steal it for $10 million or less. The biggest drawback
is that the permit to produce is still not in hand...and while it is in process it will
need another 6-8 months before it is received. I think this fact in combination with the
small resource has frustrated any pure financial investor coming forward.

Once we turned the asset back over to the creditor management has been
on outside looking in and has had little input. Until the passover of the asset
we had worked all avenues without success.

I have no doubt the eventual buyers will do very well however it will
mean little to us. Our one remaining opportunity is to restructure the
shell company and the $30 million in tax loss carry forwards to make the
shell attractive to another business. Hopefully through this we will have a
chance to recover some of our losses.

I wish it were better news but such as it is these are the facts.

regards

Terry


On Mon, Oct 25, 2010 at 2:29 PM, Mark Taylor <tvmetguy@hotmail.com> wrote:

Mr. Klepfer,

Thank you for the response. Since you are managing just the assets do you have you estimation of their worth? As of March 2010 FGOC claimed assets of $105M which included a DCF model of the or deposits of $86M when gold was at $1100/oz. Since gold is now $1350/oz a lot of us shareholders are putting the asssets closer to $120M now with liabilities of $32M or $88M total equity. Obviously if you add in the NOL's it makes the $88M price tag a bit more viable.

The price of gold is obviously hard to determine, but the consensus is up for 2011. Do you have any estimation as to what FGOC could bring at auction?

Here is the link to where we investors are finding FGOC's assets:

http://www.scribd.com/doc/30832353/FGOCQ-March-2010-Mor

Thanks,

Mark Taylor



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From: eric@klepfermining.com
To: tvmetguy@hotmail.com
CC: terrylynch@gmail.com
Subject: RE: FGOCQ Auction
Date: Mon, 25 Oct 2010 09:30:56 -0700



Mr. Taylor,

Sorry it has taken me so long to respond as I have been out on vacation for the past week. I am not the best person to provide information pertaining to specific issues relating to Firstgold Corporation. As you know, I have been placed as the Asset Manager under an agreement between Firstgold Management, the secured lenders, and the court.

I am not aware of any sale pending with respect to Firstgold shares or the Corporation. Also, I was not part of the Chinese transactions/negotiations and do not have any information on that situation.

As a shareholder, I appreciate your interests but you need to direct those to Terry Lynch. As for the pending auction filing, I do not have any idea as to who or how many bids, if any bids, may be made during this process.

Sorry that I cannot be of much assistance as my role is really focused on managing the assets during this interim period for the secured lenders and Firstgold Management.

Eric Klepfer


From: Mark Taylor [mailto:tvmetguy@hotmail.com]
Sent: Friday, October 15, 2010 10:04 AM
To: eric@klepfermining.com
Subject: FGOCQ Auction



Mr. Klepfer,

As a FGOC shareholder I want to thank you for managing what is left of FGOC for the past several months. I have read the latest PACER filing on the auction. I do have a few questions and I wonder what you can answer?

There have been in excess of 30 investors who have visited FGOC to do due diligence, can we get the list of who these people or companies are?

To clarify, this is an all cash transaction? For instance, a company cannot come in and buy with shares of stock, like Newmont mining for example?

Us shareholders value the assets of FGOC at around 180 million right now, which includes around 50 milllion in NOL's, 11 million in equipment, and 120 million worth of gold per a DCF model.

Do you have any opinion at all as to what they auction will bid up too? At 10 cents on the dollar that would be 18 million and basically cover the secured lenders.

With the price of gold skyrocketing, we expect the bidding to be fierce, and us shareholders believe we will be getting at least a small payment.

Do you agree with the 180 million value? If someone did this the right way they could work the mine in 3 or 4 years and profit handsomely with roughly 266,000 ounces of gold there.

A lot of us investors are very positive, and believe we may see over a 50 million dollar bid.

Lastly, do you know of any truth to a claim that a Chinese investor wanted to get a 51% stake in FGOC within the last 12 months for a value of 26.5 million?

Any information you could provide would be great.

If you need me to call you I will.

Invested,

Mark J. Taylor