First Colombia Gold Signs Letter of Intent to Acquire Boulder Hill Gold project

MEDELLIN, Colombia, Nov. 8, 2011 /PRNewswire/ -- First Colombia Gold Corp. (OTCQB: FCGD) is pleased to announce it has signed a Letter of Intent ("LOI") to acquire the Boulder Hill Gold project.

The Boulder Hill project consists of a state mineral lease covering 114 acres in Lincoln County, Montana. The Boulder Hill project is located within the Belt Basin of the northwestern United States and southwestern Canada. Mineralization at Boulder Hill is hosted by the Precambrian Age Prichard Formation. The Boulder Hill project lies near the crest of the Wolf Creek Anticline and adjacent to the Wolf Creek Fault.

Historical information not verified by the Company indicates that sediment-hosted gold mineralization was identified during reconnaissance exploration at the project within a prospect trench in 1995. It appeared that bright white quartz veins which were believed to contain low-grade gold mineralization were the primary targets of historic interest. The historical information reviewed, but not verified by the Company, indicated that the rocks found in 1995 contained gold mineralization that consisted of rather drab-colored, silicified, sericitized, and pyritic to locally gossanous metasediments. The Company's initial data review suggests that initial exploration activities would be directed towards establishing the potential for stratabound gold occurrences should the Company succeed in acquiring the Boulder Hill Project.

On September 30, 2011, the Company entered into a non-binding Letter of Intent ("LOI") with Boulder Hill Mines, Inc., an Idaho corporation ("Boulder Hill"), to acquire by way of an assignment from Boulder Hill all of its rights, responsibilities and obligations under a state mineral lease and associated agreement (the "Agreement") between Boulder Hill and private parties. Boulder Hill under the terms of the Agreement holds the mining and mineral rights to a certain property located in the State of Montana referred to as the "Boulder Hill Project".

Under the terms of the proposed transaction, it is contemplated that the Company would pay Boulder Hill the transaction price $230,000 to be payable in cash, stock or a combination thereof, and it is contemplated there will be a multi-year work commitment. The original anticipated closing date for a definitive agreement was October 31, 2011, which the parties have agreed to extend to November 20, 2011.

The proposed transaction is anticipated to occur on or about November 20, 2011 and is subject to certain conditions, including, but not limited to, the satisfactory completion of due diligence, the execution of a binding definitive agreement between the parties and the company's ability to secure sufficient financing to close the proposed transaction. The Company can provide no assurance that these conditions will be satisfied to allow the Company to close the proposed transaction.

First Colombia Gold is currently conducting due diligence, initial data compilation and review, including a recent site visit. In the event that a definitive agreement should be entered into, First Colombia Gold will develop its initial exploration plan.

About First Colombia Gold

First Colombia Gold Corp. is company focused on the acquisition, exploration and potential development of properties believed to contain gold and silver in North and South America. Our strategy is to build a pipeline of prospective gold and silver projects to explore, develop or entered into joint-ventures to accomplish the same. We target projects in historic mining districts with what are believed to have large-scale exploration potential or relative medium-term production potential.

Disclaimer

This release contains forward-looking statements that are based on beliefs of First Colombia Gold Corp. management and reflect First Colombia Gold Corp.'s current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities and Exchange Act of 1934, as amended. When we use in this release, the words "estimate," "project," "believe," "anticipate," "intend," "expect," "plan," "predict," "may," "should," "will," "can," the negative of these words , or such other variations thereon, or comparable terminology, are all intended to identify forward looking statements. Such statements reflect the current views of First Colombia Gold Corp. with respect to future events based on currently available information and are subject to numerous assumptions, risks and uncertainties, including but not limited to, risks and uncertainties pertaining to development of mining properties, changes in economic conditions and other risks, uncertainties and factors, which may cause the actual results, performance , or achievement expressed or implied by such forward looking statements to differ materially from the forward looking statements. The information contained in this press release is historical in nature, has not been updated, and is current only to the date shown in this press release. This information may no longer be accurate and therefore you should not rely on the information contained in this press release. To the extent permitted by law, First Colombia Gold Corp. and its employees, agents and consultants exclude all liability for any loss or damage arising from the use of, or reliance on, any such information, whether or not caused by any negligent act or omission. This press release incorporates by reference the Company's filings with the SEC including 10k, 10Q, 8K reports and other filings. Investors are encouraged to review all filings. There is no assurance First Colombia Gold Corp. will identify projects of merit or if it does have sufficient financing to acquire, or positive exploration results.

SOURCE First Colombia Gold Corp.