First Mining Gold Corp. (“First Mining” or the “Company”) (TSX:FF) (OTCQX:FFMGF) (FRANKFURT:FMG) is pleased to announce that Auteco Minerals Ltd (“Auteco”)(ASX:AUT) has notified First Mining that it has fulfilled the initial $750,000 exploration expenditures requirement under the earn-in agreement on the Pickle Crow Gold Project (“Pickle Crow”) located in Northern Ontario, regarding the first portion of Auteco’s stage 1 earn-in requirements.

Auteco commenced an aggressive exploration program in May at Pickle Crow , which included an extensive drill campaign, and as a result its initial exploration expenditures, which were required to be completed within 12 months, have now been completed in 4 months.

“We are delighted with the progress that our partners at Auteco have made in advancing the Pickle Crow Gold Project” stated Dan Wilton, CEO of First Mining. “This partnership has already surfaced significant value for First Mining shareholders and highlights the potential value of each of the projects in our robust portfolio of Canadian gold assets. With a well-funded strategy, which included Auteco raising A$30.4 million last month, Auteco continues to increase their understanding of the Pickle Crow district as they advance an expanded drill program, now planned for 10,000 metres.”

In order to complete the remaining requirements of the stage 1 earn-in and thereby earn a 51% interest in PC Gold Inc. (“PC Gold”), the Company’s wholly-owned subsidiary that owns Pickle Crow, Auteco will need to incur a further $4.25 million in expenditures relating to Pickle Crow within the next two years, and Auteco will need to issue a further 100 million shares to First Mining on or before the date these expenditures have been completed.

Auteco announced on July 30, 2020, that a second diamond rig had recently arrived on site to test shallow, high-grade targets. As of that date, 3,800 metres of the expanded 10,000-metre program has been drilled. Since then, Auteco has established a 24-person camp at the Pickle Crow site to ensure that exploration can continue year-round. First Mining plans to update the market on the results from Auteco’s ongoing drilling as they are released.

Auteco finished their quarter with A$4.8 million cash on hand and raised A$30.4 million via a share placement in July 2020. Auteco is now well funded to execute on the $10 million earn-in requirements to earn up to an 80% interest in PC Gold (and thereby, Pickle Crow). Once Auteco has fulfilled all requirements in the earn-in agreement, First Mining will hold a 20% interest in PC Gold (and thereby, Pickle Crow) which will be free carried until the earlier of the termination of the earn-in agreement or a decision to production is made.

In addition, once Auteco has completed its Stage 2 earn-in requirements to increase their interest to 70%, First Mining will be granted a 2% net smelter returns (“NSR”) royalty by Auteco on Pickle Crow, of which 1% may be bought back by Auteco for US$2.5 million. Further details on the earn-in agreement are provided in First Mining’s January 27, 2020 news release, and further details on Auteco’s Pickle Crow drill program are provided in their news release from May 27, 2020 as well as their June 2020 quarterly activities report released on July 30, 2020.

Qualified Person

Hazel Mullin, P.Geo., Director, Data Management and Technical Services of First Mining, is a “Qualified Person” for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), and she has reviewed and approved the scientific and technical disclosure contained in this news release.

About First Mining Gold Corp.

First Mining is a Canadian gold developer focused on the development and permitting of the Springpole Gold Project in northwestern Ontario. Springpole is one of the largest undeveloped gold projects in Canada, currently hosting a mineral resource base of 4.67 million ounces of gold in the Indicated category and 0.23 million ounces of gold in the Inferred category¹.

A Pre-Feasibility Study is underway, with completion targeted in early 2021, and permitting is on-going with submission of the Environmental Impact Statement targeted for 2021. The Company also holds a large equity position in Treasury Metals Inc. that is advancing the Goliath-Goldlund gold project towards construction. First Mining’s eastern Canadian property portfolio also includes the Pickle Crow (being advanced in partnership with Auteco Minerals Ltd.), Cameron, Hope Brook, Duparquet, Duquesne, and Pitt gold projects.

First Mining was created in 2015 by Mr. Keith Neumeyer, founding President and CEO of First Majestic Silver Corp.