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First Mining Finance Announces Initial Assay Results from Goldlund Gold Project

First Mining Finance Corp. is pleased to announce the first assay results from the first 12 holes of a 106 hole, 28,500 metre diamond drill in-fill program on its 100% owned Goldlund Gold Project , located near the town of Sioux Lookout in northwestern Ontario, Canada.

Highlights:

  • Hole GL-17-044 intersected 26.0 metres of 2.14 grams per tonne gold
    • Including 2.0 metres of 18.43 grams per tonne gold
  • Hole GL-17-021 intersected 52.0 metres of 2.21 grams per tonne gold
    • Including 2.0 metres of 43.09 grams per tonne gold
  • Hole GL-17-017 intersected 62.0 metres of 0.90 grams per tonne gold
    • Including 2.0 metres of 12.74 grams per tonne gold

Note: Assaying for the Goldlund 2017 drill program is being done by SGS at their laboratories in Red Lake, Ontario, and Burnaby, BC. Reported widths are drilled core lengths; true widths are unknown at this time. Assay values are uncut.

The goal of the 2017 drilling campaign at Goldlund is to upgrade Inferred resources into the Measured and Indicated categories with the majority of the drilling focused on Zone 7 and Zone 1 (Figure 1). The total budgeted amount of drilling is 28,500 metres within 106 drill holes using HQ sized (63.5 mm) core. Table 1 shows the results of drilling the first 12 holes for the 2017 Goldlund drilling campaign and Table 2 provides additional drill hole information.

Commenting on the results, Patrick Donnelly, President of First Mining stated, "We are extremely pleased with the first assay results from Goldund in which 12 out of 12 drill holes contain significant intercepts of gold mineralization, including a number of high grade intercepts. We expect that additional results from Goldlund will continue to increase our confidence in the resource. The current drilling program is 60% complete and we expect to complete the program in early summer. Once the drilling campaign is completed, the results will be compiled in order to make plans for a much larger drill campaign which will be announced once definitive plans are completed."

In addition, Keith Neumeyer, the Chairman of First Mining, stated "We also wanted to take this opportunity to comment on recent trading activity in the junior gold market. In December of last year, First Mining was added to the VanEck Vectors Junior Gold Miners Exchange Traded Fund (the "GDXJ"), a well-known Exchange Traded Fund that invests in junior gold companies. According to their most recent public filings, the GDXJ holds over 15% of the outstanding shares of First Mining. The GDXJ recently announced a change in their investment criteria in order to allow a larger number of companies into their portfolio so that they could distribute their capital over a larger pool of companies. These changes mean that the GDXJ will be required to significantly rebalance its portfolio. We believe that this announcement has contributed to the recent declines in the share price of First Mining, along with a number of other junior gold companies. We wanted to let investors know that it is business as usual at First Mining. We are making good progress with our exploration programs at our projects, and expect to release further drill results from our Goldlund project over the next few weeks. I remain as convinced as ever that the fundamentals for gold remain strong and that the volatility we are seeing is only a temporary distortion."

Table 1. Drill Hole Assay Results from Goldlund

Assaying for the Goldlund 2017 drill program is being done by SGS at their laboratories in Red Lake, Ontario, and Burnaby, BC. Prepared samples are analyzed for gold by either Bulk Leach Extractable Gold (BLEG) assay techniques or by lead fusion fire assay with an atomic absorption spectrometry (AAS) finish. Multi-element analysis on the mineralized zones is also being undertaken by two-acid aqua regia digestion with ICP-MS and AES finish.

Table 1 (continued). Drill Hole Assay Results from Goldlund

Assaying for the Goldlund 2017 drill program is being done by SGS at their laboratories in Red Lake, Ontario, and Burnaby, BC. Prepared samples are analyzed for gold by either Bulk Leach Extractable Gold (BLEG) assay techniques or by lead fusion fire assay with an atomic absorption spectrometry (AAS) finish. Multi-element analysis on the mineralized zones is also being undertaken by two-acid aqua regia digestion with ICP-MS and AES finish.

Figure 1. Plan Map

To view figure one - Plan Map - please click on the following link: http://media3.marketwire.com/docs/FirstMiningFig1.pdf

Figure 2. Cross-Section through the Goldlund Project

To view figure two - Drill Hole Locations - please click on the following link: http://media3.marketwire.com/docs/FirstMiningFig2.pdf

Table 2. Drill Hole Locations

Gold observed during the current drilling program occurs both as fine disseminations in quartz vein stockworks and as more discrete larger grains up to 2 mm spatially associated with pyrite in the quartz veins. Calaverite, a gold telluride mineral, has been noted occasionally in higher grade intervals on fracture surfaces in the quartz veins. Higher grade gold distribution in the granodiorite dike is often, but not always, associated with zones of more intense quartz stockworking and potassic alteration. Figure 2 displays a cross-section of the geology and gold mineralization with drill holes GL-17-16 to GL-17-19 and GL-17-21.

QA/QC Procedures

The QA/QC program for the 2017 drilling program consists of the submission of duplicate samples and the insertion of certified reference materials and blanks at regular intervals. These are inserted at a rate of one standard for every 20 samples (5% of total) and one blank for every 30 samples (3% of total). The standards used in the 2017 program consist of 5 different gold grades ranging from 1 to 9 g/t, and are sourced from CDN Resource Laboratories in Langley, BC. Blanks have been sourced locally from barren granitic material.

Field duplicates from quartered core, as well as 'coarse' or 'pulp' duplicates taken from coarse reject material or pulverized splits, are also submitted at regular intervals with an insertion rate of 4% for field duplicates and 4% for coarse or pulp duplicates. Additional selected duplicates are being submitted for screened metallic fire assay analysis and to an umpire lab for check assaying. SGS also undertake their own internal coarse and pulp duplicate analysis to ensure proper sample preparation and equipment calibration.

Dr. Chris Osterman, P.Geo., CEO of First Mining, is the "qualified person" for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects and he has reviewed and approved the scientific and technical disclosure contained in this news release.

ABOUT THE GOLDLUND PROJECT

The Goldlund deposit is situated within a land package of approximately 280 square kilometres (28,000 hectares) referred to as the Goldlund Gold Project. The Property has a strike-length of over 50 kilometres in the Wabigoon Subprovince. Goldlund is an Archean lode-gold project located in northwestern Ontario, approximately 60 kilometres from the township of Dryden. The claims that make up the land package cover the historic Goldlund and Windward mines.

On January 9, 2017 the Company announced an initial mineral resource estimate for Goldlund. At a 0.4 g/t Au cut-off grade, the Goldlund deposit contains pit constrained Indicated Resources of 9.3 million tonnes at 1.87 grams per tonne or 560,000 ounces of gold. At a 0.4 g/t Au cut-off grade, the Goldlund deposit contains pit constrained Inferred Resources of 40.9 million tonnes at 1.33 grams per tonne or 1,750,000 ounces of gold. The technical report for this resource estimate has been filed on SEDAR and is also available on the Company's website.

Source: https://www.firstminingfinance.com/news-room/first-mining-finance-releases-initial-assay-results-from-its-goldlund-infill-drilling-program

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