Firstgold Corp (fka FGOCQ)

[7Secret7Service7]

An $81M Equivalent Bid Recieved .20 PPS

Current O/S 196M. A restructuring like in the deal below would be OS 400M.

1) In July 2009 a Chinese company offered FGOC $26.5M for a 51% stake in the company when gold was 900/oz. A 100% offer would have been $53M. This was knowing gold, FGOC's largest asset by far, & all of their liabilities. Gold is now 1374/oz. They made a great bid offer, but were rejected for security reasons by the U.S. government because FGOC is near a Navy base. Gold is now 53% higher than it was in July 2009. The $53M bid for 100% would now be about $81M. From this offer you can get a feel as to where FGOC could be as a market cap.

Read pages 25-29 to see the Chinese offer and how it would result in FGOC being restructured.

http://www.sec.gov/Archives/edgar/data/878808/000117120009001048/i00500_firstgold-10q.htm

2) A similar offer is easily obtainable at auction in late November. If a group offers an on par bid to the Chinese offer with today's gold price then that would be a $40M winning bid to pay off all secured and unsecured debt, give $8M in operating cash flow, and take a 50% stake in the company, FGOC gets reinstated, with them owning half, and us owning half. The company can then utilize the $50M in NOL's going forward. Keep in mind a restructuring like this would double the O/S to 400M so if we get a $81M market cap that's PPS .20.

3) It's not going to take $75M or $100M to buy FGOC, more like $40M or even less. With gold skyrocketing it should be fairly easy for a company to come up with financing to do this, or some well established groups may just have that much already.

4) If a group mines the Relief Caynon from 2011-2015 at gold 1500/oz that's $90M in rev/year. Should have no problem netting $20M profit/year out of that. Use PE 15 that's a $300M market cap. With an O/S of 400M that would be .75 PPS.

Link to Powerpoint Presentation showing mine life, check slide 21:

http://reliefcanyon.com/uploads/Relief_Canyon_Marketing_Presentation_-_Final2.ppt

5) FGOC was trading at market cap $40M 2-3 years ago when gold was half as much, so $80M seems right. With gold moving into record high territory now and for the foreseeable future you've got to think the bidding will be strong...guess we'll see.