First Mountain Exploration Ltd. announces closing of private placement

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./

CALGARY, Oct. 15, 2013 /CNW/ - First Mountain Exploration Ltd. ("First Mountain" or the "Company") (TSX Venture: FMX) announces that it has closed the second and final tranche of a non-brokered private placement (the "Offering") previously announced on August 29, 2013.  First Mountain issued 4,800,000 common shares ("Common Shares") in the capital of the Company at a price of $0.08 per Common Share and 2,250,000 common shares of the Company issued on a flow-through basis pursuant to the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of $0.10 per Flow-Through Share for aggregate gross proceeds of $609,000.

In connection with the Offering, First Mountain paid a finder's fee to certain eligible persons ("Eligible Persons") in accordance with applicable securities laws, consisting of $42,000 in cash. The Company also issued 485,000 agent's options (the "Agent's Options") to Eligible Persons.  Each Agent's Option is exercisable to purchase one Common Share at a price of $0.12 per Common Share until October 15, 2014.

Each of the Common Shares, Flow-Through Shares and Agent's Options are subject to resale restrictions imposed by applicable securities laws and the policies of the TSX Venture Exchange until February 16, 2014.

The net proceeds of the Offering shall be primarily used for the Company's exploration and development program, including the development drilling on certain oil and gas producing assets in the Atlee Buffalo area of Alberta.

Neither the TSX Venture nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.

Warning

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.

A Note regarding Forward Looking Information

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "will", "expects", "believe", "plans", "potential" and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this press release contains forward looking statements and information concerning the proposed use of the proceeds of the Offering by the Company.

Although First Mountain believes that the expectations and assumptions on which such forward looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because First Mountain can give no assurance that they will prove to be correct.

Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve and resource estimates; the uncertainty of estimates and projections relating to reserves, resources, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to tax laws, royalties and environmental regulations, actual production from the acquired assets may be greater or less than estimates; failure to obtain the necessary regulatory approval, stock exchange and other regulatory approvals on the timelines planned. Management has included the above summary of assumptions and risks related to forward looking information provided in this press release in order to provide security holders with a more complete perspective on First Mountain's future operations and such information may not be appropriate for other purposes.

The forward-looking statements and information contained in this press release are made as of the date hereof and First Mountain undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

SOURCE: First Mountain Exploration Ltd.

William Ambrose
President, Chief Executive Officer and Director
First Mountain Exploration Ltd.
Telephone: [phone]