First Mountain Exploration Provides Operational Update and Granting of Options

NOT FOR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUE A VIOLATION OF UNITED STATES SECURITIES LAW

CALGARY, Jan. 26, 2012 /CNW/ - First Mountain Exploration Ltd. ("First Mountain" or the "Company") (TSX Venture: FMX) is providing an operational update with respect to its winter drilling program including recent drilling activity at Buck Lake.

At Buck Lake, First Mountain has successfully conducted the fracture stimulation and flow testing of a Cardium horizontal light oil well located at 9-22-46-6W5 (the "well"). During the 72 hour flow testing and flare period allowed by regulatory authorities, the majority of the frac oil used to stimulate the well was recovered. The well is currently being equipped for production with oil storage tanks and a gas conservation pipeline. After a 14 day shut in period, to obtain a stabilized reservoir pressure as per EUB regulations, the well will be placed on production and an extended flow test conducted. First Mountain has a 50% working interest in the well.

First Mountain is in the process of licensing the first 3 wells in the Faust area. The licenses are expected to be received by the end of the month. A drilling rig has been contracted and the first well is expected to spud the week of February 6^th. The wells will target seismic anomalies in the Bluesky, Pekisko and Keg River formations. First Mountain has 100% Working Interest in 75 contiguous sections of land in the Faust area.

The board of directors of the Company (the "Board") has approved the granting of options to the board, employees and consultants. Stock options were issued under the stock option plan approved by the shareholders. A total of 2.45 million stock options were issued at an exercise price of $0.60, 59% of which were issued to insiders.

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 timing of when the Buck Lake well will be put on production, the timing of the receipt of required drilling licenses, the timing of First Mountain's operations and statements with regards to the drilling targets of First Mountain. 

The forward-looking statements and information in this press release are based on certain key expectations and assumptions made by First Mountain, including the receipt, in a timely manner, of regulatory and other required approvals and licenses. 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 securityholders 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.

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