Brigus Gold Reports 9% Higher Third Quarter Production  

HALIFAX, NS - Brigus Gold Corp. sold 19,265 ounces of gold at total cash costs of $440 per ounce, and generated operating income of $7.1 million for the third quarter of 2010 (Q3 2010). This is the Company's best quarter of overall operating performance since the start up of gold production at the Black Fox Mine in May 2009.

Gold production from the Black Fox Mill was 21,526 ounces, a 9% increase over the second quarter of 2010 (Q2 2010) and a 19% increase over the third quarter a year ago (Q3 2009). Total cash costs per ounce of gold sold were $440, compared to $448 in Q2 2010 and were 24% lower than total cash costs of $575 in Q3 2009. Operating income was $7.1 million, a 56% improvement from the $4.6 million recorded in Q2 2010 and more than double the $3.2 million reported in Q3 2009. Net cash flow from operations, before changes in working capital, was $4.3 million, compared with $8.6 million in Q2 2010 and almost double from Q3 2009. At the Black Fox underground mine located in Ontario, 945 metres (m) of lateral development in waste rock was completed with advancement being achieved in several areas, including the new ramp from the 235 m level to the surface, the East Ramp down from the 235 m level and access to the East Ore Zone. Recent highlights following completion of Q3 2010 include: The closing of a Cdn$57.5 million equity financing. The agreed sale of a 12% Black Fox Mine gold stream resulting in an upfront deposit of $56.3 million. One hundred percent of the forward gold sales contracts after December 31, 2010, have been liminated and the repayment of $34.8 million on the project debt facility. On November 9, 2010, the Company entered into an agreement to sell to Sandstorm Resources Ltd. (Sandstorm) 12% of the gold production from the Black Fox Mine, beginning January 2011, and 10% of future production from the Black Fox Extension, covering a portion of the adjoining Pike River property, for an upfront deposit of $56.3 million in addition to ongoing payments to the Company of $500 per ounce upon delivery of the ounces. During October and November 2010, Brigus Gold reduced its forward gold sales contract obligations (hedge) by 147,602 ounces with cash payments totaling $80.6 million. As of November 9, 2010, the only remaining forward gold sales contracts outstanding are 1,518 ounces scheduled to be settled in December 2010. Thus, beginning in 2011, the Company will be an unhedged gold producer with no gold derivative positions, and will be subject only to the gold stream sales commitment to Sandstorm. Also during October and November 2010, the Company repaid a total of $34.7 million to reduce the project debt facility to $7.1 million. The remaining project debt facility is required to be paid in six equal quarterly payments of $1.18 million, commencing on June 30, 2011. Commenting on the results, Wade K. Dawe, Chairman, Chief Executive Officer and President of Brigus Gold, said, During the third quarter, the Black Fox Mine and Mill showed its potential for efficient production. We have optimized the 2011 mine plan for a further ramp up in the underground mining rate from the previous target of 800 tonnes per day, scheduled in the second quarter of 2011, to 1,100 tpd by the end of 2011. As a result, we are focusing our efforts in the fourth quarter of 2010 on underground development in order to achieve our 2011 production target of between 102,000 and 112,000 ounces of gold. The company's address is Suite 2001, 1969 Upper Water Street, Purdy's Wharf Tower II, Halifax, NS B3J 3R7, (902) 422-1421, email: [email protected].