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


First Mountain Exploration Ltd. ("First Mountain" or the "Company") (TSX
VENTURE:FMX) announces that it has entered into an arm's length transaction to
sell certain petroleum and natural gas leases located in the Atlee Buffalo area
of Alberta to an arm's length oil and gas producing company (the "Purchaser")
for an aggregate purchase price of CDN$510,000 (the "Transaction").


The net proceeds from the Transaction will be added to the working capital of
the Company for business development. The proposed Transaction is expected to
constitute a Reviewable Transaction of the Company as defined in Policy 5.3 of
the TSX Venture Exchange ("TSXV") Corporate Finance Manual. 


There will be no finder's fees paid in connection the Transaction and the
expected closing date for the Transaction is mid-July or such later date as the
Company and Purchaser agree. The completion of the Transaction is subject to the
approval of the TSXV and all other necessary regulatory approval. The
Transaction will be an arm's length transaction as the directors, officers and
principal shareholders of the Company currently have no interest in the
Purchaser.


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


Forward-looking statements: 

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 managements expected time of
completion of the Transaction, the expected use of proceeds of the Transaction
and the anticipated approval of the Transaction by the TSXV. 


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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
First Mountain Exploration Ltd.
William Slipp
President and Director
(403) 453-2266 ext. 227