FC Firm Capital Mortgage Investment Corporation

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


Firm Capital Mortgage Investment Corporation ("the Corporation") (TSX:FC) today
announced that it has entered into an agreement to sell, on a bought deal basis
to a syndicate of underwriters led by TD Securities Inc., $22,500,000 aggregate
principal amount of 5.40% convertible unsecured subordinated debentures, due
February 28, 2019 (the "Debentures") at a price of $1,000 per Debenture. The
Corporation has granted the Underwriters an over-allotment option, exercisable
in whole or in part at any time up to 30 days following closing, pursuant to
which the underwriters may purchase up to an additional $3,375,000 principal
amount of Debentures, on the same terms. If the over-allotment option is
exercised in full, the gross proceeds from the offering will be $25,875,000.


Each Debenture is convertible into common shares of the Corporation ("Shares")
at the option of the holder at a conversion price of $14.35 per Share (or
69.6864 Shares per $1,000 principal amount of Debentures).


The offering is scheduled to close on August 23, 2011, and is subject to
regulatory approval.


The net proceeds of the offering will be used for general corporate purposes.

The securities being offered have not been and will not be registered under the
United States Securities Act of 1933 and accordingly will not be offered, sold
or delivered, directly or indirectly within the United States, its possessions
and other areas subject to its jurisdiction or to, or for the account or for the
benefit of a U.S. person, except in limited circumstances.


About The Corporation

The Corporation, through its Mortgage Banker, Firm Capital Corporation, is a
non-bank lender providing residential and commercial short-term bridge and
conventional real estate financing, including construction, mezzanine and equity
investments. The Corporation's investment objective is the preservation of
Shareholders' equity, while providing Shareholders with a stable stream of
monthly dividends from investments. The Corporation achieves its investment
objectives by pursuing a strategy of growth through investments in selected
niche markets that are under-serviced by large lending institutions. Lending
activities to date continue to develop a diversified mortgage portfolio,
producing a stable return to Shareholders. Full reports of the financial results
of the Corporation for the year are outlined in the audited financial statements
and the related management discussion and analysis of Firm Capital, available on
the SEDAR website at www.sedar.com. In addition, supplemental information is
available on Firm Capital's website at www.firmcapital.com. 


Forward-Looking Statements

This news release contains forward-looking statements within the meaning of
applicable securities laws including, among others, statements concerning the
terms of the offering, the planned use of proceeds, the receipt of all
regulatory approvals and the anticipated closing date. Forward-looking
statements generally can be identified by the use of forward-looking terminology
such as "outlook", "objective", "may", "will", "expect", "intent", "estimate",
"anticipate", "believe", "should", "plans" or "continue" or similar expressions
suggesting future outcomes or events. Such forward-looking statements reflect
management's current beliefs and are based on information currently available to
management.


These statements are not guarantees of future performance or achievements and
are based on our estimates and assumptions that are subject to risks and
uncertainties, including those described in our Annual Information Form under
"Risk Factors" (a copy of which can be obtained at www.sedar.com), which could
cause our actual results, performance or achievements to differ materially from
the forward-looking statements contained in this news release. Those risks and
uncertainties include, among others, risks associated with mortgage lending,
dependence on the Corporation's manager and mortgage banker, competition for
mortgage lending, real estate values, interest rate fluctuations, environmental
matters, Shareholder liability and the introduction of new tax rules. Material
factors or assumptions that were applied in drawing a conclusion or making an
estimate set out in the forward-looking information include, among others, that
the Corporation is able to invest in mortgages at rates consistent with rates
historically achieved; adequate mortgage investment opportunities are presented
to the Corporation; and adequate bank indebtedness and bank loans are available
to the Corporation. Although the forward-looking information continued in this
new release is based upon what management believes are reasonable assumptions,
there can be no assurance that actual results and performance will be consistent
with these forward-looking statements. 


All forward-looking statements in this news release are qualified by these
cautionary statements. Except as required by applicable law, the Corporation
undertakes no obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or otherwise.

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