AngloGold Ashanti to Acquire Interest in First Uranium from Village Main Reef

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Jul 22, 2011, 02:16 ET

TORONTO AND JOHANNESBURG, July 22, 2011 /PRNewswire/ - First Uranium Corporation (TSX:FIU), (JSE:FUM) (ISIN:CA33744R1029) ("First Uranium" or "the Company") today announced that AngloGold Ashanti Limited ("AngloGold") reported that it has entered into an agreement to acquire 47,065,916 shares (the "FIU Shares") in First Uranium held by Village Main Reef Limited ("Village"), for CAD$0.60 per share. This equates to a 19.79% interest in First Uranium. Village has also granted to AngloGold lock-up rights and rights of first refusal in respect of Village's remaining 5.7% equity stake in the Company and approximately ZAR392.8 million principal amount of secured convertible notes issued by Mine Waste Solutions (Proprietary) Limited, a wholly-owned subsidiary of the Company.

Following the announcement by Village that it intended to sell its 26% interest, the Company on July 12, 2011 announced that the board of directors of First Uranium constituted a special committee (the "Special Committee") of directors to monitor developments and undertake a strategic review of the Company and its capital structure and to advise on any strategic alternatives that may be in the best interests of First Uranium and its stakeholders. In light of these developments, the Special Committee will be considering the effects on the Company and reviewing regulatory considerations, including in relation to its BEE status.

About First Uranium Corporation
First Uranium Corporation (TSX:FIU, JSE:FUM) is focused on the development and operation of gold and uranium projects in South Africa. The Company's goal is to become a significant low-cost producer of gold and uranium from its Ezulwini underground mine (the "Ezulwini Mine") and the Mine Waste Solutions tailings recovery facility ("MWS"). To expand it production profile, First Uranium has expanded the capacity of MWS and it is ramping up production at the Ezulwini Mine and plans to pursue other value-enhancing opportunities in South Africa.

Cautionary Language Regarding Forward-Looking Information
This news release contains and refers to forward-looking information based on current expectations. All other statements other than statements of historical fact included in this release are forward-looking statements (or forward-looking information). The Company's plans involve various estimates and assumptions and its business and operations are subject to various risks and uncertainties. For more details on these estimates, assumptions, risks and uncertainties, see the Company's most recent Annual Information Form and most recent Management Discussion and Analysis on file with the Canadian provincial securities regulatory authorities on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and there can be no assurance that such statements will prove to be accurate, such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements that are included herein, except in accordance with applicable securities laws.

www.firsturanium.com

SOURCE First Uranium Corporation