First Uranium Corporation - BUSINESS MILESTONES UPDATE

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May 12, 2011, 02:24 ET

All amounts are in US dollars unless otherwise noted.

TORONTO AND JOHANNESBURG, May 12 /PRNewswire/ - First Uranium Corporation (TSX:FIU) (JSE:FUM) (ISIN:CA33744R1029) ("First Uranium" or "the Company") has today announced that its Ezulwini mine shaft moiling and upgrade program has made significant progress and as a result, a key production restraint has been removed.

The moiling (clearing) program was initiated after the shaft capacity was restricted due to lateral pressures experienced in December 2010 that created pinch points along the shaft's hanging tower structure. This necessitated a reduction in winding speeds for all conveyances ranging from between two and four metres per second through the hanging tower.

The shaft is now operating at the targeted speeds with man and material conveyances now travelling at up to seven meters per second.

The material handling capacity of the shaft has also been significantly improved. The improved speeds mean that the material handling capacity of the shaft has increased with immediate effect from 110 cars in a nine hour cycle to 135 cars a cycle, an increase of 23%.

First Uranium President and CEO, Deon van der Mescht, said, "This represents a step change in our overall production ramp up program. By addressing the winder speeds of key conveyances, we have removed one of the key obstacles to achieving our production targets. This concludes Phase 1 of the moiling program and we will continue with the planned maintenance program and shaft up-grade program, which will facilitate further increases in winding speeds to ensure that shaft capacity keeps pace with the planned production ramp-up."

At present, current winding speeds are sufficient to hoist the planned tonnages and do not represent a production constraint.

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, including without limitation, the outcome of the appeal of the Water Use Licence by FSE. 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