First Uranium closes previously announced Gold Stream transaction

    
     $50 Million payment validates quality of First Uranium's assets and
                  confidence in its production capabilities

            All amounts are in US dollars unless otherwise noted.
    

TORONTO and JOHANNESBURG , Dec. 8 /CNW/ - First Uranium Corporation (TSX:FIU, JSE:FUM) (ISIN:CA33744R1029) ("First Uranium" or "the Company") today announced that it has closed a previously announced Transaction with Gold Wheaton ( Barbados ) Corporation ("GW"). Upon closing the Transaction, GW paid to First Uranium $50 million for the right to purchase seven percent of the estimated 5.8 million ounces of life-of-mine gold production from the Company's Ezulwini Mine in South Africa .

"This contract validates the value of our substantial co-product gold production at Ezulwini," explained Gordon Miller , President and CEO of First Uranium. "To further strengthen our balance sheet and fund future capital projects, we continue to actively pursue various other financing options and reprioritize certain development and expansion activities to optimize the Company's cash position."

Under the terms of the Transaction, for each ounce delivered to GW, GW shall also pay First Uranium the lesser of $400 per ounce and the prevailing spot price (subject to an annual inflation adjustment of one percent, starting in the fourth year).

Also under the terms of the Transaction, the Ezulwini Mine will deliver to GW a guaranteed minimum of 16,500 ounces of gold in calendar 2010 and 19,500 ounces in calendar 2011.

About First Uranium Corporation

First Uranium Corporation (TSX:FIU, JSE:FUM) is focused on its goal of becoming a significant low-cost producer of uranium and gold through the expansion of the underground development to feed the new uranium and gold plants at the Ezulwini Mine and through the expansion of the plant capacity of the Mine Waste Solutions tailings recovery facility, both operations situated 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 including, without limitation, statements regarding production and development plans and future plans and objectives of First Uranium are forward-looking statements (or forward-looking information) that involve various risks and uncertainties. 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.

Important factors could cause actual results to differ materially from First Uranium's expectations. Such factors include, among others: the timing and amount of estimated future production and the costs thereof; the failure of plant, equipment or processes to operate as anticipated; accidents; labour disputes; delays in obtaining governmental approvals, as well as those factors discussed under "Risk Factors" in First Uranium's Annual Information Form dated June 29, 2009 as filed with securities regulatory authorities in Canada . Although First Uranium has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended.

For further information: Bob Tait, Vice President, Investor Relations at [email protected], [phone] (office) or [phone] (mobile), 1240-155 University Avenue, Toronto, ON, M5H 3B7