First Uranium Receives Another Conditional Proposal

TORONTO, June 8, 2012 /CNW/ - The Board of Directors of First Uranium Corporation (TSX: FIU) (JSE: FUM) (ISIN: CA33744R1029) ("FIU" or the "Company") today received a conditional proposal letter from Kumvest (Pty) Ltd. ("Kumvest").

The letter states that Kumvest supports the previously announced transaction with AngloGold Ashanti Limited, which would result in the disposal of Mine Waste Solutions and its subsidiaries, as proposed by the board of directors of FIU.  However, Kumvest goes on to state that stakeholders should be advised that Kumvest recommends that the sale of Ezulwini to Gold One International Limited be voted down at the shareholders meeting to be held on June 13, 2012.  Kumvest further states that, subject to a number of conditions precedent, it would offer to subscribe for common shares of FIU equal to 26% of FIU's current issued and outstanding shares, at a price of Cdn$0.37 per share.  The Kumvest proposal requires that certain conditions be met, which include (a) a vote against the sale of Ezulwini; (b) the appointment of a new management team and four appropriate, qualified, experienced non-executive directors including a new Chairman of the board of directors; (c) that the new management team be given 90 days to present a turn-around plan (which may include a planned disposal of certain assets for fair market value) and (d) prior to its offer becoming unconditional, Kumvest will be given access to records of the Company to perform due diligence.

In its letter Kumvest states it has the support of approximately 20% of the shareholders and attaches a letter signed by Nicholas Betsky and Eric Sprott representing Sprott Asset Management, Olma Investment Group, Stratton Enterprises Incorporated and Pratto Corporate Services ("Shareholders Group").

However subsequent to receipt of the letter from Kumvest, Mr. Betsky forwarded an email to FIU in which he states that the Shareholder Group does NOT support Kumvest's proposal with respect to the sale of Mine Waste Solutions; and, accordingly, it is unclear whether Kumvest continues to have the voting support and backing of the Shareholder Group.

Based upon limited due diligence of Kumvest the board of directors of FIU has determined that Kumvest styles itself as a holding company but can find no specific information about its interests. The individuals proposed for management are all currently directors of companies in the Minero Group. One of the named individuals is Mr. Chopper van der Bijl, who is a director of Waterpan Mining Company, another company which has said it will make an offer to shareholders of FIU, but to date, has not done so.  The Minero Group has published no financial statements and its website indicates that financial disclosure will only be made upon a successful IPO in 2012.  Kumvest has not provided any information to determine whether it can finance the proposal in its letter.  The board of directors of FIU will meet to consider the proposal and its bona fides.

Shareholders should use caution when considering this expression of interest which is highly conditional and does not include evidence of financing.

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, including without limitation, the statements regarding the proposed transactions with Gold One International Limited and AngloGold Ashanti Inc. No assurance can be given that the Company will be successful in concluding the proposed transactions and achieve the desired results. Accordingly, readers should not place undue reliance on forward-looking statements that are included herein, except in accordance with applicable securities laws.

John Hick or Mary Batoff
[phone]
[email protected]