First Uranium update on strategic alternatives process

TORONTO and JOHANNESBURG, Feb. 26 /CNW/ - First Uranium Corporation (TSX:FIU, JSE:FUM) (ISIN:CA33744R1029) ("First Uranium" or "the Company") reported today that although the MWS environmental authorisation (EA) has been reinstated, it is important to reiterate previously disclosed information that the withdrawal of the EA impacted the Company's access to additional funding and has severely compromised the Company's financial condition.

Also, as reported previously, a special committee of the Board of Directors (the "Special Committee") has been actively assessing strategic alternatives and has been engaged in negotiations with several potential strategic investors who have been invited to submit investment proposals. None of the proposals received to date are acceptable.

The Special Committee, through its advisors, is continuing negotiations with these and other potential strategic transactions. Despite these efforts, which are ongoing, no assurance can be given that the Company will be successful in concluding an acceptable transaction.

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. First Uranium also plans to grow production by pursuing value-enhancing acquisition and joint venture opportunities in South Africa and elsewhere.

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 the availability, amount and timing of financing on reasonable terms, the timing and receipt of required permits, the timing and amount of estimated future production, processing and development plans and future plans and objectives of First Uranium are forward-looking statements (or forward-looking information) that involve various estimates, assumptions, risks and uncertainties. For more details on these estimates, assumptions, risks and uncertainties, see the Company's most recent Annual Information Form 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.

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