First Uranium announces financial results for the three and twelve months ended March 31, 2012-2

Despite an intensive change management process implemented in Q1 2012, the anticipated improvements at Ezulwini Mine were not forthcoming and at the end of Q3 2012, a restructuring of Ezulwini Mine was announced that resulted in approximately 50% of the workforce being retrenched by the end of Q4 2012. ore mining machine

One of the very few highlights of the year for Ezulwini Mine occurred at the end of Q3 2012 with the settlement of the final quarterly guaranteed ounces requirement to Franco-Nevada pursuant to the Ezulwini Gold Stream Transaction (effectively 64% of the gold sold during Q3 2012 at $400 per ounce of gold). As of January 2012, the mine reverted to delivering only 7% of its gold production to Franco-Nevada at $400 per ounce of gold.

Ezulwini produced and sold 47,442 (FY 2011: 59,689) ounces of gold generating $63 million (FY 2011: $61 million) in revenue at an average Cash Cost* of $2,155 (FY 2011: $1,605) per ounce of gold. As a result of lower than anticipated gold production, combined with a 34% increase in the average Cash Cost per ounce of gold sold, the mine's gross losses in FY 2012 ($48 million) were up 4% compared to FY 2011 ($46 million). crusher parts and consumables Revenue from uranium sold increased dramatically, from $1 million in FY 2011 to $5 million in FY 2012 following the successful re-commissioning of the Ezulwini Uranium plant in April 2011 after a hiatus of 8 months following the failure of two Ion Exchange ("IX") columns in August 2010. The mine sold 82,862 pounds of uranium in FY 2012, which was in line with the revised forecast of 82,000 pounds.

During FY 2012, First Uranium utilized $16 million (FY 2011: $50 million) of its cash resources to fund its operating activities. The Corporation spent $29 million (FY 2011: 102 million) on capital projects in FY 2012 comprising mainly the closing out of construction and successful commissioning of MWS's third gold plant module, including adjoining infrastructure ("Phase 2") and its new tailings storage facility ("TSF").

As at March 31, 2012, current assets, including current assets from discontinued operations, were $22 million (March 31, 2011: $73 million) and included cash and cash equivalents of $7 million (March 31, 2011: $50 million). The Corporation's current assets, excluding current assets from discontinued operations, were $4 million as at March 31, 2012 and included cash equivalents of $4 million.

SALE OF ASSETS

On June 13, 2012, First Uranium shareholders, Note holders and Debenture holders voted overwhelmingly in favour of the disposal of the Ezulwini Mine and MWS to Gold One and AGA, for a consideration of $70 million and $335 million, respectively. Gold One also provided a loan facility to the Corporation for an amount of up to $10 million, which has been fully drawn subsequent to year-end. The background to these transactions and developments is detailed in the Management Information Circular for the Special Meeting of Shareholders, dated May 4, 2012 (filed on SEDAR onMay 8, 2012). ball mill knowledge

The proceeds from the sale of First Uranium's principal assets will enable it to settle the Debentures, the Notes and the Gold One Loan Facility under the terms agreed to with the Debenture holders, Note holders and Gold One on June 13, 2012.

FOURTH QUARTER ENDED MARCH 31, 2012

The consolidated revenue from First Uranium's two operations for the three months ended March 31, 2012 ("Q4 2012") was $48 million, compared to $37 million for the three months ended March 31, 2011 ("Q4 2011"), which is a 31% improvement quarter-on-quarter. A 433% rise in gross profits from the operations led to a gross profit of $9 million for Q4 2012 compared to from a loss of $3 million in Q4 2011 and a consolidated pre-tax profit for Q4 2012 of $23 millioncompared to the pre-tax loss in the comparative period (Q4 2011: $80 million).

During Q4 2012, the Corporation utilized $10 million (Q4 2011: $20 million) of cash resources in its operating activities. Capital expenditure was minimal (Q4 2011: $12 million), reflecting the close out of the capital projects at MWS.

Mine Waste Solutions

During Q4 2012, MWS generated $34 million in proceeds (Q4 2011: $25 million) from 24,862 ounces of gold sold (Q4 2011: 22,150 ounces) at a Cash Cost of $790 per ounce (Q4 2011: $553 per ounce). The tonnage throughput increased by 37% from Q4 2011 to Q4 2012, as a result of the additional plant module that came into production during FY 2012. maintenance of spring cone crusher This was offset by a 16% drop in the average gold recovery grade which limited gold production during Q4 2012 to an increase of only 12% in gold ounces sold compared to Q4 2011. This, combined with the increase in average gold selling price, resulted in a 35% increase in revenues in Q4 2012 compared to Q4 2011.

The 61% increases in Cash Costs in Q4 2012 were driven by the high unit cost of operating the Hartebeesfontein No. 7 satellite dam (including trucking) as well as additional power and water costs associated with operating the new TSF and a substantial increase in certain key reagent costs in Q4 2012 (resulting in the 27% increase compared to Q3 2012).

Due to the Corporation's decision to dispose of its principal assets at the start of Q4 2012, no amortization for the MWS assets was provided for on a consolidated basis during Q4 2012. The increase in amortization year-over-year is driven by the 48% higher tonnage throughput for FY 2012 compared to FY 2011.

The higher revenues in both Q4 2012 and FY 2012 more than offset the higher costs in the respective periods and resulted in the 31% and 38% increases in gross profits generated by MWS compared to Q4 2011 and FY 2011, respectively.

Going forward, there is an opportunity to improve recovery performance for the first gold module and circuit modifications aimed at improving leach time are expected to be concluded by the end of Q1 2013 with the intention of commissioning in early Q2 2013. Economically viable opportunities for the second and third gold modules have not emerged thus far. Notwithstanding the modifications that can be made to gold module one, the relative proportion of clay compared to clean material is expected to increase as the availability of clean sources of material on Buffelsfontein No. 3 tailings dam continues to diminish and, and with it, mining mix flexibility. The performance of gold module one and two will therefore continue to diminish until such time as alternative clay handling mechanisms with the ability to improve the reclamation rate as well as the quality of the material delivered to the plant are sourced. The impact could range from 15% to 25% off current levels dependent upon the relative extent of clay to clean material on Buffelsfontein No. 3 tailings dam.