First Uranium announces financial results for the three and twelve months ended March 31, 2012-3

Ezulwini Mine

coal mining in indiaThe Ezulwini Mine generated $13 million in proceeds during Q4 2012 (Q4 2011: $12 million) from 8,068 ounces of gold sold (Q4 2011: 11,393 ounces) at a Cash Cost of $2,218 per ounce (Q4 2011: $2,227). The Ezulwini Mine also sold 23,675 pounds of uranium during Q4 2012, generating $1 million in proceeds in Q4 2012. No uranium was sold in Q4 2011.

Notwithstanding the restructured operation at the Ezulwini Mine, and the reduction in the required delivery of gold to FN to 7% of gold production, the turnaround in operations at Ezulwini had not yet realized the expected results. While the quantity and grade of the blasted tonnes was substantially in-line with the new operating plan, the mine was unable to meet its tonnage targets, due mainly to a number of tramming constraints, including a fall of ground on one of the major ore transfer levels. As a result, the operation continued to lose money in Q4 2012 and consume cash at a greater rate than planned.

As a consequence, tonnage throughout fell 40% in Q4 2012 compared to Q4 2011. This was offset by improved gold recovery grades, resulting in a 29% decline in gold ounces sold in Q4 2012, compared to Q4 2011. Consequently the proceeds from gold ounces sold also decreased, although at lower rates, primarily due to the higher gold price over the comparative period.

metal processing plant In order to address these issues, mine management are in the process of implementing a detailed action plan, which includes clearing the fall of ground, correcting the trackless section operating conditions and addressing the mechanical condition of the trackless equipment on the level.

Going forward, the current mine plan is targeting a gold output of approximately 50,000 ounces for FY 2013 from an average monthly production of 44,000 tonnes. Despite the uranium sections of the mine having been closed and the uranium plant put onto care and maintenance, the Ezulwini Mine will realize revenue from uranium sales in Q1 2013 related to the sale of the 25,000 pounds of uranium carried over from uranium production in FY 2012, prior to halting the uranium mining operations. As at the end of Q1 2013, Ezulwini Mine is beginning to see the results of the restructuring process that was begun in December 2011, with gold sold in Q1 2013 in excess of 9,500 ounces. Cash costs are in line with budget and, assuming production ramps up to the expected levels, Ezulwini is well placed to begin breaking even by the end of Q2 2013.

OUTLOOK

As discussed under the Recent Developments section of this news release, the Corporation expects to conclude and implement the AGA Transaction by July 24, 2012, following which the Gold One Transaction is expected to be concluded by July 31, 2012.

On the implementation of the AGA Transaction, BNY and GMG, the Indenture Trustees for the Canadian Notes and the Rand Notes, respectively, will be paid the respective principal amounts owing to the Canadian and Rand Note holders and the Gold One Loan will also be repaid.

The Board will determine an amount for an initial distribution to shareholders, aggregate crushing and screening plantfollowing completion of both the AGA Transaction and the Gold One Transaction, and the repayment of all current obligations to the Debenture holders, settlement of all outstanding obligations to the Note holders and reserving an amount for any continuing and contingent obligations. Following release of the escrow funds held for claims under the AGA Agreement and the Gold One Agreement, the settlement of all remaining obligations to the Debenture holders and the establishment of a reserve for any continuing and contingent obligations, the Board will determine an additional amount to be distributed to the shareholders. The Corporation may then proceed to be wound up and dissolved. However the Board has not made any decisions with respect to the windup and dissolution at this time.

*Cash Costs are costs directly related to the physical activities of producing gold and uranium and include mining, processing and other plant costs; third-party refining and smelting costs; marketing expense, on-site general and administrative costs; royalties; on-mine drilling expenditures that are related to production and other direct costs. Sales of by-product metals such as uranium and silver are deducted from the above in computing cash costs. Cash costs exclude depreciation, depletion and amortization, corporate general and administrative expense, exploration, interest, and pre-feasibility costs and accruals for mine reclamation. Cash costs are calculated and presented using the "Gold Institute Production Cost Standard" applied consistently for all periods presented. The Gold Institute was a non-profit industry association comprised of leading gold producers, refiners, bullion suppliers and manufacturers. This institute has now been incorporated into the National Mining Association. The guidance was first issued in 1996 and revised in November 1999. Total cash costs per ounce is a non-IFRS measurement and investors are cautioned not to place undue reliance on it and are advised to read all IFRS accounting disclosures presented in the Corporation's Financial Statements.

About First Uranium Corporation

First Uranium Corporation (TSX:FIU, JSE:FUM) is a Canadian resource company which operates the Ezulwini mine, an underground gold and uranium operation and Mine Waste Solutions (MWS), a tailings recovery facility. Both operations are 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 are forward-looking statements (or forward-looking information). The Corporation'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, crushed stone production linerisks and uncertainties, see the Corporation's most recent Annual Information Form and most recent Management Discussion and Analysis on file with the Canadian provincial securities regulatory authorities on SEDAR . 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 Limited. Accordingly, readers should not place undue reliance on forward-looking statements that are included herein, except in accordance with applicable securities laws.