First Uranium announces update on sale of MWS to AngloGold Ashanti

All amounts are in US dollars unless otherwise noted.

TORONTO AND JOHANNESBURG, July 3, 2012 /CNW/ - First Uranium Corporation (TSX:FIU.UN), (JSE:FUU) (ISIN:CA33744R5087) ("First Uranium" or "the Corporation") announced that as previously reported on June 29, 2012, today the Closing Date occurred, as defined in the agreement (the "AGA Agreement") dated March 2, 2012 for the sale, indirectly, of all of the shares of Mine Waste Solutions (Proprietary) Limited ("MWS"), owner of the tailings recovery project in South Africa, to AngloGold Ashanti Limited ("AGA") (the "AGA Transaction"). The Corporation has been advised that it could take up to three weeks for the Discharge Documents (as defined below) to be registered, accordingly, the AGA Transaction is expected to be implemented by July 24, 2012, or on an earlier date depending on the date the Discharge Documents are registered.

At this juncture, all of the documents required to conclude the AGA Transaction have been delivered to Edward Nathan Sonnenbergs as Closing Document Stakeholder, the purchase price, in accordance with the AGA Agreement, has been delivered to Computershare Trust Company of Canada and Computershare Investor Services (Proprietary) Inc., each a Purchase Price Stakeholder, and certain documents ("Discharge Documents") relating to the discharge of the security held for the benefit of the 7% secured convertible notes (the "Canadian Notes") issued by the Corporation, the 11% secured convertible notes (the "Rand Notes") issued by MWS and the Gold One $10 million loan facility will be lodged with the appropriate deeds office.

Upon registration of the Discharge Documents releasing all security in the MWS assets, the Closing Document Stakeholder will release the remaining closing documents from escrow and the Purchase Price Stakeholders will pay: (i) to BNY Trust Company of Canada, as trustee for the Canadian Notes, C$110 million, and to or to the order of GMG Trust Company (SA) Pty Limited, as trustee for the Rand Notes, ZAR418.6 million, (ii) to Gold One, $10 million plus accrued interest to the date of payment; (iii) $25 million to the warranty escrow agent; and (iv) the balance shall be paid to First Uranium.

About First Uranium Corporation

First Uranium Corporation (TSX:FIU.UN, JSE:FUU) 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, risks 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 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.

www.firsturanium.com

SOURCE First Uranium Corporation

For further information:

Mary Batoff: (416) 306‐3072, mary@firsturanium.ca

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First Uranium Corporation

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