First Uranium reports results for year ended March 31, 2007



    /NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
    NEWSWIRE SERVICES/

    All amounts are in US Dollars unless otherwise noted.

    TORONTO and JOHANNESBURG, South Africa, June 14 /CNW/ - First Uranium
Corporation (TSX:FIU, JSE:FUM) (CA33744R1029:ISIN) ("First Uranium" or "the
Company") today announced its financial results for the year ended March 31,
2007 ("Fiscal 2007") as compared to the year ended March 31, 2006 ("Fiscal
2006") and provided a progress update on its Ezulwini Mine and Buffelsfontein
tailings recovery project (the "Current Projects") in South Africa.

    
    Highlights

    During Fiscal 2007, First Uranium:
    -   Completed the Company's initial public offering in December 2006 on
        the Toronto Stock Exchange, raising gross proceeds of $201.8 million
    -   Commenced underground development at the Ezulwini Mine in February
        2007 (two months ahead of schedule)
    -   Completed an evaluation to optimize uranium recovery using pressure
        leaching at the Buffelsfontein tailings recovery project
    -   Ended Fiscal 2007 with cash and cash equivalents of $138.9 million
    -   Incurred a net loss of $7.9 million
    -   Invested $24.3 million to develop the Current Projects
    -   Completed a secondary listing on the Johannesburg Stock Exchange

    Subsequent to the end of Fiscal 2007, First Uranium:
    -   Raised gross proceeds of Cdn$150 million through an issue of senior
        unsecured convertible debentures
    -   Filed revised technical reports for each of the Current Projects,
        which improved their NPV and IRR reflecting the accelerated
        timetables of both projects
    -   Accelerated capital investment at the Ezulwini Mine to advance by
        three months plant commissioning and production startup
    -   Acquired Mine Waste Solutions (Proprietary) Limited to advance the
        Buffelsfontein tailings recovery project
    -   Received acceptance by the South African Department of Mines and
        Energy for a prospecting permit application on incremental ground
        contiguous to the Ezulwini Mine
    -   Added a Chief Financial Officer and an Executive Vice-President,
        Compliance to round out the executive management team
    

    Overview

    First Uranium recorded a net loss of $7.9 million during Fiscal 2007 as
compared to a loss of $6.9 million during Fiscal 2006. On a per share basis
the Company recorded a net loss of $0.08 in Fiscal 2007 as compared to a loss
of $0.08 in Fiscal 2006, based on the weighted number of average common shares
outstanding of 97.5 million and 84.2 million respectively. During both Fiscal
2006 and Fiscal 2007, the Company was still in the development phase and,
accordingly, had no operating revenue in either period.
    "We have made good progress on the development of our two South African
uranium and gold projects, the Ezulwini underground mine and the
Buffelsfontein tailings recovery project," said Gordon Miller, President and
Chief Executive Officer of First Uranium.
    "We have taken significant strides to advance production at both projects
by accelerating the construction schedule at Ezulwini and completing the
acquisition of an existing gold plant adjacent to Buffelsfontein," continued
Mr. Miller. "By advancing production at both projects in an environment of
high uranium demand and prices, we expect that the near-term revenue
contribution from Ezulwini and Buffelsfontein will be much higher than we
originally anticipated. The combined proceeds of the initial public offering
and the recent convertible debenture offering, as well as the prospect for
higher than planned revenue, gives us confidence that we are well funded to
advance our current projects to full production."

    
    Expenses

    Expenses during the last two fiscal years reflected normal costs
associated with the start-up of a new company and the development of new
mining projects, including:

    -   Consulting and management fees, which increased in Fiscal 2007
        compared to Fiscal 2006 by 49% to $2.2 million, principally due to
        the costs associated with its initial public offering and listing on
        the Toronto Stock Exchange (the "TSX") and expenditures in connection
        with the management of the timely development of the Current Projects

    -   General and administrative expenses increased in Fiscal 2007 as new
        employees were hired and the Johannesburg and Toronto offices were
        established

    -   Stock-based compensation costs of $2.5 million in Fiscal 2007,
        principally related to the granting of stock options to management
        and the new Board of Directors. Comparable costs in Fiscal 2006 were
        insignificant

    -   Pumping and feasibility costs of $0.8 million related to the Current
        Projects, decreased from $5.1 million in Fiscal 2006, as such costs
        were capitalized in Fiscal 2007 based on the planned development of
        the Current Projects

    -   A foreign exchange loss of $4.6 million in Fiscal 2007, which was
        primarily related to the conversion of the net Canadian dollar
        denominated proceeds from the initial public offering in December
        2006 to South African rand in accordance with the requirements of the
        South African Reserve Bank
    

    All of the above expenses were partially offset in Fiscal 2007 by
$3.4 million of interest income from the proceeds of the Company's initial
public offering, which net of underwriting fees, raised $189 million.

    Cash and Capital Expenditures

    First Uranium ended Fiscal 2007 with cash and cash equivalents of
$138.9 million ($0.6 million at the end of Fiscal 2006), which reflects the
net proceeds of the initial public offering less the cost of certain assets
acquired from the Company's controlling shareholder Simmer and Jack Mines,
Limited, cash utilized in operations and capital invested for additions to
property, plant and equipment.
    Including cash, the Company had $181.4 million of assets at the end of
Fiscal 2007. During Fiscal 2007 the Company has invested $24.3 million of cash
in property, plant and equipment, comprised primarily of the mining and plant
assets at Ezulwini.

    Production Forecast

    At the Ezulwini Mine, gold production is planned to commence in October
2007 and uranium production is expected to begin in June 2008 to achieve an
average annual production of 290,000 ounces of gold and 888,000 pounds of
uranium over the 18-year life of the mine. With the acquisition of MWS, the
Company's Buffelsfontein tailings recovery project is producing gold and is
expected to commence uranium production in November 2008 to achieve an average
annual production of 128,000 ounces of gold and 922,000 pounds of uranium over
the 16-year life of the project.

    Management Appointment

    Effective June 1, 2007 John Berry has joined the First Uranium management
team as Executive Vice-President, Compliance to oversee, among other things,
the Corporation's applications process for mining and prospecting rights and
environmental permits. Mr. Berry has been involved in the mining industry
since 1977 and is an Executive Director with Simmer and Jack Mines, Limited.
He will divide his time evenly between the two companies.

    Third Quarter Restatement

    First Uranium has restated the consolidated interim financial statements
for the three months ended December 31, 2006 to reflect additional costs
relating to the Offering. These additional costs include fees payable to
Investec Bank Limited of South Africa, in respect of various advisory and
regulatory services provided in connection with the Offering, as well as
advisory fees payable to a number of technical consultants.

    Technical Disclosure

    All technical disclosure in this news release relating to the Ezulwini
project is extracted from a technical report entitled "Technical Report -
Preliminary Assessment of the Ezulwini Project, Gauteng Province, Republic of
South Africa" originally submitted on November 8, 2006 and December 5, 2006
and revised on May 9, 2007 prepared in accordance with NI 43-101 by Wayne
Valliant, P.Geo. and R. Dennis Bergen, P.Eng of Scott Wilson Roscoe Postle
Associates Inc. ("Scott Wilson RPA"). All technical disclosure in this news
release relating to the Buffelsfontein tailings recovery project is extracted
from a technical report entitled "Technical Report - Preliminary Assessment of
the Buffelsfontein Project, Northwest Province, Republic of South Africa"
originally submitted on November 8, 2006, revised on December 5, 2006 and
January 31, 2007 and further revised on May 22, 2007 prepared in accordance
with National Instrument 43-101 ("NI 43-101") by R. Dennis Bergen, P.Eng and
Wayne Valliant, P.Geo. of Scott Wilson RPA. Each of Mr. Valliant and
Mr. Bergen is a "qualified person" under NI 43-101 and is independent of First
Uranium. The technical disclosure contained in this news release has been
reviewed and approved by Mr. Bergen and Mr. Valliant.

    The economic analysis contained in this news release is contained in the
technical reports mentioned above and is based, in part, on inferred
resources, and is preliminary in nature. Inferred resources are considered too
geologically speculative to have mining and economic considerations applied to
them and to be categorized as Mineral Reserves. There is no certainty that the
reserves development, production and economic forecasts on which the
preliminary assessment contained in the technical reports are based, will be
realized.

    Cautionary Language Regarding Forward-Looking Information

    This news release contains certain forward-looking statements.
Forward-looking statements include but are not limited to those with respect
to the price of uranium and gold, the estimation of mineral resources and
reserves, the realization of mineral reserve estimates, the timing and amount
of estimated future production, costs of production, capital expenditures,
costs and timing of development of new deposits, success of exploration
activities, permitting time lines, currency fluctuations, requirements for
additional capital, government regulation of mining operations, environmental
risks, unanticipated reclamation expenses, title disputes or claims and
limitations on insurance coverage and the timing and possible outcome of
pending litigation. In certain cases, forward-looking statements can be
identified by the use of words such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "does not anticipate", or "believes" or
variations of such words and phrases, or state that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of First Uranium to be materially different from
any future results, performance or achievement expressed or implied by the
forward-looking statements. Such risks and uncertainties include, among
others, the actual results of current exploration activities, conclusions of
economic evaluations, changes in project parameters as plans continue to be
refined, possible variations in grade and ore densities or recovery rates,
failure of plant, equipment or processes to operate as anticipated, accidents,
labour disputes or other risks of the mining industry, delays in obtaining
government approvals or financing or in completion of development or
construction activities, risks relating to the integration of acquisitions, to
international operations, to prices of uranium and gold. Although First
Uranium has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause actions,
events or results not to be as anticipated, estimated or intended. It is
important to note, that: (i) unless otherwise indicated, forward-looking
statements indicate the Corporation's expectations as at June 13, 2007; (ii)
actual results may differ materially from the Corporation's expectations if
known and unknown risks or uncertainties affect its business, or if estimates
or assumptions prove inaccurate; (iii) the Corporation cannot guarantee that
any forward-looking statement will materialize and, accordingly, readers are
cautioned not to place undue reliance on these forward-looking statements; and
(iv) the Corporation disclaims any intention and assumes no obligation to
update or revise any forward-looking statement even if new information becomes
available, as a result of future events or for any other reason.
    In making the forward-looking statements in this news release, First
Uranium has made several material assumptions, including but not limited to,
the assumption that: (i) approvals to transfer or grant, as the case may be,
mining rights will be obtained; (ii) metal prices, exchange rates and discount
rates applied in the preliminary economic assessments are achieved;
(iii) mineral resource estimates are accurate; (iv) the technology used to
develop and operate its two projects has, for the most part, been proven and
will work effectively; (v) that labour and materials will be sufficiently
plentiful as to not impede the projects or add significantly to the estimated
cash costs of operations; (vi) that outstanding approvals for the completion
of an acquisition, the transfer of mining rights and the approval of mining
rights will be granted; (vii) that Black Economic Empowerment ("BEE")
investors will maintain their interest in the Corporation and their investment
in the Corporation's common shares to a sufficient level to continue to
support the Corporation's compliance with 2014 BEE requirements; and (viii)
that the innovative work on stabilizing the main shaft at the Ezulwini Mine
will be successful in maintaining a safe and uninterrupted working environment
until 2024.

    About First Uranium Corporation

    First Uranium Corporation is focused on the development of South African
uranium and gold mines with the goal of becoming a significant producer
through the re-opening and development of the Ezulwini Mine, and the
construction of the Buffelsfontein tailings recovery facility. First Uranium
also plans to grow production by pursuing acquisition and joint venture
opportunities.

    First Uranium Corporation
    1240-155 University Avenue, Toronto, ON Canada M5H 3B7
    www.firsturanium.com


    
                      CONSOLIDATED FINANCIAL STATEMENTS
                                 for the year
                             ended March 31, 2007

    First Uranium Corporation

    Management's Responsibility for Financial Reporting

    The accompanying consolidated financial statements have been prepared by
management and are in accordance with Canadian generally accepted accounting
principles and reflect informed judgments and estimates based on currently
available information and with due consideration given to materiality.
Management acknowledges its responsibility for the fairness, integrity and
objectivity of all information in the consolidated financial statements.
    As a means of fulfilling its responsibility, management relies on the
Corporation's system of internal controls. This system has been established to
ensure, within reasonable limits, that the assets are safeguarded,
transactions are properly recorded and are executed in accordance with
management's authorization and that the accounting records provide a solid
foundation from which to prepare the consolidated financial statements.
    The Board of Directors carries out its responsibility for the consolidated
financial statements principally through its Audit Committee, consisting
solely of non-management directors. The Audit Committee meets with management
as well as the external auditors to ensure that management is properly
fulfilling its financial reporting responsibilities to the Directors who
approve the financial statements. The external auditors have full and
unrestricted access to the Audit Committee to discuss the scope of the
external audit, the adequacy of the system of internal controls and financial
reporting issues.
    The consolidated financial statements have been audited by
PricewaterhouseCoopers LLP, Chartered Accountants. Their report outlines the
scope of their examination and opinion on the consolidated financial
statements.

    Gordon Miller                   Emma Oosthuizen
    Chief Executive Officer         Chief Financial Officer

    June 13, 2007


    Auditors' Report to the Shareholders

    We have audited the consolidated balance sheet of First Uranium
Corporation as at March 31, 2007 and 2006 and the consolidated statements of
expenditures and deficit and cash flows for the years then ended. These
financial statements are the responsibility of the Corporation's management.
Our responsibility is to express an opinion on these financial statements
based on our audits.
    We conducted our audits in accordance with Canadian generally accepted
auditing standards. Those standards require that we plan and perform an audit
to obtain reasonable assurance whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation.
    In our opinion, these consolidated financial statements present fairly, in
all material respects, the financial position of the Corporation as at March
31, 2007 and 2006 and the results of its operations and its cash flows for the
years then ended in accordance with Canadian generally accepted accounting
principles.

    PricewaterhouseCoopers LLP
    Chartered Accountants
    Licensed Public Accountants
    Toronto, Ontario, Canada

    June 13, 2007


    First Uranium Corporation
    Consolidated Balance Sheets
    as at March 31, 2007 and March 31, 2006
    (in United States Dollars)

                                                             2007       2006
                                                  Notes   US$'000    US$'000
    -------------------------------------------------------------------------

    ASSETS

    Current assets
    Cash and cash equivalents                             138,914        560
    Accounts receivable                              3      1,713        143
    Inventories                                      4        292          -
    Amount receivable from related party            19      6,763      2,730
    -------------------------------------------------------------------------
                                                          147,682      3,433
    -------------------------------------------------------------------------

    Non-current assets
    Property, plant and equipment                    5     30,954          -
    Asset retirement fund                            6      2,791          -
    -------------------------------------------------------------------------
                                                           33,745          -
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Total assets                                          181,427      3,433
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES

    Current liabilities
    Accounts payable and accrued liabilities         8      5,702        787
    Amount payable to related party                 19          -      5,300
    -------------------------------------------------------------------------
                                                            5,702      6,087
    -------------------------------------------------------------------------

    Non-current liabilities
    Asset retirement obligation                      9      5,377          -
    -------------------------------------------------------------------------
                                                            5,377          -
    -------------------------------------------------------------------------

    SHAREHOLDERS' EQUITY
    Share capital                                   10    182,673      4,176
    Contributed surplus                             11      2,460         27
    Accumulated deficit                                   (14,785)    (6,857)
    -------------------------------------------------------------------------
                                                          170,348     (2,654)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Total equity and liabilities                          181,427      3,433
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    See accompanying notes to the Consolidated Financial Statements,
    including:
    -   Basis of preparation
    -   Contractual obligations
    -   Subsequent events

    Approved on behalf of the Board of Directors

    Nigel R. G. Brunette                  Robert M. Franklin
    Non-executive Chairman                Non-executive Director

    June 13, 2007


    First Uranium Corporation
    Consolidated Statements of Expenditures and Deficit
    for the years ended March 31, 2007 and March 31, 2006
    (in United Stated Dollars)

                                                             2007       2006
                                                  Notes   US$'000    US$'000
    -------------------------------------------------------------------------

    Expenditures
    Consulting and management fees                  19      2,224      1,494
    General and administrative expenditure                  1,024        261
    Stock-based compensation                        11      2,460         27
    Pumping and feasibility costs                             844      5,104
    Amortization of property, plant and equipment    5         14          -
    -------------------------------------------------------------------------

    Operating loss                                         (6,566)    (6,886)
    Interest income                                 19      3,433          -
    Interest expense                                19       (162)         -
    Foreign exchange (losses)/gains                 12     (4,612)        29
    -------------------------------------------------------------------------

    Loss before income taxes                               (7,907)    (6,857)
    Provision for income taxes                      13        (21)         -
    -------------------------------------------------------------------------

    Net loss for the year                                  (7,928)    (6,857)
    Accumulated deficit at the beginning of the
     year                                                  (6,857)         -
    -------------------------------------------------------------------------

    Accumulated deficit at the end of the year            (14,785)    (6,857)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and diluted loss per common share (US$)   14      (0.08)     (0.08)

    Weighted average number of basic and diluted
     common shares outstanding ('000)               14     97,522     84,172

    See accompanying notes to the Consolidated Financial Statements


    First Uranium Corporation
    Consolidated Statements of Cash Flows
    for the years ended March 31, 2007 and March 31, 2006
    (in United States Dollars)

                                                             2007       2006
                                                  Notes   US$'000    US$'000
    -------------------------------------------------------------------------

    Net loss for the year                                  (7,928)    (6,857)
    Changes not affecting cash:
      - Interest income                           15.2       (666)         -
      - Interest expense                                      162          -
      - Amortization                                           14          -
      - Expenses in respect of asset retirement
         fund                                        6         80          -
      - Accretion expense in respect of asset
         retirement obligation                       9        244          -
      - Stock-based compensation                            2,460         27
    -------------------------------------------------------------------------

    Net loss after interest and non-cash items             (5,634)    (6,830)
    Movement in working capital:
      - Increase in inventories                              (292)         -
      - Increase in accounts receivable                    (1,570)      (143)
      - (Increase)/decrease in net amounts
         receivable from related parties          15.1     (9,880)     2,570
      - Increase in accounts payable and accrued
         liabilities                                        1,633        787
    -------------------------------------------------------------------------
    Cash flows from operating activities                  (15,743)    (3,616)
    -------------------------------------------------------------------------

    Additions to property, plant and equipment    15.3    (24,270)         -
    Increase in asset retirement fund                6       (103)         -
    -------------------------------------------------------------------------
    Cash flows from investing activities                  (24,373)         -
    -------------------------------------------------------------------------

    Proceeds from shares issuance (net of issue
     costs)                                         10    178,470      4,176
    -------------------------------------------------------------------------
    Cash flows from financing activities                  178,470      4,176
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------

    Net increase in cash and cash equivalents for
     the year                                             138,354        560

    Cash and cash equivalents at beginning of the
     year                                                     560          -
    -------------------------------------------------------------------------

    Cash and cash equivalents at end of the year          138,914        560
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    See accompanying notes to the Consolidated Financial Statements



    First Uranium Corporation
    Notes to the Consolidated Financial Statements
    March 31, 2007

    1.  NATURE OF OPERATIONS AND BASIS OF PRESENTATION

        The consolidated financial statements have been prepared by First
        Uranium Corporation ("First Uranium" or "the Corporation") in
        accordance with Canadian generally accepted accounting principles
        ("Canadian GAAP"). The preparation of the consolidated financial
        statements is based on accounting policies and practices consistent
        with those used in the prior year.

        First Uranium is a Canadian corporation with a primary listing on the
        Toronto Stock Exchange ("TSX") and a secondary listing on the
        Johannesburg Stock Exchange ("JSE"). First Uranium is a resource
        company focused on the development of uranium and gold projects in
        South Africa, see Note 5 "Property, Plant and Equipment" for a
        description of the projects. First Uranium owns 100% of First Uranium
        Limited ("FUL"), which in turn holds 100% of First Uranium
        (Proprietary) Limited ("FUSA") and 90% of Ezulwini Mining Company
        (Proprietary) Limited ("EMC"). As at March 31, 2007, Simmer and Jack
        Mines, Limited ("Simmer & Jack") owned 67.2% of First Uranium's
        common shares.

        1.1   Investment in subsidiaries

              Group financial statements

              The acquisition by First Uranium of shareholdings in FUSA and
              EMC are accounted for under Canadian GAAP as a continuity of
              interests. Certain adjustments have been reflected in the
              financial statements to reflect the reorganization pursuant to
              which First Uranium acquired 100% of FUSA and 90% of EMC as if
              the share exchange had been effective for the period from
              inception to March 31, 2007.

              Acquisition from entities under common control

              A business combination involving entities or businesses under
              common control is a business combination in which all of the
              combining entities or businesses are ultimately controlled by
              the same party or parties both before and after the business
              combination, and that control is not transitory.

              The assets and liabilities acquired in a business combination
              under common control are recognized at the carrying amounts
              recognized previously in the Group's controlling shareholder,
              Simmer & Jack's, consolidated financial statements.

    2.  SIGNIFICANT ACCOUNTING POLICIES

        2.1   Basis of preparation

              The consolidated financial statements have been prepared in
              accordance with accounting principles generally accepted in
              Canada.

        2.2   Consolidation

              The consolidated financial statements include the accounts of
              First Uranium and all of its subsidiaries. All significant
              inter-company balances and transactions are eliminated on
              consolidation.

              2.2.1 Subsidiaries

                    A subsidiary is an entity which is controlled by the
                    Corporation. The consolidated financial statements
                    include all the assets, liabilities, revenues, expenses
                    and cash flows of First Uranium and its subsidiaries
                    after eliminating inter-company balances and
                    transactions. For partly owned subsidiaries, the net
                    assets and net earnings attributable to minority
                    shareholders are presented as minority interests on the
                    consolidated balance sheet and consolidated statement of
                    expenditures and deficit.

        2.3   Use of estimates

              The preparation of these consolidated financial statements in
              accordance with Canadian generally accepted accounting practice
              requires management to make estimates and assumptions that
              affect the reported amounts of assets and liabilities and
              disclosure of contingent assets and liabilities at the date of
              the consolidated financial statements and the reported amount
              of revenues and expenses during the reporting period.

              Significant areas requiring the use of management estimates
              relate to the determination of impairment of capital assets,
              goodwill estimation of future site restoration costs and future
              income taxes, and classification of current portion of long
              term debt. Financial results as determined by actual events
              could differ from those estimated.

        2.4   Foreign currency translation

              Items included in the financial statements of each entity in
              the Corporation are measured using the currency that best
              reflects the economic substance of the underlying events and
              circumstances relevant to that entity ("the functional
              currency").

              Foreign currency transactions are translated into the
              functional currency using the exchange rates prevailing at the
              dates of the transactions. Foreign exchange gains and losses
              resulting from the settlement of such transactions and from the
              translation of monetary assets and liabilities denominated in
              foreign currencies are recognized in the statements of
              expenditures and deficit.

              The Corporation considers the United States dollar ("US$") to
              be the functional and reporting currency. The translated
              amounts are of a foreign entity where its subsidiaries are
              accounted for as integrated foreign operations and as such, the
              translation to US dollar was made using the temporal method.
              Monetary assets and liabilities denominated in foreign
              currencies are translated in United States dollars at the
              year-end exchange rates, while non-monetary items are
              translated at the exchange rate in effect at the transaction
              date. Revenue and expense items are translated at the exchange
              rates in effect on the date of the transaction. Exchange gains
              and losses resulting from the translation of these amounts are
              included in the consolidated statements of operations.

        2.5   Financial instruments

              Financial assets and financial liabilities are recognized on
              the balance sheet when the Corporation has become party to the
              contractual provisions of the instruments.

              Measurement

              Financial instruments are initially measured at cost, which
              includes transaction costs. Subsequent to initial recognition
              these instruments are measured as set out below:

              Investments

              Purchases and sales are recognized on the trade date, which is
              the date that the Corporation commits to purchase or sell the
              asset. After initial recognition, investments, which include
              the Corporation's listed investments and which are designated
              as long term investments, are measured at the lesser of
              historic cost or net realizable value. Listed investments,
              which are designated as short term investments, are measured at
              fair value. Losses on long term investments and profits and
              losses on short term investments are recognized in the
              consolidated statement of expenditures and deficit.

              Other long term investments that are intended to be held to
              maturity are subsequently measured at amortized cost using the
              effective interest rate method. Amortized cost is calculated by
              taking into account any discount or premium on acquisition over
              the period to maturity. For investments carried at amortized
              cost, gains and losses are recognized in the income statement
              when the investments are derecognized or impaired, as well as
              through the amortization process.

              Cash and cash equivalents

              Cash and cash equivalents consist of cash on hand, bank
              balances, deposits held at call and certificate of deposits
              with a remaining maturity of three months or less. Bank and
              cash balances are reported separately from bank overdraft
              balances, which are included in accounts payable.

              Accounts receivable

              Accounts receivable are carried at original invoice amount
              unless a provision has been recorded for impairment of these
              receivables. A provision for impairment of accounts receivable
              is established when there is objective evidence that the
              Corporation will not be able to collect all amounts due
              according to the original terms of receivables.

              Financial liabilities

              After initial recognition, financial liabilities other than
              trading liabilities are subsequently measured at amortized cost
              using the effective interest rate method. Amortized cost is
              calculated by taking into account any transaction costs and any
              discount or premium on settlement.

              Accounts payable

              Liabilities for trade and other payables which are normally
              settled on 30 to 90 day terms are carried at cost.

              Impairment and uncollectability of financial assets

              An assessment is made at each balance sheet date to determine
              whether there is objective evidence that a financial asset or
              group of financial assets may be impaired. If such evidence
              exists, the estimated recoverable amount of the asset is
              determined and an impairment loss is recognized for the
              difference between the recoverable amount and the carrying
              amount as follows: The carrying amount of the asset is reduced
              to its discounted estimated recoverable amount, either directly
              or through the use of an allowance account and the resulting
              loss is recognized in the income statement for the period.

              Offset

              Where a legally enforceable right of offset exists for
              recognized financial assets and financial liabilities, and
              there is an intention to settle the liability and realize the
              asset simultaneously, or settle on a net basis, all related
              financial effects are offset.

              Equity instruments

              Equity instruments issued by the Corporation are recorded on
              the date the proceeds are received, net of direct issue costs.

              The carrying amounts for cash and cash equivalents, short term
              investments, accounts receivable and accounts payable and
              accrued liabilities approximate fair value due to the short
              maturities of these instruments.

        2.6   Property, plant and equipment

              The cost of an item of property, plant and equipment is
              recognized as an asset when:
              -  it is probable that future economic benefits associated with
                 the item will flow to the Corporation; and
              -  the cost of the item can be measured reliably.

              Costs include costs incurred initially to acquire or construct
              an item of property, plant and equipment and costs incurred
              subsequently to add to, replace part of, or service it. If a
              replacement cost is recognized in the carrying amount of an
              item of property, plant and equipment, the carrying amount of
              the replaced part is derecognized.

              Property, plant and equipment are carried at cost less
              accumulated depreciation and any impairment losses.

              Depreciation is provided on all property, plant and equipment
              other than freehold land, to write down the cost, less residual
              value, on a straight-line basis over their useful lives as
              follows:

              ---------------------------------------------------------------

              Item                                      Average useful life

              Buildings                                 20 years
              Plant and equipment                       25 years
              Office furniture and equipment            6 years
              Motor vehicles                            5 years
              Computer equipment and software           3 years

              Mining assets                             Life of mine
                 -  Mining assets are stated at cost
                    less accumulated amortization and
                    impairments. Cost includes
                    pre-production expenditures
                    incurred during the development
                    of the mine. Cost also includes
                    borrowing costs capitalized during
                    the construction period where such
                    costs are financed by borrowings.
                 -  Amortization is first charged on
                    new mining ventures from the date
                    on which production reaches
                    commercial quantities.

              ---------------------------------------------------------------
              Mine development costs                    Measured and
                                                        indicated mineral
                                                        resources
                 -  Mine development costs include
                    expenditures incurred to develop
                    new ore bodies, to define further
                    mineralization in existing ore
                    bodies and to expand the capacity
                    of a mine.
                 -  Mine development costs are
                    amortized using the units-of-
                    production method based on estimated
                    measured and indicated mineral
                    resources. These resources are
                    reassessed annually.

              ---------------------------------------------------------------
              Mine infrastructure                       Measured and
                                                        indicated mineral
                                                        resources
                 -  Plant, equipment and buildings are
                    amortized using the units-of-
                    production method based on
                    estimated measured and indicated
                    mineral resources.

              ---------------------------------------------------------------
              Mining rights                             Mining period as per
                                                        licence
                 -  The cost of acquiring mining
                    rights are capitalized and
                    amortized over the mining period
                    awarded by the Department of
                    Minerals and Energy ("DME") to
                    the Corporation for the respective
                    mining right.

              ---------------------------------------------------------------
              Exploration                               Life of mine
                 -  Exploration costs incurred to the
                    date of establishing that a
                    property has mineral resources,
                    which have the potential of being
                    economically recoverable, are
                    expensed; exploration and
                    development expenses incurred
                    subsequent to this date are
                    capitalized. If the project becomes
                    feasible, the costs are amortized
                    over the life of the mine. If the
                    project is stopped, the costs are
                    written off immediately.

              ---------------------------------------------------------------

              The residual value and the useful life of each asset are
              reviewed at each financial year-end.

              Each part of an item of property, plant and equipment with a
              cost that is significant in relation to the total cost of the
              item shall be depreciated separately.

              The depreciation charge for each period is recognized in profit
              or loss unless it is included in the carrying amount of another
              asset.

        2.7   Capitalization of interest

              Net interest costs incurred during the development,
              construction and start up phase of major projects are
              capitalized.

        2.8   Asset retirement obligations

              The Corporation recognizes the fair value of a future asset
              retirement obligation as a liability in the year in which it
              incurs a legal obligation associated with the retirement of
              tangible long-lived assets that results from the acquisition,
              construction, development, and/or normal use of the assets. The
              Corporation concurrently recognizes a corresponding increase in
              the carrying amount of the related long-lived asset that is
              depreciated over the life of the asset. The fair value of the
              asset retirement obligation is estimated using the expected
              cash flow approach that reflects a range of possible outcomes
              discounted at credit adjusted risk-free interest rate.

              Provision is made in full for the estimated future costs of
              pollution control and rehabilitation, in accordance with
              statutory requirements. The fair value of asset retirement
              obligations is recognized and provided for in the financial
              statements and capitalized to mining assets when incurred.

              Subsequent to the initial measurement, the asset retirement
              obligation is adjusted at the end of each year to reflect the
              passage of time and changes in the estimated future cash flows
              underlying the obligation.

              Changes in the obligation due to the passage of time are
              recognized in income as an operating expense using the interest
              method. Changes in the obligation due to changes in estimated
              cash flows are recognized as an adjustment of the carrying
              amount of the long-lived asset that is depreciated over the
              remaining life of the asset.

              Annual increases in the provision are accreted into income and
              consist of financing costs relating to the change in present
              value of the provision and inflationary increases in the
              provision estimate. The present value of additional
              environmental disturbances created is capitalized to mining
              assets against an increase in rehabilitation provision.

        2.9   Impairment of long-lived assets

              Where impairment is identified, the carrying value of the
              related property, plant and equipment is written down to fair
              value. Recoverability of the long term assets of the
              Corporation, which includes development costs and undeveloped
              property costs, are reviewed for impairment whenever events or
              changes in circumstances indicate that the carrying amounts may
              not be recoverable, based on future undiscounted cash flows. In
              preparing this evaluation, the Corporation compares the
              carrying amount of the asset to its fair value. For the
              purposes of assessing impairment, assets are grouped at the
              lowest levels for which there are separately identifiable cash
              flows. To determine fair value, management makes its best
              estimates of the future cash inflows that will be obtained each
              year over the life of the asset and discounts the cash flows by
              a rate that is based on the time value of money, adjusted for
              the risk associated with the applicable asset.

              Management's best estimate includes only those projections
              which it believes are reliable. These estimates are subject to
              risks and uncertainties including future metal prices. It is
              therefore reasonably possible that changes could occur which
              may affect the recoverability of the assets.

        2.10  Future income and mining taxes

              The Corporation utilizes the asset and liability method of
              accounting for income and mining taxes. Under the asset and
              liability method, future income and mining tax assets are
              recognized for the future tax consequences attributable to
              differences between the consolidated financial statements
              carrying amounts of existing assets and liabilities and their
              respective tax bases reduced by a valuation allowance to
              reflect the recoverability of any future income tax asset.
              Future income and mining tax assets and liabilities are
              measured using enacted or substantively enacted tax rates
              expected to apply when the asset is realized or the liability
              settled. The effect on future income and mining tax assets and
              liabilities of a change in tax rates is recognized in income in
              the year the enactment or substantive enactment occurs.

        2.11  Stock-based compensation

              The Corporation has a stock-based compensation plan which is
              described in note 11. The Corporation accounts for all
              stock-based payments under the fair value based method.

              Under the fair value based method, compensation cost is
              measured at fair value at the grant date. Compensation cost is
              recognized in earnings on a straight-line basis over the
              relevant vesting period. The counterpart is recognized in
              contributed surplus. Upon the exercise of a stock option, share
              capital is recorded at the sum of the proceeds received and the
              related amount of contributed surplus. Any consideration paid
              upon the exercise of stock options, in addition to the fair
              value attributable to stock options granted, is credited to
              share capital. The fair value attributable to stock options
              that expire unexercised is credited to contributed surplus.

        2.12  Interest recognition

              Interest income is recognized on a time proportion basis,
              taking account of the principal outstanding and the effective
              rate over the period of maturity, when it is determined that
              such income will accrue to the Corporation.

        2.13  Leased assets

              Leases of property, plant and equipment where the Corporation
              has substantially all the risks and rewards of ownership, are
              classified as finance leases. Finance leases are capitalized at
              the inception of the lease at the lower of the fair value of
              the leased property or the present value of the minimum lease
              payments. Each lease payment is allocated between the liability
              and finance charges so as to achieve a constant rate on the
              finance balance outstanding. The corresponding rental
              obligations, net of finance charges, are included in other
              long-term payables. The interest element of the installment is
              charged to the income statement over the lease period so as to
              produce a constant periodic rate of interest on the remaining
              balance of the liability for each period. The property, plant
              and equipment acquired under finance leases are depreciated
              over the shorter of the useful life of the asset or the lease
              term.

        2.14  Inventories

              Inventories, which include in-circuit metals and consumable
              stores, are stated at the lower of cost or net realizable
              value. The related direct production costs associated with
              in-circuit metals are deferred and charged to costs as the
              contained gold is recovered. Consumable stores are valued on
              the weighted average cost basis. In-circuit metals are
              identified and measured from the ore stockpiles up to and
              including the on-site refining plant.

        2.15  Earnings or loss per share

              Basic earnings or loss per share is computed by dividing
              earnings or loss available to common shareholders by the
              weighted average number of common shares outstanding during the
              year. The treasury stock method is used to calculate diluted
              earnings or loss per share. Diluted earnings or loss per share
              is similar to basic earnings or loss per share, except that the
              denominator is increased to include the number of additional
              common shares that would have been outstanding assuming that
              options with an average market price for the year greater than
              their exercise price are exercised and the proceeds used to
              repurchase common shares. As a result of the loss for each of
              the reporting years, the potential effect of exercising stock
              options has not been included in the calculation of diluted
              loss per share as to do so would be anti-dilutive.

    3.  ACCOUNTS RECEIVABLE

                                                             2007       2006
                                                          US$'000    US$'000
        ---------------------------------------------------------------------
        Trade receivables                                      99          -
        Value Added Tax and General Sales Tax               1,463         13
        Prepayments and advances                              144        130
        Deposits and guarantees                                 7          -
        ---------------------------------------------------------------------
                                                            1,713        143
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

    4.  INVENTORIES

                                                             2007       2006
                                                          US$'000    US$'000
        ---------------------------------------------------------------------
        Spares and consumables                                292          -
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

    5.  PROPERTY, PLANT AND EQUIPMENT

                                                   Accumulated  Net carrying
        2007                                Cost  amortization        amount
        Owned assets                     US$'000       US$'000       US$'000
        ---------------------------------------------------------------------
        Land and buildings                   863             -           863
        Mine infrastructure                3,710             -         3,710
        Mining assets                     16,942             -        16,942
        Mining rights                         13             -            13
        Plant and equipment                9,000             -         9,000
        Motor vehicles                       179            (8)          171
        Office furniture and equipment        56            (1)           55
        Computer equipment and software      205            (5)          200
        ---------------------------------------------------------------------
        Total net carrying amount         30,968           (14)       30,954
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        Included in the above are mining related assets with a net carrying
        value of US$29 million related to the Ezulwini Mine and
        US$0.8 million related to the Buffelsfontein Tailings Recovery
        Project.

        First Uranium had no property, plant or equipment in the year ending
        March 31, 2006.

        Ezulwini Mine

        The Ezulwini Mine involves the recommissioning of an underground
        uranium and gold mining operation located on the outskirts of the
        town of Westonaria in Gauteng Province, South Africa. The mine,
        previously on care and maintenance, is being readied for production.
        The mine was constructed in the 1960s. In 2001, mine production at
        Ezulwini was ceased primarily as a result of capital constraints
        compounded by a weak gold and uranium market environment. The geology
        of the Ezulwini property includes a number of reef packages, with the
        Upper Elsburg and Middle Elsburg reefs being the primary focus of
        First Uranium's mine reopening plans at the Ezulwini Mine. First
        Uranium's plans for the development of the Ezulwini Mine include the
        rehabilitation and re-engineering of the main mine shaft through the
        installation of a floating steel tower, de-stressing the area where
        the shaft pillar intersects the shaft barrel, and the construction of
        uranium and gold processing facilities.

        On December 8, 2006 the Ezulwini mining right was registered to
        Simmer & Jack. On December 20, 2006, EMC and Simmer & Jack entered
        into an agreement (the "Ezulwini Mining Right Agreement") pursuant to
        which Simmer & Jack agreed to take all necessary steps to obtain all
        ministerial approval in order to effect the ceding of the Ezulwini
        mining right from Simmer & Jack to EMC.

        On October 19, 2006, EMC entered into an agreement with Randfontein
        Estates Limited ("REL"), a wholly-owned subsidiary of Harmony Gold
        Mining Company Limited ("Harmony"), in respect of the purchase of
        certain surface and underground assets relating to the Ezulwini Mine,
        including two shaft headgears and four winders, fans, compressors,
        generators and underground equipment as well as the necessary surface
        freehold required to operate the mine. A total consideration of
        US$7.8 million was paid to REL. The effective date of the transaction
        was December 22, 2006.

        As part of the Ezulwini acquisition, the related environmental
        rehabilitation trust fund amounting to US$2.7 million (see Note 6)
        was transferred into the Ezulwini trust fund and EMC took over the
        related environmental rehabilitation provision of US$5.1 million (see
        Note 9) as determined by the DME. The difference of US$2.4 million
        between the environmental rehabilitation trust fund and the
        environmental rehabilitation provision has been capitalised as part
        of mining infrastructure.

        Buffelsfontein Tailings Recovery Project

        The Buffelsfontein Tailings Recovery Project is a uranium and gold
        tailings recovery operation located in the western portion of the
        Witwatersrand Basin. First Uranium will conduct hydraulic mining of
        thirteen tailings dumps on the Buffelsfontein property and two dams
        on the property of MWS (as defined below) using high pressure water
        cannons to slurry the tailings which will then be pumped to
        processing plants for the recovery of uranium and gold.

        In October 2005, Simmer & Jack purchased Buffelsfontein Gold Mines
        Limited ("BGM"), consisting of the Buffelsfontein and
        Hartebeesfontein underground gold mines and mill (the "BGM
        Underground Mine"), out of provisional liquidation (the
        "Buffelsfontein Liquidation Acquisition").

        BGM holds an old order mining right in respect of mining gold at the
        BGM Underground Mine but not for the recovery of the gold and uranium
        in the tailings dams at Buffelsfontein. On June 4, 2007 the DME
        granted to BGM a prospecting right with respect to uranium and other
        minerals in the Buffelsfontein property and tailings dams subject to
        certain conditions which are expected to be satisfied in due course.
        BGM has also filed with the DME an application to convert its old
        order mining right for BGM into a new order mining right. If and when
        this conversion application is approved, BGM intends to file with the
        DME one or more applications (which, together with the foregoing
        conversion application, are collectively referred to herein as the
        "Buffelsfontein Conversion Application") to: (i) amend, with effect
        from the date of conversion, the new order mining right to include
        the authority to mine for uranium underground and for gold, uranium
        and other minerals in respect of the tailings; (ii) divide the new
        order mining right, if granted, into two separate new order mining
        rights - one in respect of the mining for gold, uranium and other
        minerals at the BGM Underground Mine and the other, the
        Buffelsfontein Tailings Mining Right, in respect of the mining of the
        gold, uranium and other minerals in the Buffelsfontein tailings dams;
        and (iii) cede the Buffelsfontein Tailings Mining Right, if granted,
        to FUSA. The recognition of the BGM transaction will only take effect
        when the above stated conditions precedent are met.

        On December 20, 2006, FUSA, BGM and Simmer & Jack entered into an
        agreement (the "Buffelsfontein Tailings and Rights Agreement")
        pursuant to which, among other things:

        (i)   BGM agreed to take all necessary steps to obtain all
              ministerial approvals required for the items requested in the
              Buffelsfontein Conversion Application in order to effect the
              transfer of the Buffelsfontein Tailings Mining Right to FUSA as
              soon as possible;

        (ii)  BGM agreed to sell to FUSA upon FUSA's receipt of the
              Buffelsfontein Tailings Mining Right, the Buffelsfontein
              tailings dams as well as certain property required for
              construction of the proposed processing plants, and grant to
              FUSA a right to the tailings arising from BGM's ongoing mining
              operations at its underground Buffelsfontein mine; and

        (iii) BGM agreed to grant a servitude to FUSA for access and egress
              to BGM's property to enable FUSA, its employees, consultants,
              agents and subcontractors access for purposes of constructing,
              servicing and operating the uranium and gold processing plants
              and tailings pipelines to be built by FUSA.

        The underground mines that were purchased by Simmer & Jack pursuant
        to the Buffelsfontein Liquidation Acquisition will not form part of
        First Uranium's assets at the Buffelsfontein Tailings Recovery
        Project.

        The Corporation plans to acquire from BGM three additional tailings
        dams (Harties - Flanagan, Harties - Ellaton and Harties - NKGE).

        The Corporation, through its wholly-owned subsidiary FUSA, also
        acquired Mine Waste Solutions (Proprietary) Limited ("MWS") and its
        subsidiary Chemwes (Proprietary) Limited on April 1, 2007 ("the MWS
        Acquisition"). The MWS Acquisition closed on June 6, 2007, at which
        point First Uranium assumed management control of MWS. For accounting
        purposes, any net income from MWS operations for the period from
        April 1, 2007 to June 6, 2007 will be applied to reduce the cost of
        the MWS Acquisition. MWS owns and operates an existing gold mine
        tailings and re-processing facility adjacent to First Uranium's
        Buffelsfontein Tailings Recovery Project in South Africa. See
        Note 18.

    6.  ASSET RETIREMENT FUND

                                                             2007       2006
                                                          US$'000    US$'000
        ---------------------------------------------------------------------
        Investment in Environmental Trust Fund
        -  Trust fund obtained on acquisition of mine       2,686          -
        -  Investment income                                   82          -
        -  Contributions in respect of guarantee              103          -
        -  Costs incurred                                     (80)         -
        ---------------------------------------------------------------------
                                                            2,791          -
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        The environmental rehabilitation trust fund is under the
        Corporation's control and is to be used to fund the rehabilitation
        liabilities. Funds in the trust consist of primarily cash held in
        interest bearing accounts, together with investments in South African
        equities. An accredited South African financial institution manages
        the trust funds under the direction of the trustees. The trust deed
        limits trustees to make investments to institutions and investment
        vehicles as referred to in section 37A of the South African Income
        Tax Act.

    7.  GUARANTEES

        The following guarantees have been issued:
                                                                   Guarantee
                                                                       value
        To                               Regarding                   US$'000
        ---------------------------------------------------------------------
        DME                              Ezulwini environmental
                                          rehabilitation provision     5,162
        Murray and Robberts
         Cementation (Pty) Ltd           Ezulwini shaft
                                          rehabilitation project       1,374
        Eskom Holdings Ltd               Electricity accounts          1,168
        ---------------------------------------------------------------------

        The funds in the Ezulwini rehabilitation trust fund have been pledged
        as security against the guarantees.

    8.  ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

                                                             2007       2006
                                                          US$'000    US$'000
        ---------------------------------------------------------------------
        Trade payables                                      5,302        408
        Accruals                                              400        379
        ---------------------------------------------------------------------
                                                            5,702        787
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

    9.  ASSET RETIREMENT OBLIGATION

                                                             2007       2006
                                                          US$'000    US$'000
        ---------------------------------------------------------------------
        Provision taken over with acquisition of the
         Ezulwini Mine                                      5,133          -
        Accretion expense                                     244          -
        ---------------------------------------------------------------------
        Total obligation                                    5,377          -
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        The following are the key assumptions used during 2007:

                                                             2007       2006
                                                          US$'000    US$'000
        ---------------------------------------------------------------------
        Undiscounted and uninflated amount of estimated
         cash flows                                        23,206          -
        ---------------------------------------------------------------------

        Currency payable                                      ZAR          -
        Payable in years                                       19          -
        Risk-free interest rate - South African rate           8%          -
        ---------------------------------------------------------------------

        The environmental rehabilitation provision taken over by EMC as part
        of the acquisition of the Ezulwini assets was determined by the DME
        as at November 2006. During March 2007 an independent review was
        performed by Johan Fourie & Associates on the Ezulwini assets
        relating to environmental rehabilitation provision.

        An environmental rehabilitation trust fund (see Note 6) has been set
        up as sinking funds for the purposes of funding the environmental
        rehabilitation and closure costs. The trust deed prohibits use of the
        funds for any other purpose. In addition, the Corporation raised
        financial guarantees with Lombards Insurance in favour of the DME to
        top-up the difference between the environmental rehabilitation trust
        fund and the environmental rehabilitation provision (see Note 7). The
        fair value of the Ezulwini Mine's restricted assets at year end is
        US$29.0 million (2006: US$nil). See Note 5.

    10. SHARE CAPITAL

                                      Number of shares       Value of shares
                                       2007       2006       2007       2006
        Ordinary shares                '000       '000    US$'000    US$'000
        ---------------------------------------------------------------------
        Opening balance of shares
         in issue and share capital  87,536          -      4,176          -
        Shares issued relating to
         share-split                      -        938          -          -
        Shares issued in public or
         private offering            33,350     86,598    201,795      4,176
        Exercise of stock options       800          -        728          -
        Contributed surplus
         relating to stock options
         exercised                        -          -         27          -
        ---------------------------------------------------------------------
                                    121,686     87,536    206,726      4,176
        Less:  Share issue costs          -          -    (24,053)         -
        ---------------------------------------------------------------------
        Closing balance of shares in
         issue and share capital    121,686     87,536    182,673      4,176
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        Authorized

        The authorized capital of First Uranium consists of an unlimited
        number of common shares.

        Issued and outstanding

        In December 2005 and January 2006 First Uranium raised a total of
        US$4.2 million through the private placement issues of 4,875,000
        shares at Cdn$1 per share. US$3 million of the capital raised was
        used to acquire the 20% interest in FUSA. There were share issue
        costs of US$218,749 for the period.

        On June 1, 2006, 800,000 stock options were exercised for proceeds of
        US$728,480.

        As part of the First Uranium reorganization (the "Reorganization")
        and initial public offering (the "Offering") in December 2006:

        -  the 5,675,001 issued and outstanding shares of First Uranium where
           split resulting in an increase in the issued and outstanding
           shares to 6,613,394. This split was determined based on the
           initial public offering issue price of Cdn$7 per share and the
           agreed valuation of the assets, which was supported by a valuation
           assessment provided by an independent valuator;
        -  First Uranium issued to Simmer & Jack 26,416,295 shares valued at
           US$187,495,878 for 1,196 FUL shares relating to the 80% FUSA
           shares previously owned by Simmer & Jack;
        -  First Uranium issued to Simmer & Jack 55,306,358 shares valued at
           US$391,732,461 for 2,504 FUL shares relating to the 90% EMC shares
           previously owned by Simmer & Jack;
        -  First Uranium issued 29 million shares to the public at Cdn$7 per
           share for gross proceeds of US$175.5 million;
        -  First Uranium issued an additional 4.35 million shares at Cdn$7
           per share pursuant to the exercise of an over-allotment option
           granted for gross proceeds of US$26.3 million.

        Under the continuity of interests, the shares issued to Simmer & Jack
        for EMC and FUSA are deemed to have always been outstanding.

        The share issue costs include fees payable to Investec Bank Limited
        of South Africa, in respect of various advisory and regulatory
        services provided in connection with the Offering, as well as
        advisory fees payable to a number of technical consultants.

    11. CONTRIBUTED SURPLUS - STOCK-BASED COMPENSATION

        The stock-option plan (the "Option Plan") is for employees, officers,
        directors and consultants that provide ongoing support to First
        Uranium and its subsidiaries. Under the Option Plan, options
        typically are granted for a period of up to ten years following the
        date of grant. The amounts granted usually reflect the level of
        responsibility of the particular optionee and his or her
        contributions to First Uranium.

        The Board of Directors has the complete discretion to set the terms
        of any vesting schedule of each option granted. Except in specified
        circumstances, options are not assignable and non-transferable, and
        terminate upon the optionee ceasing to be employed or associated with
        First Uranium.

        The terms of the Option Plan further provide that the price at which
        shares may be issued under the Option Plan shall not be less than the
        volume weighted average trading price of the shares on the TSX for
        the five trading days immediately preceding the day the option is
        granted.

        The following table details the movements of contributed surplus
        during the year:

                                                             2007       2006
        ---------------------------------------------------------------------
                                                          US$'000    US$'000
        ---------------------------------------------------------------------
        Balance, beginning of year                             27          -
        Transfer to share capital surplus relating to
         stock options exercised                              (27)         -
        Stock options granted during the period             2,460         27
        ---------------------------------------------------------------------
        Balance, end of year                                2,460         27
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        Assumptions

        The fair value of shares used to calculate the compensation expense
        was determined as the share price on the grant date adjusted by the
        probability of the recipients remaining employed or associated with
        the Corporation until the vesting date.

        For purposes of stock-based compensation, the fair values of these
        stock options were estimated using the Black-Scholes option pricing
        model with the assumptions used for the grants as follows:

                                                             2007       2006
        ---------------------------------------------------------------------
        Expected dividend yield                                0%         0%
        Expected volatility of the Corporation's share
         price                                                85%         0%
        Risk free interest rate - Canadian rates             3.9%       4.1%
        Expected life                                     3 years     1 year
        ---------------------------------------------------------------------

        Due to the short history of First Uranium trading on the TSX, changes
        in the subjective input assumptions can materially affect the fair
        value estimate, and therefore, the existing model does not
        necessarily provide a reliable measure of the fair value of First
        Uranium's stock options.

        During the 2006 year, 800,000 stock options were granted to
        directors, officers, and consultants of First Uranium with an
        exercise price of Cdn$1 per share. The options fully vested on the
        date of grant. On June 1, 2006, the total 800,000 stock options were
        exercised for proceeds of US$728,480.

        During the 2007 year, 1,223,001 stock options were granted for a
        period of 10 years following the date of the grant and are subject to
        vesting within 2 years from the date of grant.

        The following table is a summary of the Corporation's options granted
        under its stock-based compensation plan:

                                                            Weighted average
                                                             exercise price
                                     Number of options           (Cdn$)
                                       2007       2006       2007       2006
        ---------------------------------------------------------------------
        Outstanding options at
         beginning of year          800,000          -       1.00          -
        Granted during the year   1,223,001    800,000       7.30       1.00
        Exercised during the year  (800,000)         -       1.00          -
        ---------------------------------------------------------------------
        Outstanding options at
         end of year              1,223,001    800,000       7.30       1.00
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        The stock-based compensation expense recognised in the statements of
        expenditure and deficit is US$2,459,569 (2006: US$26,620). As at
        March 31, 2007, the aggregate unexpensed fair value of unvested stock
        options granted amounted to US$2,858,354 (2006: US$nil).

        The following table summarizes information about the First Uranium's
        outstanding stock options at March 31, 2007:

                                                  Options outstanding
                                                        Weighted    Weighted
                                              Number     average     average
        Exercise price                   outstanding   remaining    exercise
         ranges                            at Mar 31,       life       price
         Cdn$                                   2007      (years)      (Cdn$)
        ---------------------------------------------------------------------
        7.00 to 8.99                       1,127,144        9.73        7.04
        9.00 to 11.99                         95,857        9.93       10.37
        ---------------------------------------------------------------------
                                           1,223,001        9.74        7.30
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------


                                                  Options exercisable
                                                        Weighted    Weighted
                                              Number     average     average
        Exercise price                   outstanding   remaining    exercise
         ranges                            at Mar 31,       life       price
         Cdn$                                   2007      (years)      (Cdn$)
        ---------------------------------------------------------------------
        7.00 to 8.99                         339,051        9.73        7.04
        9.00 to 11.99                         31,952        9.93       10.37
        ---------------------------------------------------------------------
                                             371,003        9.74        7.33
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------


    12. FOREIGN EXCHANGE (LOSSES)/GAINS

                                                             2007       2006
                                                          US$'000    US$'000
        ---------------------------------------------------------------------
        Foreign exchange (losses)/gains                    (4,612)        29
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        The foreign exchange losses incurred in the year ending March 31,
        2007, are mainly the result of the foreign currency conversion of the
        net proceeds from the Offering placed by the Corporation into a South
        African bank account at year-end.

        Pursuant to the terms of the approval granted by the South African
        Reserve Bank ("SARB") of the Reorganization, the Corporation was
        required to convert the net proceeds of the Offering into South
        African Rand and transfer such amount to a South African bank account
        within 30 days from the date of closing the Offering. Subsequent to
        the conversion of the funds from the Offering into South African
        Rand, the South African Rand weakened against the US dollar resulting
        in the foreign exchange loss at year-end.

    13. INCOME TAXES

        Provision for income taxes

        The reconciliation of income taxes attributable to operations
        computed at the statutory tax rates to income tax recovery, using a
        statutory tax rate of 36.12% is as follows:

                                                             2007       2006
                                                          US$'000    US$'000
        ---------------------------------------------------------------------
        Net loss/(income) before taxation                   7,928      6,857
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        Income tax payable at statutory rate                2,864      2,477
        Difference between Canadian rates and foreign
         jurisdiction                                        (130)    (2,304)
        Change in valuation allowance                      (3,536)       (74)
        Adjustment for future tax rate difference             612          -
        Permanent differences                                 211        (99)
        ---------------------------------------------------------------------
        Normal taxation - current                              21          -
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        Future income taxes

                                                             2007       2006
                                                          US$'000    US$'000
        ---------------------------------------------------------------------
        Non-capital loss carry-forwards                     1,602          -
        Share issue costs                                   6,629         46
        Foreign resource expenses                           1,099          -
        Foreign exchange                                      850         95
        ---------------------------------------------------------------------
                                                           10,180        141
        Less: Valuation allowance                         (10,180)      (141)
        ---------------------------------------------------------------------
                                                                -          -
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        As at March 31, 2007, the Corporation had non-capital losses of
        approximately US$4.9 million that may be applied against earnings in
        future years. These losses are expected to expire US$0.5 million in
        2025 and US$4.4 million in 2027.

        The Corporation has provided a full valuation allowance against
        future tax assets as at March 31, 2007 due to uncertainties in the
        Corporation's ability to utilize its net operating losses.

    14. BASIC LOSS PER SHARE AND DILUTED LOSS PER SHARE

                                                             2007       2006
        ---------------------------------------------------------------------
        Basic and diluted loss per share of (US$)           (0.08)     (0.08)
        is calculated based on net loss for the period
         of (US$'000)                                      (7,928)    (6,857)
        and a weighted average number of shares
         outstanding of ('000)                             97,522     84,172
        ---------------------------------------------------------------------

        For the years ended March 31, 2007 and 2006, the impact of
        outstanding share options was excluded from the diluted share
        calculation because it was anti-dilutive for earnings per share
        purposes.

    15. NOTES TO THE CASH FLOW STATEMENT

        15.1  (Increase)/decrease in net amounts receivable from related
              parties

                                                             2007       2006
                                                          US$'000    US$'000
              ---------------------------------------------------------------
              Increase in amounts receivable from related
               parties                                     (4,033)    (2,730)
              (Decrease)/increase in amounts payable to
               related parties                             (5,300)     5,300
              Add back:
              - Interest income accrued on amounts
                 receivable                                   583          -
              - Interest expense accrued on amounts
                 payable                                   (1,130)         -
              ---------------------------------------------------------------
                                                           (9,880)     2,570
              ---------------------------------------------------------------
              ---------------------------------------------------------------

        15.2  Non-cash interest income

                                                             2007       2006
                                                          US$'000    US$'000
              ---------------------------------------------------------------
              Total interest income                         3,433          -
              Add back: Cash interest income               (2,767)         -
              ---------------------------------------------------------------
                                                              666          -
              ---------------------------------------------------------------
              ---------------------------------------------------------------

        15.3  Additions to property, plant and equipment

                                                             2007       2006
                                                          US$'000    US$'000
              ---------------------------------------------------------------
              Total additions to property, plant and
               equipment                                  (30,968)         -
              Add back:
              - Capitalized mining infrastructure           2,447          -
              - Capitalized interest                          969          -
              - Accrued capital expenditure                 3,282
              ---------------------------------------------------------------
                                                          (24,270)         -
              ---------------------------------------------------------------
              ---------------------------------------------------------------

              The capitalized mining infrastructure is the difference between
              the environmental rehabilitation trust fund and the
              environmental rehabilitation provision that were taken over
              from REL with the acquisition of the Ezulwini assets. See
              Notes 5, 6 and 9.

    16. CONTRACTUAL OBLIGATIONS

                                                             2007       2006
                                                          US$'000    US$'000
        ---------------------------------------------------------------------
        Capital commitments                                14,836          -
        ---------------------------------------------------------------------
        Total contractual obligations                      14,836          -
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        The capital commitments relate to capital expenditure on the Ezulwini
        Mine and are payable within one year.

    17. FINANCIAL INSTRUMENTS

        Financial risk factors

        The Corporation's activities expose it to a variety of financial
        risks, including the effects of changes in debt and equity market
        prices, foreign currency exchange rates and interest rates. The
        Corporation's overall risk management program focuses on the
        unpredictability of financial markets and seeks to minimize potential
        adverse effects on the financial performance of the Corporation. The
        Corporation does not hedge its exposure to foreign currency exchange
        risk.

        Risk management carried out by the Corporation is approved by the
        Board of Directors.

        (i)   Foreign exchange and commodity price risk

              The Corporation does not hedge its exposure to foreign currency
              exchange risk nor does it hedge its exposure to commodity price
              fluctuation risk.

        (ii)  Interest rate risk

              The Corporation does not hedge its exposure to interest rate
              risk. Deposits attract interest at rates that vary with prime.
              The Corporation's policy is to manage interest rate risk so
              that fluctuations in variable rates do not have a material
              impact on the statement of operations and deficit.

        (iii) Credit risk

              The Corporation has no significant concentrations of credit
              risk. The Corporation has policies in place to ensure that
              sales of products and services are made to customers with an
              appropriate credit history. The Corporation has policies that
              limit the amount of credit exposure to any one financial
              institution.

        (iv)  Liquidity risk

              Prudent liquidity risk management implies maintaining
              sufficient cash and marketable securities, the availability of
              funding through an adequate amount of committed credit
              facilities and the ability to close out market positions. The
              Corporation manages liquidity risk through an ongoing review of
              future commitments and credit facilities. Cash flow forecasts
              are prepared and adequate utilized borrowing facilities are
              monitored.

        Fair value estimation

        The fair value of publicly traded derivatives and trading securities
        is based on quoted market prices at the balance sheet date.

        In assessing the fair value of other financial instruments, the
        Corporation uses a variety of methods and makes assumptions that are
        based on market conditions existing at each balance sheet date.
        Option pricing models and estimated discounted value of future cash
        flows, are used to determine fair value for the remaining financial
        instruments.

        The face value less any estimated credit adjustments for financial
        assets and liabilities with a maturity of less than one year are
        assumed to approximate their fair values. The fair value of financial
        liabilities for disclosure purposes is estimated by discounting the
        future contractual cash flows at the current market interest rate
        available to the Corporation for similar financial instruments.

        The actual disclosed values of the financial instruments all
        approximate the fair values of these instruments.

    18. SUBSEQUENT EVENTS

        Mine Waste Solutions

        The Corporation, through its wholly-owned subsidiary FUSA, acquired
        MWS and its subsidiary Chemwes (Proprietary) Limited on June 6, 2007,
        with an April 1, 2007 effective date ("the MWS Acquisition") for the
        equivalent of ZAR200 million (approximately $27.5 million) to be
        satisfied in exchange for 3,093,980 First Uranium common shares. MWS
        owns and operates an existing gold mine tailings and re-processing
        facility adjacent to First Uranium's Buffelsfontein Tailings Recovery
        Project in South Africa. The MWS Acquisition closed on June 6, 2007,
        at which point First Uranium assumed management control of MWS. For
        accounting purposes, any net income from MWS operations for the
        period from April 1, 2007 to June 6, 2007 will be applied to reduce
        the cost of the MWS Acquisition.

        Convertible debentures

        On May 3, 2007, First Uranium completed a private placement of
        Cdn$150 million aggregate principal amount of senior unsecured
        convertible debentures (the "Debentures") due June 30, 2012. The
        Debentures bear interest at a rate of 4.25% per annum payable semi-
        annually and are convertible into common shares of the Corporation at
        Cdn$16.42 per share.

        The Corporation may redeem all or a portion of the Debentures for
        cash at any time on or after June 30, 2010 at a redemption price
        equal to the principal amount of the Debentures plus accrued and
        unpaid interest provided that the weighted average trading price of
        the common shares of the Corporation on the TSX for the 20
        consecutive days prior to the notice of redemption is 130% of the
        conversion price.

        The Corporation at its option, and subject to regulatory approval,
        may satisfy its obligations to repay the Debentures upon redemption
        or maturity by issuing freely tradeable common shares at a price per
        share equal to 95% of the weighted average trading price of the
        common shares of the Corporation on the TSX for the 20 consecutive
        days ending five trading days before the date fixed for redemption or
        maturity, as the case may be.

        Holders of the Debentures may require the Corporation to repurchase
        the Debentures if there is an acquisition of voting control or
        direction of at least 50.1% of the aggregate voting rights attached
        to the common shares outstanding at the relevant time by any person
        or group of persons acting jointly or in concert at par plus accrued
        and unpaid dividends. If such an event occurs and it results from a
        transaction in respect of which the consideration for the common
        shares is or can be received partially in cash, holders of the
        Debentures may, prior to completion of the offer to purchase for all
        Debentures, elect to convert their Debentures and receive, in
        addition to the number of common shares they otherwise would have
        been entitled to receive on conversion, an additional number of
        common shares which will vary depending upon the effective date and
        the share price.

        The proceeds from the sale of the Debentures, net of underwriters'
        fees and other expenses of $136.6 million, are held in Canadian
        dollars. The approval of the SARB to the sale of the Debentures
        included a condition that the Corporation transfer the Debentures net
        proceeds and convert the funds to South African Rand by May 3, 2008.

    19. RELATED PARTY TRANSACTIONS AND COMMITMENTS

                                                             2007       2006
        Related party balances                            US$'000    US$'000
        ---------------------------------------------------------------------
        FUSA receivable from Simmer & Jack                  5,079      2,730
        First Uranium advance to Simmer & Jack              1,684          -
        EMC payable to Simmer & Jack                            -     (5,300)
        ---------------------------------------------------------------------
                                                            6,763     (2,570)
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        Related party transactions
        Management fees paid to Simmer & Jack              (2,639)      (798)
        Fees paid to empowerment company                      (53)         -
        Interest paid to Simmer & Jack by EMC              (1,130)         -
        Interest received from Simmer & Jack by FUSA          583          -
        ---------------------------------------------------------------------

        Prior to December 2006, the Corporation shared its premises with
        other companies, including Simmer & Jack, which had common management
        and directors and reimbursed the related companies for its
        proportional share of expenses or was reimbursed by the related
        companies for their proportional expenses. During the year ended
        March 31, 2007, the Corporation was charged $575,665 (2006: $368,599)
        for consulting services provided by related directors, officers and
        consultants of the Corporation.

        The inter-company receivable between Simmer & Jack and FUSA and
        payable between Simmer & Jack and EMC bears interest at South African
        prime rate. The inter-company advance to Simmer & Jack by FUC bears
        no interest. All the inter-company receivables, payables and advances
        are due by June 30, 2007.

        Subsequent to the Reorganization and the Offering in December 2006,
        Simmer & Jack had a 67.2% shareholding in First Uranium. Prior to the
        Reorganization, Simmer & Jack held directly 70% in FUSA and 90% in
        EMC.

        On December 20, 2006 First Uranium and Simmer & Jack entered into a
        corporate opportunity agreement (the "Corporate Opportunity
        Agreement"), a maintenance agreement (the "Maintenance Agreement")
        and a shared services agreement (the "Shared Services Agreement").

        Pursuant to the terms of the Shared Services Agreement, First Uranium
        may retain certain services to be provided by Simmer & Jack,
        including project management and technical services, cash management
        and investment services, accounting, treasury and financial services,
        corporate secretarial services and human resources and staffing
        services, including payroll and benefits administration, and such
        other services as may be required by First Uranium and which Simmer &
        Jack is able and willing to provide. The 2007 expense relates to such
        services received, together with those provided prior to December
        2006. Fees paid to Simmer & Jack in the amount of $2 million were
        capitalized in 2007, representing services provided in respect of
        technical services for the Ezulwini Mine and the Buffelsfontein
        Tailings Recovery Project.

        In addition, First Uranium has agreed to reimburse Simmer & Jack with
        respect to 50% of fees (to a maximum of ZAR125,000 per month) that
        Simmer & Jack is required to pay to an empowerment company for
        consulting services regarding transformation, human resources and
        occupational health and safety. BJ Njenje, AX Sisulu and SLB Mapisa,
        shareholders of the empowerment company, are also directors of Simmer
        & Jack.

        Waterpan Mining Consortium ("Waterpan") currently holds a 10%
        shareholding in EMC. On December 20, 2006, Waterpan, FUL and the
        Corporation entered into a purchase agreement (the "Waterpan Purchase
        Agreement") pursuant to which Waterpan agreed to sell its shares in
        EMC to FUL and as consideration for such sale, First Uranium will
        issue 6,141,009 common shares of First Uranium to Waterpan (the
        "Waterpan Shares"). The closing of the transaction is subject to
        approval of the South African Reserve Bank. Pursuant to the Waterpan
        Purchase Agreement, Waterpan has agreed not to sell or transfer 90%
        of the Waterpan Shares for a period of two years from the date of
        issuance and 100% of the Waterpan shares will be subject to a lock-up
        until June 18, 2007. One shareholder of Waterpan is a director of
        EMC, two other shareholders of Waterpan are officers and/or employees
        of First Uranium and EMC.

    20. SEGMENTED INFORMATION

        Segmented information is presented in respect of the Corporation's
        business and geographical segments. The primary format business
        segments, is based on the Corporation's management and internal
        reporting structure.

        Inter-segment reporting is determined on an arm's length basis.

        Segment results, assets and liabilities include items directly
        attributable to a segment as well as those that can be allocated on a
        reasonable basis. Unallocated items comprise mainly income earning
        assets and revenue, interest-bearing loans, borrowing and expenses,
        and corporate assets and expenses. Segment capital expenditure is the
        total cost incurred during the period to acquire segment assets that
        are expected to be used for more than one period.


                                      South Africa           Canada
                                          Buffelsfontein
                                                Tailings
                                 Ezulwini       Recovery
        For the year ended           Mine        Project  Corporate    Total
         March 31, 2007           US$'000        US$'000    US$'000  US$'000
        ---------------------------------------------------------------------

        Expenditure
        Consulting and
         management fees              287            709     1,228     2,224
        General and administrative
         expenditure                  374              -       650     1,024
        Stock-based compensation        -              -     2,460     2,460
        Pumping and feasibility
         costs                        844              -         -       844
        Amortization                   14              -         -        14
        ---------------------------------------------------------------------

        Operating loss             (1,519)          (709)   (4,338)   (6,566)
        Interest income                98            583     2,752     3,433
        Interest expense             (162)             -         -      (162)
        Foreign exchange
         gains/(losses)             1,072           (993)   (4,691)   (4,612)
        ---------------------------------------------------------------------

        Loss before income taxes     (511)        (1,119)   (6,277)   (7,907)
        Provision for income taxes    (21)             -         -       (21)
        ---------------------------------------------------------------------

        Net loss for the year        (532)        (1,119)   (6,277)   (7,928)
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        Total assets               33,953          6,051   141,423   181,427
        Total liabilities          (9,718)          (238)   (1,123)  (11,079)
        Capital expenditure       (23,656)          (579)      (35)  (24,270)
        ---------------------------------------------------------------------


                                      South Africa           Canada
                                          Buffelsfontein
                                                Tailings
                                 Ezulwini       Recovery
        For the year ended           Mine        Project  Corporate    Total
         March 31, 2006           US$'000        US$'000    US$'000  US$'000
        ---------------------------------------------------------------------

        Expenditure
        Consulting and
         management fees              544           260         690    1,494
        General and administrative
         expenditure                    -             -         261      261
        Stock-based compensation        -             -          27       27
        Pumping and feasibility
         costs                      4,987           117           -    5,104
        ---------------------------------------------------------------------

        Operating loss             (5,531)         (377)       (978)  (6,886)
        Foreign exchange
         gains/(losses)               (54)           81           2       29
        ---------------------------------------------------------------------

        Loss before income taxes   (5,585)         (296)       (976)  (6,857)
        Provision for income taxes      -             -           -       -
        ---------------------------------------------------------------------

        Net loss for the year      (5,585)         (296)       (976)  (6,857)
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        Total assets                  132         2,730         571    3,433
        Total liabilities          (5,717)           (1)       (369)  (6,087)
        Capital expenditure             -             -           -       -
        ---------------------------------------------------------------------
    





For further information:

For further information: Bob Tait, VP Investor Relations, (416) 558-3858
or bob@firsturanium.com

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First Uranium Corporation

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