First Uranium's Ezulwini prospecting rights application receives conditional approval by South African Department of Minerals and Energy



    TORONTO, Nov. 8 /CNW/ - First Uranium Corporation (TSX:FIU, JSE:FUM)
(ISIN:CA33744R1029) ("First Uranium" or "the Corporation") today announced
that the South African Department of Minerals and Energy ("DME") has granted
conditional approval for the Corporation's application in respect of a
Prospecting Work Program (the "Program") on properties contiguous to the
north-east and south-east of First Uranium's Ezulwini Mine property in South
Africa. The Ezulwini Mine is an underground uranium and gold mining project,
with mining rights covering an area of 3,717 hectares. The Program covers
6,843 hectares of property known to contain uranium and gold mineralization
adjacent to the Ezulwini mining rights.
    Final approval by the Regional Manager of the DME is subject to the
approval of the relevant Environmental Management Plan ("EMP") for the
exploration drilling from surface. First Uranium must submit further required
materials to the DME by the middle of November, with approval of the EMP, if
satisfactory, expected to occur on or before December 11, 2007.
    Previous exploration drilling conducted in the area by Gencor Limited,
Anglovaal Mining Limited and JCI Limited confirmed the presence of uranium and
gold mineralization along the approximately 20 kilometres of strike within the
prospecting area included in the Program. Based on the results of the
historical drill data, the Corporation plans to immediately proceed with the
Program to explore this prospecting area and will use the historical
information to guide the placement of new drill holes. Qualified geologists
are currently reviewing the historical data.
    The initial stages of the Program will test the strike extent of the
known pay shoots for uranium and gold on the Middle Elsburg Reef in an area
east of the Ezulwini Mine. The Ezulwini Mine and the properties which are
subject to the Program are located in the Witwatersrand Basin, which is the
largest known gold province in the world with deposits having been mined for
well over 100 years. In the past, there were also four uranium plants in
production in this area. The first of the three attachments to this news
release shows the location of the properties which are subject to the Program
and neighbouring mines surrounding the Ezulwini Mine, which is located
approximately 40 kilometres southwest of Johannesburg. (See map entitled
'Ezulwini Locality Plan': http://files.newswire.ca/589/locality.pdf)
    Several groups of reefs have been identified in the area, including the
Livingstone Reefs, the South Reef, the Kimberley Reefs, the Bird Reefs, the
Mondeor Reefs, the Ventersdorp Contact Reef and the Black Reef, as well as the
Elsburg Reefs associated with the Ezulwini Mine. Within these reefs, a total
of nine reef horizons have been mined for uranium and gold at depths of
between 600 metres and 1,260 metres below surface. The second attachment to
this news release shows a map of the Ezulwini Mine and its shafts, as well as
the three Cooke shafts on the property adjacent to the western boundary of the
Ezulwini prospecting area. This map shows the location of 11 historical bore
holes drilled in the prospecting rights area on which gold and uranium
payshoots were defined. (See map entitled 'Ezulwini Prospecting Right.':
http://files.newswire.ca/589/prospect.pdf) On the map, the 'A-B' line that
intersects with the payshoots marks a cross-section of the area discussed
below.
    The third attachment to this news release shows the cross-section of the
historical target area, including the layer of dolomites which overlay much of
the mineralized reefs in the Witwatersrand Basin. The properties which are
subject to the Program, are shown to the right of this cross-section at depths
of between 800 metres and 1,200 metres below surface. (See cross-section
entitled 'Section A-B Looking North.':
http://files.newswire.ca/589/crosssec.jpg)
    During the years 1961 to 2001, the Ezulwini Mine produced 8.4 million
pounds of uranium and 12.7 million ounces of gold. The Cooke section has also
been mined extensively on the property north of the Ezulwini Mine and
immediately west of the target area, and has produced 23 million pounds of
uranium and 51 million ounces of gold.
    The Program is planned to include analysis of existing drill-hole data
for uranium and gold mineralization followed up by surface diamond drill
exploration with drill hole depths of up to 2,000 metres.
    "The Prospecting Work Program fits with the Corporation's strategy of
focusing its exploration on or near its current uranium and gold projects in
order to leverage the infrastructure of those projects," said Gordon Miller,
First Uranium's President and Chief Executive Officer. "We have set aside
US$10 million for this exploration program, which has the potential to add to
the known uranium and gold resources available to the Ezulwini Mine."
    The Ezulwini Mine is already hoisting ore and toll treating ore at a
neighbouring third-party gold plant. The Corporation is on schedule to
commission its own gold plant in April 2008 and its own uranium plant in June
2008. Based on the currently defined measured and indicated resources, the
average annual production for the 18-year life of this project, the Ezulwini
Mine is expected to be 290,000 ounces of gold and 888,000 pounds of uranium.
    "In the meantime, we are on schedule to bring the Ezulwini Mine into full
production for uranium and gold," continued Mr. Miller. "Our current mine plan
is based on only 20% of the resource inventory of the existing mining rights,
including a significant inferred uranium resource. In a separate initiative,
the Ezulwini Expansion Program, we plan to convert part of those inferred
resources to measured and indicated. The intent of this initiative, announced
in July 2007, is to justify the capital required for the sinking of an
additional shaft, which would be used to access and mine the uranium and gold
resource at an accelerated rate, over and above the existing mine plan from
the existing main shaft. We recently acquired the use of a surface drilling
rig and expect to begin our drilling program on the Ezulwini Mine property on
November 9, 2007."

    Technical Disclosure Notes

    The life of mine estimate and projected average annual production in this
news release relating to the Ezulwini underground mine project is extracted
from a technical report entitled "Technical Report - Preliminary Assessment of
the Ezulwini Project, Gauteng Province, Republic of South Africa" (the
"Technical Report") originally submitted on November 8, 2006, revised on
December 5, 2006 and January 31, 2007 and further revised on May 9, 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 Roscoe Postle
Associates Inc., each of whom is a "qualified person" under NI 43-101 and is
independent of First Uranium. The disclosure in this news release related to
the RPA technical report has been reviewed and approved by Mr. Bergen and Mr.
Valliant.

    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 estimation of mineral resources and reserves, the realization of
mineral reserve estimates, the timing and amount of estimated future
production, costs of production, timing of development of new deposits,
success of exploration activities, permitting time lines and government
regulation of mining operations. In certain cases, forward-looking statements
can be identified by the use of words such as "plans", "will", "expects", "is
expected", "budget", "scheduled", "estimates", "intends", "projected", "goal"
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 the data of this news
release; (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 assumptions referred to in this news release and 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) labour and materials will be sufficiently plentiful as to not impede the
projects or add significantly to the estimated cash costs of operations; (vi)
outstanding approvals for the completion of an acquisition, the transfer of
mining rights and the approval of mining rights will be granted; (vii) 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) 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 underground 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





For further information:

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

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