Pacific Road Resources funds announce execution of definitive documentation for major investment in First Bauxite Corporation



    VANCOUVER, June 15 /CNW/ - The Pacific Road Resources Funds ("PRRF") are
pleased to announce that, further to the press release issued by First Bauxite
Corporation (the "Company") on June 4, 2009, that the parties have executed a
definitive note purchase agreement (the "Purchase Agreement") with the Company
providing for the purchase by PRRF of convertible, non-interest bearing notes
("Notes") in two tranches to fund a pre-feasibility study at the Company's
Bonasika Mining Licence in Guyana. PRRF has agreed to make an initial purchase
of Notes in the aggregate principal amount of $8 million to be completed by
way of an immediate purchase of Notes in the aggregate principal amount of $3
million with an investment of $5 million to be placed in escrow pending
receipt of an independent study of the bauxite market and satisfaction of
certain other conditions. On release from escrow, the $5 million will be
released to the Company and the Notes will be issued and delivered to PRRF. If
the independent study is not obtained by PRRF on or before September 30, 2009,
the Notes will not be issued and the $5 million will be returned to PRRF. If
the escrow purchase is completed, the $8 million principal amount of the Notes
will be convertible into 9,638,554 common shares of the Company, representing
approximately 16.7% of the common shares on a fully-diluted basis.
    Upon completion of a positive pre-feasibility study, PRRF will have an
option to purchase additional Notes in the aggregate principal amount of US$20
million (the "Second Tranche Notes") which will be convertible into common
shares of the Company based on the formula as described in the June 4, 2009
press release. As the number of common shares issuable to PRRF is contingent,
in part, upon future values and share prices, the number of shares that PRRF
could acquire should it purchase the Second Tranche Notes and exercise its
conversion rights in full cannot be determined at this time. However, based on
the minimum conversion price, PRRF would acquire a minimum of 20,161,290
additional shares (assuming a conversion price of CDN$1.24 and an exchange
rate of US$1.00 equals CDN $1.25).
    PRRF purchased the securities for investment purposes and may or may not
purchase or sell securities of the Company in the future on the open market or
in private transactions, depending on market conditions and other factors.

    
    About Pacific Road Resources Funds and Pacific Road Capital Management
    Pty Limited
    

    The Pacific Road Resources Funds are private equity funds investing in
the global mining industry. They provide expansion and buyout capital for
mining projects, mining related infrastructure and mining services businesses
located throughout resource-rich regions of the world. The Pacific Road
Resources Funds are managed and advised by Pacific Road Capital Management Pty
Ltd ("PRCM"). The PRCM team, located in Sydney, Australia, San Francisco and
New York, USA, is comprised of experienced mining investment professionals
that have extensive knowledge and experience in the mining and infrastructure
sectors, including considerable operating, project development, transactional
and investment banking experience. For further information on the Pacific Road
Resources Funds and PRCM, please go to their website at www.pacroad.com.au.





For further information:

For further information: on the Pacific Road Resources Funds and PRCM,
please go to their website at www.pacroad.com.au

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PACIFIC ROAD RESOURCES FUNDS

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