First Uranium announces resignation of Nigel Brunette


(all amounts are in Canadian dollars unless otherwise indicated)

TORONTO and JOHANNESBURG, March 31 /CNW/ - First Uranium Corporation (TSX:FIU, JSE:FUM) ("First Uranium" or the "Company") (ISIN:CA33744R1029) today announced the resignation of Nigel Brunette as Chairman and a director of the Company as part of the planned restructuring of the board in connection with the proposed private placement offering (the "Offering") for a minimum of $125 million and maximum of $150 million in secured convertible notes due March 31, 2013 (the "Notes") announced on March 12, 2010. Robert M. Franklin, Lead Independent Director, will be appointed interim Chairman of the Board.

As reported yesterday, the Company expects to close the Offering in escrow on or around April 8, 2010. The proceeds will be held in escrow until the earlier of: i) the close of business on April 30, 2010 (EDT) or ii) the date the escrow release conditions are satisfied including receipt of required South African regulatory approvals, the registration of the security documents and the meeting of other standard closing requirements. If the escrow conditions are completed as contemplated, the Notes will accrue interest from the date of the escrow closing. However, if the escrow conditions are not met by April 30, 2010, investors will have the right to put their Notes and receive par, without any accrued interest.

As well, on completion of the escrow conditions, three nominees proposed by Simmer and Jack will be appointed to the First Uranium board of directors. If Gold Wheaton subscribes for a minimum of $10 million of the Notes under the Offering, then Gold Wheaton shall be entitled to nominate one of the remaining four independent directors.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold in the United States unless an exemption from registration is available. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities in the United States.

About First Uranium Corporation

First Uranium Corporation is focused on its goal of becoming a significant low-cost producer of uranium and gold through the expansion of the underground development to feed the new uranium and gold plants at the Ezulwini Mine and through the expansion of the plant capacity of the Mine Waste Solutions tailings recovery facility, both operations situated in South Africa.

Cautionary Language Regarding Forward-Looking Information

This news release contains and refers to forward-looking information based on current expectations. All other statements other than statements of historical fact included in this release are forward-looking statements (or forward-looking information). No assurance can be given that the transactions contemplated herein will be concluded or other forward-looking statements will prove to be accurate, such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements that are included herein, except in accordance with applicable securities laws.

SOURCE First Uranium Corporation

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