First Uranium enters into exclusive agency agreement with Traxys to market and contract future uranium production

    All amounts are in US dollars unless otherwise noted.

    TORONTO and JOHANNESBURG, Sept. 1 /CNW/ - First Uranium Corporation
(TSX:FIU, JSE:FUM) (ISIN:CA33744R1029) ("First Uranium" or "the Company")
today announced that an exclusive agency agreement has been entered into with
the Traxys Group, a global metals, minerals and energy marketing company. As
per the agreement, Traxys will market, on an exclusive basis, all of the
uranium production from First Uranium's underground Ezulwini Mine and its
tailings re-treatment operation at Mine Waste Solutions ("MWS"), except for
any uranium that might in future be sold to fulfill South Africa's
    "While our production ramps up, we have agreed to work with Traxys to
enter into market-related transactions for short-term delivery at or near
uranium spot prices," said Gordon Miller, President and CEO of First Uranium.
"Following on from our initial spot sales contract, Traxys will help us enter
into long-term contracts with utilities and build a balanced portfolio of
sales contracts while maintaining up-side exposure to the market."
    At the same time, First Uranium is maintaining regular contact with South
Africa's Department of Minerals and Energy (DME), the national power utility
(Eskom) and the Nuclear Energy Corporation of South Africa (NESCA) to
ascertain domestic uranium requirements to meet South Africa's national
security of supply imperatives for its planned nuclear power plants.
    First Uranium expects to begin producing yellowcake (ammonium diurinate
or ADU) at the Ezulwini Mine in October 2008 and at MWS in early 2009. The
Company expects to produce approximately 454,000 pounds of uranium in the
current fiscal year, ramping up sharply to approximately 1.7 million pounds in
the Company's fiscal year ending March 31, 2010. Over the currently planned
18-year life of its operations, the Company expects to produce an average of
approximately 2.1 million pounds of uranium per annum.
    "Our near-term objectives are focused upon expanding current gold
production, while commissioning the uranium plants at both operations and
delivering consistent operational cash flows," added Mr. Miller. "We remain on
track to achieve our long-term objective to become a major low-cost uranium

    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 availability of electrical power, the planned addition of
owner-operated power generation, price of electrical power and sulphuric acid,
the estimation of mineral resources and reserves, expected dates of
commissioning or commencement of production, 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, availability of financing on acceptable terms, 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 "goal", "objective",
"plans", "expects" or "does not expect", "is expected", "estimates", "intends"
or variations of such words and phrases, or state that certain actions, events
or results "may", "could", "would", "should", "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, availability of equipment, materials and fuel, 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, to price of electrical power and sulphuric acid. 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 Company's expectations as of the date of this news
release; (ii) actual results may differ materially from the Company's
expectations if known and unknown risks or uncertainties affect its business,
or if estimates or assumptions prove inaccurate; (iii) the Company 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 Company 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) consistent supply of sufficient power will be
available to develop and operate the projects as planned; (ii) approvals to
transfer or grant, as the case may be, mining rights will be obtained;
(iii) metal prices, exchange rates and discount rates applied in the
pre-feasibility study and preliminary economic assessment are achieved; (iv)
mineral resource estimates are accurate; (v) the technology used to develop
and operate its two projects has, for the most part, been proven and will work
effectively; (vi) that labour and materials will be sufficiently plentiful as
to not impede the projects or add significantly to the estimated cash costs of
operations; (vii) that Black Economic Empowerment ("BEE") investors will
maintain their interest in the Company and their investment in the Company's
common shares to a sufficient level to continue to support the Company'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 (TSX:FIU, JSE:FUM) is focused on the
development of its South African uranium and gold mines with the goal of
becoming a significant low-cost producer through the re-opening and
underground development of the Ezulwini Mine and the expansion of the Mine
Waste Solutions tailings recovery facility. First Uranium also plans to grow
production by pursuing value-enhancing acquisition and joint venture
opportunities in South Africa and elsewhere.

    First Uranium Corporation
    1240-155 University Avenue, Toronto, ON Canada M5H 3B7

For further information:

For further information: Bob Tait, VP Investor Relations, (416) 342-5639
(office), (416) 558-3858 (mobile),

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