For a full discussion of results, the Financial Statements and

Management



    Discussion & Analysis, please see the Company's website,



    http://www.firsturanium.com under "Regulatory Filings"



    All amounts are in US dollars unless otherwise noted.



    TORONTO and JOHANNESBURG, Aug. 11 /EMWNews/ - First

Uranium Corporation (TSX:FIU, JSE:FUM) (ISIN:CA33744R1029) ("First Uranium"

or "the Company") today announced its financial results for the fiscal

quarter ended June 30, 2008 ("Q1 2009"). At the Ezulwini underground

uranium and gold mine (the "Ezulwini Mine"), First Uranium is continuing

the ramp up of gold production through its newly commissioned gold plant

and by the end of October 2008, expects to commence uranium production as

well. The rehabilitation of the main shaft at the Ezulwini Mine is also

progressing as planned. At Mine Waste Solutions ("MWS"), where gold

production has been recognized since a gold plant was acquired in June

2007, construction is continuing on the next phase of the plants that are

designed to double MWS's current gold production capacity and commence

processing of uranium by the end of the fiscal year ending March 31, 2009

("FY2009").



    References to "Q1 2008" refer to the Company's three-month fiscal

period ending June 30, 2007. References to "Q2 2009" and "Q3 2009" refer to

the Company's three-month fiscal periods ending September 30, 2008 and

December 31, 2008, respectively.



    Highlights



    During Q1 2009, First Uranium:






    -   ended the quarter with $102.1 million cash and cash equivalents on

        hand

    -   hoisted 24,238 tonnes of ore at the Ezulwini Mine, which resulted in

        a stockpiled inventory of 12,695 tonnes of gold and uranium bearing

        ore from the Middle Elsburg ("ME") reef horizon and 11,543 tonnes of

        gold bearing ore from the Upper Elsburg ("UE") reef horizon,

        estimated to contain in the aggregate:

        -  3,164 ounces of gold from the 11,543 tonnes at an average grade of

           4.64 grams of gold per tonne and the 12,695 tonnes at an average

           grade of 3.89 grams of gold per tonne

        -  10,060 pounds of uranium from the stockpiled 12,695 tonnes of ME

           ore at an average grade of 0.45 kilograms per tonne

    -   reclaimed 1.7 million tonnes of tailings through the MWS gold plant

        at a yield of 0.16 grams of gold per tonne, producing 8,530 ounces of

        gold at a Cash Cost (as defined in the 'Summary of Operating

        Results') of $464 per ounce

    -   completed the upgrading of the MWS gold plant to increase the design

        capacity from 500,000 tonnes per month to 633,000 tonnes per month

        during May 2008

    -   upgraded MWS #5 tailings dam during May 2008 to enable a deposition

        rate of 633,000 tonnes of material per month

    -   approved, subject to financing, a plan to build an acid plant at MWS

        to secure a low-cost supply of sulphuric acid, a necessary reagent

        for the production of uranium, from the sulphur contained in the

        pyritic material within the tailings dams, which are already being

        processed for gold at MWS

    -   entered into agreements to supplement the power supplied to the

        Ezulwini Mine and MWS by the South African national power utility

        ("Eskom") by obtaining diesel-fired generators and a power plant to

        secure a steady supply of electrical power, which will provide total

        incremental capacity of 54 megawatts ("MW"), inclusive of existing

        stand-by units, until Eskom could be expected to restore a steady,

        reliable supply of electrical power

    -   filed updated independent technical reports on June 5, 2008 on both

        the Ezulwini Mine and MWS, taking into consideration the capital and

        operating costs of generating additional power, revised acid price

        assumptions and a revaluation of metal price and exchange rate

        assumptions, for which projected revised net present values are

        $667 million for the Ezulwini Mine and $413 million for MWS and the

        projected internal rates of return are 336% for the Ezulwini Mine and

        70% for MWS

    -   received notification on June 9, 2008, that Eskom will be able to

        increase its supply of power to the Ezulwini Mine from 40 MW to 55

        MW, which is expected to reduce the Company's requirement to generate

        its own additional power and the costs thereof



    Subsequent to the end of Q1 2009, First Uranium:



    -   continued commissioning the Ezulwini Mine's 200,000 tonne per month

        gold plant with the first 50,000 tonne per month module commencing

        production of gold bullion in July 2008

    -   continued commissioning the Ezulwini Mine's 100,000 tonne per month

        uranium plant, which had been scheduled for production of ammonium

        diuranate ("yellowcake") in August 2008 and is now scheduled for

        October 2008

    -   finalized and implemented two-year agreements with the National Union

        of Mineworkers ("NUM") at both the Ezulwini Mine and MWS

    -   resolved previously disclosed issues of handling clay content in

        tailings at MWS, with the result that the MWS gold plant throughput

        and recovery rates are at, and sometimes slightly above, design

        specifications



    During Q2 2009, First Uranium plans to:



    -   hoist approximately 83,300 tonnes of ore at the Ezulwini Mine, of

        which approximately 65,500 tonnes would comprise gold and uranium

        bearing ore from the ME reef horizon and approximately 17,800 tonnes

        would comprise gold bearing ore from the UE reef horizon

    -   process approximately 17,200 tonnes of gold bearing ore through the

        newly commissioned gold plant at the Ezulwini Mine

    -   commission the second 50,000 tonne per month mill module of the gold

        plant at the Ezulwini Mine during September 2008

    -   publish an updated technical report for the Ezulwini Mine

    -   reclaim 1.9 million tonnes of tailings through the MWS gold plant at

        a yield of approximately 0.2 grams of gold per tonne with expected

        production of approximately 12,000 ounces of gold

    "Our first quarter of 2009 was highlighted by the commissioning of our

Ezulwini Mine gold plant and the production of gold in July as planned,"

said Gordon Miller, President and Chief Executive Officer of First Uranium.

"Although the final commissioning stages of the uranium plant at the

Ezulwini Mine have been delayed until October 2008 as a result of the late

delivery of certain equipment, we believe that this will not affect our

planned production for the fiscal year as the capacity of the mills and the

uranium plant will exceed the planned near-term capability of the mine to

produce ore.



    "At MWS we made significant operational improvements during Q1 2009,

which enhanced gold production. During Q2 2009, we expect to operate the

MWS gold plant at designed throughput and recovery rates. Uranium

production is expected in Q3 2009 at the Ezulwini Mine and Q4 2009 at MWS."






    Summary of Operating Results

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

                                                        Q1 2009      Q1 2008

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

    Ezulwini Mine

      Tonnes hoisted (000s)(a)                           24,238            -

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

    MWS

      Tonnes reclaimed (000s)                             1,665          402

      Average gold recovery grade (grams/tonne)            0.16         0.27

      Total ounces of gold reclaimed                      8,530        3,420

      Total ounces of gold sold                           7,741        3,395

      Average selling price per ounce ($)                   879          643

      Average cost per ounce reclaimed ($)                  482          669

      Average Cash Cost per ounce reclaimed ($)(b)          464          581

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

    (in thousands of dollars, except per share amounts)

    Revenue(c)                                            6,805        2,183

    Cost of sales (excluding amortization)(c)            (3,340)      (1,956)

    Amortization(c)                                        (189)        (299)

    Operating loss(d)                                    (3,902)      (3,292)

    Gross profit (loss)                                   3,276          (72)

    (Loss) income for the period                         (5,795)       5,471

    Basic and diluted (loss) income per share             (0.04)        0.04

    Cash flow (utilized by) generated from operations   (19,610)       9,979

    Cash outflow from investing activities              (44,080)      (8,397)

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

    Notes:



    (a) There was no recovery of gold or uranium concentrates from processing

        facilities located at the Ezulwini Mine during Q1 2009 or Q1 2008.

    (b) Cash cost per ounce is defined as cost of sales divided by ounces of

        gold sold. Total cash costs exclude amortization expense and

        inventory purchase accounting adjustments. For further information on

        this non-GAAP performance measure see page 5 of the Company's MD&A.

    (c) Revenue, cost of sales (including amortization) relate to the sale of

        gold from the MWS operations. For Q1 2008 only the results of MWS for

        the month of June 2007 were included in the Company's consolidated

        results as the effective date of acquisition of MWS was June 6, 2007.

    (d) This is a non-GAAP measurement. Operating loss is loss before

        interest income, interest expenses, accretion expenses, foreign

        exchange (losses) gains and income tax charges.

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

    During Q1 2009, a total of 8,530 ounces of gold were reclaimed at MWS

at an average Cash Cost of $464 per ounce compared to 3,420 ounces of gold

reclaimed during Q1 2008 at an average Cash Cost of $581 per ounce. MWS

generated $6.8 million of revenue from 7,741 ounces of gold sold at an

average selling price of $879 per ounce compared to $2.2 million from 3,395

ounces of gold sold at an average selling price of $643 per ounce in Q1

2008.



    The relatively high average Cash Costs at MWS for Q1 2008 can be

attributed primarily to the diminishing resources taken from the MWS #2

tailings dam, which necessitated a high-cost mechanical load and placement

operation. With the transition during December 2007 to the high-volume,

low-cost operations associated with the mining of the tailings from

Buffelsfontein Gold Mines Limited "(BGM"), the average Cash Costs started

to decrease. As throughput and gold production increase, average Cash Costs

are expected to decrease further.



    The Company incurred an operating loss of $3.8 million in Q1 2009 (Q1

2008: $3.3 million) that reflects increased revenues which were more than

offset by increased expenditures as a result of the ongoing and increasing

scope of activities, including the progression of work at the Ezulwini Mine

and MWS, the costs of corporate offices in Johannesburg and Toronto, other

expenses of operating a public company and in Q1 2009 royalties and related

payments made to BGM and Simmer & Jack Mines, Limited ("Simmer & Jack") in

respect of revenues from production at MWS.



    The loss of $5.8 million in Q1 2009 was primarily the result of the

ongoing expenditures mentioned above and foreign exchange losses on

translation of Canadian and South African assets, liabilities, revenues and

expenses converted to the US dollar. The Company reported net income of

$5.5 million in Q1 2008 that was primarily the result of foreign exchange

translation gains and net interest income earned, partially offset by

operating losses.



    The cash utilized in operating activities during Q1 2009 was primarily

used to fund the ongoing expenditures in excess of the cash generated from

gold sales. The cash generated from operating activities during Q1 2008 was

mainly the result of the net interest earned on cash balances during the

quarter and the payment by Simmer & Jack of an outstanding receivable.



    At the end of Q1 2009, First Uranium had total assets of $394.4

million, total liabilities of $166.1 million and shareholders' equity of

$228.3 million. It had cash and cash equivalents of $102.1 million

(excluding $9.7 million of restricted cash on deposit) compared to $164.7

million at the end of FY 2008. The decrease in cash and cash equivalents

from the end of FY 2008 was primarily attributable to $34.2 million of cash

utilized during Q1 2009 for capital expenditures for the development of the

Company's two mining operations and increased working capital.



    Outlook



    The next major milestone for the Ezulwini Mine is the completion of the

commissioning of the 100,000 tonne per month uranium plant which is

scheduled to deliver its first shipment of yellowcake in October 2008.

Current mine production from the ME section of the Ezulwini Mine is being

stockpiled separately on surface to feed the uranium plant during its

commissioning phase. The Ezulwini Mine also plans to commission the second

50,000 tonne per month mill module during September 2008.



    First Uranium has not yet signed any long-term contracts to sell

uranium, although the Company does have the option to use a take and pay

agreement with Nufcor. As long-term uranium supply contracts are currently

all tending to be of a fixed delivery nature, First Uranium wants to

complete the commissioning of at least one of its uranium plants prior to

entering into any such uranium contracts.



    It is expected that all four holes being drilled under the Ezulwini

exploration program will have intersected the E9EC reef horizon by the end

of the September 2008. Deflections from these four existing boreholes will

provide supplemental borehole valuation data. The Phase 2 drilling project

is expected to start in Q3 2009. The final holes of the Phase 1 drilling

project and the first reef intersections of the Phase 2 drilling project

are expected to begin during Q4 2009.



    The current and planned capital projects at MWS include:






    -   construction of the second gold module and the first two uranium

        modules that are scheduled for commencement of commissioning in

        January 2009 and completion in April 2009

    -   construction of the third gold module and the third uranium module

        that are scheduled for commissioning in December 2009, increasing

        plant capacity to 1.9 million tonnes per month

    -   the establishment of a single large tailings dam that will

        accommodate all future production tailings as well as tailings from

        processing the ore from BGM for uranium

    -   permitting for additional tailings deposition facilities

    An upgrade to accommodate a deposition rate of 1.3 million tonnes of

material per month on the MWS #5 tailings dam is planned in advance of the

commissioning of the second module of the MWS gold plant and the first two

modules of the uranium plant. In the event that the MWS #5 tailings dam is

found to be insufficient, additional tailings dam locations have been

identified.



    As previously reported, a specification and procurement study for a

sulphuric acid plant has been initiated and is expected to be completed in

October 2008.



    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 addition of

owner-operated power generation, prices for uranium and gold, prices for

power, availability and prices for sulphuric acid, the estimation of

mineral resources and reserves, the realization of estimated pyrite content

in the MWS tailings, 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, 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 "goals", "targets", "plans",

"expects", "is expected", "deadlines", "anticipates", or "believes" or

variations of such words and phrases, or state that certain actions, events

or results "could", "would", "should" 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 Company's expectations as at 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

prefeasibility study and the preliminary economic assessment for the

respective projects 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.



    Review by Board of Directors



    The First Uranium Board of Directors, on the recommendation of its

Audit Committee, has approved the contents of this disclosure.



    Conference Call



    First Uranium will conduct a conference call with investors to discuss

the information in this news release at 10:00 a.m. local Toronto time and

4:00 p.m. local Johannesburg time on Tuesday, August 12, 2008. The

conference call will be available simultaneously to all interested

investors and news media.



    Callers may dial 1 800 319-4610 (Canada and the US) or 0800 981 705

(South Africa). Callers from other international locations may call +1 604

638-5340. The call will be webcast at

http://services.choruscall.com/links/firsturanium080812.html and available

for replay shortly after the call for 90 days.



    A telephone replay of the conference call will be available for 30

days. To access the replay, callers may dial 1 800 319-6413 (Canada and the

US). Callers from other international locations may access the replay by

dialing +1 604 638-9010 (Canada). Access to the replay will require the

code 2128, followed by the number sign.

    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



    http://www.firsturanium.com