First Uranium receives an unsolicited non-binding expression of interest for the Ezulwini Mine

First Uranium Corporation CA:FIU -4.00% , (jse:FUM) (isin:CA33744R1029) ("First Uranium" or "the Corporation") announced that on April 17, 2012, First Uranium established an unsolicited expression of interest from Waterpan Mining Corporation ("WMC") and Transalloys (Pty) Ltd. ("Transalloys"), to obtain the Corporation's Ezulwini Mine, subject to a number of conditions precedent, as well as the opportunity to have 90 days from May 1, 2012 to undertake a due diligence review of the business.Following that due diligence exercise, WMC and Transalloys envisaged being in a position to create a definitive offer by August 1, 2012.3

The non-binding proposal suggested the acquirors would believe an advance of $10 million of the $80 million planned purchase price to the Corporation as a form of short term bridge financing, however such advance would not be careful until after the completion of the due diligence exercise and no other conditions with respect to such bridge financing were provided for in the letter.The non-binding proposal would extend the time period to approve the transaction away from the June 30, 2012, maturity date of the Corporation's C$150 million aggregate principal amount of 4.25% senior unsecured adaptable debentures.

There could be no assurance that, if the proposal were accepted, a definitive offer would be complete nor at what price the final offer would be made nor that a definitive agreement could be effectively negotiated and closed.WMC and Transalloys had previously indicated an interest in making an offer for the Ezulwini Mine, but as with the current appearance of interest, it was non-binding, extremely conditional and did not provide for any bridge financing. Furthermore, the earlier non-binding proposal was for $70 million and was topic to a lengthy due diligence review and the preparation of a definitive agreement.