The Ezulwini Project is the recommissioning of the prior Western Areas underground gold and uranium mine on the West Rand in South Africa and the construction of processing plants for the recovery of gold and uranium. Franco-Nevada, through the acquisition of Gold Wheaton in March 2011, has an agreement to purchase 7% of the gold produced from First Uranium’s Ezulwini project for an amount equal to the lesser of $400/oz (subject to a 1% annual inflation adjustment commencing on the 4th anniversary of closing) and the prevailing market price. The agreement was entered into between Gold Wheaton and First Uranium in December 2009 and is subject to the delivery of a minimum of 19,500 oz of gold in 2011. Refurbishment of the shaft and construction of the gold and uranium plants began in December 2006. The 200,000 tpm capacity gold plant is now complete and the 100,000tpm capacity uranium circuit is planned for commissioning in 2011. Mine production commenced in 2008 and continues to ramp up.

First Uranium updated its mine plan in a technical report dated February 2, 2011. The plan anticipates recovering 5.25moz of gold over an 18 year mine life. Gold production ramps up over the first 8 years with 133koz of gold to be produced in First Uranium’s financial year ending March 31, 2012, and reaching 348koz ounces in its financial year ending March 31, 2020.

Updated: March 14, 2011