First Uranium financial update

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

All amounts are in US dollars unless otherwise noted.

First Uranium Corporation (TSX:FIU)(JSE:FUM)(ISIN:CA33744R1029) ("First Uranium" or the "Company") reported today that in connection with its previously announced financing by way of short form prospectus, the prospectus will include a projection in respect of the future financial condition of the Company including the information below. All information included below is based on the Company's current expectations.

The following forecast of consolidated earnings (the "Forecast") contains forward-looking information and was prepared by management. The Forecast is based on assumptions that reflect management's best judgment of the most probable set of economic conditions and the Corporation's planned course of action as of February 17, 2011. Actual results may vary from the forward-looking information provided. Any Management Discussion & Analysis issued by the Corporation to its shareholders during the forecast period will contain a revised forecast accompanied by explanations if actual results differ significantly from the Forecast.

ASSUMPTIONS:

In addition to assumptions with respect to commodity and exchange rates set out above, specific assumptions have been made in connection with the financial forecast disclosed above, including:

(1) MWS –

• The hydraulic mining, milling throughput and recoveries will meet planned levels.
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• Tonnage and grade will be consistent with published mineral reserve and resource estimates.
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• Successful construction and commissioning of the Phase 2 gold plant and new tailings storage facility.
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• With major capital items procured, the cost budget estimates for the remaining capital program for the Phase 2 gold plant and tailings storage facility are accurate.
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• Satisfaction of the Gold Wheaton Construction and Technical Completion Test.
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• Results are sensitive to capital and operating costs and fluctuations in such costs.
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• Detailed information in respect of the production amounts, operating expenditures and capital expenditures in connection with the MWS Project can be found at the following pages of the MWS Technical Report: 96 - 110, 125 - 130 and 131 - 132 and at pages 5, 6 and 14 of the Interim MD&A.
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(2) Ezulwini –

• The production figure assumes 90% of planned production is achieved.
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• Ezulwini mining and milling production will meet planned levels. 
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• Tonnage and grade will be consistent with published mineral resource estimates.
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• With the bulk of the construction expenditures now complete, the capital expenditure estimates for the ongoing mine development and sustaining capital costs are accurate. Results are sensitive to capital and operating costs and fluctuations in such costs.
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• Results are sensitive to capital and operating costs and fluctuations in such costs.
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• Results assume that Ezulwini's ramp up progresses as planned.
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• Detailed information in respect of the production amounts, operating expenditures and capital expenditures in connection with the Ezulwini Mine can be found at the following pages of the Ezulwini Technical Report: 18-16 – 18-17, 18-20, 18-26, 18-34 – 18-36 and 18-38 to 18-47. 
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(3) General –

• Commodity and exchange rate price assumptions are as set out above.
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• Applicable taxes due are assumed to be consistent with current tax levels.
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• Transaction costs have been assumed for the size of the Offering.
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• The corporate expenditures of the Corporation are comprised of the estimated quarterly general, administrative and consulting costs incurred by the corporate offices in Canada and South Africa over the respective periods. The interest on convertible debentures relates to the interest payable of 4.25% on the senior unsecured convertible debentures (the "Debentures") issued in May 2007, 7% on the secured Canadian Notes and 11% on the Rand Notes issued in April 2010. The interest on the Debentures is payable semi-annually at the end of June and December. The interest on the Notes is payable semi-annually at the end of March and September.
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• The US$61.6 million contractual obligations payable over the next twelve months as disclosed under the Commitments and Contingencies section of the MD&A for the three months ended December 31, 2010 have been incorporated into the cash forecast table as follows:
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• The interest on the Debentures of US$6.4 million and interest on Notes of $14.8million. totalling US$21.2 million.
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• The derivative liability of US$19.6 million relates to the calendar 2011 guaranteed ounces that Ezulwini is obliged to deliver to Gold Wheaton pursuant to the Ezulwini Gold Stream Agreement. Ezulwini receives US$400/oz for the guaranteed ounces. The revenue from Ezulwini in the cash flow forecast incorporates the revenue from gold delivered to Gold Wheaton at US$400 per ounce.
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• The purchase obligations of US$20.5 million relate to capital commitments at Ezulwini and MWS respectively and have been factored into the capital expenditures of Ezulwini and MWS in the cash flow forecast.
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• Capital lease obligations amounting to US$0.38 million have been incorporated in the FIU corporate expenditures in the cash flow forecast.
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About First Uranium Corporation

First Uranium Corporation (TSX:FIU)(JSE:FUM) is focused on its goal of becoming a low-cost producer of gold and uranium through the expansion of the underground development to feed the new gold and uranium plants at the Ezulwini Mine and through the expansion of the plant capacity of the Mine Waste Solutions (MWS) tailings recovery facility, both operations situated in South Africa. First Uranium also plans to grow production by pursuing value-enhancing acquisition and joint venture opportunities in South Africa and elsewhere.

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). The Company's plans involve various estimates and assumptions and its business and operations are subject to various risks and uncertainties. For more details on these estimates, assumptions, risks and uncertainties, see the Company's most recent Annual Information Form and most recent Management Discussion and Analysis on file with the Canadian provincial securities regulatory authorities on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and there can be no assurance that such 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.