PHOSPHATE AND RARE EARTH EXPLORATION AND DEVELOPMENT IN CENTRAL UNITED STATES

• High grade surface Phosphate deposit highly enriched with heavy Rare Earth elements located in Arkansas
• Two strategic and critical products with strong demand growth
• Phosphate grade is at top end of US producing phosphates
• REE enrichment is amongst the highest in USGS database
• Above 20 worldwide REE projects in terms of Volume
• Above 15 worldwide projects in terms of Grade
• Proximity to domestic markets with rail export and transport infrastructure
  

Vancouver, British Columbia, March 09, 2022 (GLOBE NEWSWIRE) -- First Uranium Resources Ltd. (the "Company" or "First Uranium") (CSE: URNM) (KMMIF:OTC) is pleased to announce it has entered into a binding letter of intent (the "LOI") for an option to acquire all of the shares of Southwind Corporation ("Southwind"), a Delaware corporation, holding significant exploration and development properties in and around Independence County, Arkansas, United States of America.

About Southwind

Southwind Corporation is an Arkansas based phosphate and heavy rare earth development project operated by experienced geologists and resource entrepreneurs; Paul Barrett and Erika Syba. The project assets host high-grade, surface phosphate deposit highly enriched with heavy rare earth elements. The deposit is made up of two strategic and critical products with strong demand growth: Phosphate and Heavy Rare Earth Elements. Phosphate prices are approaching 10 year highs. The project is near producing rock quarries and is therefore in close proximity to rail export and additional transport infrastructure.

Project Characteristics

• Phosphate grade is at top end of US producing phosphates (based on the US Geological Survey)
• REE enrichment is highest in USGS database (based on the US Geological Survey)
• Above 20 worldwide REE projects in terms of anticipated volume
• Above 15 worldwide projects in terms of Grade

The project characteristics are based on US Geological Survey data and are not contained in a NI 43-101 report. The references to grade and project size and scope are therefore provided for context only and should not be relied upon by readers in assessing the technical merit of the project.

Paul Barrett, CEO of Southwind, said "We are delighted to be partnering with First Uranium on this exciting project, with combined potential for two vital commodity streams - phosphates and rare earths.  First Uranium's participation will accelerate development of this near-surface stratiform deposit, situated in the heart of the US Midwest, which has excellent potential to feed into the agricultural and high-tech metals sectors, both of which are experiencing sustained and long-term growth in feedstock demand."

Terms of LOI

Pursuant to the terms of the LOI, the Company will have the option to acquire 100% of the shares of Southwind by issuing up to 20,000,000 shares of the Company as follows:

In addition to the share payments, the Company shall be obligated to incur minimum work expenditures of not less than $3 million USD within 12 months from the completion of the NI 43-101 Report.

The Company will pay finder's fees of up to 2,000,000 shares in the event of and as and when the option is exercised by the Company.

Lee R. Beasley, CPG is a qualified person pursuant to NI 43-101 and has read and approved of the content of this news release.

Private Placement

The Company also announces a private placement of subscription receipts of up to $6,000,000 gross proceeds at a price of $0.35 per subscription receipt for a total of up to 17,150,000 subscription receipts. Each subscription receipt is convertible into one common share and one half of a share purchase warrant, each whole warrant being exercisable into a common share for a price of $0.50 per share. The proceeds of the subscription private placement will be utilized for exploration work, and acquisition and development work on the Company's Arkansas project described herein. Conversion of the subscription receipts is subject to the Company entering into a definitive option agreement with the Southwind shareholders and the proceeds from the sale of the subscription receipts will be held in escrow until the condition is satisfied.

The subscription receipt private placement will be brokered by Emerging Equities Inc. of Calgary, Alberta and is anticipated to close on or about March 31, 2022.

About First Uranium

First Uranium is a resource exploration issuer focused on locating and exploring natural resource projects in North America. The Company has one project in Saskatchewan, Canada.

For further information contact:

Kelvin Lee
Chief Financial Officer
Email: klee@k2capital.ca

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this news release.

FORWARD LOOKING STATEMENTS:

This news release includes certain statements that may be deemed "forward-looking statements". All statements in this news release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would",
"may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include regulatory actions, market prices, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.