FIRST URANIUM RESOURCES LTD. TO ACQUIRE SOUTHWIND CORPORATION

• 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

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:

• 6,666,666        upon entering into a Definitive Agreement
• 6,666,666        upon completion of an NI 43-101 Report having a minimum recommended work program of not less than USD $2 million
• 6,666,667        upon completion of development/purchase agreements with property owners

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.

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.